diff --git a/spec/content.spec.js b/spec/content.spec.js
index 56f584c09..c5f1b8ac7 100644
--- a/spec/content.spec.js
+++ b/spec/content.spec.js
@@ -50,6 +50,21 @@ describe('Content TestCase', function () {
         }
     });
 
+    it('should cleanup after list is removed', function () {
+        this.el.innerHTML = '<ul><li>lorem</li><li>ipsum</li><li>dolor</li></ul>';
+        var editor = this.newMediumEditor('.editor', {
+                toolbar: {
+                    buttons: ['unorderedlist']
+                }
+            }),
+            target = editor.elements[0].querySelector('li'),
+            toolbar = editor.getExtensionByName('toolbar');
+
+        selectElementContentsAndFire(target);
+        fireEvent(toolbar.getToolbarElement().querySelector('[data-action="insertunorderedlist"]'), 'click');
+        expect(this.el.innerHTML).toBe('<p>lorem</p><ul><li>ipsum</li><li>dolor</li></ul>');
+    });
+
     describe('when the tab key is pressed', function () {
         it('should indent when within an <li>', function () {
             this.el.innerHTML = '<ol><li>lorem</li><li>ipsum</li></ol>';
diff --git a/src/js/core.js b/src/js/core.js
index 9def0f452..d2b3a01a1 100644
--- a/src/js/core.js
+++ b/src/js/core.js
@@ -939,7 +939,7 @@
 
             // do some DOM clean-up for known browser issues after the action
             if (action === 'insertunorderedlist' || action === 'insertorderedlist') {
-                MediumEditor.util.cleanListDOM(this.options.ownerDocument, this.getSelectedParentElement());
+                MediumEditor.util.cleanListDOM(this.options.contentWindow, this.options.ownerDocument, this.getSelectedParentElement());
             }
 
             this.checkSelection();
diff --git a/src/js/util.js b/src/js/util.js
index c2bf06c45..92af85d1e 100644
--- a/src/js/util.js
+++ b/src/js/util.js
@@ -673,19 +673,58 @@
             return false;
         },
 
-        cleanListDOM: function (ownerDocument, element) {
+        cleanListDOM: function (contentWindow, ownerDocument, element) {
             if (element.nodeName.toLowerCase() !== 'li') {
-                return;
-            }
+                var selection = contentWindow.getSelection(),
+                    newRange = ownerDocument.createRange(),
+                    oldRange = selection.getRangeAt(0),
+                    startContainer = oldRange.startContainer,
+                    startOffset = oldRange.startOffset,
+                    endContainer = oldRange.endContainer,
+                    endOffset = oldRange.endOffset,
+                    node, newNode, nextNode;
+
+                if (element.nodeName.toLowerCase() === 'span') {
+                    // Chrome unwraps removed li elements into a span
+                    node = element;
+                } else {
+                    // FF leaves them as text nodes
+                    node = startContainer;
+                }
+
+                while (node) {
+                    if (node.nodeName.toLowerCase() !== 'span' && node.nodeName.toLowerCase() !== '#text') {
+                        break;
+                    }
+
+                    if (node.nextSibling && node.nextSibling.nodeName.toLowerCase() === 'br') {
+                        node.nextSibling.remove();
+                    }
+
+                    nextNode = node.nextSibling;
 
-            var list = element.parentElement;
+                    newNode = ownerDocument.createElement('p');
+                    node.parentNode.replaceChild(newNode, node);
+                    newNode.appendChild(node);
 
-            if (list.parentElement.nodeName.toLowerCase() === 'p') { // yes we need to clean up
-                Util.unwrap(list.parentElement, ownerDocument);
+                    node = nextNode;
+                }
 
-                // move cursor at the end of the text inside the list
-                // for some unknown reason, the cursor is moved to end of the "visual" line
-                MediumEditor.selection.moveCursor(ownerDocument, element.firstChild, element.firstChild.textContent.length);
+                // Restore selection
+                newRange.setStart(startContainer, startOffset);
+                newRange.setEnd(endContainer, endOffset);
+                selection.removeAllRanges();
+                selection.addRange(newRange);
+            } else {
+                var list = element.parentElement;
+
+                if (list.parentElement.nodeName.toLowerCase() === 'p') { // yes we need to clean up
+                    Util.unwrap(list.parentElement, ownerDocument);
+
+                    // move cursor at the end of the text inside the list
+                    // for some unknown reason, the cursor is moved to end of the "visual" line
+                    MediumEditor.selection.moveCursor(ownerDocument, element.firstChild, element.firstChild.textContent.length);
+                }
             }
         },