diff --git a/django/template/defaultfilters.py b/django/template/defaultfilters.py
index 6779b9b5f2..22babfd6c0 100644
--- a/django/template/defaultfilters.py
+++ b/django/template/defaultfilters.py
@@ -355,8 +355,8 @@ def unordered_list(value):
     Recursively takes a self-nested list and returns an HTML unordered list --
     WITHOUT opening and closing <ul> tags.
 
-    The list is assumed to be in the proper format. For example, if ``var`` contains
-    ``['States', [['Kansas', [['Lawrence', []], ['Topeka', []]]], ['Illinois', []]]]``,
+    The list is assumed to be in the proper format. For example, if ``var``
+    contains: ``['States', ['Kansas', ['Lawrence', 'Topeka'], 'Illinois']]``,
     then ``{{ var|unordered_list }}`` would return::
 
         <li>States
@@ -371,14 +371,61 @@ def unordered_list(value):
         </ul>
         </li>
     """
-    def _helper(value, tabs):
+    def convert_old_style_list(list_):
+        """
+        Converts old style lists to the new easier to understand format.
+
+        The old list format looked like:
+            ['Item 1', [['Item 1.1', []], ['Item 1.2', []]]
+
+        And it is converted to:
+            ['Item 1', ['Item 1.1', 'Item 1.2]]
+        """
+        if not isinstance(list_, (tuple, list)) or len(list_) != 2:
+            return list_, False
+        first_item, second_item = list_
+        if second_item == []:
+            return [first_item], True
+        old_style_list = True
+        new_second_item = []
+        for sublist in second_item:
+            item, old_style_list = convert_old_style_list(sublist)
+            if not old_style_list:
+                break
+            new_second_item.extend(item)
+        if old_style_list:
+            second_item = new_second_item
+        return [first_item, second_item], old_style_list
+    def _helper(list_, tabs=1):
         indent = u'\t' * tabs
-        if value[1]:
-            return u'%s<li>%s\n%s<ul>\n%s\n%s</ul>\n%s</li>' % (indent, force_unicode(value[0]), indent,
-                u'\n'.join([_helper(v, tabs+1) for v in value[1]]), indent, indent)
-        else:
-            return u'%s<li>%s</li>' % (indent, force_unicode(value[0]))
-    return _helper(value, 1)
+        output = []
+
+        list_length = len(list_)
+        i = 0
+        while i < list_length:
+            title = list_[i]
+            sublist = ''
+            sublist_item = None
+            if isinstance(title, (list, tuple)):
+                sublist_item = title 
+                title = ''
+            elif i < list_length - 1:
+                next_item = list_[i+1]
+                if next_item and isinstance(next_item, (list, tuple)):
+                    # The next item is a sub-list.
+                    sublist_item = next_item
+                    # We've processed the next item now too.
+                    i += 1 
+            if sublist_item:
+                sublist = _helper(sublist_item, tabs+1)
+                sublist = '\n%s<ul>\n%s\n%s</ul>\n%s' % (indent, sublist,
+                                                         indent, indent)
+            output.append('%s<li>%s%s</li>' % (indent, force_unicode(title),
+                                               sublist))
+            i += 1
+        return '\n'.join(output)
+    value, converted = convert_old_style_list(value) 
+    return _helper(value)
 
 ###################
 # INTEGERS        #
diff --git a/docs/templates.txt b/docs/templates.txt
index 6cebd3b7bd..8bfa40dc5f 100644
--- a/docs/templates.txt
+++ b/docs/templates.txt
@@ -1301,9 +1301,14 @@ unordered_list
 Recursively takes a self-nested list and returns an HTML unordered list --
 WITHOUT opening and closing <ul> tags.
 
+**Changed in Django development version**
+
+The format accepted by ``unordered_list`` has changed to an easier to
+understand format.
+
 The list is assumed to be in the proper format. For example, if ``var`` contains
-``['States', [['Kansas', [['Lawrence', []], ['Topeka', []]]], ['Illinois', []]]]``,
-then ``{{ var|unordered_list }}`` would return::
+``['States', ['Kansas', ['Lawrence', 'Topeka'], 'Illinois']]``, then
+``{{ var|unordered_list }}`` would return::
 
     <li>States
     <ul>
@@ -1317,6 +1322,9 @@ then ``{{ var|unordered_list }}`` would return::
     </ul>
     </li>
 
+Note: the previous more restrictive and verbose format is still supported:
+``['States', [['Kansas', [['Lawrence', []], ['Topeka', []]]], ['Illinois', []]]]``,
+
 upper
 ~~~~~
 
diff --git a/tests/regressiontests/defaultfilters/tests.py b/tests/regressiontests/defaultfilters/tests.py
index a1efae66f6..9482f1cc9f 100644
--- a/tests/regressiontests/defaultfilters/tests.py
+++ b/tests/regressiontests/defaultfilters/tests.py
@@ -266,6 +266,22 @@ u'bc'
 >>> slice_(u'abcdefg', u'0::2')
 u'aceg'
 
+>>> unordered_list([u'item 1', u'item 2'])
+u'\t<li>item 1</li>\n\t<li>item 2</li>'
+
+>>> unordered_list([u'item 1', [u'item 1.1']])
+u'\t<li>item 1\n\t<ul>\n\t\t<li>item 1.1</li>\n\t</ul>\n\t</li>'
+
+>>> unordered_list([u'item 1', [u'item 1.1', u'item1.2'], u'item 2'])
+u'\t<li>item 1\n\t<ul>\n\t\t<li>item 1.1</li>\n\t\t<li>item1.2</li>\n\t</ul>\n\t</li>\n\t<li>item 2</li>'
+
+>>> unordered_list([u'item 1', [u'item 1.1', [u'item 1.1.1', [u'item 1.1.1.1']]]])
+u'\t<li>item 1\n\t<ul>\n\t\t<li>item 1.1\n\t\t<ul>\n\t\t\t<li>item 1.1.1\n\t\t\t<ul>\n\t\t\t\t<li>item 1.1.1.1</li>\n\t\t\t</ul>\n\t\t\t</li>\n\t\t</ul>\n\t\t</li>\n\t</ul>\n\t</li>'
+
+>>> unordered_list(['States', ['Kansas', ['Lawrence', 'Topeka'], 'Illinois']])
+u'\t<li>States\n\t<ul>\n\t\t<li>Kansas\n\t\t<ul>\n\t\t\t<li>Lawrence</li>\n\t\t\t<li>Topeka</li>\n\t\t</ul>\n\t\t</li>\n\t\t<li>Illinois</li>\n\t</ul>\n\t</li>'
+
+# Old format for unordered lists should still work
 >>> unordered_list([u'item 1', []])
 u'\t<li>item 1</li>'
 
@@ -275,6 +291,9 @@ u'\t<li>item 1\n\t<ul>\n\t\t<li>item 1.1</li>\n\t</ul>\n\t</li>'
 >>> unordered_list([u'item 1', [[u'item 1.1', []], [u'item 1.2', []]]])
 u'\t<li>item 1\n\t<ul>\n\t\t<li>item 1.1</li>\n\t\t<li>item 1.2</li>\n\t</ul>\n\t</li>'
 
+>>> unordered_list(['States', [['Kansas', [['Lawrence', []], ['Topeka', []]]], ['Illinois', []]]])
+u'\t<li>States\n\t<ul>\n\t\t<li>Kansas\n\t\t<ul>\n\t\t\t<li>Lawrence</li>\n\t\t\t<li>Topeka</li>\n\t\t</ul>\n\t\t</li>\n\t\t<li>Illinois</li>\n\t</ul>\n\t</li>'
+
 >>> add(u'1', u'2')
 3