diff --git a/src/parser.c b/src/parser.c
index 0447fe8..ae773aa 100644
--- a/src/parser.c
+++ b/src/parser.c
@@ -328,7 +328,6 @@ static Bool CanPrune( TidyDocImpl* doc, Node *element )
     if (nodeIsDD(element))
         return no;
 
-
     return yes;
 }
 
@@ -2514,7 +2513,14 @@ void TY_(ParseList)(TidyDocImpl* doc, Node *list, GetTokenMode ARG_UNUSED(mode))
             continue;
         }
 
-        if ( !nodeIsLI(node) )
+        if ( nodeIsLI(node) || TY_(IsHTML5Mode)(doc))
+        {
+            /* node is <LI> 
+               Issue #396 - A <ul> can have Zero or more li elements
+             */
+            TY_(InsertNodeAtEnd)(list,node);
+        }
+        else
         {
             TY_(UngetToken)( doc );
 
@@ -2567,9 +2573,6 @@ void TY_(ParseList)(TidyDocImpl* doc, Node *list, GetTokenMode ARG_UNUSED(mode))
                 TY_(InsertNodeAtEnd)(list,node);
             }
         }
-        else
-            /* node is <LI> */
-            TY_(InsertNodeAtEnd)(list,node);
 
         ParseTag( doc, node, IgnoreWhitespace);
     }
diff --git a/src/tags.c b/src/tags.c
index ed3436c..9e77fcb 100644
--- a/src/tags.c
+++ b/src/tags.c
@@ -780,6 +780,12 @@ void TY_(AdjustTags)( TidyDocImpl *doc )
     }
 }
 
+Bool TY_(IsHTML5Mode)( TidyDocImpl *doc )
+{
+    return doc->HTML5Mode;
+}
+
+
 /*\
  * Issue #285
  * Reset the table to default HTML5 mode.
@@ -809,6 +815,7 @@ void TY_(ResetTags)( TidyDocImpl *doc )
 #if ELEMENT_HASH_LOOKUP
     tagsEmptyHash( doc, tags ); /* not sure this is really required, but to be sure */
 #endif
+    doc->HTML5Mode = yes;   /* set HTML5 mode */
 }
 
 void TY_(FreeTags)( TidyDocImpl* doc )
@@ -823,6 +830,8 @@ void TY_(FreeTags)( TidyDocImpl* doc )
 
     /* get rid of dangling tag references */
     TidyClearMemory( tags, sizeof(TidyTagImpl) );
+
+    doc->HTML5Mode = no;    /* reset html5 mode == legacy html4 mode */
 }
 
 
diff --git a/src/tags.h b/src/tags.h
index 2412717..de75809 100644
--- a/src/tags.h
+++ b/src/tags.h
@@ -88,6 +88,7 @@ void TY_(InitTags)( TidyDocImpl* doc );
 void TY_(FreeTags)( TidyDocImpl* doc );
 void TY_(AdjustTags)( TidyDocImpl *doc ); /* if NOT HTML5 DOCTYPE, fall back to HTML4 legacy mode */
 void TY_(ResetTags)( TidyDocImpl *doc ); /* set table to HTML5 mode */
+Bool TY_(IsHTML5Mode)( TidyDocImpl *doc );
 
 /* Parser methods for tags */
 
diff --git a/src/tidy-int.h b/src/tidy-int.h
index bf1ccd3..e76cb1d 100755
--- a/src/tidy-int.h
+++ b/src/tidy-int.h
@@ -76,6 +76,8 @@ struct _TidyDocImpl
     uint                badChars;    /* for bad char encodings */
     uint                badForm;     /* bit field, for badly placed form tags, or other format errors */
 
+    Bool                HTML5Mode;  /* current mode is html5 */
+
     /* Memory allocator */
     TidyAllocator*      allocator;