diff --git a/doc/Rules.md b/doc/Rules.md
index b2896a4b..50760136 100644
--- a/doc/Rules.md
+++ b/doc/Rules.md
@@ -167,6 +167,16 @@ or the tab key is used to indent. Starting a list 1 space in means that the
 indent of the first nested list is less than the indent of the second level (3
 characters if you use 4 space tabs, or 1 character if you use 2 space tabs).
 
+Note: This rule is triggered for the following scenario because the unordered
+sublist is not recognized as such by the parser. Not being nested 3 characters
+as required by the outer ordered list, it creates a top-level unordered list
+instead.
+
+    1. List item
+      - List item
+      - List item
+    1. List item
+
 ## MD007 - Unordered list indentation
 
 Tags: bullet, ul, indentation
@@ -202,6 +212,10 @@ require a 4 space indents. See
 <http://support.markedapp.com/discussions/problems/21-sub-lists-not-indenting>
 for a description of the problem.
 
+Note: This rule applies to a sublist only if its parent lists are all also
+unordered (otherwise, extra indentation of ordered lists interferes with the
+rule).
+
 ## MD009 - Trailing spaces
 
 Tags: whitespace
diff --git a/lib/rules.js b/lib/rules.js
index 36e52118..8c3f2537 100644
--- a/lib/rules.js
+++ b/lib/rules.js
@@ -121,7 +121,9 @@ function flattenLists(params) {
         // Save current context and start a new one
         stack.push(current);
         current = {
-          "ordered": (token.type === "ordered_list_open"),
+          "unordered": (token.type === "bullet_list_open"),
+          "parentsUnordered": !current ||
+            (current.unordered && current.parentsUnordered),
           "open": token,
           "items": [],
           "nesting": stack.length - 1,
@@ -223,7 +225,7 @@ module.exports = [
     "func": function MD004(params, errors) {
       var style = params.options.style || "consistent";
       flattenLists(params).forEach(function forList(list) {
-        if (!list.ordered) {
+        if (list.unordered) {
           if (style === "consistent") {
             style = unorderedListStyleFor(list.items[0]);
           }
@@ -261,7 +263,7 @@ module.exports = [
     "aliases": [ "ul-start-left" ],
     "func": function MD006(params, errors) {
       flattenLists(params).forEach(function forList(list) {
-        if (!list.ordered && !list.nesting && indentFor(list.open)) {
+        if (list.unordered && !list.nesting && indentFor(list.open)) {
           errors.push(list.open.lineNumber);
         }
       });
@@ -277,7 +279,7 @@ module.exports = [
       var optionsIndent = params.options.indent || 2;
       var prevIndent = 0;
       flattenLists(params).forEach(function forList(list) {
-        if (!list.ordered) {
+        if (list.unordered && list.parentsUnordered) {
           var indent = indentFor(list.open);
           if ((indent > prevIndent) &&
               ((indent - prevIndent) !== optionsIndent)) {
@@ -602,7 +604,7 @@ module.exports = [
     "func": function MD029(params, errors) {
       var style = params.options.style || "one";
       flattenLists(params).forEach(function forList(list) {
-        if (list.ordered) {
+        if (!list.unordered) {
           var number = 1;
           list.items.forEach(function forItem(item) {
             var re = new RegExp("^\\s*" + String(number) + "\\.");
@@ -631,9 +633,9 @@ module.exports = [
       flattenLists(params).forEach(function forList(list) {
         var lineCount = list.lastLineIndex - list.open.map[0];
         var allSingle = lineCount === list.items.length;
-        var expectedSpaces = list.ordered ?
-          (allSingle ? olSingle : olMulti) :
-          (allSingle ? ulSingle : ulMulti);
+        var expectedSpaces = list.unordered ?
+          (allSingle ? ulSingle : ulMulti) :
+          (allSingle ? olSingle : olMulti);
         list.items.forEach(function forItem(item) {
           var match = /^\s*\S+(\s+)/.exec(item.line);
           if (!match || (match[1].length !== expectedSpaces)) {
diff --git a/test/lists-with-nesting.md b/test/lists-with-nesting.md
new file mode 100644
index 00000000..6ce1ed19
--- /dev/null
+++ b/test/lists-with-nesting.md
@@ -0,0 +1,73 @@
+# Heading
+
+## Excessive nesting
+
+- one
+   1. two
+   1. three
+- four
+
+1. one
+    - two
+    - three
+1. four
+
+## Insufficient nesting
+
+- one
+ 1. two
+ 1. three
+- four
+
+1. one
+  - two {MD006}
+  - three
+1. four
+
+## Correct nesting, same type
+
+- one
+  - two
+  - three
+- four
+
+1. one
+   1. two
+   1. three
+1. four
+
+## Correct nesting, different types
+
+- one
+  1. two
+  1. three
+- four
+
+1. one
+   - two
+   - three
+1. four
+
+1. one
+   - two
+     - three
+
+- one
+  1. two
+     - three
+
+- one
+  - two
+    1. three
+
+1. one
+   1. two
+      - three
+
+1. one
+   - two
+     1. three
+
+- one
+  1. two
+     1. three