diff --git a/rest_framework/templates/rest_framework/base.html b/rest_framework/templates/rest_framework/base.html
index e54e38148..a84ccf269 100644
--- a/rest_framework/templates/rest_framework/base.html
+++ b/rest_framework/templates/rest_framework/base.html
@@ -5,14 +5,14 @@
 <html>
     <head>
         {% block head %}
-    
+
             {% block meta %}
                 <meta http-equiv="Content-Type" content="text/html; charset=utf-8"/>
                 <meta name="robots" content="NONE,NOARCHIVE" />
             {% endblock %}
-    
+
             <title>{% block title %}Django REST framework{% endblock %}</title>
-    
+
             {% block style %}
                 {% block bootstrap_theme %}
                     <link rel="stylesheet" type="text/css" href="{% static "rest_framework/css/bootstrap.min.css" %}"/>
@@ -21,7 +21,7 @@
                 <link rel="stylesheet" type="text/css" href="{% static "rest_framework/css/prettify.css" %}"/>
                 <link rel="stylesheet" type="text/css" href="{% static "rest_framework/css/default.css" %}"/>
             {% endblock %}
-            
+
         {% endblock %}
     </head>
 
@@ -44,17 +44,9 @@
                             <ul class="nav pull-right">
                                 {% block userlinks %}
                                     {% if user.is_authenticated %}
-                                    <li class="dropdown">
-                                        <a href="#" class="dropdown-toggle" data-toggle="dropdown">
-                                            {{ user }}
-                                            <b class="caret"></b>
-                                        </a>
-                                        <ul class="dropdown-menu">
-                                            <li>{% optional_logout request %}</li>
-                                        </ul>
-                                    </li>
+                                        {% optional_logout request user %}
                                     {% else %}
-                                        <li>{% optional_login request %}</li>
+                                        {% optional_login request %}
                                     {% endif %}
                                 {% endblock %}
                             </ul>
@@ -85,7 +77,7 @@
                             <div class="btn-group format-selection">
                                 <a class="btn btn-primary js-tooltip" href='{{ request.get_full_path }}'
                                      rel="nofollow" title="Make a GET request on the {{ name }} resource">GET</a>
-        
+
                                 <button class="btn btn-primary dropdown-toggle js-tooltip" data-toggle="dropdown"
                                         title="Specify a format for the GET request">
                                     <span class="caret"></span>
@@ -144,7 +136,7 @@
                 </div>
 
                 {% if display_edit_forms %}
-    
+
                     {% if post_form or raw_data_post_form %}
                         <div {% if post_form %}class="tabbable"{% endif %}>
                             {% if post_form %}
@@ -190,7 +182,7 @@
                             </div>
                         </div>
                     {% endif %}
-    
+
                     {% if put_form or raw_data_put_form or raw_data_patch_form %}
                         <div {% if put_form %}class="tabbable"{% endif %}>
                             {% if put_form %}
@@ -246,7 +238,7 @@
                 {% endif %}
             </div>
             <!-- END Content -->
-            
+
             <footer>
                 {% block footer %}
                     <p>Sponsored by <a href="http://dabapps.com/">DabApps</a>.</p>
diff --git a/rest_framework/templatetags/rest_framework.py b/rest_framework/templatetags/rest_framework.py
index b80a7d771..864d64dd0 100644
--- a/rest_framework/templatetags/rest_framework.py
+++ b/rest_framework/templatetags/rest_framework.py
@@ -41,22 +41,31 @@ def optional_login(request):
     except NoReverseMatch:
         return ''
 
-    snippet = "<a href='%s?next=%s'>Log in</a>" % (login_url, escape(request.path))
+    snippet = "<li><a href='{href}?next={next}'>Log in</a></li>".format(href=login_url, next=escape(request.path))
     return snippet
 
 
 @register.simple_tag
-def optional_logout(request):
+def optional_logout(request, user):
     """
     Include a logout snippet if REST framework's logout view is in the URLconf.
     """
     try:
         logout_url = reverse('rest_framework:logout')
     except NoReverseMatch:
-        return ''
+        return '<li class="navbar-text">{user}</li>'.format(user=user)
 
-    snippet = "<a href='%s?next=%s'>Log out</a>" % (logout_url, escape(request.path))
-    return snippet
+    snippet = """<li class="dropdown">
+        <a href="#" class="dropdown-toggle" data-toggle="dropdown">
+            {user}
+            <b class="caret"></b>
+        </a>
+        <ul class="dropdown-menu">
+            <li><a href='{href}?next={next}'>Log out</a></li>
+        </ul>
+    </li>"""
+
+    return snippet.format(user=user, href=logout_url, next=escape(request.path))
 
 
 @register.simple_tag
diff --git a/tests/browsable_api/__init__.py b/tests/browsable_api/__init__.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/tests/browsable_api/auth_urls.py b/tests/browsable_api/auth_urls.py
new file mode 100644
index 000000000..bce7dcf91
--- /dev/null
+++ b/tests/browsable_api/auth_urls.py
@@ -0,0 +1,10 @@
+from __future__ import unicode_literals
+from django.conf.urls import patterns, url, include
+
+from .views import MockView
+
+urlpatterns = patterns(
+    '',
+    (r'^$', MockView.as_view()),
+    url(r'^auth/', include('rest_framework.urls', namespace='rest_framework')),
+)
diff --git a/tests/browsable_api/no_auth_urls.py b/tests/browsable_api/no_auth_urls.py
new file mode 100644
index 000000000..5e3604a66
--- /dev/null
+++ b/tests/browsable_api/no_auth_urls.py
@@ -0,0 +1,9 @@
+from __future__ import unicode_literals
+from django.conf.urls import patterns
+
+from .views import MockView
+
+urlpatterns = patterns(
+    '',
+    (r'^$', MockView.as_view()),
+)
diff --git a/tests/browsable_api/test_browsable_api.py b/tests/browsable_api/test_browsable_api.py
new file mode 100644
index 000000000..5f2647838
--- /dev/null
+++ b/tests/browsable_api/test_browsable_api.py
@@ -0,0 +1,65 @@
+from __future__ import unicode_literals
+from django.contrib.auth.models import User
+from django.test import TestCase
+
+from rest_framework.test import APIClient
+
+
+class DropdownWithAuthTests(TestCase):
+    """Tests correct dropdown behaviour with Auth views enabled."""
+
+    urls = 'tests.browsable_api.auth_urls'
+
+    def setUp(self):
+        self.client = APIClient(enforce_csrf_checks=True)
+        self.username = 'john'
+        self.email = 'lennon@thebeatles.com'
+        self.password = 'password'
+        self.user = User.objects.create_user(self.username, self.email, self.password)
+
+    def tearDown(self):
+        self.client.logout()
+
+    def test_name_shown_when_logged_in(self):
+        self.client.login(username=self.username, password=self.password)
+        response = self.client.get('/')
+        self.assertContains(response, 'john')
+
+    def test_logout_shown_when_logged_in(self):
+        self.client.login(username=self.username, password=self.password)
+        response = self.client.get('/')
+        self.assertContains(response, '>Log out<')
+
+    def test_login_shown_when_logged_out(self):
+        response = self.client.get('/')
+        self.assertContains(response, '>Log in<')
+
+
+class NoDropdownWithoutAuthTests(TestCase):
+    """Tests correct dropdown behaviour with Auth views NOT enabled."""
+
+    urls = 'tests.browsable_api.no_auth_urls'
+
+    def setUp(self):
+        self.client = APIClient(enforce_csrf_checks=True)
+        self.username = 'john'
+        self.email = 'lennon@thebeatles.com'
+        self.password = 'password'
+        self.user = User.objects.create_user(self.username, self.email, self.password)
+
+    def tearDown(self):
+        self.client.logout()
+
+    def test_name_shown_when_logged_in(self):
+        self.client.login(username=self.username, password=self.password)
+        response = self.client.get('/')
+        self.assertContains(response, 'john')
+
+    def test_dropdown_not_shown_when_logged_in(self):
+        self.client.login(username=self.username, password=self.password)
+        response = self.client.get('/')
+        self.assertNotContains(response, '<li class="dropdown">')
+
+    def test_dropdown_not_shown_when_logged_out(self):
+        response = self.client.get('/')
+        self.assertNotContains(response, '<li class="dropdown">')
diff --git a/tests/browsable_api/views.py b/tests/browsable_api/views.py
new file mode 100644
index 000000000..000f4e804
--- /dev/null
+++ b/tests/browsable_api/views.py
@@ -0,0 +1,15 @@
+from __future__ import unicode_literals
+
+from rest_framework.views import APIView
+from rest_framework import authentication
+from rest_framework import renderers
+from rest_framework.response import Response
+
+
+class MockView(APIView):
+
+    authentication_classes = (authentication.SessionAuthentication,)
+    renderer_classes = (renderers.BrowsableAPIRenderer,)
+
+    def get(self, request):
+        return Response({'a': 1, 'b': 2, 'c': 3})
