diff --git a/rest_framework/templates/rest_framework/base.html b/rest_framework/templates/rest_framework/base.html
index 5a12277bc..a84ccf269 100644
--- a/rest_framework/templates/rest_framework/base.html
+++ b/rest_framework/templates/rest_framework/base.html
@@ -46,7 +46,7 @@
                                     {% if user.is_authenticated %}
                                         {% optional_logout request user %}
                                     {% else %}
-                                        <li>{% optional_login request %}</li>
+                                        {% optional_login request %}
                                     {% endif %}
                                 {% endblock %}
                             </ul>
diff --git a/rest_framework/templatetags/rest_framework.py b/rest_framework/templatetags/rest_framework.py
index f7332c3b5..c228d5c3d 100644
--- a/rest_framework/templatetags/rest_framework.py
+++ b/rest_framework/templatetags/rest_framework.py
@@ -41,7 +41,7 @@ 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='%s?next=%s'>Log in</a></li>" % (login_url, escape(request.path))
     return snippet