diff --git a/app/assets/javascripts/discourse/dialects/mention_dialect.js b/app/assets/javascripts/discourse/dialects/mention_dialect.js
index 554c6fe13db..29eef5f37f8 100644
--- a/app/assets/javascripts/discourse/dialects/mention_dialect.js
+++ b/app/assets/javascripts/discourse/dialects/mention_dialect.js
@@ -11,87 +11,30 @@ Discourse.Dialect.on("register", function(event) {
   var dialect = event.dialect,
       MD = event.MD;
 
-  /**
-    Support for github style code blocks
+  dialect.inline['@'] = function(text, match, prev) {
+    var args = Array.prototype.slice.call(arguments);
 
-    @method mentionSupport
-    @param {Markdown.Block} block the block to examine
-    @param {Array} next the next blocks in the sequence
-    @return {Array} the JsonML containing the markup or undefined if nothing changed.
-    @namespace Discourse.Dialect
-  **/
-  dialect.block['mentions'] = function mentionSupport(block, next) {
-    var pattern = /(\W|^)(@[A-Za-z0-9][A-Za-z0-9_]{2,14})(?=(\W|$))/gm,
-        result,
-        remaining = block,
-        m,
-        mentionLookup = dialect.options.mentionLookup || Discourse.Mention.lookupCache;
+    // We only care about mentions on word boundaries
+    if (prev && (prev.length > 0)) {
+      var last = prev[prev.length - 1];
+      if (typeof last === "string" && (!last.match(/\W$/))) { return; }
+    }
 
-    if (block.match(/^ {3}/)) { return; }
-    if (block.match(/^\>/)) { return; }
+    var pattern = /^(@[A-Za-z0-9][A-Za-z0-9_]{2,14})(?=(\W|$))/m,
+        m = pattern.exec(text);
 
-    var pushIt = function(p) { result.push(p) },
-        backtickCount = 0,
-        dirty = false;
-
-    while (m = pattern.exec(remaining)) {
-      result = result || ['p'];
-
-      var username = m[2],
-          usernameIndex = remaining.indexOf(username),
-          before = remaining.slice(0, usernameIndex),
-          prevBacktickCount = backtickCount;
-
-
-      pattern.lastIndex = 0;
-      backtickCount = prevBacktickCount + (before.split('`').length - 1);
-      var dontMention = ((backtickCount % 2) === 1);
-
-      if (dontMention) {
-        before = before + username;
-        remaining = remaining.slice(usernameIndex + username.length);
-
-        var nextMention = remaining.indexOf("@");
-        if (nextMention !== -1) {
-          before = before + remaining.slice(0, nextMention);
-          backtickCount = prevBacktickCount + (before.split('`').length - 1);
-          remaining = remaining.slice(nextMention);
-          this.processInline(before).forEach(pushIt);
-          continue;
-        } else {
-          before = before + remaining;
-          remaining = "";
-        }
+    if (m) {
+      var username = m[1],
+          mentionLookup = dialect.options.mentionLookup || Discourse.Mention.lookupCache,
+          index = prev.indexOf(username);
 
+      if (mentionLookup(username.substr(1))) {
+        return [username.length, ['a', {'class': 'mention', href: Discourse.getURL("/users/") + username.substr(1).toLowerCase()}, username]];
       } else {
-        remaining = remaining.slice(usernameIndex + username.length);
-      }
-
-      if (before) {
-        this.processInline(before).forEach(pushIt);
-      }
-
-      if (!dontMention) {
-        if (mentionLookup(username.substr(1))) {
-          result.push(['a', {'class': 'mention', href: Discourse.getURL("/users/") + username.substr(1).toLowerCase()}, username]);
-        } else {
-          result.push(['span', {'class': 'mention'}, username]);
-        }
-        dirty = true;
-      }
-
-      if (remaining && remaining.match(/\n/)) {
-        next.unshift(MD.mk_block(remaining));
-        return [result];
+        return [username.length, ['span', {'class': 'mention'}, username]];
       }
     }
 
-    if (dirty && result) {
-      if (remaining.length) {
-        this.processInline(remaining).forEach(pushIt);
-      }
-      return [result];
-    }
   };
 
 });
diff --git a/test/javascripts/components/markdown_test.js b/test/javascripts/components/markdown_test.js
index 6d900d18c5b..f60bc7b4cf3 100644
--- a/test/javascripts/components/markdown_test.js
+++ b/test/javascripts/components/markdown_test.js
@@ -129,7 +129,7 @@ test("Mentions", function() {
          "handles mentions in simple quotes");
 
   cooked("> foo bar baz @eviltrout ohmagerd\nlook at this",
-         "<blockquote><p>foo bar baz <span class=\"mention\">@eviltrout</span></p><p> ohmagerd\nlook at this</p></blockquote>",
+         "<blockquote><p>foo bar baz <span class=\"mention\">@eviltrout</span> ohmagerd\nlook at this</p></blockquote>",
          "does mentions properly with trailing text within a simple quote");
 
   cooked("`code` is okay before @mention",
@@ -152,6 +152,10 @@ test("Mentions", function() {
          "<p><span class=\"mention\">@eviltrout</span> and <code>@eviltrout</code></p>",
          "you can have a mention in an inline code block following a real mention.");
 
+  cooked("1. this is  a list\n\n2. this is an @eviltrout mention\n",
+         "<ol><li><p>this is  a list</p></li><li><p>this is an <span class=\"mention\">@eviltrout</span> mention  </p></li></ol>",
+         "it mentions properly in a list.");
+
 });
 
 test("Oneboxing", function() {