diff --git a/src/sortable.js b/src/sortable.js
index 9f86dcd..9b2fb5a 100644
--- a/src/sortable.js
+++ b/src/sortable.js
@@ -174,6 +174,14 @@ angular.module('ui.sortable', [])
             };
 
             callbacks.remove = function(e, ui) {
+              // Workaround for a problem observed in nested connected lists.
+              // There should be an 'update' event before 'remove' when moving
+              // elements. If the event did not fire, cancel sorting.
+              if (!('dropindex' in ui.item.sortable)) {
+                element.sortable('cancel');
+                ui.item.sortable.cancel();
+              }
+
               // Remove the item from this list's model and copy data into item,
               // so the next list can retrive it
               if (!ui.item.sortable.isCanceled()) {
diff --git a/test/sortable.e2e.multi.spec.js b/test/sortable.e2e.multi.spec.js
index 3a16df7..e1dd5d4 100644
--- a/test/sortable.e2e.multi.spec.js
+++ b/test/sortable.e2e.multi.spec.js
@@ -6,11 +6,12 @@ describe('uiSortable', function() {
   beforeEach(module('ui.sortable'));
   beforeEach(module('ui.sortable.testHelper'));
   
-  var EXTRA_DY_PERCENTAGE, listContent;
+  var EXTRA_DY_PERCENTAGE, listContent, listInnerContent;
 
   beforeEach(inject(function (sortableTestHelper) {
     EXTRA_DY_PERCENTAGE = sortableTestHelper.EXTRA_DY_PERCENTAGE;
     listContent = sortableTestHelper.listContent;
+    listInnerContent = sortableTestHelper.listInnerContent;
   }));
 
   describe('Multiple sortables related', function() {
@@ -346,6 +347,110 @@ describe('uiSortable', function() {
       });
     });
 
+    it('should update model when sorting between nested sortables', function() {
+      inject(function($compile, $rootScope) {
+        var elementTree, li1, li2, dy;
+
+        elementTree = $compile(''.concat(
+          '<ul ui-sortable="sortableOptions" ng-model="items" class="apps-container outterList" style="float: left;margin-left: 10px;padding-bottom: 10px;">',
+            '<li ng-repeat="item in items">',
+              '<div>',
+                '<span class="itemContent lvl1ItemContent">{{item.text}}</span>',
+                '<ul ui-sortable="sortableOptions" ng-model="item.items" class="apps-container innerList" style="margin-left: 10px;padding-bottom: 10px;">',
+                  '<li ng-repeat="i in item.items">',
+                    '<span class="itemContent lvl2ItemContent">{{i.text}}</span>',
+                  '</li>',
+                '</ul>',
+              '</div>',
+            '</li>',
+          '</ul>',
+          '<div style="clear: both;"></div>'))($rootScope);
+
+        $rootScope.$apply(function() {
+          $rootScope.items = [
+            {
+              text: 'Item 1',
+              items: []
+            },
+            {
+              text: 'Item 2',
+              items: [
+                { text: 'Item 2.1', items: [] },
+                { text: 'Item 2.2', items: [] }
+              ]
+            }
+          ];
+          
+          $rootScope.sortableOptions = {
+            connectWith: '.apps-container'
+          };
+        });
+
+        host.append(elementTree);
+
+        // this should drag the item out of the list and
+        // the item should return back to its original position
+        li1 = elementTree.find('.innerList:last').find(':last');
+        li1.simulate('drag', { dx: -200, moves: 30 });
+        expect($rootScope.items.map(function(x){ return x.text; }))
+          .toEqual(['Item 1', 'Item 2']);
+        expect($rootScope.items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree, '.lvl1ItemContent'));
+        expect($rootScope.items[0].items.map(function(x){ return x.text; }))
+          .toEqual([]);
+        expect($rootScope.items[0].items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree.find('.innerList:eq(0)'), '.lvl2ItemContent'));
+        expect($rootScope.items[1].items.map(function(x){ return x.text; }))
+          .toEqual(['Item 2.1', 'Item 2.2']);
+        expect($rootScope.items[1].items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree.find('.innerList:eq(1)'), '.lvl2ItemContent'));
+
+        // this should drag the item from the inner list and
+        // drop it to the outter list
+        li1 = elementTree.find('.innerList:last').find(':last');
+        li2 = elementTree.find('> li:last');
+        dy = EXTRA_DY_PERCENTAGE * li1.outerHeight() + (li2.position().top - li1.position().top);
+        li1.simulate('drag', { dy: dy });
+        expect($rootScope.items.map(function(x){ return x.text; }))
+          .toEqual(['Item 1', 'Item 2.2', 'Item 2']);
+        expect($rootScope.items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree, '.lvl1ItemContent'));
+        expect($rootScope.items[0].items.map(function(x){ return x.text; }))
+          .toEqual([]);
+        expect($rootScope.items[0].items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree.find('.innerList:eq(0)'), '.lvl2ItemContent'));
+        expect($rootScope.items[1].items.map(function(x){ return x.text; }))
+          .toEqual([]);
+        expect($rootScope.items[1].items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree.find('.innerList:eq(1)'), '.lvl2ItemContent'));
+        expect($rootScope.items[2].items.map(function(x){ return x.text; }))
+          .toEqual(['Item 2.1']);
+        expect($rootScope.items[2].items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree.find('.innerList:eq(2)'), '.lvl2ItemContent'));
+
+        // this should drag the item from the outter list and
+        // drop it to the inner list
+        li1 = elementTree.find('> li:first');
+        li2 = elementTree.find('.innerList:last').find(':last');
+        dy = -EXTRA_DY_PERCENTAGE * li1.outerHeight() + (li2.position().top - li1.position().top);
+        li1.simulate('drag', { dy: dy });
+        expect($rootScope.items.map(function(x){ return x.text; }))
+          .toEqual(['Item 2.2', 'Item 2']);
+        expect($rootScope.items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree, '.lvl1ItemContent'));
+        expect($rootScope.items[0].items.map(function(x){ return x.text; }))
+          .toEqual([]);
+        expect($rootScope.items[0].items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree.find('.innerList:eq(0)'), '.lvl2ItemContent'));
+        expect($rootScope.items[1].items.map(function(x){ return x.text; }))
+          .toEqual(['Item 1', 'Item 2.1']);
+        expect($rootScope.items[1].items.map(function(x){ return x.text; }))
+          .toEqual(listInnerContent(elementTree.find('.innerList:eq(1)'), '.lvl2ItemContent'));
+
+        $(elementTree).remove();
+      });
+    });
+
   });
 
 });
\ No newline at end of file
diff --git a/test/sortable.test-helper.js b/test/sortable.test-helper.js
index d0c298f..11141d1 100644
--- a/test/sortable.test-helper.js
+++ b/test/sortable.test-helper.js
@@ -11,9 +11,13 @@ angular.module('ui.sortable.testHelper', [])
       return [];
     }
 
-    function listInnerContent (list) {
+    function listInnerContent (list, contentSelector) {
+      if (!contentSelector) {
+        contentSelector = '.itemContent';
+      }
+
       if (list && list.length) {
-        return list.children().map(function(){ return $(this).find('.itemContent').html(); }).toArray();
+        return list.children().map(function(){ return $(this).find(contentSelector).html(); }).toArray();
       }
       return [];
     }