diff --git a/src/if_py_both.h b/src/if_py_both.h
index 2903b0b..9dbff1c 100644
--- a/src/if_py_both.h
+++ b/src/if_py_both.h
@@ -2815,6 +2815,7 @@
 ListIterDestruct(listiterinfo_T *lii)
 {
     list_rem_watch(lii->list, &lii->lw);
+    list_unref(lii->list);
     PyMem_Free(lii);
 }
 
@@ -2850,6 +2851,7 @@
     list_add_watch(l, &lii->lw);
     lii->lw.lw_item = l->lv_first;
     lii->list = l;
+    ++l->lv_refcount;
 
     return IterNew(lii,
 	    (destructorfun) ListIterDestruct, (nextfun) ListIterNext,
diff --git a/src/testdir/test_python3.vim b/src/testdir/test_python3.vim
index 6afb76d..58b6427 100644
--- a/src/testdir/test_python3.vim
+++ b/src/testdir/test_python3.vim
@@ -574,6 +574,9 @@
   py3 ll[2] = 8
   call assert_equal([1, 2, 8], l)
 
+  " iterating over list from Python
+  py3 print([x for x in vim.Function("getline")(1, 2)])
+
   " Using dict as an index
   call AssertException(['py3 ll[{}] = 10'],
         \ 'Vim(py3):TypeError: index must be int or slice, not dict')
diff --git a/src/version.c b/src/version.c
index 8d29d52..a64037d 100644
--- a/src/version.c
+++ b/src/version.c
@@ -751,6 +751,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    2538,
+/**/
     2537,
 /**/
     2536,