diff --git a/iron-list.html b/iron-list.html
index d96a4e1f..76fb1860 100644
--- a/iron-list.html
+++ b/iron-list.html
@@ -1862,13 +1862,16 @@
     _keydownHandler: function(e) {
       switch (e.keyCode) {
         case /* ARROW_DOWN */ 40:
-          e.preventDefault();
+          if (this._focusedVirtualIndex < this._virtualCount - 1)
+            e.preventDefault();
           this._focusPhysicalItem(this._focusedVirtualIndex + (this.grid ? this._itemsPerRow : 1));
           break;
         case /* ARROW_RIGHT */ 39:
           if (this.grid) this._focusPhysicalItem(this._focusedVirtualIndex + (this._isRTL ? -1 : 1));
           break;
         case /* ARROW_UP */ 38:
+          if (this._focusedVirtualIndex > 0)
+            e.preventDefault();
           this._focusPhysicalItem(this._focusedVirtualIndex - (this.grid ? this._itemsPerRow : 1));
           break;
         case /* ARROW_LEFT */ 37:
diff --git a/test/focus.html b/test/focus.html
index 16012ff0..3fb0347c 100644
--- a/test/focus.html
+++ b/test/focus.html
@@ -252,6 +252,62 @@
       });
     });
 
+    test('up arrow when first item has focus, defaultPrevented is false', function(done) {
+      list.items = buildDataSet(2);
+      flush(function() {
+        getNthItemFromList(list, 0).focus();
+        var handler = e => {
+          document.removeEventListener('keydown', handler);
+          assert.isFalse(e.defaultPrevented);
+          done();
+        };
+        document.addEventListener('keydown', handler);
+        MockInteractions.pressAndReleaseKeyOn(list, 38); // up
+      });
+    });
+
+    test('down arrow when last item has focus, defaultPrevented is false', function(done) {
+      list.items = buildDataSet(2);
+      flush(function() {
+        getNthItemFromList(list, 1).focus();
+        var handler = e => {
+          document.removeEventListener('keydown', handler);
+          assert.isFalse(e.defaultPrevented);
+          done();
+        };
+        document.addEventListener('keydown', handler);
+        MockInteractions.pressAndReleaseKeyOn(list, 40); // down
+      });
+    });
+
+    test('up arrow when second item has focus, defaultPrevented is true', function(done) {
+      list.items = buildDataSet(2);
+      flush(function() {
+        getNthItemFromList(list, 1).focus();
+        var handler = e => {
+          document.removeEventListener('keydown', handler);
+          assert.isTrue(e.defaultPrevented);
+          done();
+        };
+        document.addEventListener('keydown', handler);
+        MockInteractions.pressAndReleaseKeyOn(list, 38); // up
+      });
+    });
+
+    test('down arrow when second to last item has focus, defaultPrevented is true', function(done) {
+      list.items = buildDataSet(2);
+      flush(function() {
+        getNthItemFromList(list, 0).focus();
+        var handler = e => {
+          document.removeEventListener('keydown', handler);
+          assert.isTrue(e.defaultPrevented);
+          done();
+        };
+        document.addEventListener('keydown', handler);
+        MockInteractions.pressAndReleaseKeyOn(list, 40); // down
+      });
+    });
+
     test('first click recognized in long lists (#411)', function(done) {
       list.items = buildDataSet(100);