diff --git a/gcloud/datastore/connection.py b/gcloud/datastore/connection.py
index 36ce9bbd297d..96ae478a5177 100644
--- a/gcloud/datastore/connection.py
+++ b/gcloud/datastore/connection.py
@@ -415,7 +415,11 @@ def save_entity(self, dataset_id, key_pb, properties,
             helpers._set_protobuf_value(prop.value, value)
 
             if name in exclude_from_indexes:
-                prop.value.indexed = False
+                if not isinstance(value, list):
+                    prop.value.indexed = False
+
+                for sub_value in prop.value.list_value:
+                    sub_value.indexed = False
 
         # If this is in a transaction, we should just return True. The
         # transaction will handle assigning any keys as necessary.
diff --git a/gcloud/datastore/test_connection.py b/gcloud/datastore/test_connection.py
index d425d4654184..b3476dd42058 100644
--- a/gcloud/datastore/test_connection.py
+++ b/gcloud/datastore/test_connection.py
@@ -672,6 +672,7 @@ def test_save_entity_wo_transaction_w_upsert(self):
     def test_save_entity_w_exclude_from_indexes(self):
         from gcloud.datastore.connection import datastore_pb
         from gcloud.datastore.key import Key
+        import operator
 
         DATASET_ID = 'DATASET'
         key_pb = Key(path=[{'kind': 'Kind', 'id': 1234}]).to_protobuf()
@@ -686,8 +687,9 @@ def test_save_entity_w_exclude_from_indexes(self):
             'commit',
         ])
         http = conn._http = Http({'status': '200'}, rsp_pb.SerializeToString())
-        result = conn.save_entity(DATASET_ID, key_pb, {'foo': u'Foo'},
-                                  exclude_from_indexes=['foo'])
+        result = conn.save_entity(DATASET_ID, key_pb,
+                                  {'foo': u'Foo', 'bar': [u'bar1', u'bar2']},
+                                  exclude_from_indexes=['foo', 'bar'])
         self.assertEqual(result, True)
         cw = http._called_with
         self.assertEqual(cw['uri'], URI)
@@ -705,11 +707,19 @@ def test_save_entity_w_exclude_from_indexes(self):
         self.assertEqual(len(upserts), 1)
         upsert = upserts[0]
         self.assertEqual(upsert.key, key_pb)
-        props = list(upsert.property)
-        self.assertEqual(len(props), 1)
+        props = sorted(upsert.property,
+                       key=operator.attrgetter('name'),
+                       reverse=True)
+        self.assertEqual(len(props), 2)
         self.assertEqual(props[0].name, 'foo')
         self.assertEqual(props[0].value.string_value, u'Foo')
         self.assertEqual(props[0].value.indexed, False)
+        self.assertEqual(props[1].name, 'bar')
+        self.assertEqual(props[1].value.list_value[0].string_value, 'bar1')
+        self.assertEqual(props[1].value.list_value[1].string_value, 'bar2')
+        self.assertEqual(props[1].value.HasField('indexed'), False)
+        self.assertEqual(props[1].value.list_value[0].indexed, False)
+        self.assertEqual(props[1].value.list_value[1].indexed, False)
         self.assertEqual(len(mutation.delete), 0)
         self.assertEqual(request.mode, rq_class.NON_TRANSACTIONAL)