diff --git a/wp-includes/category-template.php b/wp-includes/category-template.php
index fab2640c0b..ac992d6b3c 100644
--- a/wp-includes/category-template.php
+++ b/wp-includes/category-template.php
@@ -624,8 +624,9 @@ function wp_list_categories( $args = '' ) {
 		$output .= walk_category_tree( $categories, $depth, $r );
 	}
 
-	if ( $r['title_li'] && 'list' == $r['style'] )
+	if ( $r['title_li'] && 'list' == $r['style'] && ( ! empty( $categories ) || ! $r['hide_title_if_empty'] ) ) {
 		$output .= '</ul></li>';
+	}
 
 	/**
 	 * Filters the HTML output of a taxonomy list.
diff --git a/wp-includes/version.php b/wp-includes/version.php
index b971fddc06..6b3b87cae5 100644
--- a/wp-includes/version.php
+++ b/wp-includes/version.php
@@ -4,7 +4,7 @@
  *
  * @global string $wp_version
  */
-$wp_version = '4.7-beta4-39279';
+$wp_version = '4.7-beta4-39280';
 
 /**
  * Holds the WordPress DB revision, increments when changes are made to the WordPress DB schema.