diff --git a/moto/iam/models.py b/moto/iam/models.py
index 4502d6da0..60b9b743d 100644
--- a/moto/iam/models.py
+++ b/moto/iam/models.py
@@ -176,15 +176,15 @@ class Group(object):
 
 
 class User(object):
-    def __init__(self, name, path='/'):
+    def __init__(self, name, path=None):
         self.name = name
         self.id = random_resource_id()
-        self.path = path
+        self.path = path if path else "/"
         self.created = datetime.strftime(
             datetime.utcnow(),
             "%Y-%m-%d-%H-%M-%S"
         )
-        self.arn = 'arn:aws:iam::123456789012:user/{0}'.format(name)
+        self.arn = 'arn:aws:iam::123456789012:user{0}{1}'.format(self.path, name)
         self.policies = {}
         self.access_keys = []
         self.password = None
@@ -591,7 +591,7 @@ class IAMBackend(BaseBackend):
     def list_users(self, path_prefix, marker, max_items):
         users = None
         try:
-            users = self.users
+            users = self.users.values()
         except KeyError:
             raise IAMNotFoundException("Users {0}, {1}, {2} not found".format(path_prefix, marker, max_items))
 
diff --git a/moto/iam/responses.py b/moto/iam/responses.py
index d707c35ed..223691e1e 100644
--- a/moto/iam/responses.py
+++ b/moto/iam/responses.py
@@ -204,9 +204,9 @@ class IamResponse(BaseResponse):
         path_prefix = self._get_param('PathPrefix')
         marker = self._get_param('Marker')
         max_items = self._get_param('MaxItems')
-        user = iam_backend.list_users(path_prefix, marker, max_items)
+        users = iam_backend.list_users(path_prefix, marker, max_items)
         template = self.response_template(LIST_USERS_TEMPLATE)
-        return template.render(action='List', user=user)
+        return template.render(action='List', users=users)
 
     def create_login_profile(self):
         user_name = self._get_param('UserName')
@@ -724,7 +724,7 @@ LIST_USERS_TEMPLATE = """<{{ action }}UsersResponse>
              <UserId>{{ user.id }}</UserId>
              <Path>{{ user.path }}</Path>
              <UserName>{{ user.name }}</UserName>
-             <Arn>arn:aws:iam::123456789012:user/{{ user.path }}/{{ user.name }}</Arn>
+             <Arn>{{ user.arn }}</Arn>
          </member>
          {% endfor %}
      </Users>
diff --git a/tests/test_iam/test_iam.py b/tests/test_iam/test_iam.py
index c276c8a80..bedea4e01 100644
--- a/tests/test_iam/test_iam.py
+++ b/tests/test_iam/test_iam.py
@@ -196,10 +196,10 @@ def test_list_users():
     conn = boto3.client('iam')
     conn.create_user(UserName='my-user')
     response = conn.list_users(PathPrefix=path_prefix, MaxItems=max_items)
-    assert_equals(
-        response['Users'],
-        []
-    )
+    user = response['Users'][0]
+    user['UserName'].should.equal('my-user')
+    user['Path'].should.equal('/')
+    user['Arn'].should.equal('arn:aws:iam::123456789012:user/my-user')
 
 
 @mock_iam()