diff --git a/helpers/url.go b/helpers/url.go
index c7697b092..68079ce20 100644
--- a/helpers/url.go
+++ b/helpers/url.go
@@ -292,12 +292,12 @@ func AddContextRoot(baseURL, relativePath string) string {
 // URLizeAndPrep applies misc sanitation to the given URL to get it in line
 // with the Hugo standard.
 func (p *PathSpec) URLizeAndPrep(in string) string {
-	return URLPrep(p.uglyURLs, p.URLize(in))
+	return p.URLPrep(p.URLize(in))
 }
 
 // URLPrep applies misc sanitation to the given URL.
-func URLPrep(ugly bool, in string) string {
-	if ugly {
+func (p *PathSpec) URLPrep(in string) string {
+	if p.uglyURLs {
 		x := Uglify(SanitizeURL(in))
 		return x
 	}
diff --git a/helpers/url_test.go b/helpers/url_test.go
index 4072b40e2..8dbec3f7c 100644
--- a/helpers/url_test.go
+++ b/helpers/url_test.go
@@ -248,7 +248,10 @@ func TestURLPrep(t *testing.T) {
 		{true, "/section/name/index.html", "/section/name.html"},
 	}
 	for i, d := range data {
-		output := URLPrep(d.ugly, d.input)
+		viper.Set("uglyURLs", d.ugly)
+		p := NewPathSpecFromConfig(viper.GetViper())
+
+		output := p.URLPrep(d.input)
 		if d.output != output {
 			t.Errorf("Test #%d failed. Expected %q got %q", i, d.output, output)
 		}
diff --git a/hugolib/embedded_shortcodes_test.go b/hugolib/embedded_shortcodes_test.go
index 0576ca02c..5ca2be5c6 100644
--- a/hugolib/embedded_shortcodes_test.go
+++ b/hugolib/embedded_shortcodes_test.go
@@ -372,7 +372,7 @@ func TestShortcodeInstagram(t *testing.T) {
 		}
 
 		if this.expected != output {
-			t.Errorf("[%d] unexpected rendering, got %d expected: %d", i, output, this.expected)
+			t.Errorf("[%d] unexpected rendering, got %s expected: %s", i, output, this.expected)
 		}
 	}
 }
diff --git a/hugolib/menu_test.go b/hugolib/menu_test.go
index 2fd2e43ab..af698799d 100644
--- a/hugolib/menu_test.go
+++ b/hugolib/menu_test.go
@@ -555,7 +555,7 @@ func TestHomeNodeMenu(t *testing.T) {
 	testCommonResetState()
 
 	viper.Set("canonifyURLs", true)
-	viper.Set("uglyURLs", true)
+	viper.Set("uglyURLs", false)
 
 	s := setupMenuTests(t, menuPageSources)
 
diff --git a/hugolib/node_as_page_test.go b/hugolib/node_as_page_test.go
index a152ba303..e40b2874a 100644
--- a/hugolib/node_as_page_test.go
+++ b/hugolib/node_as_page_test.go
@@ -16,6 +16,7 @@ package hugolib
 import (
 	"fmt"
 	"path/filepath"
+	"strings"
 	"testing"
 	"time"
 
@@ -32,6 +33,12 @@ import (
 */
 
 func TestNodesAsPage(t *testing.T) {
+	for _, ugly := range []bool{false, true} {
+		doTestNodeAsPage(t, ugly)
+	}
+}
+
+func doTestNodeAsPage(t *testing.T, ugly bool) {
 	//jww.SetStdoutThreshold(jww.LevelDebug)
 	jww.SetStdoutThreshold(jww.LevelFatal)
 
@@ -47,6 +54,8 @@ func TestNodesAsPage(t *testing.T) {
 
 	testCommonResetState()
 
+	viper.Set("uglyURLs", ugly)
+
 	writeLayoutsForNodeAsPageTests(t)
 	writeNodePagesForNodeAsPageTests("", t)
 
@@ -73,7 +82,7 @@ func TestNodesAsPage(t *testing.T) {
 		"GetPage: Section1 ",
 	)
 
-	assertFileContent(t, filepath.Join("public", "sect1", "regular1", "index.html"), false, "Single Title: Page 01", "Content Page 01")
+	assertFileContent(t, expectedFilePath(ugly, "public", "sect1", "regular1"), false, "Single Title: Page 01", "Content Page 01")
 
 	h := s.owner
 	nodes := h.findAllPagesByKindNotIn(KindPage)
@@ -99,24 +108,24 @@ func TestNodesAsPage(t *testing.T) {
 	require.True(t, first.IsPage())
 
 	// Check Home paginator
-	assertFileContent(t, filepath.Join("public", "page", "2", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "page", "2"), false,
 		"Pag: Page 02")
 
 	// Check Sections
-	assertFileContent(t, filepath.Join("public", "sect1", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "sect1"), false,
 		"Section Title: Section", "Section1 <strong>Content!</strong>",
 		"Date: 2009-01-04",
 		"Lastmod: 2009-01-05",
 	)
 
-	assertFileContent(t, filepath.Join("public", "sect2", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "sect2"), false,
 		"Section Title: Section", "Section2 <strong>Content!</strong>",
 		"Date: 2009-01-06",
 		"Lastmod: 2009-01-07",
 	)
 
 	// Check Sections paginator
-	assertFileContent(t, filepath.Join("public", "sect1", "page", "2", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "sect1", "page", "2"), false,
 		"Pag: Page 02")
 
 	sections := h.findAllPagesByKind(KindSection)
@@ -124,13 +133,13 @@ func TestNodesAsPage(t *testing.T) {
 	require.Len(t, sections, 2)
 
 	// Check taxonomy lists
-	assertFileContent(t, filepath.Join("public", "categories", "hugo", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "categories", "hugo"), false,
 		"Taxonomy Title: Taxonomy Hugo", "Taxonomy Hugo <strong>Content!</strong>",
 		"Date: 2009-01-08",
 		"Lastmod: 2009-01-09",
 	)
 
-	assertFileContent(t, filepath.Join("public", "categories", "web", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "categories", "web"), false,
 		"Taxonomy Title: Taxonomy Web",
 		"Taxonomy Web <strong>Content!</strong>",
 		"Date: 2009-01-10",
@@ -138,12 +147,12 @@ func TestNodesAsPage(t *testing.T) {
 	)
 
 	// Check taxonomy list paginator
-	assertFileContent(t, filepath.Join("public", "categories", "hugo", "page", "2", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "categories", "hugo", "page", "2"), false,
 		"Taxonomy Title: Taxonomy Hugo",
 		"Pag: Page 02")
 
 	// Check taxonomy terms
-	assertFileContent(t, filepath.Join("public", "categories", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "categories"), false,
 		"Taxonomy Terms Title: Taxonomy Term Categories", "Taxonomy Term Categories <strong>Content!</strong>", "k/v: hugo",
 		"Date: 2009-01-12",
 		"Lastmod: 2009-01-13",
@@ -161,6 +170,12 @@ func TestNodesAsPage(t *testing.T) {
 }
 
 func TestNodesWithNoContentFile(t *testing.T) {
+	for _, ugly := range []bool{false, true} {
+		doTestNodesWithNoContentFile(t, ugly)
+	}
+}
+
+func doTestNodesWithNoContentFile(t *testing.T, ugly bool) {
 	//jww.SetStdoutThreshold(jww.LevelDebug)
 	jww.SetStdoutThreshold(jww.LevelFatal)
 
@@ -169,6 +184,7 @@ func TestNodesWithNoContentFile(t *testing.T) {
 	writeLayoutsForNodeAsPageTests(t)
 	writeRegularPagesForNodeAsPageTests(t)
 
+	viper.Set("uglyURLs", ugly)
 	viper.Set("paginate", 1)
 	viper.Set("title", "Hugo Rocks!")
 	viper.Set("rssURI", "customrss.xml")
@@ -195,25 +211,25 @@ func TestNodesWithNoContentFile(t *testing.T) {
 	)
 
 	// Taxonomy list
-	assertFileContent(t, filepath.Join("public", "categories", "hugo", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "categories", "hugo"), false,
 		"Taxonomy Title: Hugo",
 		"Date: 2010-06-12",
 		"Lastmod: 2010-06-13",
 	)
 
 	// Taxonomy terms
-	assertFileContent(t, filepath.Join("public", "categories", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "categories"), false,
 		"Taxonomy Terms Title: Categories",
 	)
 
 	// Sections
-	assertFileContent(t, filepath.Join("public", "sect1", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "sect1"), false,
 		"Section Title: Sect1s",
 		"Date: 2010-06-12",
 		"Lastmod: 2010-06-13",
 	)
 
-	assertFileContent(t, filepath.Join("public", "sect2", "index.html"), false,
+	assertFileContent(t, expectedFilePath(ugly, "public", "sect2"), false,
 		"Section Title: Sect2s",
 		"Date: 2008-07-06",
 		"Lastmod: 2008-07-09",
@@ -229,9 +245,17 @@ func TestNodesWithNoContentFile(t *testing.T) {
 }
 
 func TestNodesAsPageMultilingual(t *testing.T) {
+	for _, ugly := range []bool{true, false} {
+		doTestNodesAsPageMultilingual(t, ugly)
+	}
+}
+
+func doTestNodesAsPageMultilingual(t *testing.T, ugly bool) {
 
 	testCommonResetState()
 
+	viper.Set("uglyURLs", ugly)
+
 	writeLayoutsForNodeAsPageTests(t)
 
 	writeSource(t, "config.toml",
@@ -302,6 +326,7 @@ title = "Deutsche Hugo"
 	require.Len(t, deHome.Translations(), 2, deHome.Translations()[0].Language().Lang)
 	require.Equal(t, "en", deHome.Translations()[1].Language().Lang)
 	require.Equal(t, "nn", deHome.Translations()[0].Language().Lang)
+	require.Equal(t, expetedPermalink(ugly, "/de/"), deHome.Permalink())
 
 	enSect := sites.Sites[1].getPage("section", "sect1")
 	require.NotNil(t, enSect)
@@ -310,6 +335,8 @@ title = "Deutsche Hugo"
 	require.Equal(t, "de", enSect.Translations()[1].Language().Lang)
 	require.Equal(t, "nn", enSect.Translations()[0].Language().Lang)
 
+	require.Equal(t, expetedPermalink(ugly, "/en/sect1/"), enSect.Permalink())
+
 	assertFileContent(t, filepath.Join("public", "nn", "index.html"), true,
 		"Index Title: Hugo på norsk")
 	assertFileContent(t, filepath.Join("public", "en", "index.html"), true,
@@ -318,27 +345,33 @@ title = "Deutsche Hugo"
 		"Index Title: Home Sweet Home!", "<strong>Content!</strong>")
 
 	// Taxonomy list
-	assertFileContent(t, filepath.Join("public", "nn", "categories", "hugo", "index.html"), true,
+	assertFileContent(t, expectedFilePath(ugly, "public", "nn", "categories", "hugo"), true,
 		"Taxonomy Title: Hugo")
-	assertFileContent(t, filepath.Join("public", "en", "categories", "hugo", "index.html"), true,
+	assertFileContent(t, expectedFilePath(ugly, "public", "en", "categories", "hugo"), true,
 		"Taxonomy Title: Taxonomy Hugo")
 
 	// Taxonomy terms
-	assertFileContent(t, filepath.Join("public", "nn", "categories", "index.html"), true,
+	assertFileContent(t, expectedFilePath(ugly, "public", "nn", "categories"), true,
 		"Taxonomy Terms Title: Categories")
-	assertFileContent(t, filepath.Join("public", "en", "categories", "index.html"), true,
+	assertFileContent(t, expectedFilePath(ugly, "public", "en", "categories"), true,
 		"Taxonomy Terms Title: Taxonomy Term Categories")
 
 	// Sections
-	assertFileContent(t, filepath.Join("public", "nn", "sect1", "index.html"), true,
+	assertFileContent(t, expectedFilePath(ugly, "public", "nn", "sect1"), true,
 		"Section Title: Sect1s")
-	assertFileContent(t, filepath.Join("public", "nn", "sect2", "index.html"), true,
+	assertFileContent(t, expectedFilePath(ugly, "public", "nn", "sect2"), true,
 		"Section Title: Sect2s")
-	assertFileContent(t, filepath.Join("public", "en", "sect1", "index.html"), true,
+	assertFileContent(t, expectedFilePath(ugly, "public", "en", "sect1"), true,
 		"Section Title: Section1")
-	assertFileContent(t, filepath.Join("public", "en", "sect2", "index.html"), true,
+	assertFileContent(t, expectedFilePath(ugly, "public", "en", "sect2"), true,
 		"Section Title: Section2")
 
+	// Regular pages
+	assertFileContent(t, expectedFilePath(ugly, "public", "en", "sect1", "regular1"), true,
+		"Single Title: Page 01")
+	assertFileContent(t, expectedFilePath(ugly, "public", "nn", "sect1", "regular2"), true,
+		"Single Title: Page 02")
+
 	// RSS
 	assertFileContent(t, filepath.Join("public", "nn", "customrss.xml"), true, "Hugo på norsk", "<rss")
 	assertFileContent(t, filepath.Join("public", "nn", "sect1", "customrss.xml"), true, "Recent content in Sect1s on Hugo på norsk", "<rss")
@@ -660,3 +693,17 @@ Date: {{ .Date.Format "2006-01-02" }}
 Lastmod: {{ .Lastmod.Format "2006-01-02" }}
 `)
 }
+
+func expectedFilePath(ugly bool, path ...string) string {
+	if ugly {
+		return filepath.Join(append(path[0:len(path)-1], path[len(path)-1]+".html")...)
+	}
+	return filepath.Join(append(path, "index.html")...)
+}
+
+func expetedPermalink(ugly bool, path string) string {
+	if ugly {
+		return strings.TrimSuffix(path, "/") + ".html"
+	}
+	return path
+}
diff --git a/hugolib/page.go b/hugolib/page.go
index 883d70c43..43ec4a360 100644
--- a/hugolib/page.go
+++ b/hugolib/page.go
@@ -733,6 +733,7 @@ func (p *Page) permalink() (*url.URL, error) {
 		// No permalink config for nodes (currently)
 		pURL := strings.TrimSpace(p.Site.pathSpec.URLize(p.URLPath.URL))
 		pURL = p.addLangPathPrefix(pURL)
+		pURL = p.Site.pathSpec.URLPrep(path.Join(pURL, "index."+p.Extension()))
 		url := helpers.MakePermalink(baseURL, pURL)
 		return url, nil
 	}
@@ -755,10 +756,10 @@ func (p *Page) permalink() (*url.URL, error) {
 		}
 	} else {
 		if len(pSlug) > 0 {
-			permalink = helpers.URLPrep(viper.GetBool("uglyURLs"), path.Join(dir, p.Slug+"."+p.Extension()))
+			permalink = p.Site.pathSpec.URLPrep(path.Join(dir, p.Slug+"."+p.Extension()))
 		} else {
 			t := p.Source.TranslationBaseName()
-			permalink = helpers.URLPrep(viper.GetBool("uglyURLs"), path.Join(dir, (strings.TrimSpace(t)+"."+p.Extension())))
+			permalink = p.Site.pathSpec.URLPrep(path.Join(dir, (strings.TrimSpace(t) + "." + p.Extension())))
 		}
 	}
 
diff --git a/hugolib/site.go b/hugolib/site.go
index 01539bccc..87ab050b0 100644
--- a/hugolib/site.go
+++ b/hugolib/site.go
@@ -1865,16 +1865,22 @@ func (s *Site) languageAliasTarget() target.AliasPublisher {
 
 func (s *Site) initTargetList() {
 	s.targetListInit.Do(func() {
+		langDir := ""
+		if s.Language.Lang != s.Info.multilingual.DefaultLang.Lang || s.Info.defaultContentLanguageInSubdir {
+			langDir = s.Language.Lang
+		}
 		if s.targets.page == nil {
 			s.targets.page = &target.PagePub{
 				PublishDir: s.absPublishDir(),
 				UglyURLs:   viper.GetBool("uglyURLs"),
+				LangDir:    langDir,
 			}
 		}
 		if s.targets.pageUgly == nil {
 			s.targets.pageUgly = &target.PagePub{
 				PublishDir: s.absPublishDir(),
 				UglyURLs:   true,
+				LangDir:    langDir,
 			}
 		}
 		if s.targets.file == nil {
diff --git a/hugolib/site_render.go b/hugolib/site_render.go
index 82523e88f..94fccd950 100644
--- a/hugolib/site_render.go
+++ b/hugolib/site_render.go
@@ -118,7 +118,7 @@ func (s *Site) renderPaginator(p *Page) error {
 			}
 
 			pageNumber := i + 1
-			htmlBase := path.Join(p.URLPath.URL, fmt.Sprintf("/%s/%d", paginatePath, pageNumber))
+			htmlBase := path.Join(append(p.sections, fmt.Sprintf("/%s/%d", paginatePath, pageNumber))...)
 			htmlBase = p.addLangPathPrefix(htmlBase)
 
 			if err := s.renderAndWritePage(pagerNode.Title,
@@ -156,7 +156,8 @@ func (s *Site) renderRSS(p *Page) error {
 		rssPage.Data["Pages"] = rssPage.Pages
 	}
 	rssURI := s.Language.GetString("rssURI")
-	rssPath := path.Join(rssPage.URLPath.URL, rssURI)
+
+	rssPath := path.Join(append(rssPage.sections, rssURI)...)
 	s.setPageURLs(rssPage, rssPath)
 
 	return s.renderAndWriteXML(rssPage.Title,
diff --git a/target/page.go b/target/page.go
index eb7bb5943..ab38ded58 100644
--- a/target/page.go
+++ b/target/page.go
@@ -31,6 +31,10 @@ type PagePub struct {
 	UglyURLs         bool
 	DefaultExtension string
 	PublishDir       string
+
+	// LangDir will contain the subdir for the language, i.e. "en", "de" etc.
+	// It will be empty if the site is rendered in root.
+	LangDir string
 }
 
 func (pp *PagePub) Publish(path string, r io.Reader) (err error) {
@@ -64,6 +68,14 @@ func (pp *PagePub) TranslateRelative(src string) (dest string, err error) {
 	ext := pp.extension(filepath.Ext(file))
 	name := filename(file)
 
+	// TODO(bep) Having all of this path logic here seems wrong, but I guess
+	// we'll clean this up when we redo the output files.
+	// This catches the home page in a language sub path. They should never
+	// have any ugly URLs.
+	if pp.LangDir != "" && dir == helpers.FilePathSeparator && name == pp.LangDir {
+		return filepath.Join(dir, name, "index"+ext), nil
+	}
+
 	if pp.UglyURLs || file == "index.html" || (isRoot && file == "404.html") {
 		return filepath.Join(dir, name+ext), nil
 	}