diff --git a/CHANGES b/CHANGES
index b75bf8528..86e30df3d 100644
--- a/CHANGES
+++ b/CHANGES
@@ -21,6 +21,8 @@ Bugs fixed
 * #1226: autodoc, autosummary: importing setup.py by automodule will invoke
   setup process and execute `sys.exit()`. Now sphinx avoids SystemExit
   exception and emits warnings without unexpected termination.
+* #1503: py:function directive generate incorrectly signature when specifying
+  a default parameter with an empty list `[]`. Thanks to Geert Jansen.
 
 Release 1.2.2 (released Mar 2, 2014)
 ====================================
diff --git a/sphinx/domains/python.py b/sphinx/domains/python.py
index 8943198fd..792cffd8e 100644
--- a/sphinx/domains/python.py
+++ b/sphinx/domains/python.py
@@ -54,7 +54,7 @@ def _pseudo_parse_arglist(signode, arglist):
             while argument.startswith(']'):
                 stack.pop()
                 argument = argument[1:].strip()
-            while argument.endswith(']'):
+            while argument.endswith(']') and not argument.endswith('[]'):
                 ends_close += 1
                 argument = argument[:-1].strip()
             while argument.endswith('['):
diff --git a/tests/test_py_domain.py b/tests/test_py_domain.py
new file mode 100644
index 000000000..68634d832
--- /dev/null
+++ b/tests/test_py_domain.py
@@ -0,0 +1,44 @@
+# -*- coding: utf-8 -*-
+"""
+    test_py_domain
+    ~~~~~~~~~~~~~~
+
+    Tests the Python Domain
+
+    :copyright: Copyright 2007-2014 by the Sphinx team, see AUTHORS.
+    :license: BSD, see LICENSE for details.
+"""
+
+from sphinx import addnodes
+from sphinx.domains.python import py_sig_re, _pseudo_parse_arglist
+
+
+def parse(sig):
+    m = py_sig_re.match(sig)
+    if m is None:
+        raise ValueError
+    name_prefix, name, arglist, retann = m.groups()
+    signode = addnodes.desc_signature(sig, '')
+    _pseudo_parse_arglist(signode, arglist)
+    return signode.astext()
+
+
+def test_function_signatures():
+
+    rv = parse('func(a=1) -> int object')
+    assert unicode(rv) == u'a=1'
+
+    rv = parse('func(a=1, [b=None])')
+    assert unicode(rv) == u'a=1, [b=None]'
+
+    rv = parse('func(a=1[, b=None])')
+    assert unicode(rv) == u'a=1, [b=None]'
+
+    rv = parse("compile(source : string, filename, symbol='file')")
+    assert unicode(rv) == u"source : string, filename, symbol='file'"
+
+    rv = parse('func(a=[], [b=None])')
+    assert unicode(rv) == u'a=[], [b=None]'
+
+    rv = parse('func(a=[][, b=None])')
+    assert unicode(rv) == u'a=[], [b=None]'