diff --git a/nvm.sh b/nvm.sh
index cdafa78..a0dc370 100644
--- a/nvm.sh
+++ b/nvm.sh
@@ -160,7 +160,15 @@
 }
 
 nvm_ls_current() {
-  echo `node -v 2>/dev/null`
+  local NODE_PATH
+  NODE_PATH="$(which node)"
+  if [ $? -ne 0 ]; then
+    echo 'none'
+  elif nvm_tree_contains_path "$NVM_DIR" "$NODE_PATH"; then
+    echo `node -v 2>/dev/null`
+  else
+    echo 'system'
+  fi
 }
 
 nvm_ls() {
diff --git "a/test/fast/Running \"nvm current\" should display current nvm environment." "b/test/fast/Running \"nvm current\" should display current nvm environment."
index d9293ed..5748fd6 100755
--- "a/test/fast/Running \"nvm current\" should display current nvm environment."
+++ "b/test/fast/Running \"nvm current\" should display current nvm environment."
@@ -3,4 +3,8 @@
 die () { echo $@ ; exit 1; }
 
 . ../../nvm.sh
-[ "$(nvm current)" = "$(node -v)" ] || die "Failed to find current version"
+
+nvm deactivate 2>&1
+
+[ "$(nvm current)" = "system" ] || [ "$(nvm current)" = "none" ] || die '"nvm current" did not report "system" or "none" when deactivated'
+