diff --git a/lib/build/index.js b/lib/build/index.js
index 8e5f488527..8d47588799 100644
--- a/lib/build/index.js
+++ b/lib/build/index.js
@@ -198,15 +198,23 @@ function createRoutes (files, srcDir) {
     let route = { name: '', path: '', component: r(srcDir, file), _name: null }
     let parent = routes
     keys.forEach((key, i) => {
-      route.name = route.name ? route.name + (key === 'index' ? '' : '-' + key.replace('_', '')) : key.replace('_', '')
+      route.name = route.name ? route.name + '-' + key.replace('_', '') : key.replace('_', '')
       let child = _.find(parent, { name: route.name })
       if (child) {
         if (!child.children) {
           child.children = []
         }
         parent = child.children
+        route.path = ''
       } else {
-        route.path = route.path + (key === 'index' ? (i > 0 ? '' : '/') : '/' + key.replace('_', ':'))
+        if (key === 'index' && (i + 1) === keys.length) {
+          route.path += (i > 0 ? '' : '/')
+        } else {
+          route.path += '/' + key.replace('_', ':')
+          if (key.includes('_')) {
+            route.path += '?'
+          }
+        }
       }
     })
     route._name = '_' + hash(route.component)
@@ -222,15 +230,22 @@ function createRoutes (files, srcDir) {
 }
 
 function cleanChildrenRoutes (routes, isChild = false) {
-  let isOptional = true
+  let hasIndex = false
+  let parents = []
   routes.forEach((route) => {
     route.path = (isChild) ? route.path.replace('/', '') : route.path
-    if (route.path === '' || route.path === '/') {
-      isOptional = false
+    if ((isChild && /-index$/.test(route.name)) || (!isChild && route.name === 'index')) {
+      hasIndex = true
     }
-    if (isOptional && route.path.includes(':')) {
-      route.path += '?'
+    route.path = (hasIndex) ? route.path.replace('?', '') : route.path
+    if (/-index$/.test(route.name)) {
+      parents.push(route.name)
+    } else {
+      if (parents.indexOf(route.name.split('-').slice(0, -1).join('-') + '-index') > -1) {
+        route.path = route.path.replace('?', '')
+      }
     }
+    route.name = route.name.replace(/-index$/, '')
     if (route.children) {
       delete route.name
       route.children = cleanChildrenRoutes(route.children, true)
diff --git a/test/fixtures/dynamic-routes/README.md b/test/fixtures/dynamic-routes/README.md
new file mode 100644
index 0000000000..a6a85d97ad
--- /dev/null
+++ b/test/fixtures/dynamic-routes/README.md
@@ -0,0 +1,185 @@
+# Defining custom routes with Nuxt.js
+
+> Nuxt.js is based on `vue-router` and let you to defined custom routes easily :rocket:
+
+## Concept
+
+Nuxt.js generates automatically the `vue-router` configuration according to your file tree of `.vue` files inside the `pages/` directory.
+
+## Basic routes
+
+This file tree:
+
+```bash
+pages/
+--| team/
+-----| index.vue
+-----| about.vue
+--| index.vue
+```
+
+will automatically generate:
+
+```js
+router: {
+  routes: [
+    {
+      name: 'index',
+      path: '/',
+      component: 'pages/index.vue'
+    },
+    {
+      name: 'team',
+      path: '/team',
+      component: 'pages/team/index.vue'
+    },
+    {
+      name: 'team-about',
+      path: '/team/about',
+      component: 'pages/team/about.vue'
+    }
+  ]
+}
+```
+
+## Dynamic routes
+
+To define a dynamic route with a param, you need to define a `.vue` file **prefixed by an underscore**.
+
+This file tree:
+
+```bash
+pages/
+--| users/
+-----| _id.vue
+-----| index.vue
+```
+
+will automatically generate:
+
+```js
+router: {
+  routes: [
+    {
+      name: 'users',
+      path: '/users',
+      component: 'pages/users/index.vue'
+    },
+    {
+      name: 'users-id',
+      path: '/users/:id',
+      component: 'pages/users/_id.vue'
+    }
+  ]
+}
+```
+
+### Additional feature: validate (optional)
+
+Nuxt.js lets you define a validator function inside your dynamic route component (In this example: `pages/users/_id.vue`).
+
+If the validate method does not return `true`, Nuxt.js will automatically load the 404 error page.
+
+```js
+<script>
+export default {
+  validate ({ params }) {
+    return /^\d+$/.test(params.id)
+  }
+}
+</script>
+```
+
+## Nested Routes (children)
+
+To define a nested route, you need to create a `.vue` file with the **same name as the directory** which contain your children views.
+> Don't forget to put `<nuxt-child></nuxt-child>` inside your parent `.vue` file.
+
+This file tree:
+
+```bash
+pages/
+--| users/
+-----| _id.vue
+--| users.vue
+```
+
+will automatically generate:
+
+```js
+router: {
+  routes: [
+    {
+      path: '/users',
+      component: 'pages/users.vue',
+      children: [
+        {
+          path: ':id',
+          component: 'pages/users/_id.vue',
+          name: 'users-id'
+        }
+      ]
+    }
+  ]
+}
+```
+
+## Dynamic Nested Routes
+
+This file tree:
+
+```bash
+pages/
+--| posts/
+-----| _slug/
+--------| _name.vue
+--------| comments.vue
+-----| _slug.vue
+-----| index.vue
+--| posts.vue
+```
+
+will automatically generate:
+
+```js
+router: {
+  routes: [
+    {
+      path: '/posts',
+      component: 'pages/posts.vue',
+      children: [
+        {
+          path '',
+          component: 'pages/posts/index.vue',
+          name: 'posts'
+        },
+        {
+          path: ':slug',
+          component: 'pages/posts/_slug.vue',
+          children: [
+            {
+              path: 'comments',
+              component: 'pages/posts/_slug/comments.vue',
+              name: 'posts-slug-comments'
+            },
+            {
+              path: ':name',
+              component: 'pages/posts/_slug/_name.vue',
+              name: 'posts-slug-name'
+            }
+          ]
+        }
+      ]
+    }
+  ]
+}
+```
+
+## Demo
+
+```bash
+npm install
+npm start
+```
+
+Go to [http://localhost:3000](http://localhost:3000) and navigate through the pages.
diff --git a/test/fixtures/dynamic-routes/nuxt.config.js b/test/fixtures/dynamic-routes/nuxt.config.js
new file mode 100644
index 0000000000..bb0765f744
--- /dev/null
+++ b/test/fixtures/dynamic-routes/nuxt.config.js
@@ -0,0 +1,5 @@
+module.exports = {
+  build: {
+    vendor: ['axios']
+  }
+}
diff --git a/test/fixtures/dynamic-routes/package.json b/test/fixtures/dynamic-routes/package.json
new file mode 100644
index 0000000000..31c9724fdb
--- /dev/null
+++ b/test/fixtures/dynamic-routes/package.json
@@ -0,0 +1,13 @@
+{
+  "name": "nuxt-custom-routes",
+  "description": "",
+  "dependencies": {
+    "axios": "^0.15.2",
+    "nuxt": "latest"
+  },
+  "scripts": {
+    "dev": "nuxt",
+    "build": "nuxt build",
+    "start": "nuxt start"
+  }
+}
diff --git a/test/fixtures/dynamic-routes/pages/_key/_id.vue b/test/fixtures/dynamic-routes/pages/_key/_id.vue
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/fixtures/dynamic-routes/pages/_slug.vue b/test/fixtures/dynamic-routes/pages/_slug.vue
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/fixtures/dynamic-routes/pages/parent.vue b/test/fixtures/dynamic-routes/pages/parent.vue
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/fixtures/dynamic-routes/pages/parent/child.vue b/test/fixtures/dynamic-routes/pages/parent/child.vue
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/fixtures/dynamic-routes/pages/parent/index.vue b/test/fixtures/dynamic-routes/pages/parent/index.vue
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/fixtures/dynamic-routes/pages/parent/teub.vue b/test/fixtures/dynamic-routes/pages/parent/teub.vue
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/fixtures/dynamic-routes/pages/test/index.vue b/test/fixtures/dynamic-routes/pages/test/index.vue
new file mode 100644
index 0000000000..94414546d1
--- /dev/null
+++ b/test/fixtures/dynamic-routes/pages/test/index.vue
@@ -0,0 +1,46 @@
+<template>
+  <div class="container">
+    <h2>Users</h2>
+    <ul class="users">
+      <li v-for="user in users">
+        <nuxt-link :to="'/users/'+user.id">{{ user.name }}</nuxt-link>
+      </li>
+    </ul>
+  </div>
+</template>
+
+<script>
+import axios from 'axios'
+
+export default {
+  data () {
+    return axios.get('https://jsonplaceholder.typicode.com/users')
+    .then((res) => {
+      return { users: res.data }
+    })
+  }
+}
+</script>
+
+<style scoped>
+.container {
+  text-align: center;
+  margin-top: 100px;
+  font-family: sans-serif;
+}
+.users {
+  list-style-type: none;
+}
+.users li a {
+  display: inline-block;
+  width: 200px;
+  border: 1px #ddd solid;
+  padding: 10px;
+  text-align: left;
+  color: #222;
+  text-decoration: none;
+}
+.users li a:hover {
+  color: orange;
+}
+</style>
diff --git a/test/fixtures/dynamic-routes/pages/test/users.vue b/test/fixtures/dynamic-routes/pages/test/users.vue
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/fixtures/dynamic-routes/pages/test/users/_id.vue b/test/fixtures/dynamic-routes/pages/test/users/_id.vue
new file mode 100644
index 0000000000..ccd6594097
--- /dev/null
+++ b/test/fixtures/dynamic-routes/pages/test/users/_id.vue
@@ -0,0 +1,33 @@
+<template>
+  <div class="user">
+    <h3>{{ name }}</h3>
+    <h4>@{{ username }}</h4>
+    <p>Email : {{ email }}</p>
+    <p><nuxt-link to="/">List of users</nuxt-link></p>
+  </div>
+</template>
+
+<script>
+import axios from 'axios'
+
+export default {
+  validate ({ params }) {
+    return !isNaN(+params.id)
+  },
+  data ({ params, error }) {
+    return axios.get(`https://jsonplaceholder.typicode.com/users/${+params.id}`)
+    .then((res) => res.data)
+    .catch(() => {
+      error({ message: 'User not found', statusCode: 404 })
+    })
+  }
+}
+</script>
+
+<style scoped>
+.user {
+  text-align: center;
+  margin-top: 100px;
+  font-family: sans-serif;
+}
+</style>
diff --git a/test/fixtures/dynamic-routes/pages/test/users/_index/teub.vue b/test/fixtures/dynamic-routes/pages/test/users/_index/teub.vue
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/fixtures/dynamic-routes/pages/test/users/index.vue b/test/fixtures/dynamic-routes/pages/test/users/index.vue
new file mode 100644
index 0000000000..e69de29bb2