diff --git a/py/compile.c b/py/compile.c
index 1fc5f07227..95fe1d759f 100644
--- a/py/compile.c
+++ b/py/compile.c
@@ -1933,6 +1933,11 @@ void compile_expr_stmt(compiler_t *comp, mp_parse_node_struct_t *pns) {
                 // optimisation for a, b = c, d; to match CPython's optimisation
                 mp_parse_node_struct_t* pns10 = (mp_parse_node_struct_t*)pns1->nodes[0];
                 mp_parse_node_struct_t* pns0 = (mp_parse_node_struct_t*)pns->nodes[0];
+                if (MP_PARSE_NODE_IS_STRUCT_KIND(pns0->nodes[0], PN_star_expr)
+                    || MP_PARSE_NODE_IS_STRUCT_KIND(pns0->nodes[1], PN_star_expr)) {
+                    // can't optimise when it's a star expression on the lhs
+                    goto no_optimisation;
+                }
                 compile_node(comp, pns10->nodes[0]); // rhs
                 compile_node(comp, pns10->nodes[1]); // rhs
                 EMIT(rot_two);
@@ -1945,6 +1950,12 @@ void compile_expr_stmt(compiler_t *comp, mp_parse_node_struct_t *pns) {
                 // optimisation for a, b, c = d, e, f; to match CPython's optimisation
                 mp_parse_node_struct_t* pns10 = (mp_parse_node_struct_t*)pns1->nodes[0];
                 mp_parse_node_struct_t* pns0 = (mp_parse_node_struct_t*)pns->nodes[0];
+                if (MP_PARSE_NODE_IS_STRUCT_KIND(pns0->nodes[0], PN_star_expr)
+                    || MP_PARSE_NODE_IS_STRUCT_KIND(pns0->nodes[1], PN_star_expr)
+                    || MP_PARSE_NODE_IS_STRUCT_KIND(pns0->nodes[2], PN_star_expr)) {
+                    // can't optimise when it's a star expression on the lhs
+                    goto no_optimisation;
+                }
                 compile_node(comp, pns10->nodes[0]); // rhs
                 compile_node(comp, pns10->nodes[1]); // rhs
                 compile_node(comp, pns10->nodes[2]); // rhs
@@ -1954,6 +1965,7 @@ void compile_expr_stmt(compiler_t *comp, mp_parse_node_struct_t *pns) {
                 c_assign(comp, pns0->nodes[1], ASSIGN_STORE); // lhs store
                 c_assign(comp, pns0->nodes[2], ASSIGN_STORE); // lhs store
             } else {
+                no_optimisation:
                 compile_node(comp, pns1->nodes[0]); // rhs
                 c_assign(comp, pns->nodes[0], ASSIGN_STORE); // lhs store
             }
diff --git a/py/obj.h b/py/obj.h
index fc99055b6e..77cf7838ee 100644
--- a/py/obj.h
+++ b/py/obj.h
@@ -440,6 +440,7 @@ mp_obj_t mp_obj_tuple_make_new(mp_obj_t type_in, uint n_args, uint n_kw, const m
 // list
 mp_obj_t mp_obj_list_append(mp_obj_t self_in, mp_obj_t arg);
 void mp_obj_list_get(mp_obj_t self_in, uint *len, mp_obj_t **items);
+void mp_obj_list_set_len(mp_obj_t self_in, uint len);
 void mp_obj_list_store(mp_obj_t self_in, mp_obj_t index, mp_obj_t value);
 mp_obj_t mp_obj_list_sort(uint n_args, const mp_obj_t *args, mp_map_t *kwargs);
 
diff --git a/py/objlist.c b/py/objlist.c
index 620bf2944a..371d1cb26e 100644
--- a/py/objlist.c
+++ b/py/objlist.c
@@ -378,6 +378,13 @@ void mp_obj_list_get(mp_obj_t self_in, uint *len, mp_obj_t **items) {
     *items = self->items;
 }
 
+void mp_obj_list_set_len(mp_obj_t self_in, uint len) {
+    // trust that the caller knows what it's doing
+    // TODO realloc if len got much smaller than alloc
+    mp_obj_list_t *self = self_in;
+    self->len = len;
+}
+
 void mp_obj_list_store(mp_obj_t self_in, mp_obj_t index, mp_obj_t value) {
     mp_obj_list_t *self = self_in;
     uint i = mp_get_index(self->base.type, self->len, index, false);
diff --git a/py/runtime.c b/py/runtime.c
index 44e0ded507..3d1ae72c2f 100644
--- a/py/runtime.c
+++ b/py/runtime.c
@@ -672,6 +672,70 @@ too_long:
     nlr_raise(mp_obj_new_exception_msg_varg(&mp_type_ValueError, "too many values to unpack (expected %d)", num));
 }
 
+// unpacked items are stored in reverse order into the array pointed to by items
+void mp_unpack_ex(mp_obj_t seq_in, uint num_in, mp_obj_t *items) {
+    uint num_left = num_in & 0xff;
+    uint num_right = (num_in >> 8) & 0xff;
+    DEBUG_OP_printf("unpack ex %d %d\n", num_left, num_right);
+    uint seq_len;
+    if (MP_OBJ_IS_TYPE(seq_in, &mp_type_tuple) || MP_OBJ_IS_TYPE(seq_in, &mp_type_list)) {
+        mp_obj_t *seq_items;
+        if (MP_OBJ_IS_TYPE(seq_in, &mp_type_tuple)) {
+            mp_obj_tuple_get(seq_in, &seq_len, &seq_items);
+        } else {
+            if (num_left == 0 && num_right == 0) {
+                // *a, = b # sets a to b if b is a list
+                items[0] = seq_in;
+                return;
+            }
+            mp_obj_list_get(seq_in, &seq_len, &seq_items);
+        }
+        if (seq_len < num_left + num_right) {
+            goto too_short;
+        }
+        for (uint i = 0; i < num_right; i++) {
+            items[i] = seq_items[seq_len - 1 - i];
+        }
+        items[num_right] = mp_obj_new_list(seq_len - num_left - num_right, seq_items + num_left);
+        for (uint i = 0; i < num_left; i++) {
+            items[num_right + 1 + i] = seq_items[num_left - 1 - i];
+        }
+    } else {
+        // Generic iterable; this gets a bit messy: we unpack known left length to the
+        // items destination array, then the rest to a dynamically created list.  Once the
+        // iterable is exhausted, we take from this list for the right part of the items.
+        // TODO Improve to waste less memory in the dynamically created list.
+        mp_obj_t iterable = mp_getiter(seq_in);
+        mp_obj_t item;
+        for (seq_len = 0; seq_len < num_left; seq_len++) {
+            item = mp_iternext(iterable);
+            if (item == MP_OBJ_NULL) {
+                goto too_short;
+            }
+            items[num_left + num_right + 1 - 1 - seq_len] = item;
+        }
+        mp_obj_t rest = mp_obj_new_list(0, NULL);
+        while ((item = mp_iternext(iterable)) != MP_OBJ_NULL) {
+            mp_obj_list_append(rest, item);
+        }
+        uint rest_len;
+        mp_obj_t *rest_items;
+        mp_obj_list_get(rest, &rest_len, &rest_items);
+        if (rest_len < num_right) {
+            goto too_short;
+        }
+        items[num_right] = rest;
+        for (uint i = 0; i < num_right; i++) {
+            items[num_right - 1 - i] = rest_items[rest_len - num_right + i];
+        }
+        mp_obj_list_set_len(rest, rest_len - num_right);
+    }
+    return;
+
+too_short:
+    nlr_raise(mp_obj_new_exception_msg_varg(&mp_type_ValueError, "need more than %d values to unpack", seq_len));
+}
+
 mp_obj_t mp_load_attr(mp_obj_t base, qstr attr) {
     DEBUG_OP_printf("load attr %p.%s\n", base, qstr_str(attr));
     // use load_method
diff --git a/py/runtime.h b/py/runtime.h
index cc76186f4e..ab34be2da9 100644
--- a/py/runtime.h
+++ b/py/runtime.h
@@ -44,6 +44,7 @@ mp_obj_t mp_call_method_n_kw(uint n_args, uint n_kw, const mp_obj_t *args);
 mp_obj_t mp_call_method_n_kw_var(bool have_self, uint n_args_n_kw, const mp_obj_t *args);
 
 void mp_unpack_sequence(mp_obj_t seq, uint num, mp_obj_t *items);
+void mp_unpack_ex(mp_obj_t seq, uint num, mp_obj_t *items);
 mp_obj_t mp_store_map(mp_obj_t map, mp_obj_t key, mp_obj_t value);
 mp_obj_t mp_load_attr(mp_obj_t base, qstr attr);
 void mp_load_method(mp_obj_t base, qstr attr, mp_obj_t *dest);
diff --git a/py/vm.c b/py/vm.c
index 2e64cd9573..869a9381ad 100644
--- a/py/vm.c
+++ b/py/vm.c
@@ -653,6 +653,12 @@ unwind_jump:
                         sp += unum - 1;
                         break;
 
+                    case MP_BC_UNPACK_EX:
+                        DECODE_UINT;
+                        mp_unpack_ex(sp[0], unum, sp);
+                        sp += (unum & 0xff) + ((unum >> 8) & 0xff);
+                        break;
+
                     case MP_BC_MAKE_FUNCTION:
                         DECODE_UINT;
                         PUSH(mp_make_function_from_id(unum, MP_OBJ_NULL, MP_OBJ_NULL));
diff --git a/tests/basics/unpack1.py b/tests/basics/unpack1.py
new file mode 100644
index 0000000000..b2b2ddb7e4
--- /dev/null
+++ b/tests/basics/unpack1.py
@@ -0,0 +1,60 @@
+# unpack sequences
+
+a, = 1,     ; print(a)
+a, b = 2, 3 ; print(a, b)
+
+a, b = range(2); print(a, b)
+
+# with star
+
+*a, = ()    ; print(a)
+*a, = 4,    ; print(a)
+*a, = 5, 6  ; print(a)
+
+*a, b = 7,          ; print(a, b)
+*a, b = 8, 9        ; print(a, b)
+*a, b = 10, 11, 12  ; print(a, b)
+
+a, *b = 13,         ; print(a, b)
+a, *b = 14, 15      ; print(a, b)
+a, *b = 16, 17, 18  ; print(a, b)
+
+a, *b, c = 19, 20           ; print(a, b)
+a, *b, c = 21, 22, 23       ; print(a, b)
+a, *b, c = 24, 25, 26, 27   ; print(a, b)
+
+a = [28, 29]
+*b, = a
+print(a, b, a == b)
+
+try:
+    a, *b, c = (30,)
+except ValueError:
+    print("ValueError")
+
+# with star and generic iterator
+
+*a, = range(5)          ; print(a)
+*a, b = range(5)        ; print(a, b)
+*a, b, c = range(5)     ; print(a, b, c)
+a, *b = range(5)        ; print(a, b)
+a, *b, c = range(5)     ; print(a, b, c)
+a, *b, c, d = range(5)  ; print(a, b, c, d)
+a, b, *c = range(5)     ; print(a, b, c)
+a, b, *c, d = range(5)  ; print(a, b, c, d)
+a, b, *c, d, e = range(5)   ; print(a, b, c, d, e)
+
+*a, = [x * 2 for x in [1, 2, 3, 4]]     ; print(a)
+*a, b = [x * 2 for x in [1, 2, 3, 4]]   ; print(a, b)
+a, *b = [x * 2 for x in [1, 2, 3, 4]]   ; print(a, b)
+a, *b, c = [x * 2 for x in [1, 2, 3, 4]]; print(a, b, c)
+
+try:
+    a, *b, c = range(0)
+except ValueError:
+    print("ValueError")
+
+try:
+    a, *b, c = range(1)
+except ValueError:
+    print("ValueError")