diff --git a/lib/mongo/db.rb b/lib/mongo/db.rb
index 1fc4d4b..6931424 100644
--- a/lib/mongo/db.rb
+++ b/lib/mongo/db.rb
@@ -173,12 +173,11 @@ module XGen
           raise "error logging out: #{doc.inspect}" unless ok?(doc)
         end
 
-        # Returns an array of collection names. Each name is of the form
-        # "database_name.collection_name".
+        # Returns an array of collection names in this database.
         def collection_names
           names = collections_info.collect { |doc| doc['name'] || '' }
-          names.delete('')
-          names
+          names = names.delete_if {|name| name.index(@name).nil? || name.index('$')}
+          names.map {|name| name.sub(@name + '.', '')}
         end
 
         # Returns a cursor over query result hashes. Each hash contains a
@@ -205,7 +204,7 @@ module XGen
         # :max :: Max number of records in a capped collection. Optional.
         def create_collection(name, options={})
           # First check existence
-          if collection_names.include?(full_coll_name(name))
+          if collection_names.include?(name)
             if strict?
               raise "Collection #{name} already exists. Currently in strict mode."
             else
@@ -230,14 +229,14 @@ module XGen
         # new collection. If +strict+ is true, will raise an error if
         # collection +name+ does not already exists.
         def collection(name)
-          return Collection.new(self, name) if !strict? || collection_names.include?(full_coll_name(name))
+          return Collection.new(self, name) if !strict? || collection_names.include?(name)
           raise "Collection #{name} doesn't exist. Currently in strict mode."
         end
 
         # Drop collection +name+. Returns +true+ on success or if the
         # collection does not exist, +false+ otherwise.
         def drop_collection(name)
-          return true unless collection_names.include?(full_coll_name(name))
+          return true unless collection_names.include?(name)
 
           ok?(db_command(:drop => name))
         end
diff --git a/tests/test_db.rb b/tests/test_db.rb
index 68a13f6..db2ed2c 100644
--- a/tests/test_db.rb
+++ b/tests/test_db.rb
@@ -51,6 +51,18 @@ class DBTest < Test::Unit::TestCase
     assert_equal 'ruby-mongo-test.test', @@db.full_coll_name(coll.name)
   end
 
+  def test_collection_names
+    @@db.collection("test").insert("foo" => 5)
+    @@db.collection("test.mike").insert("bar" => 0)
+
+    colls = @@db.collection_names()
+    assert colls.include?("test")
+    assert colls.include?("test.mike")
+    colls.each { |name|
+      assert !name.include?("$")
+    }
+  end
+
   def test_pair
     @@db.close
     @@users = nil
diff --git a/tests/test_db_api.rb b/tests/test_db_api.rb
index ac9d846..876445a 100644
--- a/tests/test_db_api.rb
+++ b/tests/test_db_api.rb
@@ -241,25 +241,25 @@ class DBAPITest < Test::Unit::TestCase
 
   def test_drop_collection
     assert @@db.drop_collection(@@coll.name), "drop of collection #{@@coll.name} failed"
-    assert !@@db.collection_names.include?(@@coll_full_name)
+    assert !@@db.collection_names.include?(@@coll.name)
   end
 
   def test_other_drop
-    assert @@db.collection_names.include?(@@coll_full_name)
+    assert @@db.collection_names.include?(@@coll.name)
     @@coll.drop
-    assert !@@db.collection_names.include?(@@coll_full_name)
+    assert !@@db.collection_names.include?(@@coll.name)
   end
 
   def test_collection_names
     names = @@db.collection_names
     assert names.length >= 1
-    assert names.include?(@@coll_full_name)
+    assert names.include?(@@coll.name)
 
     coll2 = @@db.collection('test2')
     coll2.insert('a' => 1)      # collection not created until it's used
     names = @@db.collection_names
     assert names.length >= 2
-    assert names.include?(@@coll_full_name)
+    assert names.include?(@@coll.name)
     assert names.include?('ruby-mongo-test.test2')
   ensure
     @@db.drop_collection('test2')