diff --git a/doc/source/release.rst b/doc/source/release.rst
index bb4bb71d8ceda..795c3cd642a80 100644
--- a/doc/source/release.rst
+++ b/doc/source/release.rst
@@ -532,6 +532,7 @@ Bug Fixes
 - Bug in ``isnull`` when applied to 0-dimensional object arrays (:issue:`7176`)
 - Bug in ``query``/``eval`` where global constants were not looked up correctly
   (:issue:`7178`)
+- Bug in recognizing out-of-bounds positional list indexers with ``iloc`` and a multi-axis tuple indexer (:issue:`7189`)
 
 pandas 0.13.1
 -------------
diff --git a/pandas/core/indexing.py b/pandas/core/indexing.py
index 1bd9f27dc926a..5359a045451c3 100644
--- a/pandas/core/indexing.py
+++ b/pandas/core/indexing.py
@@ -1278,13 +1278,38 @@ def _has_valid_type(self, key, axis):
                                  "an indexable as a mask")
             return True
 
-        return (isinstance(key, slice) or
-                com.is_integer(key) or
-                _is_list_like(key))
+        if isinstance(key, slice):
+            return True
+        elif com.is_integer(key):
+            return self._is_valid_integer(key, axis)
+        elif (_is_list_like(key)):
+            return self._is_valid_list_like(key, axis)
+        return False
 
     def _has_valid_setitem_indexer(self, indexer):
         self._has_valid_positional_setitem_indexer(indexer)
 
+    def _is_valid_integer(self, key, axis):
+        # return a boolean if we have a valid integer indexer
+
+        ax = self.obj._get_axis(axis)
+        if key > len(ax):
+            raise IndexError("single positional indexer is out-of-bounds")
+        return True
+
+
+    def _is_valid_list_like(self, key, axis):
+        # return a boolean if we are a valid list-like (e.g. that we dont' have out-of-bounds values)
+
+        # coerce the key to not exceed the maximum size of the index
+        arr = np.array(key)
+        ax = self.obj._get_axis(axis)
+        l = len(ax)
+        if len(arr) and (arr.max() >= l or arr.min() <= -l):
+            raise IndexError("positional indexers are out-of-bounds")
+
+        return True
+
     def _getitem_tuple(self, tup):
 
         self._has_valid_tuple(tup)
@@ -1339,14 +1364,10 @@ def _getitem_axis(self, key, axis=0, validate_iterable=False):
         # a single integer or a list of integers
         else:
 
-            ax = self.obj._get_axis(axis)
             if _is_list_like(key):
 
-                # coerce the key to not exceed the maximum size of the index
-                arr = np.array(key)
-                l = len(ax)
-                if len(arr) and (arr.max() >= l or arr.min() <= -l):
-                    raise IndexError("positional indexers are out-of-bounds")
+                # validate list bounds
+                self._is_valid_list_like(key, axis)
 
                 # force an actual list
                 key = list(key)
@@ -1358,8 +1379,8 @@ def _getitem_axis(self, key, axis=0, validate_iterable=False):
                     raise TypeError("Cannot index by location index with a "
                                     "non-integer key")
 
-                if key > len(ax):
-                    raise IndexError("single positional indexer is out-of-bounds")
+                # validate the location
+                self._is_valid_integer(key, axis)
 
             return self._get_loc(key, axis=axis)
 
diff --git a/pandas/tests/test_indexing.py b/pandas/tests/test_indexing.py
index ea2205c60d916..db27f9be867c6 100644
--- a/pandas/tests/test_indexing.py
+++ b/pandas/tests/test_indexing.py
@@ -1009,6 +1009,84 @@ def test_iloc_getitem_frame(self):
         # trying to use a label
         self.assertRaises(ValueError, df.iloc.__getitem__, tuple(['j','D']))
 
+    def test_iloc_getitem_panel(self):
+
+        # GH 7189
+        p = Panel(np.arange(4*3*2).reshape(4,3,2),
+                  items=['A','B','C','D'],
+                  major_axis=['a','b','c'],
+                  minor_axis=['one','two'])
+
+        result = p.iloc[1]
+        expected = p.loc['B']
+        assert_frame_equal(result, expected)
+
+        result = p.iloc[1,1]
+        expected = p.loc['B','b']
+        assert_series_equal(result, expected)
+
+        result = p.iloc[1,1,1]
+        expected = p.loc['B','b','two']
+        self.assertEqual(result,expected)
+
+        # slice
+        result = p.iloc[1:3]
+        expected = p.loc[['B','C']]
+        assert_panel_equal(result, expected)
+
+        result = p.iloc[:,0:2]
+        expected = p.loc[:,['a','b']]
+        assert_panel_equal(result, expected)
+
+        # list of integers
+        result = p.iloc[[0,2]]
+        expected = p.loc[['A','C']]
+        assert_panel_equal(result, expected)
+
+        # neg indicies
+        result = p.iloc[[-1,1],[-1,1]]
+        expected = p.loc[['D','B'],['c','b']]
+        assert_panel_equal(result, expected)
+
+        # dups indicies
+        result = p.iloc[[-1,-1,1],[-1,1]]
+        expected = p.loc[['D','D','B'],['c','b']]
+        assert_panel_equal(result, expected)
+
+        # combined
+        result = p.iloc[0,[True,True],[0,1]]
+        expected = p.loc['A',['a','b'],['one','two']]
+        assert_frame_equal(result, expected)
+
+        # out-of-bounds exception
+        self.assertRaises(IndexError, p.iloc.__getitem__, tuple([10,5]))
+        def f():
+            p.iloc[0,[True,True],[0,1,2]]
+        self.assertRaises(IndexError, f)
+
+        # trying to use a label
+        self.assertRaises(ValueError, p.iloc.__getitem__, tuple(['j','D']))
+
+        # GH
+        p = Panel(np.random.rand(4,3,2), items=['A','B','C','D'], major_axis=['U','V','W'], minor_axis=['X','Y'])
+        expected = p['A']
+
+        result = p.iloc[0,:,:]
+        assert_frame_equal(result, expected)
+
+        result = p.iloc[0,[True,True,True],:]
+        assert_frame_equal(result, expected)
+
+        result = p.iloc[0,[True,True,True],[0,1]]
+        assert_frame_equal(result, expected)
+
+        def f():
+            p.iloc[0,[True,True,True],[0,1,2]]
+        self.assertRaises(IndexError, f)
+
+        def f():
+            p.iloc[0,[True,True,True],[2]]
+        self.assertRaises(IndexError, f)
 
     def test_iloc_getitem_doc_issue(self):