diff --git a/src/libcore/iter.rs b/src/libcore/iter.rs
index 2d488a4b15563..6c43d4dbc30ca 100644
--- a/src/libcore/iter.rs
+++ b/src/libcore/iter.rs
@@ -2036,18 +2036,49 @@ for Inspect<'a, A, T> {
     }
 }
 
-/// An iterator which just modifies the contained state throughout iteration.
+/// An iterator which passes mutable state to a closure and yields the result.
+///
+/// # Example: The Fibonacci Sequence
+///
+/// An iterator that yields sequential Fibonacci numbers, and stops on overflow.
+///
+/// ```rust
+/// use std::iter::Unfold;
+/// use std::num::Int; // For `.checked_add()`
+///
+/// // This iterator will yield up to the last Fibonacci number before the max value of `u32`.
+/// // You can simply change `u32` to `u64` in this line if you want higher values than that.
+/// let mut fibonacci = Unfold::new((Some(0u32), Some(1u32)), |&(ref mut x2, ref mut x1)| {
+///     // Attempt to get the next Fibonacci number
+///     // `x1` will be `None` if previously overflowed.
+///     let next = match (*x2, *x1) {
+///         (Some(x2), Some(x1)) => x2.checked_add(x1),
+///         _ => None,
+///     };
+///
+///     // Shift left: ret <- x2 <- x1 <- next
+///     let ret = *x2;
+///     *x2 = *x1;
+///     *x1 = next;
+///
+///     ret
+/// });
+///
+/// for i in fibonacci {
+///     println!("{}", i);
+/// }
+/// ```
 #[experimental]
 pub struct Unfold<'a, A, St> {
     f: |&mut St|: 'a -> Option<A>,
-    /// Internal state that will be yielded on the next iteration
+    /// Internal state that will be passed to the closure on the next iteration
     pub state: St,
 }
 
 #[experimental]
 impl<'a, A, St> Unfold<'a, A, St> {
     /// Creates a new iterator with the specified closure as the "iterator
-    /// function" and an initial state to eventually pass to the iterator
+    /// function" and an initial state to eventually pass to the closure
     #[inline]
     pub fn new<'a>(initial_state: St, f: |&mut St|: 'a -> Option<A>)
                -> Unfold<'a, A, St> {