Index: library/Zend/Form/Element/Multi.php
===================================================================
--- library/Zend/Form/Element/Multi.php	(revision 9236)
+++ library/Zend/Form/Element/Multi.php	(working copy)
@@ -213,15 +213,27 @@
      */
     protected function _translateOption($option, $value)
     {
-        if (!isset($this->_translated[$option]) 
-            && (null !== ($translator = $this->getTranslator()))
-            && $translator->isTranslated($value)) 
-        {
-            $this->options[$option] = $translator->translate($value);
-            $this->_translated[$option] = true;
-            return true;
-        } 
+        if (isset($this->_translated[$option]) || (null === ($translator = $this->getTranslator()))) {
+            return false;	
+        }
+
+        if (is_array($value)) {
+            $value = $this->_arrayMapRecursive(array($translator, 'translate'), $value);
+        } else {
+            $value = $translator->translate($value);
+        }
 
-        return false;
+        $this->options[$option] = $value;
+        $this->_translated[$option] = true;
+        return true;
+    }
+    
+    protected function _arrayMapRecursive($function, $data) {
+        foreach ( $data as $i => $item ) {
+            $data[$i] = is_array($item)
+                ? $this->_arrayMapRecursive($function, $item)
+                : call_user_func($function, $item) ;
+            }
+        return $data;
     }
 }
Index: tests/Zend/Form/Element/MultiselectTest.php
===================================================================
--- tests/Zend/Form/Element/MultiselectTest.php	(revision 9236)
+++ tests/Zend/Form/Element/MultiselectTest.php	(working copy)
@@ -253,6 +253,33 @@
         $test = $this->element->getMultiOption('testing');
         $this->assertEquals($options['testing'], $test);
     }
+    
+    public function testOptionsAreTranslatedWhenInASelectWithOptgroups()
+    {
+    	$translations = array(
+            'ThisShouldNotShow'   => 'Foo Value',
+            'ThisShouldNeverShow' => 'Bar Value'
+        );
+        require_once 'Zend/Translate.php';
+        $translate = new Zend_Translate('array', $translations, 'en');
+        $translate->setLocale('en');
+
+        $options = array(
+        	'group' => array (
+	            'foovalue' => 'ThisShouldNotShow',
+	            'barvalue' => 'ThisShouldNeverShow'
+            )
+        );
+
+        $this->element->setTranslator($translate)
+                      ->addMultiOptions($options);
+
+        $html = $this->element->render($this->getView());
+        foreach ($options['group'] as $value => $label) {
+            $this->assertNotContains($label, $html, $html);
+            $this->assertRegexp('/<option.*value="' . $value . '"[^>]*>' . $translations[$label] . '/s', $html, $html);
+        }
+    }
 
     public function testMultiselectIsArrayByDefault()
     {