Let K be a field of positive characteristic p and KG the group algebra of a group G. It is known that if KG is Lie nilpotent then its upper (or lower) Lie nilpotency index is at most |G ′ | + 1, where |G ′ | is the order of the commutator subgroup. The class of groups G for which these indices are maximal or almost maximal have already been determined. Here we determine G for which upper (or lower) Lie nilpotency index is the next highest possible.1991 Mathematics Subject Classification. 16S34, 17B30.