diff --git a/src/main/java/io/reactivex/internal/operators/completable/CompletableDelay.java b/src/main/java/io/reactivex/internal/operators/completable/CompletableDelay.java
index fa600c64b1..79b0a49383 100644
--- a/src/main/java/io/reactivex/internal/operators/completable/CompletableDelay.java
+++ b/src/main/java/io/reactivex/internal/operators/completable/CompletableDelay.java
@@ -14,9 +14,11 @@
 package io.reactivex.internal.operators.completable;
 
 import java.util.concurrent.TimeUnit;
+import java.util.concurrent.atomic.AtomicReference;
 
 import io.reactivex.*;
-import io.reactivex.disposables.*;
+import io.reactivex.disposables.Disposable;
+import io.reactivex.internal.disposables.DisposableHelper;
 
 public final class CompletableDelay extends Completable {
 
@@ -40,54 +42,70 @@ public CompletableDelay(CompletableSource source, long delay, TimeUnit unit, Sch
 
     @Override
     protected void subscribeActual(final CompletableObserver s) {
-        final CompositeDisposable set = new CompositeDisposable();
-
-        source.subscribe(new Delay(set, s));
+        source.subscribe(new Delay(s, delay, unit, scheduler, delayError));
     }
 
-    final class Delay implements CompletableObserver {
+    static final class Delay extends AtomicReference<Disposable>
+    implements CompletableObserver, Runnable, Disposable {
+
+        private static final long serialVersionUID = 465972761105851022L;
+
+        final CompletableObserver downstream;
+
+        final long delay;
+
+        final TimeUnit unit;
 
-        private final CompositeDisposable set;
-        final CompletableObserver s;
+        final Scheduler scheduler;
 
-        Delay(CompositeDisposable set, CompletableObserver s) {
-            this.set = set;
-            this.s = s;
+        final boolean delayError;
+
+        Throwable error;
+
+        Delay(CompletableObserver downstream, long delay, TimeUnit unit, Scheduler scheduler, boolean delayError) {
+            this.downstream = downstream;
+            this.delay = delay;
+            this.unit = unit;
+            this.scheduler = scheduler;
+            this.delayError = delayError;
+        }
+
+        @Override
+        public void onSubscribe(Disposable d) {
+            if (DisposableHelper.setOnce(this, d)) {
+                downstream.onSubscribe(this);
+            }
         }
 
         @Override
         public void onComplete() {
-            set.add(scheduler.scheduleDirect(new OnComplete(), delay, unit));
+            DisposableHelper.replace(this, scheduler.scheduleDirect(this, delay, unit));
         }
 
         @Override
         public void onError(final Throwable e) {
-            set.add(scheduler.scheduleDirect(new OnError(e), delayError ? delay : 0, unit));
+            error = e;
+            DisposableHelper.replace(this, scheduler.scheduleDirect(this, delayError ? delay : 0, unit));
         }
 
         @Override
-        public void onSubscribe(Disposable d) {
-            set.add(d);
-            s.onSubscribe(set);
+        public void dispose() {
+            DisposableHelper.dispose(this);
         }
 
-        final class OnComplete implements Runnable {
-            @Override
-            public void run() {
-                s.onComplete();
-            }
+        @Override
+        public boolean isDisposed() {
+            return DisposableHelper.isDisposed(get());
         }
 
-        final class OnError implements Runnable {
-            private final Throwable e;
-
-            OnError(Throwable e) {
-                this.e = e;
-            }
-
-            @Override
-            public void run() {
-                s.onError(e);
+        @Override
+        public void run() {
+            Throwable e = error;
+            error = null;
+            if (e != null) {
+                downstream.onError(e);
+            } else {
+                downstream.onComplete();
             }
         }
     }
diff --git a/src/test/java/io/reactivex/internal/operators/completable/CompletableDelayTest.java b/src/test/java/io/reactivex/internal/operators/completable/CompletableDelayTest.java
index 78393b39ae..174a520e0f 100644
--- a/src/test/java/io/reactivex/internal/operators/completable/CompletableDelayTest.java
+++ b/src/test/java/io/reactivex/internal/operators/completable/CompletableDelayTest.java
@@ -13,17 +13,18 @@
 
 package io.reactivex.internal.operators.completable;
 
-import java.util.concurrent.CountDownLatch;
-import java.util.concurrent.TimeUnit;
+import static org.junit.Assert.assertNotEquals;
+
+import java.util.concurrent.*;
 import java.util.concurrent.atomic.AtomicReference;
 
-import io.reactivex.functions.Consumer;
 import org.junit.Test;
 
-import io.reactivex.Completable;
-import io.reactivex.schedulers.Schedulers;
-
-import static org.junit.Assert.assertNotEquals;
+import io.reactivex.*;
+import io.reactivex.exceptions.TestException;
+import io.reactivex.functions.*;
+import io.reactivex.observers.TestObserver;
+import io.reactivex.schedulers.*;
 
 public class CompletableDelayTest {
 
@@ -58,4 +59,65 @@ public void accept(Throwable throwable) throws Exception {
         assertNotEquals(Thread.currentThread(), thread.get());
     }
 
+    @Test
+    public void disposed() {
+        TestHelper.checkDisposed(Completable.never().delay(1, TimeUnit.MINUTES));
+    }
+
+    @Test
+    public void doubleOnSubscribe() {
+        TestHelper.checkDoubleOnSubscribeCompletable(new Function<Completable, CompletableSource>() {
+            @Override
+            public CompletableSource apply(Completable c) throws Exception {
+                return c.delay(1, TimeUnit.MINUTES);
+            }
+        });
+    }
+
+    @Test
+    public void normal() {
+        Completable.complete()
+        .delay(1, TimeUnit.MILLISECONDS)
+        .test()
+        .awaitDone(5, TimeUnit.SECONDS)
+        .assertResult();
+    }
+
+    @Test
+    public void errorNotDelayed() {
+        TestScheduler scheduler = new TestScheduler();
+
+        TestObserver<Void> to = Completable.error(new TestException())
+        .delay(100, TimeUnit.MILLISECONDS, scheduler, false)
+        .test();
+
+        to.assertEmpty();
+
+        scheduler.advanceTimeBy(1, TimeUnit.MILLISECONDS);
+
+        to.assertFailure(TestException.class);
+
+        scheduler.advanceTimeBy(100, TimeUnit.MILLISECONDS);
+
+        to.assertFailure(TestException.class);
+    }
+
+    @Test
+    public void errorDelayed() {
+        TestScheduler scheduler = new TestScheduler();
+
+        TestObserver<Void> to = Completable.error(new TestException())
+        .delay(100, TimeUnit.MILLISECONDS, scheduler, true)
+        .test();
+
+        to.assertEmpty();
+
+        scheduler.advanceTimeBy(1, TimeUnit.MILLISECONDS);
+
+        to.assertEmpty();
+
+        scheduler.advanceTimeBy(99, TimeUnit.MILLISECONDS);
+
+        to.assertFailure(TestException.class);
+    }
 }