diff --git a/spec/operators/delay-spec.js b/spec/operators/delay-spec.js
index 8db55eeca9..ab1d9c90eb 100644
--- a/spec/operators/delay-spec.js
+++ b/spec/operators/delay-spec.js
@@ -1,11 +1,96 @@
-/* globals describe, it, expect, expectObservable, hot, rxTestScheduler */
+/* globals describe, it, expect, expectObservable, expectSubscriptions, hot, rxTestScheduler */
 var Rx = require('../../dist/cjs/Rx');
+var Observable = Rx.Observable;
 
 describe('Observable.prototype.delay()', function () {
   it('should delay by specified timeframe', function () {
-    var source = hot('--a--|');
-    var expected =   '-----a--|';
+    var e1 =   hot('--a--b--|');
+    var expected = '-----a--b--|';
+    var subs =     '^          !';
 
-    expectObservable(source.delay(30, rxTestScheduler)).toBe(expected);
+    expectObservable(e1.delay(30, rxTestScheduler)).toBe(expected);
+    expectSubscriptions(e1.subscriptions).toBe(subs);
+  });
+
+  it('should delay by absolute time period', function () {
+    var e1 =   hot('--a--b--|');
+    var expected = '-----a--b--|';
+    var subs =     '^          !';
+    var absoluteDelay = new Date(rxTestScheduler.now() + 30);
+
+    expectObservable(e1.delay(absoluteDelay, rxTestScheduler)).toBe(expected);
+    expectSubscriptions(e1.subscriptions).toBe(subs);
+  });
+
+  it('should delay by absolute time period after subscription', function () {
+    var e1 =   hot('---^--a--b--|');
+    var expected =    '------a--b--|';
+    var subs =        '^           !';
+    var absoluteDelay = new Date(rxTestScheduler.now() + 30);
+
+    expectObservable(e1.delay(absoluteDelay, rxTestScheduler)).toBe(expected);
+    expectSubscriptions(e1.subscriptions).toBe(subs);
+  });
+
+  it('should raise error when source raises error', function () {
+    var e1 =   hot('---a---b---#');
+    var expected = '------a---b#';
+    var subs =     '^          !';
+
+    expectObservable(e1.delay(30, rxTestScheduler)).toBe(expected);
+    expectSubscriptions(e1.subscriptions).toBe(subs);
+  });
+
+  it('should raise error when source raises error', function () {
+    var e1 =   hot('--a--b--#');
+    var expected = '-----a--#';
+    var subs =     '^       !';
+    var absoluteDelay = new Date(rxTestScheduler.now() + 30);
+
+    expectObservable(e1.delay(absoluteDelay, rxTestScheduler)).toBe(expected);
+    expectSubscriptions(e1.subscriptions).toBe(subs);
+  });
+
+  it('should raise error when source raises error after subscription', function () {
+    var e1 =   hot('---^---a---b---#');
+    var expected =    '-------a---b#';
+    var e1Sub =       '^           !';
+    var absoluteDelay = new Date(rxTestScheduler.now() + 30);
+
+    expectObservable(e1.delay(absoluteDelay, rxTestScheduler)).toBe(expected);
+    expectSubscriptions(e1.subscriptions).toBe(e1Sub);
+  });
+
+  it('should delay when source does not emits', function () {
+    var e1 =   hot('----|');
+    var expected = '-------|';
+    var subs =     '^      !';
+
+    expectObservable(e1.delay(30, rxTestScheduler)).toBe(expected);
+    expectSubscriptions(e1.subscriptions).toBe(subs);
+  });
+
+  it('should delay when source is empty', function () {
+    var e1 = Observable.empty();
+    var expected = '---|';
+
+    expectObservable(e1.delay(30, rxTestScheduler)).toBe(expected);
+  });
+
+  it('should not complete when source does not completes', function () {
+    var e1 =   hot('---a---b-');
+    var expected = '------a---b-';
+    var unsub =    '----------------!';
+    var subs =     '^               !';
+
+    expectObservable(e1.delay(30, rxTestScheduler), unsub).toBe(expected);
+    expectSubscriptions(e1.subscriptions).toBe(subs);
+  });
+
+  it('should not complete when source never completes', function () {
+    var e1 = Observable.never();
+    var expected = '-';
+
+    expectObservable(e1.delay(30, rxTestScheduler)).toBe(expected);
   });
 });
\ No newline at end of file
diff --git a/src/operators/delay.ts b/src/operators/delay.ts
index 5b80045fd4..2cdc1944ce 100644
--- a/src/operators/delay.ts
+++ b/src/operators/delay.ts
@@ -1,22 +1,20 @@
 import Operator from '../Operator';
-import Observer from '../Observer';
 import Scheduler from '../Scheduler';
 import Subscriber from '../Subscriber';
 import Notification from '../Notification';
 import immediate from '../schedulers/immediate';
+import isDate from '../util/isDate';
 
-export default function delay<T>(delay: number, scheduler: Scheduler = immediate) {
-  return this.lift(new DelayOperator(delay, scheduler));
+export default function delay<T>(delay: number|Date,
+                                 scheduler: Scheduler = immediate) {
+  let absoluteDelay = isDate(delay);
+  let delayFor = absoluteDelay ? (+delay - scheduler.now()) : <number>delay;
+  return this.lift(new DelayOperator(delayFor, scheduler));
 }
 
 class DelayOperator<T, R> implements Operator<T, R> {
-
-  delay: number;
-  scheduler: Scheduler;
-
-  constructor(delay: number, scheduler: Scheduler) {
-    this.delay = delay;
-    this.scheduler = scheduler;
+  constructor(private delay: number,
+              private scheduler: Scheduler) {
   }
 
   call(subscriber: Subscriber<T>): Subscriber<T> {
@@ -25,21 +23,20 @@ class DelayOperator<T, R> implements Operator<T, R> {
 }
 
 class DelaySubscriber<T> extends Subscriber<T> {
+  private queue: Array<any> = [];
+  private active: boolean = false;
+  private errored: boolean = false;
 
-  protected delay: number;
-  protected queue: Array<any> = [];
-  protected scheduler: Scheduler;
-  protected active: boolean = false;
-  protected errored: boolean = false;
-
-  static dispatch(state) {
+  private static dispatch(state): void {
     const source = state.source;
     const queue = source.queue;
     const scheduler = state.scheduler;
     const destination = state.destination;
+
     while (queue.length > 0 && (queue[0].time - scheduler.now()) <= 0) {
       queue.shift().notification.observe(destination);
     }
+
     if (queue.length > 0) {
       let delay = Math.max(0, queue[0].time - scheduler.now());
       (<any> this).schedule(state, delay);
@@ -48,56 +45,50 @@ class DelaySubscriber<T> extends Subscriber<T> {
     }
   }
 
-  constructor(destination: Subscriber<T>, delay: number, scheduler: Scheduler) {
+  constructor(destination: Subscriber<T>,
+              private delay: number,
+              private scheduler: Scheduler) {
     super(destination);
-    this.delay = delay;
-    this.scheduler = scheduler;
   }
 
-  _next(x) {
-    if (this.errored) {
+  private _schedule(scheduler: Scheduler): void {
+    this.active = true;
+    this.add(scheduler.schedule(DelaySubscriber.dispatch, this.delay, {
+      source: this, destination: this.destination, scheduler: scheduler
+    }));
+  }
+
+  private scheduleNotification(notification: Notification<any>): void {
+    if (this.errored === true) {
       return;
     }
+
     const scheduler = this.scheduler;
-    this.queue.push(new DelayMessage<T>(scheduler.now() + this.delay, Notification.createNext(x)));
+    let message = new DelayMessage<T>(scheduler.now() + this.delay, notification);
+    this.queue.push(message);
+
     if (this.active === false) {
       this._schedule(scheduler);
     }
   }
 
-  _error(e) {
-    const scheduler = this.scheduler;
-    this.errored = true;
-    this.queue = [new DelayMessage<T>(scheduler.now() + this.delay, Notification.createError(e))];
-    if (this.active === false) {
-      this._schedule(scheduler);
-    }
+  _next(value: T) {
+    this.scheduleNotification(Notification.createNext(value));
   }
 
-  _complete() {
-    if (this.errored) {
-      return;
-    }
-    const scheduler = this.scheduler;
-    this.queue.push(new DelayMessage<T>(scheduler.now() + this.delay, Notification.createComplete()));
-    if (this.active === false) {
-      this._schedule(scheduler);
-    }
+  _error(err) {
+    this.errored = true;
+    this.queue = [];
+    this.destination.error(err);
   }
 
-  _schedule(scheduler) {
-    this.active = true;
-    this.add(scheduler.schedule(DelaySubscriber.dispatch, this.delay, {
-      source: this, destination: this.destination, scheduler: scheduler
-    }));
+  _complete() {
+    this.scheduleNotification(Notification.createComplete());
   }
 }
 
 class DelayMessage<T> {
-  time: number;
-  notification: any;
-  constructor(time: number, notification: any) {
-    this.time = time;
-    this.notification = notification;
+  constructor(private time: number,
+              private notification: any) {
   }
 }
\ No newline at end of file