diff --git a/src/operators/retry.ts b/src/operators/retry.ts
index 8cb10d288e..5b000c9d74 100644
--- a/src/operators/retry.ts
+++ b/src/operators/retry.ts
@@ -2,36 +2,88 @@ import Operator from '../Operator';
 import Observer from '../Observer';
 import Subscriber from '../Subscriber';
 import Observable from '../Observable';
+import Subscription from '../Subscription';
 
 export default function retry<T>(count: number = 0): Observable<T> {
   return this.lift(new RetryOperator(count, this));
 }
 
 class RetryOperator<T, R> implements Operator<T, R> {
-  constructor(private count: number, protected original: Observable<T>) {
+  constructor(private count: number,
+              protected source: Observable<T>) {
   }
 
   call(subscriber: Subscriber<T>): Subscriber<T> {
-    return new RetrySubscriber<T>(subscriber, this.count, this.original);
+    return new FirstRetrySubscriber<T>(subscriber, this.count, this.source);
   }
 }
 
-class RetrySubscriber<T> extends Subscriber<T> {
-  private retries: number = 0;
-  constructor(destination: Subscriber<T>, private count: number, private original: Observable<T>) {
-    super(destination);
+class FirstRetrySubscriber<T> extends Subscriber<T> {
+  private lastSubscription: Subscription<T>;
+
+  constructor(public destination: Subscriber<T>,
+              private count: number,
+              private source: Observable<T>) {
+    super(null);
+    this.lastSubscription = this;
+  }
+
+  _next(value: T) {
+    this.destination.next(value);
+  }
+
+  error(error?) {
+    if (!this.isUnsubscribed) {
+      super.unsubscribe();
+      this.resubscribe();
+    }
+  }
+
+  _complete() {
+    super.unsubscribe();
+    this.destination.complete();
+  }
+
+  unsubscribe() {
+    const lastSubscription = this.lastSubscription;
+    if (lastSubscription === this) {
+      super.unsubscribe();
+    } else {
+      lastSubscription.unsubscribe();
+    }
+  }
+
+  resubscribe(retried: number = 0) {
+    this.lastSubscription.unsubscribe();
+    const nextSubscriber = new RetryMoreSubscriber(this, this.count, retried + 1);
+    this.lastSubscription = this.source.subscribe(nextSubscriber);
+  }
+}
+
+class RetryMoreSubscriber<T> extends Subscriber<T> {
+  constructor(private parent: FirstRetrySubscriber<T>,
+              private count: number,
+              private retried: number = 0) {
+    super(null);
+  }
+
+  _next(value: T) {
+    this.parent.destination.next(value);
   }
 
   _error(err: any) {
+    const parent = this.parent;
+    const retried = this.retried;
     const count = this.count;
-    if (count && count === (this.retries += 1)) {
-      this.destination.error(err);
+
+    if (count && retried === count) {
+      parent.destination.error(err);
     } else {
-      this.resubscribe();
+      parent.resubscribe(retried);
     }
   }
 
-  resubscribe() {
-    this.original.subscribe(this);
+  _complete() {
+    this.parent.destination.complete();
   }
-}
\ No newline at end of file
+}