diff --git a/packages/optimizely-sdk/CHANGELOG.MD b/packages/optimizely-sdk/CHANGELOG.MD
index 6ddb2b216..f3330c849 100644
--- a/packages/optimizely-sdk/CHANGELOG.MD
+++ b/packages/optimizely-sdk/CHANGELOG.MD
@@ -7,6 +7,9 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 ## [Unreleased]
 Changes that have landed but are not yet released.
 
+### Bug Fixes:
+- Clear timeout created in onReady call for timeout promise as soon as project config manager's ready promise fulfills
+
 ### New Features
 - Added 60 second timeout for all datafile requests
 
diff --git a/packages/optimizely-sdk/lib/optimizely/index.js b/packages/optimizely-sdk/lib/optimizely/index.js
index 18927ccaa..23f0577e7 100644
--- a/packages/optimizely-sdk/lib/optimizely/index.js
+++ b/packages/optimizely-sdk/lib/optimizely/index.js
@@ -936,6 +936,14 @@ Optimizely.prototype.onReady = function(options) {
     onClose: onClose,
   };
 
+  this.__readyPromise.then(function() {
+    clearTimeout(readyTimeout);
+    delete this.__readyTimeouts[timeoutId];
+    resolveTimeoutPromise({
+      success: true,
+    });
+  }.bind(this));
+
   return Promise.race([this.__readyPromise, timeoutPromise]);
 };
 
diff --git a/packages/optimizely-sdk/lib/optimizely/index.tests.js b/packages/optimizely-sdk/lib/optimizely/index.tests.js
index c4acf4919..2be2a668d 100644
--- a/packages/optimizely-sdk/lib/optimizely/index.tests.js
+++ b/packages/optimizely-sdk/lib/optimizely/index.tests.js
@@ -4831,11 +4831,17 @@ describe('lib/optimizely', function() {
 
     describe('onReady method', function() {
       var clock;
+      var setTimeoutSpy;
+      var clearTimeoutSpy;
       beforeEach(function() {
         clock = sinon.useFakeTimers(new Date().getTime());
+        setTimeoutSpy = sinon.spy(clock, 'setTimeout');
+        clearTimeoutSpy = sinon.spy(clock, 'clearTimeout');
       });
 
       afterEach(function() {
+        setTimeoutSpy.restore();
+        clearTimeoutSpy.restore();
         clock.restore();
       });
 
@@ -4944,6 +4950,32 @@ describe('lib/optimizely', function() {
           return readyPromise3;
         });
       });
+
+      it('clears the timeout when the project config manager ready promise fulfills', function() {
+        projectConfigManager.ProjectConfigManager.callsFake(function(config) {
+          return {
+            stop: sinon.stub(),
+            getConfig: sinon.stub().returns(null),
+            onUpdate: sinon.stub().returns(function() {}),
+            onReady: sinon.stub().returns(Promise.resolve({ success: true })),
+          };
+        });
+        optlyInstance = new Optimizely({
+          clientEngine: 'node-sdk',
+          errorHandler: errorHandler,
+          eventDispatcher: eventDispatcher,
+          jsonSchemaValidator: jsonSchemaValidator,
+          logger: createdLogger,
+          sdkKey: '12345',
+          isValidInstance: true,
+        });
+        return optlyInstance.onReady().then(function() {
+          sinon.assert.calledOnce(clock.setTimeout);
+          var timeout = clock.setTimeout.getCall(0).returnValue;
+          sinon.assert.calledOnce(clock.clearTimeout);
+          sinon.assert.calledWithExactly(clock.clearTimeout, timeout);
+        });
+      });
     });
 
     describe('project config updates', function() {