diff --git a/rxjava-core/src/main/java/rx/concurrency/ExecutorScheduler.java b/rxjava-core/src/main/java/rx/concurrency/ExecutorScheduler.java
index cee84eae441..1e35735c67d 100644
--- a/rxjava-core/src/main/java/rx/concurrency/ExecutorScheduler.java
+++ b/rxjava-core/src/main/java/rx/concurrency/ExecutorScheduler.java
@@ -57,7 +57,7 @@ public void run() {
                 }
             }, initialDelay, period, unit);
 
-            subscriptions.add(Subscriptions.create(f));
+            subscriptions.add(Subscriptions.from(f));
             return subscriptions;
 
         } else {
@@ -84,7 +84,7 @@ public void run() {
                 }
             }, delayTime, unit);
             // add the ScheduledFuture as a subscription so we can cancel the scheduled action if an unsubscribe happens
-            subscription.add(Subscriptions.create(f));
+            subscription.add(Subscriptions.from(f));
         } else {
             // we are not a ScheduledExecutorService so can't directly schedule
             if (delayTime == 0) {
@@ -106,7 +106,7 @@ public void run() {
                     }
                 }, delayTime, unit);
                 // add the ScheduledFuture as a subscription so we can cancel the scheduled action if an unsubscribe happens
-                subscription.add(Subscriptions.create(f));
+                subscription.add(Subscriptions.from(f));
             }
         }
         return subscription;
@@ -134,7 +134,7 @@ public void run() {
             // we are an ExecutorService so get a Future back that supports unsubscribe
             Future<?> f = ((ExecutorService) executor).submit(r);
             // add the Future as a subscription so we can cancel the scheduled action if an unsubscribe happens
-            subscription.add(Subscriptions.create(f));
+            subscription.add(Subscriptions.from(f));
         } else {
             // we are the lowest common denominator so can't unsubscribe once we execute
             executor.execute(r);
diff --git a/rxjava-core/src/main/java/rx/concurrency/NewThreadScheduler.java b/rxjava-core/src/main/java/rx/concurrency/NewThreadScheduler.java
index c33918353b1..036ba621276 100644
--- a/rxjava-core/src/main/java/rx/concurrency/NewThreadScheduler.java
+++ b/rxjava-core/src/main/java/rx/concurrency/NewThreadScheduler.java
@@ -58,15 +58,22 @@ public Thread newThread(Runnable r) {
         }
 
         @Override
-        public <T> Subscription schedule(final T state, final Func2<? super Scheduler, ? super T, ? extends Subscription> action) {
+        public <T> Subscription schedule(T state, Func2<? super Scheduler, ? super T, ? extends Subscription> action) {
+            final DiscardableAction<T> discardableAction = new DiscardableAction<T>(state, action);
+            // all subscriptions that may need to be unsubscribed
+            final CompositeSubscription subscription = new CompositeSubscription(discardableAction);
+            
             final Scheduler _scheduler = this;
-            return Subscriptions.from(executor.submit(new Runnable() {
+            subscription.add(Subscriptions.from(executor.submit(new Runnable() {
 
                 @Override
                 public void run() {
-                    action.call(_scheduler, state);
+                    Subscription s = discardableAction.call(_scheduler);
+                    subscription.add(s);
                 }
-            }));
+            })));
+            
+            return subscription;
         }
 
         @Override
@@ -89,7 +96,7 @@ public void run() {
             }, delayTime, unit);
 
             // add the ScheduledFuture as a subscription so we can cancel the scheduled action if an unsubscribe happens
-            subscription.add(Subscriptions.create(f));
+            subscription.add(Subscriptions.from(f));
 
             return subscription;
         }
@@ -97,7 +104,7 @@ public void run() {
     }
 
     @Override
-    public <T> Subscription schedule(final T state, final Func2<? super Scheduler, ? super T, ? extends Subscription> action) {
+    public <T> Subscription schedule(T state, Func2<? super Scheduler, ? super T, ? extends Subscription> action) {
         EventLoopScheduler s = new EventLoopScheduler();
         return s.schedule(state, action);
     }
@@ -122,7 +129,7 @@ public void run() {
         }, delay, unit);
 
         // add the ScheduledFuture as a subscription so we can cancel the scheduled action if an unsubscribe happens
-        subscription.add(Subscriptions.create(f));
+        subscription.add(Subscriptions.from(f));
 
         return subscription;
     }
diff --git a/rxjava-core/src/test/java/rx/concurrency/SchedulerUnsubscribeTest.java b/rxjava-core/src/test/java/rx/concurrency/SchedulerUnsubscribeTest.java
new file mode 100644
index 00000000000..e99a25eaf38
--- /dev/null
+++ b/rxjava-core/src/test/java/rx/concurrency/SchedulerUnsubscribeTest.java
@@ -0,0 +1,88 @@
+package rx.concurrency;
+
+import static org.junit.Assert.*;
+
+import java.util.concurrent.CountDownLatch;
+import java.util.concurrent.TimeUnit;
+import java.util.concurrent.atomic.AtomicInteger;
+
+import org.junit.Test;
+
+import rx.Observable;
+import rx.Observer;
+import rx.Scheduler;
+import rx.operators.SafeObservableSubscription;
+import rx.util.functions.Func1;
+
+public class SchedulerUnsubscribeTest {
+
+    /**
+     * Bug report: https://github.com/Netflix/RxJava/issues/431
+     */
+    @Test
+    public void testUnsubscribeOfNewThread() throws InterruptedException {
+        testUnSubscribeForScheduler(Schedulers.newThread());
+    }
+
+    @Test
+    public void testUnsubscribeOfThreadPoolForIO() throws InterruptedException {
+        testUnSubscribeForScheduler(Schedulers.threadPoolForIO());
+    }
+    
+    @Test
+    public void testUnsubscribeOfThreadPoolForComputation() throws InterruptedException {
+        testUnSubscribeForScheduler(Schedulers.threadPoolForComputation());
+    }
+    
+    @Test
+    public void testUnsubscribeOfCurrentThread() throws InterruptedException {
+        testUnSubscribeForScheduler(Schedulers.currentThread());
+    }
+
+    public void testUnSubscribeForScheduler(Scheduler scheduler) throws InterruptedException {
+
+        final AtomicInteger countReceived = new AtomicInteger();
+        final AtomicInteger countGenerated = new AtomicInteger();
+        final SafeObservableSubscription s = new SafeObservableSubscription();
+        final CountDownLatch latch = new CountDownLatch(1);
+
+        s.wrap(Observable.interval(50, TimeUnit.MILLISECONDS)
+                .map(new Func1<Long, Long>() {
+                    @Override
+                    public Long call(Long aLong) {
+                        System.out.println("generated " + aLong);
+                        countGenerated.incrementAndGet();
+                        return aLong;
+                    }
+                })
+                .subscribeOn(scheduler)
+                .observeOn(Schedulers.currentThread())
+                .subscribe(new Observer<Long>() {
+                    @Override
+                    public void onCompleted() {
+                        System.out.println("--- completed");
+                    }
+
+                    @Override
+                    public void onError(Throwable e) {
+                        System.out.println("--- onError");
+                    }
+
+                    @Override
+                    public void onNext(Long args) {
+                        if (countReceived.incrementAndGet() == 2) {
+                            s.unsubscribe();
+                            latch.countDown();
+                        }
+                        System.out.println("==> Received " + args);
+                    }
+                }));
+
+        latch.await(1000, TimeUnit.MILLISECONDS);
+
+        System.out.println("----------- it thinks it is finished ------------------ ");
+        Thread.sleep(100);
+
+        assertEquals(2, countGenerated.get());
+    }
+}