diff --git a/src/main/java/rx/Scheduler.java b/src/main/java/rx/Scheduler.java
index 12922bc4a4..921528c875 100644
--- a/src/main/java/rx/Scheduler.java
+++ b/src/main/java/rx/Scheduler.java
@@ -43,6 +43,17 @@ public abstract class Scheduler {
  *    maintenance.
  */
 
+    /** 
+     * The tolerance for a clock drift in nanoseconds where the periodic scheduler will rebase. 
+     * <p>
+     * The associated system parameter, {@code rx.scheduler.drift-tolerance}, expects its value in minutes.
+     */
+    static final long CLOCK_DRIFT_TOLERANCE_NANOS;
+    static {
+        CLOCK_DRIFT_TOLERANCE_NANOS = TimeUnit.MINUTES.toNanos(
+                Long.getLong("rx.scheduler.drift-tolerance", 15));
+    }
+    
     /**
      * Retrieves or creates a new {@link Scheduler.Worker} that represents serial execution of actions.
      * <p>
@@ -109,17 +120,38 @@ public abstract static class Worker implements Subscription {
          */
         public Subscription schedulePeriodically(final Action0 action, long initialDelay, long period, TimeUnit unit) {
             final long periodInNanos = unit.toNanos(period);
-            final long startInNanos = TimeUnit.MILLISECONDS.toNanos(now()) + unit.toNanos(initialDelay);
+            final long firstNowNanos = TimeUnit.MILLISECONDS.toNanos(now());
+            final long firstStartInNanos = firstNowNanos + unit.toNanos(initialDelay);
 
             final MultipleAssignmentSubscription mas = new MultipleAssignmentSubscription();
             final Action0 recursiveAction = new Action0() {
-                long count = 0;
+                long count;
+                long lastNowNanos = firstNowNanos;
+                long startInNanos = firstStartInNanos;
                 @Override
                 public void call() {
                     if (!mas.isUnsubscribed()) {
                         action.call();
-                        long nextTick = startInNanos + (++count * periodInNanos);
-                        mas.set(schedule(this, nextTick - TimeUnit.MILLISECONDS.toNanos(now()), TimeUnit.NANOSECONDS));
+                        
+                        long nextTick;
+                        
+                        long nowNanos = TimeUnit.MILLISECONDS.toNanos(now());
+                        // If the clock moved in a direction quite a bit, rebase the repetition period
+                        if (nowNanos + CLOCK_DRIFT_TOLERANCE_NANOS < lastNowNanos
+                                || nowNanos >= lastNowNanos + periodInNanos + CLOCK_DRIFT_TOLERANCE_NANOS) {
+                            nextTick = nowNanos + periodInNanos;
+                            /* 
+                             * Shift the start point back by the drift as if the whole thing
+                             * started count periods ago.
+                             */
+                            startInNanos = nextTick - (periodInNanos * (++count));
+                        } else {
+                            nextTick = startInNanos + (++count * periodInNanos);
+                        }
+                        lastNowNanos = nowNanos;
+                        
+                        long delay = nextTick - nowNanos;
+                        mas.set(schedule(this, delay, TimeUnit.NANOSECONDS));
                     }
                 }
             };
diff --git a/src/test/java/rx/SchedulerWorkerTest.java b/src/test/java/rx/SchedulerWorkerTest.java
new file mode 100644
index 0000000000..8bb1094b46
--- /dev/null
+++ b/src/test/java/rx/SchedulerWorkerTest.java
@@ -0,0 +1,153 @@
+/**
+ * Copyright 2014 Netflix, Inc.
+ * 
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ * 
+ * http://www.apache.org/licenses/LICENSE-2.0
+ * 
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package rx;
+
+import static org.junit.Assert.assertTrue;
+
+import java.util.*;
+import java.util.concurrent.TimeUnit;
+
+import org.junit.Test;
+
+import rx.functions.Action0;
+import rx.schedulers.Schedulers;
+
+public class SchedulerWorkerTest {
+    
+    static final class CustomDriftScheduler extends Scheduler {
+        public volatile long drift;
+        @Override
+        public Worker createWorker() {
+            final Worker w = Schedulers.computation().createWorker();
+            return new Worker() {
+
+                @Override
+                public void unsubscribe() {
+                    w.unsubscribe();
+                }
+
+                @Override
+                public boolean isUnsubscribed() {
+                    return w.isUnsubscribed();
+                }
+
+                @Override
+                public Subscription schedule(Action0 action) {
+                    return w.schedule(action);
+                }
+
+                @Override
+                public Subscription schedule(Action0 action, long delayTime, TimeUnit unit) {
+                    return w.schedule(action, delayTime, unit);
+                }
+                
+                @Override
+                public long now() {
+                    return super.now() + drift;
+                }
+            };
+        }
+        
+        @Override
+        public long now() {
+            return super.now() + drift;
+        }
+    }
+    
+    @Test
+    public void testCurrentTimeDriftBackwards() throws Exception {
+        CustomDriftScheduler s = new CustomDriftScheduler();
+        
+        Scheduler.Worker w = s.createWorker();
+        
+        try {
+            final List<Long> times = new ArrayList<Long>();
+            
+            Subscription d = w.schedulePeriodically(new Action0() {
+                @Override
+                public void call() {
+                    times.add(System.currentTimeMillis());
+                }
+            }, 100, 100, TimeUnit.MILLISECONDS);
+
+            Thread.sleep(150);
+            
+            s.drift = -1000 - TimeUnit.NANOSECONDS.toMillis(Scheduler.CLOCK_DRIFT_TOLERANCE_NANOS);
+            
+            Thread.sleep(400);
+            
+            d.unsubscribe();
+            
+            Thread.sleep(150);
+            
+            System.out.println("Runs: " + times.size());
+            
+            for (int i = 0; i < times.size() - 1 ; i++) {
+                long diff = times.get(i + 1) - times.get(i);
+                System.out.println("Diff #" + i + ": " + diff);
+                assertTrue("" + i + ":" + diff, diff < 150 && diff > 50);
+            }
+
+            assertTrue("Too few invocations: " + times.size(), times.size() > 2);
+            
+        } finally {
+            w.unsubscribe();
+        }
+        
+    }
+    
+    @Test
+    public void testCurrentTimeDriftForwards() throws Exception {
+        CustomDriftScheduler s = new CustomDriftScheduler();
+        
+        Scheduler.Worker w = s.createWorker();
+        
+        try {
+            final List<Long> times = new ArrayList<Long>();
+            
+            Subscription d = w.schedulePeriodically(new Action0() {
+                @Override
+                public void call() {
+                    times.add(System.currentTimeMillis());
+                }
+            }, 100, 100, TimeUnit.MILLISECONDS);
+
+            Thread.sleep(150);
+            
+            s.drift = 1000 + TimeUnit.NANOSECONDS.toMillis(Scheduler.CLOCK_DRIFT_TOLERANCE_NANOS);
+            
+            Thread.sleep(400);
+            
+            d.unsubscribe();
+            
+            Thread.sleep(150);
+            
+            System.out.println("Runs: " + times.size());
+            
+            assertTrue(times.size() > 2);
+            
+            for (int i = 0; i < times.size() - 1 ; i++) {
+                long diff = times.get(i + 1) - times.get(i);
+                System.out.println("Diff #" + i + ": " + diff);
+                assertTrue("Diff out of range: " + diff, diff < 250 && diff > 50);
+            }
+            
+        } finally {
+            w.unsubscribe();
+        }
+        
+    }
+}