diff --git a/rxjava/pom.xml b/rxjava/pom.xml
index 578eda3fcf..7b78d09eb6 100644
--- a/rxjava/pom.xml
+++ b/rxjava/pom.xml
@@ -19,6 +19,12 @@
             <artifactId>rxjava</artifactId>
             <version>${rx.java.version}</version>
         </dependency>
+
+        <dependency>
+            <groupId>io.reactivex.rxjava2</groupId>
+            <artifactId>rxjava</artifactId>
+            <version>2.1.3</version>
+        </dependency>
     </dependencies>
 
     <properties>
diff --git a/rxjava/src/test/java/com/baeldung/rxjava/onerror/ExceptionHandlingTest.java b/rxjava/src/test/java/com/baeldung/rxjava/onerror/ExceptionHandlingTest.java
new file mode 100644
index 0000000000..297cfa980b
--- /dev/null
+++ b/rxjava/src/test/java/com/baeldung/rxjava/onerror/ExceptionHandlingTest.java
@@ -0,0 +1,141 @@
+package com.baeldung.rxjava.onerror;
+
+import io.reactivex.Observable;
+import io.reactivex.exceptions.CompositeException;
+import io.reactivex.observers.TestObserver;
+import org.junit.Test;
+
+import java.util.concurrent.atomic.AtomicBoolean;
+
+import static org.junit.Assert.assertTrue;
+
+/**
+ * @author aiet
+ */
+public class ExceptionHandlingTest {
+
+    private Error UNKNOWN_ERROR = new Error("unknown error");
+    private Exception UNKNOWN_EXCEPTION = new Exception("unknown exception");
+
+    @Test
+    public void givenSubscriberAndError_whenHandleOnErrorReturn_thenResumed() {
+        TestObserver testObserver = new TestObserver();
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .onErrorReturn(Throwable::getMessage)
+          .subscribe(testObserver);
+
+        testObserver.assertNoErrors();
+        testObserver.assertComplete();
+        testObserver.assertValueCount(1);
+        testObserver.assertValue("unknown error");
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenHandleOnErrorResume_thenResumed() {
+        TestObserver testObserver = new TestObserver();
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .onErrorResumeNext(Observable.just("one", "two"))
+          .subscribe(testObserver);
+
+        testObserver.assertNoErrors();
+        testObserver.assertComplete();
+        testObserver.assertValueCount(2);
+        testObserver.assertValues("one", "two");
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenHandleOnErrorResumeItem_thenResumed() {
+        TestObserver testObserver = new TestObserver();
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .onErrorReturnItem("singleValue")
+          .subscribe(testObserver);
+
+        testObserver.assertNoErrors();
+        testObserver.assertComplete();
+        testObserver.assertValueCount(1);
+        testObserver.assertValue("singleValue");
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenHandleOnErrorResumeFunc_thenResumed() {
+        TestObserver testObserver = new TestObserver();
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .onErrorResumeNext(throwable -> {
+              return Observable.just(throwable.getMessage(), "nextValue");
+          })
+          .subscribe(testObserver);
+
+        testObserver.assertNoErrors();
+        testObserver.assertComplete();
+        testObserver.assertValueCount(2);
+        testObserver.assertValues("unknown error", "nextValue");
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenChangeStateOnError_thenErrorThrown() {
+        TestObserver testObserver = new TestObserver();
+        final AtomicBoolean state = new AtomicBoolean(false);
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .doOnError(throwable -> state.set(true))
+          .subscribe(testObserver);
+
+        testObserver.assertError(UNKNOWN_ERROR);
+        testObserver.assertNotComplete();
+        testObserver.assertNoValues();
+        assertTrue("state should be changed", state.get());
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenExceptionOccurOnError_thenCompositeExceptionThrown() {
+        TestObserver testObserver = new TestObserver();
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .doOnError(throwable -> {
+              throw new RuntimeException("unexcepted");
+          })
+          .subscribe(testObserver);
+
+        testObserver.assertError(CompositeException.class);
+        testObserver.assertNotComplete();
+        testObserver.assertNoValues();
+    }
+
+    @Test
+    public void givenSubscriberAndException_whenHandleOnException_thenResumed() {
+        TestObserver testObserver = new TestObserver();
+
+        Observable
+          .error(UNKNOWN_EXCEPTION)
+          .onExceptionResumeNext(Observable.just("exceptionResumed"))
+          .subscribe(testObserver);
+
+        testObserver.assertNoErrors();
+        testObserver.assertComplete();
+        testObserver.assertValueCount(1);
+        testObserver.assertValue("exceptionResumed");
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenHandleOnException_thenNotResumed() {
+        TestObserver testObserver = new TestObserver();
+        Observable
+          .error(UNKNOWN_ERROR)
+          .onExceptionResumeNext(Observable.just("exceptionResumed"))
+          .subscribe(testObserver);
+
+        testObserver.assertError(UNKNOWN_ERROR);
+        testObserver.assertNotComplete();
+    }
+
+}
diff --git a/rxjava/src/test/java/com/baeldung/rxjava/onerror/OnErrorRetryTest.java b/rxjava/src/test/java/com/baeldung/rxjava/onerror/OnErrorRetryTest.java
new file mode 100644
index 0000000000..0f9c39ad1b
--- /dev/null
+++ b/rxjava/src/test/java/com/baeldung/rxjava/onerror/OnErrorRetryTest.java
@@ -0,0 +1,149 @@
+package com.baeldung.rxjava.onerror;
+
+import io.reactivex.Observable;
+import io.reactivex.observers.TestObserver;
+import org.junit.Test;
+
+import java.util.concurrent.TimeUnit;
+import java.util.concurrent.atomic.AtomicInteger;
+
+import static org.junit.Assert.assertTrue;
+
+/**
+ * @author aiet
+ */
+public class OnErrorRetryTest {
+
+    private Error UNKNOWN_ERROR = new Error("unknown error");
+
+    @Test
+    public void givenSubscriberAndError_whenRetryOnError_thenRetryConfirmed() {
+        TestObserver testObserver = new TestObserver();
+        AtomicInteger atomicCounter = new AtomicInteger(0);
+
+        Observable
+          .error(() -> {
+              atomicCounter.incrementAndGet();
+              return UNKNOWN_ERROR;
+          })
+          .retry(1)
+          .subscribe(testObserver);
+
+        testObserver.assertError(UNKNOWN_ERROR);
+        testObserver.assertNotComplete();
+        testObserver.assertNoValues();
+        assertTrue("should call twice", atomicCounter.get() == 2);
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenRetryConditionallyOnError_thenRetryConfirmed() {
+        TestObserver testObserver = new TestObserver();
+
+        AtomicInteger atomicCounter = new AtomicInteger(0);
+
+        Observable
+          .error(() -> {
+              atomicCounter.incrementAndGet();
+              return UNKNOWN_ERROR;
+          })
+          .retry((integer, throwable) -> integer < 4)
+          .subscribe(testObserver);
+
+        testObserver.assertError(UNKNOWN_ERROR);
+        testObserver.assertNotComplete();
+        testObserver.assertNoValues();
+        assertTrue("should call 4 times", atomicCounter.get() == 4);
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenRetryUntilOnError_thenRetryConfirmed() {
+        TestObserver testObserver = new TestObserver();
+        AtomicInteger atomicCounter = new AtomicInteger(0);
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .retryUntil(() -> atomicCounter.incrementAndGet() > 3)
+          .subscribe(testObserver);
+
+        testObserver.assertError(UNKNOWN_ERROR);
+        testObserver.assertNotComplete();
+        testObserver.assertNoValues();
+        assertTrue("should call 4 times", atomicCounter.get() == 4);
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenRetryWhenOnError_thenRetryConfirmed() {
+        TestObserver testObserver = new TestObserver();
+        Exception noretryException = new Exception("don't retry");
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .retryWhen(throwableObservable -> Observable.error(noretryException))
+          .subscribe(testObserver);
+
+        testObserver.assertError(noretryException);
+        testObserver.assertNotComplete();
+        testObserver.assertNoValues();
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenRetryWhenOnError_thenCompleted() {
+        TestObserver testObserver = new TestObserver();
+        AtomicInteger atomicCounter = new AtomicInteger(0);
+
+        Observable
+          .error(() -> {
+              atomicCounter.incrementAndGet();
+              return UNKNOWN_ERROR;
+          })
+          .retryWhen(throwableObservable -> Observable.empty())
+          .subscribe(testObserver);
+
+        testObserver.assertNoErrors();
+        testObserver.assertComplete();
+        testObserver.assertNoValues();
+        assertTrue("should not retry", atomicCounter.get() == 0);
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenRetryWhenOnError_thenResubscribed() {
+        TestObserver testObserver = new TestObserver();
+        AtomicInteger atomicCounter = new AtomicInteger(0);
+
+        Observable
+          .error(() -> {
+              atomicCounter.incrementAndGet();
+              return UNKNOWN_ERROR;
+          })
+          .retryWhen(throwableObservable -> Observable.just("anything"))
+          .subscribe(testObserver);
+
+        testObserver.assertNoErrors();
+        testObserver.assertComplete();
+        testObserver.assertNoValues();
+        assertTrue("should retry once", atomicCounter.get() == 1);
+    }
+
+    @Test
+    public void givenSubscriberAndError_whenRetryWhenForMultipleTimesOnError_thenResumed() {
+        TestObserver testObserver = new TestObserver();
+        long before = System.currentTimeMillis();
+
+        Observable
+          .error(UNKNOWN_ERROR)
+          .retryWhen(throwableObservable -> throwableObservable
+            .zipWith(Observable.range(1, 3), (throwable, integer) -> integer)
+            .flatMap(integer -> {
+                System.out.println("retried " + integer + " times");
+                return Observable.timer(integer, TimeUnit.SECONDS);
+            }))
+          .blockingSubscribe(testObserver);
+
+        testObserver.assertNoErrors();
+        testObserver.assertComplete();
+        testObserver.assertNoValues();
+        long secondsElapsed = (System.currentTimeMillis() - before) / 1000;
+        assertTrue("6 seconds should elapse", secondsElapsed == 6);
+    }
+
+}