diff --git a/hadoop-yarn-project/CHANGES.txt b/hadoop-yarn-project/CHANGES.txt
index 7d8439534ad..b351ba343a4 100644
--- a/hadoop-yarn-project/CHANGES.txt
+++ b/hadoop-yarn-project/CHANGES.txt
@@ -280,6 +280,9 @@ Release 2.4.0 - UNRELEASED
     YARN-1522. Fixed a race condition in the test TestApplicationCleanup that was
     causing it to randomly fail. (Liyin Liang via vinodkv)
 
+    YARN-1549. Fixed a bug in ResourceManager's ApplicationMasterService that
+    was causing unamanged AMs to not finish correctly. (haosdent via vinodkv)
+
 Release 2.3.0 - UNRELEASED
 
   INCOMPATIBLE CHANGES
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-applications/hadoop-yarn-applications-unmanaged-am-launcher/src/test/java/org/apache/hadoop/yarn/applications/unmanagedamlauncher/TestUnmanagedAMLauncher.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-applications/hadoop-yarn-applications-unmanaged-am-launcher/src/test/java/org/apache/hadoop/yarn/applications/unmanagedamlauncher/TestUnmanagedAMLauncher.java
index 0cc4b8e72a8..73833379028 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-applications/hadoop-yarn-applications-unmanaged-am-launcher/src/test/java/org/apache/hadoop/yarn/applications/unmanagedamlauncher/TestUnmanagedAMLauncher.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-applications/hadoop-yarn-applications-unmanaged-am-launcher/src/test/java/org/apache/hadoop/yarn/applications/unmanagedamlauncher/TestUnmanagedAMLauncher.java
@@ -29,12 +29,14 @@ import java.io.OutputStream;
 import java.net.URL;
 
 import junit.framework.Assert;
+
 import org.apache.commons.logging.Log;
 import org.apache.commons.logging.LogFactory;
 import org.apache.hadoop.conf.Configuration;
 import org.apache.hadoop.net.NetUtils;
 import org.apache.hadoop.yarn.api.ApplicationMasterProtocol;
 import org.apache.hadoop.yarn.api.protocolrecords.FinishApplicationMasterRequest;
+import org.apache.hadoop.yarn.api.protocolrecords.FinishApplicationMasterResponse;
 import org.apache.hadoop.yarn.api.protocolrecords.RegisterApplicationMasterRequest;
 import org.apache.hadoop.yarn.api.records.FinalApplicationStatus;
 import org.apache.hadoop.yarn.client.ClientRMProxy;
@@ -193,8 +195,10 @@ public class TestUnmanagedAMLauncher {
       client.registerApplicationMaster(RegisterApplicationMasterRequest
           .newInstance(NetUtils.getHostname(), -1, ""));
       Thread.sleep(1000);
-      client.finishApplicationMaster(FinishApplicationMasterRequest
-          .newInstance(FinalApplicationStatus.SUCCEEDED, "success", null));
+      FinishApplicationMasterResponse resp =
+          client.finishApplicationMaster(FinishApplicationMasterRequest
+            .newInstance(FinalApplicationStatus.SUCCEEDED, "success", null));
+      assertTrue(resp.getIsUnregistered());
       System.exit(0);
     } else {
       System.exit(1);
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/ApplicationMasterService.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/ApplicationMasterService.java
index 787ed9fa656..29f0ebe7e97 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/ApplicationMasterService.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/ApplicationMasterService.java
@@ -292,8 +292,21 @@ public class ApplicationMasterService extends AbstractService implements
       
       this.amLivelinessMonitor.receivedPing(applicationAttemptId);
 
-      if (rmContext.getRMApps().get(applicationAttemptId.getApplicationId())
-          .isAppSafeToTerminate()) {
+      RMApp rmApp =
+          rmContext.getRMApps().get(applicationAttemptId.getApplicationId());
+
+      if (rmApp.getApplicationSubmissionContext().getUnmanagedAM()) {
+        // No recovery supported yet for unmanaged AM. Send the unregister event
+        // and (falsely) acknowledge state-store write immediately.
+        rmContext.getDispatcher().getEventHandler().handle(
+          new RMAppAttemptUnregistrationEvent(applicationAttemptId, request
+              .getTrackingUrl(), request.getFinalApplicationStatus(), request
+              .getDiagnostics()));
+        return FinishApplicationMasterResponse.newInstance(true);
+      }
+
+      // Not an unmanaged-AM.
+      if (rmApp.isAppSafeToTerminate()) {
         return FinishApplicationMasterResponse.newInstance(true);
       } else {
         // keep sending the unregister event as RM may crash in the meanwhile.