diff --git a/modules/angular2/src/facade/async.ts b/modules/angular2/src/facade/async.ts
index d02945d7fd..be10aa075d 100644
--- a/modules/angular2/src/facade/async.ts
+++ b/modules/angular2/src/facade/async.ts
@@ -3,9 +3,13 @@ import {global, isPresent, noop} from 'angular2/src/facade/lang';
 // without depending on rxjs.
 import {PromiseWrapper, Promise, PromiseCompleter} from 'angular2/src/facade/promise';
 export {PromiseWrapper, Promise, PromiseCompleter} from 'angular2/src/facade/promise';
-import {Subject, Subscription, Observable as RxObservable} from '@reactivex/rxjs/dist/cjs/Rx';
-export {Subject} from '@reactivex/rxjs/dist/cjs/Rx';
-import Operator from '@reactivex/rxjs/dist/cjs/Operator';
+
+import {Subject} from '@reactivex/rxjs/dist/cjs/Subject';
+import {Observable as RxObservable} from '@reactivex/rxjs/dist/cjs/Observable';
+import {Subscription} from '@reactivex/rxjs/dist/cjs/Subscription';
+import {Operator} from '@reactivex/rxjs/dist/cjs/Operator';
+export {Subject} from '@reactivex/rxjs/dist/cjs/Subject';
+
 
 export namespace NodeJS {
   export interface Timer {}
diff --git a/modules/angular2/test/core/facade/observable_spec.dart b/modules/angular2/test/core/facade/observable_spec.dart
new file mode 100644
index 0000000000..4877b20756
--- /dev/null
+++ b/modules/angular2/test/core/facade/observable_spec.dart
@@ -0,0 +1,5 @@
+library angular2.test.facade.observable_spec;
+
+main() {
+  //stub to ignore JS Observable specific tests
+}
diff --git a/modules/angular2/test/core/facade/observable_spec.ts b/modules/angular2/test/core/facade/observable_spec.ts
new file mode 100644
index 0000000000..ae51a1b204
--- /dev/null
+++ b/modules/angular2/test/core/facade/observable_spec.ts
@@ -0,0 +1,63 @@
+import {
+  describe,
+  it,
+  expect,
+  beforeEach,
+  ddescribe,
+  iit,
+  xit,
+  el,
+  SpyObject,
+  AsyncTestCompleter,
+  inject
+} from 'angular2/testing_internal';
+
+import {Observable, Subject, EventEmitter, PromiseWrapper} from 'angular2/src/facade/async';
+
+export function main() {
+  describe("Observable", () => {
+    describe("#core", () => {
+
+      it("should call next with values", inject([AsyncTestCompleter], (async) => {
+
+           let o = new Observable(sink => { sink.next(1); });
+
+           o.subscribe(v => {
+             expect(v).toEqual(1);
+             async.done();
+           });
+
+         }));
+
+      it("should call next and then complete", inject([AsyncTestCompleter], (async) => {
+
+           let o = new Observable(sink => {
+             sink.next(1);
+             sink.complete();
+           });
+           let nexted = false;
+
+           o.subscribe(v => { nexted = true; }, null, () => {
+             expect(nexted).toBe(true);
+             async.done();
+           });
+
+         }));
+
+      it("should call error with errors", inject([AsyncTestCompleter], (async) => {
+
+           let o = new Observable(sink => { sink.error('oh noes!'); });
+
+           o.subscribe(
+               v => {
+
+               },
+               (err) => {
+                 expect(err).toEqual('oh noes!');
+                 async.done();
+               });
+
+         }));
+    });
+  });
+}
diff --git a/modules/angular2/test/public_api_spec.ts b/modules/angular2/test/public_api_spec.ts
index 966154e863..3163681a9f 100644
--- a/modules/angular2/test/public_api_spec.ts
+++ b/modules/angular2/test/public_api_spec.ts
@@ -686,51 +686,9 @@ var NG_ALL = [
   /*
    RxJS API - may need to maintain as RxJS evolves
   */
-  'EventEmitter.mapTo():js',
-  'EventEmitter.next():js',
   'EventEmitter.emit():js',
-  'EventEmitter.materialize():js',
-  'EventEmitter.merge():js',
-  'EventEmitter.mergeAll():js',
-  'EventEmitter.mergeMap():js',
-  'EventEmitter.mergeMapTo():js',
-  'EventEmitter.multicast():js',
-  'EventEmitter.observeOn():js',
-  'EventEmitter.remove():js',
-  'EventEmitter.repeat():js',
-  'EventEmitter.retry():js',
-  'EventEmitter.retryWhen():js',
-  'EventEmitter.throttle():js',
-  'EventEmitter.toPromise():js',
-  'EventEmitter.window():js',
-  'EventEmitter.windowCount():js',
-  'EventEmitter.windowTime():js',
-  'EventEmitter.windowToggle():js',
-  'EventEmitter.windowWhen():js',
-  'EventEmitter.withLatestFrom():js',
-  'EventEmitter.zip():js',
-  'EventEmitter.zipAll():js',
-
   'Observable:js',
-  'Observable#combineLatest():js',
-  'Observable#concat():js',
   'Observable#create():js',
-  'Observable#defer():js',
-  'Observable#empty():js',
-  'Observable#forkJoin():js',
-  'Observable#from():js',
-  'Observable#fromArray():js',
-  'Observable#fromEvent():js',
-  'Observable#fromEventPattern():js',
-  'Observable#fromPromise():js',
-  'Observable#interval():js',
-  'Observable#merge():js',
-  'Observable#never():js',
-  'Observable#of():js',
-  'Observable#range():js',
-  'Observable#throw():js',
-  'Observable#timer():js',
-  'Observable#zip():js',
   'Observable.buffer():js',
   'Observable.bufferCount():js',
   'Observable.bufferTime():js',
diff --git a/modules/playground/src/http/http_comp.ts b/modules/playground/src/http/http_comp.ts
index ccad58c110..914a19be42 100644
--- a/modules/playground/src/http/http_comp.ts
+++ b/modules/playground/src/http/http_comp.ts
@@ -16,8 +16,6 @@ import {Http, Response} from 'angular2/http';
 export class HttpCmp {
   people: Object[];
   constructor(http: Http) {
-    http.get('./people.json')
-        .map((res: Response) => res.json())
-        .subscribe((people: Array<Object>) => this.people = people);
+    http.get('./people.json').subscribe(res => { this.people = res.json(); });
   }
 }
diff --git a/npm-shrinkwrap.clean.json b/npm-shrinkwrap.clean.json
index ba60b155b0..38819c5aca 100644
--- a/npm-shrinkwrap.clean.json
+++ b/npm-shrinkwrap.clean.json
@@ -1,7 +1,7 @@
 {
   "dependencies": {
     "@reactivex/rxjs": {
-      "version": "5.0.0-alpha.7"
+      "version": "5.0.0-alpha.10"
     },
     "angular": {
       "version": "1.4.7"
diff --git a/npm-shrinkwrap.json b/npm-shrinkwrap.json
index 7a0feff288..9dca270d6a 100644
--- a/npm-shrinkwrap.json
+++ b/npm-shrinkwrap.json
@@ -3,9 +3,9 @@
   "version": "2.0.0-alpha.46",
   "dependencies": {
     "@reactivex/rxjs": {
-      "version": "5.0.0-alpha.7",
-      "from": "https://registry.npmjs.org/@reactivex/rxjs/-/rxjs-5.0.0-alpha.7.tgz",
-      "resolved": "https://registry.npmjs.org/@reactivex/rxjs/-/rxjs-5.0.0-alpha.7.tgz"
+      "version": "5.0.0-alpha.10",
+      "from": "@reactivex/rxjs@5.0.0-alpha.10",
+      "resolved": "http://registry.npmjs.org/@reactivex/rxjs/-/rxjs-5.0.0-alpha.10.tgz"
     },
     "angular": {
       "version": "1.4.7",
diff --git a/package.json b/package.json
index b11dae3462..b12b5083e1 100644
--- a/package.json
+++ b/package.json
@@ -31,7 +31,7 @@
     "test": "gulp test.all.js && gulp test.all.dart"
   },
   "dependencies": {
-    "@reactivex/rxjs": "5.0.0-alpha.7",
+    "@reactivex/rxjs": "5.0.0-alpha.10",
     "reflect-metadata": "0.1.2",
     "zone.js": "0.5.8"
   },
diff --git a/tools/broccoli/html-replace/SCRIPTS.html b/tools/broccoli/html-replace/SCRIPTS.html
index 296b260221..3572d85c57 100644
--- a/tools/broccoli/html-replace/SCRIPTS.html
+++ b/tools/broccoli/html-replace/SCRIPTS.html
@@ -12,6 +12,7 @@
       'angular2/src/testing/benchmark_util': {defaultExtension: 'js'},
       'angular2/src/facade/browser': {defaultExtension: 'js'},
       'angular2/bootstrap': {defaultExtension: 'js'},
+      'rxjs': {defaultExtension: 'js'},
     }
   });
 </script>
diff --git a/tools/broccoli/html-replace/SCRIPTS_benchmarks.html b/tools/broccoli/html-replace/SCRIPTS_benchmarks.html
index a62d620412..163d331055 100644
--- a/tools/broccoli/html-replace/SCRIPTS_benchmarks.html
+++ b/tools/broccoli/html-replace/SCRIPTS_benchmarks.html
@@ -13,6 +13,7 @@
       'angular2/src/testing/benchmark_util': {defaultExtension: 'js'},
       'angular2/src/facade/browser': {defaultExtension: 'js'},
       'angular2/bootstrap': {defaultExtension: 'js'},
+      'rxjs': {defaultExtension: 'js'},
     }
   });
 </script>