diff --git a/src/main/java/io/reactivex/internal/operators/flowable/FlowableOnErrorNext.java b/src/main/java/io/reactivex/internal/operators/flowable/FlowableOnErrorNext.java
index dd1198d0a9..8a36aad3ce 100644
--- a/src/main/java/io/reactivex/internal/operators/flowable/FlowableOnErrorNext.java
+++ b/src/main/java/io/reactivex/internal/operators/flowable/FlowableOnErrorNext.java
@@ -18,6 +18,7 @@
 import io.reactivex.*;
 import io.reactivex.exceptions.*;
 import io.reactivex.functions.Function;
+import io.reactivex.internal.functions.ObjectHelper;
 import io.reactivex.internal.subscriptions.SubscriptionArbiter;
 import io.reactivex.plugins.RxJavaPlugins;
 
@@ -35,30 +36,36 @@ public FlowableOnErrorNext(Flowable<T> source,
     @Override
     protected void subscribeActual(Subscriber<? super T> s) {
         OnErrorNextSubscriber<T> parent = new OnErrorNextSubscriber<T>(s, nextSupplier, allowFatal);
-        s.onSubscribe(parent.arbiter);
+        s.onSubscribe(parent);
         source.subscribe(parent);
     }
 
-    static final class OnErrorNextSubscriber<T> implements FlowableSubscriber<T> {
+    static final class OnErrorNextSubscriber<T>
+    extends SubscriptionArbiter
+    implements FlowableSubscriber<T> {
+        private static final long serialVersionUID = 4063763155303814625L;
+
         final Subscriber<? super T> actual;
+
         final Function<? super Throwable, ? extends Publisher<? extends T>> nextSupplier;
+
         final boolean allowFatal;
-        final SubscriptionArbiter arbiter;
 
         boolean once;
 
         boolean done;
 
+        long produced;
+
         OnErrorNextSubscriber(Subscriber<? super T> actual, Function<? super Throwable, ? extends Publisher<? extends T>> nextSupplier, boolean allowFatal) {
             this.actual = actual;
             this.nextSupplier = nextSupplier;
             this.allowFatal = allowFatal;
-            this.arbiter = new SubscriptionArbiter();
         }
 
         @Override
         public void onSubscribe(Subscription s) {
-            arbiter.setSubscription(s);
+            setSubscription(s);
         }
 
         @Override
@@ -66,10 +73,10 @@ public void onNext(T t) {
             if (done) {
                 return;
             }
-            actual.onNext(t);
             if (!once) {
-                arbiter.produced(1L);
+                produced++;
             }
+            actual.onNext(t);
         }
 
         @Override
@@ -92,18 +99,16 @@ public void onError(Throwable t) {
             Publisher<? extends T> p;
 
             try {
-                p = nextSupplier.apply(t);
+                p = ObjectHelper.requireNonNull(nextSupplier.apply(t), "The nextSupplier returned a null Publisher");
             } catch (Throwable e) {
                 Exceptions.throwIfFatal(e);
                 actual.onError(new CompositeException(t, e));
                 return;
             }
 
-            if (p == null) {
-                NullPointerException npe = new NullPointerException("Publisher is null");
-                npe.initCause(t);
-                actual.onError(npe);
-                return;
+            long mainProduced = produced;
+            if (mainProduced != 0L) {
+                produced(mainProduced);
             }
 
             p.subscribe(this);
diff --git a/src/test/java/io/reactivex/flowable/FlowableNullTests.java b/src/test/java/io/reactivex/flowable/FlowableNullTests.java
index 12c7a9b5c1..80f70a75ad 100644
--- a/src/test/java/io/reactivex/flowable/FlowableNullTests.java
+++ b/src/test/java/io/reactivex/flowable/FlowableNullTests.java
@@ -1648,14 +1648,22 @@ public void onErrorResumeNextFunctionNull() {
         just1.onErrorResumeNext((Function<Throwable, Publisher<Integer>>)null);
     }
 
-    @Test(expected = NullPointerException.class)
+    @Test
     public void onErrorResumeNextFunctionReturnsNull() {
-        Flowable.error(new TestException()).onErrorResumeNext(new Function<Throwable, Publisher<Object>>() {
-            @Override
-            public Publisher<Object> apply(Throwable e) {
-                return null;
-            }
-        }).blockingSubscribe();
+        try {
+            Flowable.error(new TestException()).onErrorResumeNext(new Function<Throwable, Publisher<Object>>() {
+                @Override
+                public Publisher<Object> apply(Throwable e) {
+                    return null;
+                }
+            }).blockingSubscribe();
+            fail("Should have thrown");
+        } catch (CompositeException ex) {
+            List<Throwable> errors = ex.getExceptions();
+            TestHelper.assertError(errors, 0, TestException.class);
+            TestHelper.assertError(errors, 1, NullPointerException.class);
+            assertEquals(2, errors.size());
+        }
     }
 
     @Test(expected = NullPointerException.class)