diff --git a/reductor-observable-rxjava2/.gitignore b/reductor-observable-rxjava2/.gitignore
new file mode 100644
index 0000000..796b96d
--- /dev/null
+++ b/reductor-observable-rxjava2/.gitignore
@@ -0,0 +1 @@
+/build
diff --git a/reductor-observable-rxjava2/README.md b/reductor-observable-rxjava2/README.md
new file mode 100644
index 0000000..397b074
--- /dev/null
+++ b/reductor-observable-rxjava2/README.md
@@ -0,0 +1,45 @@
+# Reductor Observable
+
+Combine RxJava streams to dispatch async actions and handle side effects.
+
+### Epic
+
+The core primitive is `Epic`. Epic is defined as a simple interface:
+
+```java
+public interface Epic<T> {
+    Observable<Object> run(Observable<Action> actions, Store<T> store);
+}
+```
+
+Epic is run once `Store` is created. 
+It's basically a function that takes a stream of actions and returns stream of actions.
+Each object emitted by returned Observable will be dispatched back to `Store`.
+
+A simple example of async flow is Ping-Pong Epic which listens for `PING` action and responds with `PONG` after one second.
+
+```java
+Epic<String> pingPongEpic = (actions, store) ->            
+        actions.filter(Epics.ofType("PING"))           
+                .delay(1, TimeUnit.SECONDS)            
+                .map(action -> Action.create("PONG")); 
+```
+
+Each 'PONG' message will be dispatched back to store to be handled by `Reducer`.
+
+### Creating Middleware
+
+To connect `Epic` to `Store`, create `EpicMiddleware` with provided epic.
+Once middleware is created, it can be passed to `Store.create`:
+
+```java
+EpicMiddleware<String> middleware = EpicMiddleware.create(pingPongEpic);
+
+Store<String> store = Store.create(reducer, middleware);
+```
+
+#### Combining epics
+
+EpicMiddleware takes only one rootEpic in `EpicMiddleware.create`.
+However, you can combine more than one epics into single Epic by using `Epics.combineEpics(epics)`.
+This will simply merge all returned streams into one.
diff --git a/reductor-observable-rxjava2/build.gradle b/reductor-observable-rxjava2/build.gradle
new file mode 100644
index 0000000..e79cf64
--- /dev/null
+++ b/reductor-observable-rxjava2/build.gradle
@@ -0,0 +1,14 @@
+apply plugin: 'java'
+apply plugin: 'me.tatarka.retrolambda'
+apply from: '../gradle/publishing.gradle'
+apply from: '../gradle/jacoco.gradle'
+
+dependencies {
+    retrolambdaConfig "net.orfjackal.retrolambda:retrolambda:${retrolambdaVersion}"
+
+    compile project(':lib')
+    compile 'io.reactivex.rxjava2:rxjava:2.1.0'
+
+    testCompile 'junit:junit:4.12'
+    testCompile 'org.mockito:mockito-core:1.10.19'
+}
\ No newline at end of file
diff --git a/reductor-observable-rxjava2/gradle.properties b/reductor-observable-rxjava2/gradle.properties
new file mode 100644
index 0000000..79632c7
--- /dev/null
+++ b/reductor-observable-rxjava2/gradle.properties
@@ -0,0 +1,2 @@
+ARTIFACT_ID=reductor-observable-rxjava2
+POM_NAME=ReductorObservableRxJava2
\ No newline at end of file
diff --git a/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/Epic.java b/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/Epic.java
new file mode 100644
index 0000000..db7c014
--- /dev/null
+++ b/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/Epic.java
@@ -0,0 +1,32 @@
+package com.yheriatovych.reductor.observable.rxjava2;
+
+import com.yheriatovych.reductor.Action;
+import com.yheriatovych.reductor.Store;
+import io.reactivex.Observable;
+
+/**
+ * Core primitive to process and dispatch actions asynchronously
+ * It is a function which takes a stream of actions and returns a stream of actions.
+ * <p>
+ * Actions emitted by returning stream will be dispatched back to {@link Store}
+ * <p>
+ * Ping-Pong example:
+ * <pre><code>
+ * Epic&lt;String&gt; pingPong = (actions, store) -&gt;
+ *         actions.filter(Epics.ofType("PING"))
+ *                 .delay(1, TimeUnit.SECONDS)
+ *                 .map(action -&gt; Action.create("PONG"));
+ * </code></pre>
+ *
+ * @param <T> state type of {@link Store}
+ */
+public interface Epic<T> {
+    /**
+     * Functions that will be called by {@link Store} once it's created.
+     *
+     * @param actions an Observable of actions dispatched to the Store
+     * @param store   a Store object that Epic can use to query the state
+     * @return an Observable of actions that will be dispatched back to Store
+     */
+    Observable<Object> run(Observable<Action> actions, Store<T> store);
+}
diff --git a/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/EpicMiddleware.java b/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/EpicMiddleware.java
new file mode 100644
index 0000000..dae466c
--- /dev/null
+++ b/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/EpicMiddleware.java
@@ -0,0 +1,59 @@
+package com.yheriatovych.reductor.observable.rxjava2;
+
+import com.yheriatovych.reductor.*;
+import io.reactivex.disposables.Disposable;
+import io.reactivex.subjects.PublishSubject;
+
+/**
+ * Middleware that runs provided {@link Epic} after {@link Store} created
+ * and dispatches actions produced by Epic back to the Store.
+ *
+ * @param <T> state type of {@link Store}
+ */
+public class EpicMiddleware<T> implements Middleware<T>, Disposable {
+
+    private final Epic<T> epic;
+    private Disposable disposable;
+
+    private EpicMiddleware(Epic<T> rootEpic) {
+        this.epic = rootEpic;
+    }
+
+    /**
+     * Factory method to create EpicMiddleware.
+     * <p>
+     * This method takes only one epic.
+     * However, several epics can be combined with {@link Epics#combineEpics(Iterable)}.
+     *
+     * @param rootEpic epic to run once store is created
+     * @param <T>      state type of {@link Store}
+     * @return instance of EpicMiddleware to be passed to {@link Store#create(Reducer, Middleware[])}
+     */
+    public static <T> EpicMiddleware<T> create(Epic<T> rootEpic) {
+        return new EpicMiddleware<>(rootEpic);
+    }
+
+    @Override
+    public Dispatcher create(Store<T> store, Dispatcher nextDispatcher) {
+        PublishSubject<Action> actions = PublishSubject.create();
+        disposable = epic.run(actions, store).subscribe(store::dispatch);
+        return action -> {
+            nextDispatcher.dispatch(action);
+            if(action instanceof Action) {
+                actions.onNext((Action) action);
+            }
+        };
+    }
+
+    @Override
+    public void dispose() {
+        if (disposable != null) {
+            disposable.dispose();
+        }
+    }
+
+    @Override
+    public boolean isDisposed() {
+        return disposable != null && disposable.isDisposed();
+    }
+}
diff --git a/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/Epics.java b/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/Epics.java
new file mode 100644
index 0000000..63ec510
--- /dev/null
+++ b/reductor-observable-rxjava2/src/main/java/com/yheriatovych/reductor/observable/rxjava2/Epics.java
@@ -0,0 +1,35 @@
+package com.yheriatovych.reductor.observable.rxjava2;
+
+import com.yheriatovych.reductor.Action;
+import io.reactivex.Observable;
+import io.reactivex.functions.Predicate;
+
+public class Epics {
+    private Epics() {
+    }
+
+    /**
+     * Combine several Epics into one.
+     * <p>
+     * Returned streams will be merged with {@link Observable#merge(Iterable)}
+     *
+     * @param epics Epics to combine
+     * @param <T>   state type
+     * @return Epic that will combine all provided epics behaviour
+     */
+    public static <T> Epic<T> combineEpics(Iterable<Epic<T>> epics) {
+        return (actions, store) -> Observable.fromIterable(epics)
+                .flatMap(epic -> epic.run(actions, store));
+    }
+
+    /**
+     * Useful predicate to be used with {@link Observable#filter(Predicate)} in Epic implementation
+     * to filter only actions with specific {@link Action#type}
+     *
+     * @param type Action type filtered
+     * @return Predicate that will check if {@link Action#type} equals to specified type
+     */
+    public static Predicate<Action> ofType(String type) {
+        return action -> type.equals(action.type);
+    }
+}
diff --git a/reductor-observable-rxjava2/src/test/java/com/yheriatovych/reductor/observable/rxjava2/EpicMiddlewareTest.java b/reductor-observable-rxjava2/src/test/java/com/yheriatovych/reductor/observable/rxjava2/EpicMiddlewareTest.java
new file mode 100644
index 0000000..4545e5f
--- /dev/null
+++ b/reductor-observable-rxjava2/src/test/java/com/yheriatovych/reductor/observable/rxjava2/EpicMiddlewareTest.java
@@ -0,0 +1,81 @@
+package com.yheriatovych.reductor.observable.rxjava2;
+
+import com.yheriatovych.reductor.Action;
+import com.yheriatovych.reductor.Reducer;
+import com.yheriatovych.reductor.Store;
+import io.reactivex.Observable;
+import io.reactivex.observers.TestObserver;
+import io.reactivex.subjects.PublishSubject;
+import org.junit.Before;
+import org.junit.Test;
+import org.mockito.*;
+
+import static org.junit.Assert.assertFalse;
+import static org.junit.Assert.assertTrue;
+import static org.mockito.Mockito.*;
+
+public class EpicMiddlewareTest {
+
+    private class TestState {
+
+    }
+
+    private class TestReducer implements Reducer<TestState> {
+        @Override
+        public TestState reduce(TestState testState, Action action) {
+            if(testState == null) {
+                testState = new TestState();
+            }
+            return testState;
+        }
+    }
+
+    @Spy TestReducer reducer = new TestReducer();
+    PublishSubject<Object> epicObservable = PublishSubject.create();
+    @Mock
+    Epic<TestState> epic;
+    @Captor ArgumentCaptor<Observable<Action>> actionsCaptor;
+    Store<TestState> store;
+    EpicMiddleware<TestState> epicMiddleware;
+
+    @Before
+    public void setUp() throws Exception {
+        MockitoAnnotations.initMocks(this);
+        when(epic.run(actionsCaptor.capture(), any())).thenReturn(epicObservable);
+        epicMiddleware = EpicMiddleware.create(epic);
+    }
+
+    @Test
+    public void testSubscribeToEpic() {
+        store = Store.create(reducer, epicMiddleware);
+
+        verify(epic).run(any(), eq(store));
+        assertTrue(epicObservable.hasObservers());
+    }
+
+    @Test
+    public void testPropagateActionsToEpic() {
+        store = Store.create(reducer, epicMiddleware);
+
+        TestObserver<Action> testObserver = TestObserver.create();
+        actionsCaptor.getValue().subscribe(testObserver);
+
+        Action testAction = Action.create("TEST");
+        store.dispatch(testAction);
+
+        testObserver.assertValue(testAction);
+    }
+
+    @Test
+    public void testUnsubscriptionEpic() {
+        store = Store.create(reducer, epicMiddleware);
+
+        assertTrue("epic observable should has observers after Store.create", epicObservable.hasObservers());
+
+        assertFalse("Epic should not be unsubscribed", epicMiddleware.isDisposed());
+        epicMiddleware.dispose();
+        assertTrue("Epic should be unsubscribed", epicMiddleware.isDisposed());
+
+        assertFalse("epic observable is unsubscibed after middleware.unsubscribe", epicObservable.hasObservers());
+    }
+}
\ No newline at end of file
diff --git a/settings.gradle b/settings.gradle
index ff381b0..3b5ea4b 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -1,2 +1,2 @@
-include ':example', ':compiller', ':lib', 'reductor-rxjava', 'reductor-rxjava2', 'reductor-observable'
+include ':example', ':compiller', ':lib', 'reductor-rxjava', 'reductor-rxjava2', 'reductor-observable', 'reductor-observable-rxjava2'