diff --git a/lib/timers.js b/lib/timers.js
index 7fa683eac5..96d57ec34c 100644
--- a/lib/timers.js
+++ b/lib/timers.js
@@ -287,7 +287,9 @@ var Timeout = function(after) {
 };
 
 Timeout.prototype.unref = function() {
-  if (!this._handle) {
+  if (this._handle) {
+    this._handle.unref();
+  } else if (typeof(this._onTimeout) === 'function') {
     var now = Timer.now();
     if (!this._idleStart) this._idleStart = now;
     var delay = this._idleStart + this._idleTimeout - now;
@@ -298,8 +300,6 @@ Timeout.prototype.unref = function() {
     this._handle.start(delay, 0);
     this._handle.domain = this.domain;
     this._handle.unref();
-  } else {
-    this._handle.unref();
   }
 };
 
diff --git a/test/parallel/test-timers-unref-call.js b/test/parallel/test-timers-unref-call.js
new file mode 100644
index 0000000000..b6f7357549
--- /dev/null
+++ b/test/parallel/test-timers-unref-call.js
@@ -0,0 +1,25 @@
+// Copyright (c) 2014, StrongLoop Inc.
+//
+// Permission to use, copy, modify, and/or distribute this software for any
+// purpose with or without fee is hereby granted, provided that the above
+// copyright notice and this permission notice appear in all copies.
+//
+// THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES
+// WITH REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF
+// MERCHANTABILITY AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR
+// ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
+// WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
+// ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
+// OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
+
+var common = require('../common');
+
+var Timer = process.binding('timer_wrap').Timer;
+Timer.now = function() { return ++Timer.now.ticks; };
+Timer.now.ticks = 0;
+
+var t = setInterval(function() {}, 1);
+var o = { _idleStart: 0, _idleTimeout: 1 };
+t.unref.call(o);
+
+setTimeout(clearInterval.bind(null, t), 2);