diff --git a/Sources/Signal.swift b/Sources/Signal.swift
index 073d469e4..50ba2defe 100644
--- a/Sources/Signal.swift
+++ b/Sources/Signal.swift
@@ -313,13 +313,24 @@ public final class Signal<Value, Error: Swift.Error> {
 			return ActionDisposable { [weak self] in
 				if let s = self {
 					s.updateLock.lock()
+
 					if case let .alive(snapshot) = s.state {
 						var observers = snapshot.observers
 						observers.remove(using: token)
-						s.state = .alive(AliveState(observers: observers,
-						                            retaining: observers.isEmpty ? nil : self))
+
+						// Ensure the old signal state snapshot does not deinitialize before
+						// `updateLock` is released. Otherwise, it might result in a
+						// deadlock in cases where a `Signal` legitimately receives terminal
+						// events recursively as a result of the deinitialization of the
+						// snapshot.
+						withExtendedLifetime(snapshot) {
+							s.state = .alive(AliveState(observers: observers,
+							                            retaining: observers.isEmpty ? nil : self))
+							s.updateLock.unlock()
+						}
+					} else {
+						s.updateLock.unlock()
 					}
-					s.updateLock.unlock()
 				}
 			}
 		} else {
diff --git a/Tests/ReactiveSwiftTests/ActionSpec.swift b/Tests/ReactiveSwiftTests/ActionSpec.swift
index d739fa26b..b7fd27411 100755
--- a/Tests/ReactiveSwiftTests/ActionSpec.swift
+++ b/Tests/ReactiveSwiftTests/ActionSpec.swift
@@ -58,7 +58,7 @@ class ActionSpec: QuickSpec {
 				action.errors.observeValues { errors.append($0) }
 				action.completed.observeValues { completedCount += 1 }
 			}
-			
+
 			it("should retain the state property") {
 				var property: MutableProperty<Bool>? = MutableProperty(false)
 				weak var weakProperty = property
@@ -114,6 +114,21 @@ class ActionSpec: QuickSpec {
 				expect(action.isExecuting.value) == false
 			}
 
+			it("should not deadlock") {
+				final class ViewModel {
+					let action2 = Action<(), (), NoError> { SignalProducer(value: ()) }
+				}
+
+				let action1 = Action<(), ViewModel, NoError> { SignalProducer(value: ViewModel()) }
+
+				action1.values
+					.flatMap(.latest) { viewModel in viewModel.action2.values.map { _ in viewModel } }
+					.observeValues { _ in }
+
+				action1.apply().start()
+				action1.apply().start()
+			}
+
 			describe("completed") {
 				beforeEach {
 					enabled.value = true