diff --git a/lib/test.js b/lib/test.js
index c53abb5a..5edb47fe 100644
--- a/lib/test.js
+++ b/lib/test.js
@@ -5,6 +5,25 @@ var path = require('path');
 var inherits = require('util').inherits;
 var EventEmitter = require('events').EventEmitter;
 
+/**
+ * Transitions:
+ *
+ * From     -> To       : Triggered by
+ *
+ * PENDING  -> RUNNING  : Results object calls .run
+ * RUNNING  -> FINISHED : .end no remaining subtest
+ * RUNNING  -> SUBTESTS : .end with subtests
+ * SUBTESTS -> FINISHED : .end after all subtests end
+ *
+ * .end is called when:
+ *
+ *  - it's called by the test itself
+ *  - there is a plan and:
+ *    - The assertion count + number of children == plan
+ *
+ */
+
+
 module.exports = Test;
 
 var nextTick = typeof setImmediate !== 'undefined'
@@ -36,6 +55,7 @@ function Test (name_, opts_, cb_) {
     this.readable = true;
     this.name = name || '(anonymous)';
     this.assertCount = 0;
+    this.pendingCount = 0;
     this._skip = opts.skip || false;
     this._plan = undefined;
     this._cb = cb;
@@ -60,9 +80,19 @@ Test.prototype.run = function () {
 };
 
 Test.prototype.test = function (name, opts, cb) {
+    var self = this;
     var t = new Test(name, opts, cb);
     this._progeny.push(t);
+    this.pendingCount++;
     this.emit('test', t);
+    t.on('prerun', function () {
+        self.assertCount++;
+    })
+    if (!self._pendingAsserts()) {
+        nextTick(function () {
+            self.end();
+        });
+    }
 };
 
 Test.prototype.comment = function (msg) {
@@ -76,16 +106,19 @@ Test.prototype.plan = function (n) {
 
 Test.prototype.end = function () {
     var self = this;
+
     if (this._progeny.length) {
         var t = this._progeny.shift();
-        t.on('end', function () { self.end() });
+        t.on('end', function () {
+            self.end();
+        });
         this.emit('next', t);
         return;
     }
     
     if (!this.ended) this.emit('end');
-    if (this._plan !== undefined &&
-        !this._planError && this.assertCount !== this._plan) {
+    var pendingAsserts = this._pendingAsserts();
+    if (!this._planError && this._plan !== undefined && pendingAsserts) {
         this._planError = true;
         this.fail('plan != count', {
             expected : this._plan,
@@ -112,6 +145,15 @@ Test.prototype._exit = function () {
     }
 };
 
+Test.prototype._pendingAsserts = function () {
+    if (this._plan === undefined) {
+        return 1;
+    } else {
+        return this._plan -
+            (this._progeny.length + this.assertCount);
+    }
+}
+
 Test.prototype._assert = function assert (ok, opts) {
     var self = this;
     var extra = opts.extra || {};
@@ -160,20 +202,22 @@ Test.prototype._assert = function assert (ok, opts) {
     
     self.emit('result', res);
     
-    if (self._plan === self.assertCount && extra.exiting) {
-        if (!self.ended) self.end();
-    }
-    else if (self._plan === self.assertCount) {
-        nextTick(function () {
-            if (!self.ended) self.end();
-        });
+    var pendingAsserts = self._pendingAsserts();
+    if (!pendingAsserts) {
+        if (extra.exiting) {
+            self.end();
+        } else {
+            nextTick(function () {
+                self.end();
+            });
+        }
     }
     
-    if (!self._planError && self.assertCount > self._plan) {
+    if (!self._planError && pendingAsserts < 0) {
         self._planError = true;
         self.fail('plan != count', {
             expected : self._plan,
-            actual : self.assertCount
+            actual : self._plan - pendingAsserts
         });
     }
 };
diff --git a/test/nested.js b/test/nested.js
index 6af123bc..673465d4 100644
--- a/test/nested.js
+++ b/test/nested.js
@@ -39,7 +39,7 @@ tap.test('array test', function (tt) {
     test.createStream().pipe(tc);
     
     test('nested array test', function (t) {
-        t.plan(5);
+        t.plan(6);
         
         var src = '(' + function () {
             var xs = [ 1, 2, [ 3, 4 ] ];
diff --git a/test/subtest_plan.js b/test/subtest_plan.js
index 67a4c464..2b075ae5 100644
--- a/test/subtest_plan.js
+++ b/test/subtest_plan.js
@@ -15,7 +15,7 @@ test('parent', function (t) {
 
     t.test('second child', function (t) {
         t.plan(2);
-        t.ok(firstChildRan, 'first child ran');
+        t.ok(firstChildRan, 'first child ran first');
         t.pass('pass second child');
     });
 });