diff --git a/mistral/engine1/policies.py b/mistral/engine1/policies.py
index a9d52ea0..354ac564 100644
--- a/mistral/engine1/policies.py
+++ b/mistral/engine1/policies.py
@@ -145,9 +145,10 @@ class WaitAfterPolicy(base.TaskPolicy):
         policy_context = runtime_context[context_key]
 
         if policy_context.get('skip'):
-            # Unset state 'DELAYED'.
-            task_db.state = \
-                states.ERROR if raw_result.is_error() else states.SUCCESS
+            # Need to avoid terminal states.
+            if not states.is_finished(task_db.state):
+                # Unset state 'DELAYED'.
+                task_db.state = states.RUNNING
 
             return
 
diff --git a/mistral/tests/base.py b/mistral/tests/base.py
index 90f41ce4..141f821c 100644
--- a/mistral/tests/base.py
+++ b/mistral/tests/base.py
@@ -167,6 +167,9 @@ class BaseTest(base.BaseTestCase):
 
             time.sleep(delay)
 
+    def _sleep(self, seconds):
+        time.sleep(seconds)
+
 
 class DbTestCase(BaseTest):
     is_heavy_init_called = False
diff --git a/mistral/tests/unit/engine1/test_policies.py b/mistral/tests/unit/engine1/test_policies.py
index 7ef2f558..96eae0e7 100644
--- a/mistral/tests/unit/engine1/test_policies.py
+++ b/mistral/tests/unit/engine1/test_policies.py
@@ -142,6 +142,23 @@ workflows:
 """
 
 
+TIMEOUT_WB2 = """
+---
+version: '2.0'
+name: wb
+workflows:
+  wf1:
+    type: direct
+
+    tasks:
+      task1:
+        action: std.echo output="Hi!"
+        policies:
+          wait-after: 2
+          timeout: 1
+"""
+
+
 class PoliciesTest(base.EngineTestCase):
     def setUp(self):
         super(PoliciesTest, self).setUp()
@@ -288,3 +305,29 @@ class PoliciesTest(base.EngineTestCase):
 
         exec_db = db_api.get_execution(exec_db.id)
         self.assertEqual(states.SUCCESS, exec_db.state)
+
+    def test_timeout_policy_success_after_timeout(self):
+        wb_service.create_workbook_v2({'definition': TIMEOUT_WB2})
+
+        # Start workflow.
+        exec_db = self.engine.start_workflow('wb.wf1', {})
+
+        # Note: We need to reread execution to access related tasks.
+        exec_db = db_api.get_execution(exec_db.id)
+        task_db = exec_db.tasks[0]
+
+        self.assertEqual(states.RUNNING, task_db.state)
+
+        self._await(
+            lambda: self.is_execution_error(exec_db.id),
+        )
+
+        # Wait until timeout exceeds.
+        self._sleep(2)
+
+        exec_db = db_api.get_execution(exec_db.id)
+        tasks_db = exec_db.tasks
+
+        # Make sure that engine did not create extra tasks.
+        self.assertEqual(1, len(tasks_db))
+        self.assertEqual(states.ERROR, tasks_db[0].state)
diff --git a/mistral/workflow/base.py b/mistral/workflow/base.py
index c46073d3..388f5242 100644
--- a/mistral/workflow/base.py
+++ b/mistral/workflow/base.py
@@ -63,11 +63,13 @@ class WorkflowHandler(object):
         (before publisher). Instance of mistral.workflow.utils.TaskResult
         :return List of engine commands that needs to be performed.
         """
-        # TODO(rakhmerov): need to ignore result if task is complete.
+
+        # Ignore if task already completed.
+        if states.is_finished(task_db.state):
+            return []
 
         task_db.state = \
             states.ERROR if raw_result.is_error() else states.SUCCESS
-
         task_spec = self.wf_spec.get_tasks()[task_db.name]
 
         task_db.output =\