diff --git a/kotlinx-coroutines-core/jvm/src/Executors.kt b/kotlinx-coroutines-core/jvm/src/Executors.kt
index da7ce7c696..7ea3cc6874 100644
--- a/kotlinx-coroutines-core/jvm/src/Executors.kt
+++ b/kotlinx-coroutines-core/jvm/src/Executors.kt
@@ -4,6 +4,7 @@
 
 package kotlinx.coroutines
 
+import kotlinx.coroutines.flow.*
 import kotlinx.coroutines.internal.*
 import java.io.*
 import java.util.concurrent.*
@@ -39,6 +40,22 @@ public abstract class ExecutorCoroutineDispatcher: CoroutineDispatcher(), Closea
 /**
  * Converts an instance of [ExecutorService] to an implementation of [ExecutorCoroutineDispatcher].
  *
+ * ## Interaction with [delay] and time-based coroutines.
+ *
+ * If the given [ExecutorService] is an instance of [ScheduledExecutorService], then all time-related
+ * coroutine operations such as [delay], [withTimeout] and time-based [Flow] operators will be scheduled
+ * on this executor using [schedule][ScheduledExecutorService.schedule] method. If the corresponding
+ * coroutine is cancelled, [ScheduledFuture.cancel] will be invoked on the corresponding future.
+ *
+ * If the given [ExecutorService] is an instance of [ScheduledThreadPoolExecutor], then prior to any scheduling,
+ * remove on cancel policy will be set via [ScheduledThreadPoolExecutor.setRemoveOnCancelPolicy] in order
+ * to reduce the memory pressure of cancelled coroutines.
+ *
+ * If the executor service is neither of this types, the separate internal thread will be used to
+ * _track_ the delay and time-related executions, but the coroutine itself will still be executed
+ * on top of the given executor.
+ *
+ * ## Rejected execution
  * If the underlying executor throws [RejectedExecutionException] on
  * attempt to submit a continuation task (it happens when [closing][ExecutorCoroutineDispatcher.close] the
  * resulting dispatcher, on underlying executor [shutdown][ExecutorService.shutdown], or when it uses limited queues),
@@ -52,6 +69,23 @@ public fun ExecutorService.asCoroutineDispatcher(): ExecutorCoroutineDispatcher
 /**
  * Converts an instance of [Executor] to an implementation of [CoroutineDispatcher].
  *
+ * ## Interaction with [delay] and time-based coroutines.
+ *
+ * If the given [Executor] is an instance of [ScheduledExecutorService], then all time-related
+ * coroutine operations such as [delay], [withTimeout] and time-based [Flow] operators will be scheduled
+ * on this executor using [schedule][ScheduledExecutorService.schedule] method. If the corresponding
+ * coroutine is cancelled, [ScheduledFuture.cancel] will be invoked on the corresponding future.
+ *
+ * If the given [Executor] is an instance of [ScheduledThreadPoolExecutor], then prior to any scheduling,
+ * remove on cancel policy will be set via [ScheduledThreadPoolExecutor.setRemoveOnCancelPolicy] in order
+ * to reduce the memory pressure of cancelled coroutines.
+ *
+ * If the executor is neither of this types, the separate internal thread will be used to
+ * _track_ the delay and time-related executions, but the coroutine itself will still be executed
+ * on top of the given executor.
+ *
+ * ## Rejected execution
+ *
  * If the underlying executor throws [RejectedExecutionException] on
  * attempt to submit a continuation task (it happens when [closing][ExecutorCoroutineDispatcher.close] the
  * resulting dispatcher, on underlying executor [shutdown][ExecutorService.shutdown], or when it uses limited queues),
@@ -77,7 +111,14 @@ private class DispatcherExecutor(@JvmField val dispatcher: CoroutineDispatcher)
 
 internal class ExecutorCoroutineDispatcherImpl(override val executor: Executor) : ExecutorCoroutineDispatcher(), Delay {
 
-    private var removesFutureOnCancellation: Boolean = removeFutureOnCancel(executor)
+    /*
+     * Attempts to reflectively (to be Java 6 compatible) invoke
+     * ScheduledThreadPoolExecutor.setRemoveOnCancelPolicy in order to cleanup
+     * internal scheduler queue on cancellation.
+     */
+    init {
+        removeFutureOnCancel(executor)
+    }
 
     override fun dispatch(context: CoroutineContext, block: Runnable) {
         try {
@@ -89,17 +130,12 @@ internal class ExecutorCoroutineDispatcherImpl(override val executor: Executor)
         }
     }
 
-    /*
-     * removesFutureOnCancellation is required to avoid memory leak.
-     * On Java 7+ we reflectively invoke ScheduledThreadPoolExecutor.setRemoveOnCancelPolicy(true) and we're fine.
-     * On Java 6 we're scheduling time-based coroutines to our own thread safe heap which supports cancellation.
-     */
     override fun scheduleResumeAfterDelay(timeMillis: Long, continuation: CancellableContinuation<Unit>) {
-        val future = if (removesFutureOnCancellation) {
-            scheduleBlock(ResumeUndispatchedRunnable(this, continuation), continuation.context, timeMillis)
-        } else {
-            null
-        }
+        val future = (executor as? ScheduledExecutorService)?.scheduleBlock(
+            ResumeUndispatchedRunnable(this, continuation),
+            continuation.context,
+            timeMillis
+        )
         // If everything went fine and the scheduling attempt was not rejected -- use it
         if (future != null) {
             continuation.cancelFutureOnCancellation(future)
@@ -110,20 +146,16 @@ internal class ExecutorCoroutineDispatcherImpl(override val executor: Executor)
     }
 
     override fun invokeOnTimeout(timeMillis: Long, block: Runnable, context: CoroutineContext): DisposableHandle {
-        val future = if (removesFutureOnCancellation) {
-            scheduleBlock(block, context, timeMillis)
-        } else {
-            null
-        }
+        val future = (executor as? ScheduledExecutorService)?.scheduleBlock(block, context, timeMillis)
         return when {
             future != null -> DisposableFutureHandle(future)
             else -> DefaultExecutor.invokeOnTimeout(timeMillis, block, context)
         }
     }
 
-    private fun scheduleBlock(block: Runnable, context: CoroutineContext, timeMillis: Long): ScheduledFuture<*>? {
+    private fun ScheduledExecutorService.scheduleBlock(block: Runnable, context: CoroutineContext, timeMillis: Long): ScheduledFuture<*>? {
         return try {
-            (executor as? ScheduledExecutorService)?.schedule(block, timeMillis, TimeUnit.MILLISECONDS)
+            schedule(block, timeMillis, TimeUnit.MILLISECONDS)
         } catch (e: RejectedExecutionException) {
             cancelJobOnRejection(context, e)
             null
diff --git a/kotlinx-coroutines-core/jvm/test/ExecutorAsCoroutineDispatcherDelayTest.kt b/kotlinx-coroutines-core/jvm/test/ExecutorAsCoroutineDispatcherDelayTest.kt
new file mode 100644
index 0000000000..dbe9cb3741
--- /dev/null
+++ b/kotlinx-coroutines-core/jvm/test/ExecutorAsCoroutineDispatcherDelayTest.kt
@@ -0,0 +1,44 @@
+/*
+ * Copyright 2016-2021 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license.
+ */
+
+package kotlinx.coroutines
+
+import org.junit.Test
+import java.lang.Runnable
+import java.util.concurrent.*
+import kotlin.test.*
+
+class ExecutorAsCoroutineDispatcherDelayTest : TestBase() {
+
+    private var callsToSchedule = 0
+
+    private inner class STPE : ScheduledThreadPoolExecutor(1) {
+        override fun schedule(command: Runnable, delay: Long, unit: TimeUnit): ScheduledFuture<*> {
+            if (delay != 0L) ++callsToSchedule
+            return super.schedule(command, delay, unit)
+        }
+    }
+
+    private inner class SES : ScheduledExecutorService by STPE()
+
+    @Test
+    fun testScheduledThreadPool() = runTest {
+        val executor = STPE()
+        withContext(executor.asCoroutineDispatcher()) {
+            delay(100)
+        }
+        executor.shutdown()
+        assertEquals(1, callsToSchedule)
+    }
+
+    @Test
+    fun testScheduledExecutorService() = runTest {
+        val executor = SES()
+        withContext(executor.asCoroutineDispatcher()) {
+            delay(100)
+        }
+        executor.shutdown()
+        assertEquals(1, callsToSchedule)
+    }
+}
diff --git a/kotlinx-coroutines-core/jvm/test/knit/ClosedAfterGuideTestExecutor.kt b/kotlinx-coroutines-core/jvm/test/knit/ClosedAfterGuideTestExecutor.kt
index 735511f931..30fbfee264 100644
--- a/kotlinx-coroutines-core/jvm/test/knit/ClosedAfterGuideTestExecutor.kt
+++ b/kotlinx-coroutines-core/jvm/test/knit/ClosedAfterGuideTestExecutor.kt
@@ -8,9 +8,9 @@ import java.util.concurrent.*
 import java.util.concurrent.atomic.*
 import kotlin.coroutines.*
 
-public fun newSingleThreadContext(name: String): ExecutorCoroutineDispatcher = ClosedAfterGuideTestDispatcher(1, name)
+internal fun newSingleThreadContext(name: String): ExecutorCoroutineDispatcher = ClosedAfterGuideTestDispatcher(1, name)
 
-public fun newFixedThreadPoolContext(nThreads: Int, name: String): ExecutorCoroutineDispatcher =
+internal fun newFixedThreadPoolContext(nThreads: Int, name: String): ExecutorCoroutineDispatcher =
     ClosedAfterGuideTestDispatcher(nThreads, name)
 
 internal class PoolThread(