diff --git a/api_guard/dist/types/operators/index.d.ts b/api_guard/dist/types/operators/index.d.ts
index c11c8e38d9..b08bc94cee 100644
--- a/api_guard/dist/types/operators/index.d.ts
+++ b/api_guard/dist/types/operators/index.d.ts
@@ -120,11 +120,13 @@ export declare function first<T, D = T>(predicate: (value: T, index: number, sou
 
 export declare const flatMap: typeof mergeMap;
 
-export declare function groupBy<T, K extends T>(keySelector: (value: T) => value is K): OperatorFunction<T, GroupedObservable<true, K> | GroupedObservable<false, Exclude<T, K>>>;
-export declare function groupBy<T, K>(keySelector: (value: T) => K): OperatorFunction<T, GroupedObservable<K, T>>;
-export declare function groupBy<T, K>(keySelector: (value: T) => K, elementSelector: void, durationSelector: (grouped: GroupedObservable<K, T>) => Observable<any>): OperatorFunction<T, GroupedObservable<K, T>>;
-export declare function groupBy<T, K, R>(keySelector: (value: T) => K, elementSelector?: (value: T) => R, durationSelector?: (grouped: GroupedObservable<K, R>) => Observable<any>): OperatorFunction<T, GroupedObservable<K, R>>;
-export declare function groupBy<T, K, R>(keySelector: (value: T) => K, elementSelector?: (value: T) => R, durationSelector?: (grouped: GroupedObservable<K, R>) => Observable<any>, subjectSelector?: () => Subject<R>): OperatorFunction<T, GroupedObservable<K, R>>;
+export declare function groupBy<T, K>(key: (value: T) => K, options: BasicGroupByOptions<K, T>): OperatorFunction<T, GroupedObservable<K, T>>;
+export declare function groupBy<T, K, E>(key: (value: T) => K, options: GroupByOptionsWithElement<K, E, T>): OperatorFunction<T, GroupedObservable<K, E>>;
+export declare function groupBy<T, K extends T>(key: (value: T) => value is K): OperatorFunction<T, GroupedObservable<true, K> | GroupedObservable<false, Exclude<T, K>>>;
+export declare function groupBy<T, K>(key: (value: T) => K): OperatorFunction<T, GroupedObservable<K, T>>;
+export declare function groupBy<T, K>(key: (value: T) => K, element: void, duration: (grouped: GroupedObservable<K, T>) => Observable<any>): OperatorFunction<T, GroupedObservable<K, T>>;
+export declare function groupBy<T, K, R>(key: (value: T) => K, element?: (value: T) => R, duration?: (grouped: GroupedObservable<K, R>) => Observable<any>): OperatorFunction<T, GroupedObservable<K, R>>;
+export declare function groupBy<T, K, R>(key: (value: T) => K, element?: (value: T) => R, duration?: (grouped: GroupedObservable<K, R>) => Observable<any>, connector?: () => Subject<R>): OperatorFunction<T, GroupedObservable<K, R>>;
 
 export declare function ignoreElements(): OperatorFunction<any, never>;
 
diff --git a/spec/operators/groupBy-spec.ts b/spec/operators/groupBy-spec.ts
index e22e42911a..fcc6d4caad 100644
--- a/spec/operators/groupBy-spec.ts
+++ b/spec/operators/groupBy-spec.ts
@@ -42,7 +42,7 @@ describe('groupBy operator', () => {
     ];
 
     of(1, 2, 3).pipe(
-      groupBy((x: number) => x % 2)
+      groupBy((x) => x % 2)
     ).subscribe((g: any) => {
         const expectedGroup = expectedGroups.shift()!;
         expect(g.key).to.equal(expectedGroup.key);
@@ -60,7 +60,7 @@ describe('groupBy operator', () => {
     ];
 
     of(1, 2, 3).pipe(
-      groupBy((x: number) => x % 2, (x: number) => x + '!')
+      groupBy((x) => x % 2, (x) => x + '!')
     ).subscribe((g: any) => {
         const expectedGroup = expectedGroups.shift()!;
         expect(g.key).to.equal(expectedGroup.key);
@@ -82,21 +82,20 @@ describe('groupBy operator', () => {
     const resultingGroups: { key: number, values: number [] }[] = [];
 
     of(1, 2, 3, 4, 5, 6).pipe(
-      groupBy(
-        (x: number) => x % 2,
-        (x: number) => x,
-        (g: any) => g.pipe(skip(1)))
-      ).subscribe((g: any) => {
-        let group = { key: g.key, values: [] as number[] };
-
-        g.subscribe((x: any) => {
-          group.values.push(x);
-        });
+      groupBy(x => x % 2, {
+        duration: g => g.pipe(skip(1))
+      })
+    ).subscribe((g: any) => {
+      let group = { key: g.key, values: [] as number[] };
 
-        resultingGroups.push(group);
+      g.subscribe((x: any) => {
+        group.values.push(x);
       });
 
-      expect(resultingGroups).to.deep.equal(expectedGroups);
+      resultingGroups.push(group);
+    });
+
+    expect(resultingGroups).to.deep.equal(expectedGroups);
   });
 
   it('should group values with a subject selector', (done) => {
@@ -106,7 +105,9 @@ describe('groupBy operator', () => {
     ];
 
     of(1, 2, 3).pipe(
-      groupBy((x: number) => x % 2, null as any, null as any, () => new ReplaySubject(1)),
+      groupBy(x => x % 2, {
+        connector: () => new ReplaySubject(1),
+      }),
       // Ensure each inner group reaches the destination after the first event
       // has been next'd to the group
       delay(5)
@@ -802,11 +803,11 @@ describe('groupBy operator', () => {
     const expectedValues = { v: v, w: w, x: x, y: y, z: z };
 
     const source = e1
-      .pipe(groupBy(
-        (val: string) => val.toLowerCase().trim(),
-        (val: string) => val,
-        (group: any) => group.pipe(skip(2))
-      ));
+      .pipe(
+        groupBy(val => val.toLowerCase().trim(), {
+          duration: group => group.pipe(skip(2)),
+        })
+      );
 
     expectObservable(source).toBe(expected, expectedValues);
     expectSubscriptions(e1.subscriptions).toBe(e1subs);
@@ -836,11 +837,9 @@ describe('groupBy operator', () => {
     const expectedValues = { v: v, w: w, x: x };
 
     const source = e1
-      .pipe(groupBy(
-        (val: string) => val.toLowerCase().trim(),
-        (val: string) => val,
-        (group: any) =>  group.pipe(skip(2))
-      ));
+      .pipe(groupBy(val => val.toLowerCase().trim(), {
+        duration: group =>  group.pipe(skip(2))
+      }));
 
     expectObservable(source, unsub).toBe(expected, expectedValues);
   });
@@ -879,17 +878,15 @@ describe('groupBy operator', () => {
       .unsubscribedFrame;
 
     const source = e1.pipe(
-      groupBy(
-        (val: string) => val.toLowerCase().trim(),
-        (val: string) => val,
-        (group: any) => group.pipe(skip(2))
-      ),
-      map((group: any) => {
+      groupBy(val => val.toLowerCase().trim(), {
+        duration: group => group.pipe(skip(2))
+      }),
+      map((group) => {
         const arr: any[] = [];
 
         const subscription = group.pipe(
           phonyMarbelize()
-        ).subscribe((value: any) => {
+        ).subscribe((value) => {
           arr.push(value);
         });
 
@@ -923,11 +920,9 @@ describe('groupBy operator', () => {
       .parseMarblesAsSubscriptions(sub)
       .unsubscribedFrame;
 
-    obs.pipe(groupBy(
-      (val: string) => val,
-      (val: string) => val,
-      (group: any) => durations[group.key]
-    )).subscribe();
+    obs.pipe(groupBy((val) => val, {
+      duration: (group) => durations[Number(group.key)]
+    })).subscribe();
 
     rxTestScheduler.schedule(() => {
       durations.forEach((d, i) => {
diff --git a/src/internal/operators/groupBy.ts b/src/internal/operators/groupBy.ts
index cc77f3d03c..30c7c46e4a 100644
--- a/src/internal/operators/groupBy.ts
+++ b/src/internal/operators/groupBy.ts
@@ -1,28 +1,51 @@
 import { Observable } from '../Observable';
+import { innerFrom } from '../observable/from';
 import { Subject } from '../Subject';
-import { Observer, OperatorFunction } from '../types';
+import { ObservableInput, Observer, OperatorFunction, SubjectLike } from '../types';
 import { operate } from '../util/lift';
 import { OperatorSubscriber } from './OperatorSubscriber';
 
+interface BasicGroupByOptions<K, T> {
+  element?: undefined;
+  duration?: (grouped: GroupedObservable<K, T>) => ObservableInput<any>;
+  connector?: () => SubjectLike<T>;
+}
+
+interface GroupByOptionsWithElement<K, E, T> {
+  element: (value: T) => E;
+  duration?: (grouped: GroupedObservable<K, E>) => ObservableInput<any>;
+  connector?: () => SubjectLike<E>;
+}
+
+export function groupBy<T, K>(key: (value: T) => K, options: BasicGroupByOptions<K, T>): OperatorFunction<T, GroupedObservable<K, T>>;
+
+export function groupBy<T, K, E>(
+  key: (value: T) => K,
+  options: GroupByOptionsWithElement<K, E, T>
+): OperatorFunction<T, GroupedObservable<K, E>>;
+
 export function groupBy<T, K extends T>(
-  keySelector: (value: T) => value is K
+  key: (value: T) => value is K
 ): OperatorFunction<T, GroupedObservable<true, K> | GroupedObservable<false, Exclude<T, K>>>;
-export function groupBy<T, K>(keySelector: (value: T) => K): OperatorFunction<T, GroupedObservable<K, T>>;
+
+export function groupBy<T, K>(key: (value: T) => K): OperatorFunction<T, GroupedObservable<K, T>>;
+
+/**
+ * @deprecated use the options parameter instead.
+ */
 export function groupBy<T, K>(
-  keySelector: (value: T) => K,
-  elementSelector: void,
-  durationSelector: (grouped: GroupedObservable<K, T>) => Observable<any>
+  key: (value: T) => K,
+  element: void,
+  duration: (grouped: GroupedObservable<K, T>) => Observable<any>
 ): OperatorFunction<T, GroupedObservable<K, T>>;
+
+/**
+ * @deprecated use the options parameter instead.
+ */
 export function groupBy<T, K, R>(
-  keySelector: (value: T) => K,
-  elementSelector?: (value: T) => R,
-  durationSelector?: (grouped: GroupedObservable<K, R>) => Observable<any>
-): OperatorFunction<T, GroupedObservable<K, R>>;
-export function groupBy<T, K, R>(
-  keySelector: (value: T) => K,
-  elementSelector?: (value: T) => R,
-  durationSelector?: (grouped: GroupedObservable<K, R>) => Observable<any>,
-  subjectSelector?: () => Subject<R>
+  key: (value: T) => K,
+  element?: (value: T) => R,
+  duration?: (grouped: GroupedObservable<K, R>) => Observable<any>
 ): OperatorFunction<T, GroupedObservable<K, R>>;
 
 /**
@@ -32,7 +55,7 @@ export function groupBy<T, K, R>(
  *
  * ![](groupBy.png)
  *
- * When the Observable emits an item, a key is computed for this item with the keySelector function.
+ * When the Observable emits an item, a key is computed for this item with the key function.
  *
  * If a {@link GroupedObservable} for this key exists, this {@link GroupedObservable} emits. Otherwise, a new
  * {@link GroupedObservable} for this key is created and emits.
@@ -41,7 +64,7 @@ export function groupBy<T, K, R>(
  * key is available as the `key` field of a {@link GroupedObservable} instance.
  *
  * The elements emitted by {@link GroupedObservable}s are by default the items emitted by the Observable, or elements
- * returned by the elementSelector function.
+ * returned by the element function.
  *
  * ## Examples
  *
@@ -101,28 +124,45 @@ export function groupBy<T, K, R>(
  * // { id: 3, values: [ 'TSLint' ] }
  * ```
  *
- * @param {function(value: T): K} keySelector A function that extracts the key
+ * @param key A function that extracts the key
  * for each item.
- * @param {function(value: T): R} [elementSelector] A function that extracts the
+ * @param element A function that extracts the
  * return element for each item.
- * @param {function(grouped: GroupedObservable<K,R>): Observable<any>} [durationSelector]
+ * @param duration
  * A function that returns an Observable to determine how long each group should
  * exist.
- * @param {function(): Subject<R>} [subjectSelector] Factory function to create an
+ * @param connector Factory function to create an
  * intermediate Subject through which grouped elements are emitted.
  * @return A function that returns an Observable that emits GroupedObservables,
  * each of which corresponds to a unique key value and each of which emits
  * those items from the source Observable that share that key value.
+ *
+ * @deprecated Use the options parameter instead.
  */
+export function groupBy<T, K, R>(
+  key: (value: T) => K,
+  element?: (value: T) => R,
+  duration?: (grouped: GroupedObservable<K, R>) => Observable<any>,
+  connector?: () => Subject<R>
+): OperatorFunction<T, GroupedObservable<K, R>>;
+
+// Impl
 export function groupBy<T, K, R>(
   keySelector: (value: T) => K,
-  elementSelector?: ((value: T) => R) | void,
-  durationSelector?: (grouped: GroupedObservable<K, R>) => Observable<any>,
-  subjectSelector?: () => Subject<R>
+  elementOrOptions?: ((value: any) => any) | void | BasicGroupByOptions<K, T> | GroupByOptionsWithElement<K, R, T>,
+  duration?: (grouped: GroupedObservable<any, any>) => ObservableInput<any>,
+  connector?: () => SubjectLike<any>
 ): OperatorFunction<T, GroupedObservable<K, R>> {
   return operate((source, subscriber) => {
+    let element: ((value: any) => any) | void;
+    if (!elementOrOptions || typeof elementOrOptions === 'function') {
+      element = elementOrOptions;
+    } else {
+      ({ duration, element, connector } = elementOrOptions);
+    }
+
     // A lookup for the groups that we have so far.
-    const groups = new Map<K, Subject<any>>();
+    const groups = new Map<K, SubjectLike<any>>();
 
     // Used for notifying all groups and the subscriber in the same way.
     const notify = (cb: (group: Observer<any>) => void) => {
@@ -153,7 +193,7 @@ export function groupBy<T, K, R>(
           let group = groups.get(key);
           if (!group) {
             // Create our group subject
-            groups.set(key, (group = subjectSelector ? subjectSelector() : new Subject<any>()));
+            groups.set(key, (group = connector ? connector() : new Subject<any>()));
 
             // Emit the grouped observable. Note that we can't do a simple `asObservable()` here,
             // because the grouped observable has special semantics around reference counting
@@ -161,7 +201,7 @@ export function groupBy<T, K, R>(
             const grouped = createGroupedObservable(key, group);
             subscriber.next(grouped);
 
-            if (durationSelector) {
+            if (duration) {
               const durationSubscriber = new OperatorSubscriber(
                 // Providing the group here ensures that it is disposed of -- via `unsubscribe` --
                 // wnen the duration subscription is torn down. That is important, because then
@@ -185,12 +225,12 @@ export function groupBy<T, K, R>(
               );
 
               // Start our duration notifier.
-              groupBySourceSubscriber.add(durationSelector(grouped).subscribe(durationSubscriber));
+              groupBySourceSubscriber.add(innerFrom(duration(grouped)).subscribe(durationSubscriber));
             }
           }
 
           // Send the value to our group.
-          group.next(elementSelector ? elementSelector(value) : value);
+          group.next(element ? element(value) : value);
         } catch (err) {
           handleError(err);
         }
@@ -214,7 +254,7 @@ export function groupBy<T, K, R>(
      * @param key The key of the group
      * @param groupSubject The subject that fuels the group
      */
-    function createGroupedObservable(key: K, groupSubject: Subject<any>) {
+    function createGroupedObservable(key: K, groupSubject: SubjectLike<any>) {
       const result: any = new Observable<T>((groupSubscriber) => {
         groupBySourceSubscriber.activeGroups++;
         const innerSub = groupSubject.subscribe(groupSubscriber);