diff --git a/core/src/main/java/com/google/adk/agents/ParallelAgent.java b/core/src/main/java/com/google/adk/agents/ParallelAgent.java
index 4bfd0b25..3a8341e3 100644
--- a/core/src/main/java/com/google/adk/agents/ParallelAgent.java
+++ b/core/src/main/java/com/google/adk/agents/ParallelAgent.java
@@ -20,6 +20,7 @@
 import com.google.adk.agents.ConfigAgentUtils.ConfigurationException;
 import com.google.adk.events.Event;
 import io.reactivex.rxjava3.core.Flowable;
+import io.reactivex.rxjava3.core.Scheduler;
 import java.util.ArrayList;
 import java.util.List;
 import org.slf4j.Logger;
@@ -35,6 +36,7 @@
 public class ParallelAgent extends BaseAgent {
 
   private static final Logger logger = LoggerFactory.getLogger(ParallelAgent.class);
+  private final Scheduler scheduler;
 
   /**
    * Constructor for ParallelAgent.
@@ -44,24 +46,34 @@ public class ParallelAgent extends BaseAgent {
    * @param subAgents The list of sub-agents to run in parallel.
    * @param beforeAgentCallback Optional callback before the agent runs.
    * @param afterAgentCallback Optional callback after the agent runs.
+   * @param scheduler The scheduler to use for parallel execution.
    */
   private ParallelAgent(
       String name,
       String description,
       List<? extends BaseAgent> subAgents,
       List<Callbacks.BeforeAgentCallback> beforeAgentCallback,
-      List<Callbacks.AfterAgentCallback> afterAgentCallback) {
+      List<Callbacks.AfterAgentCallback> afterAgentCallback,
+      Scheduler scheduler) {
 
     super(name, description, subAgents, beforeAgentCallback, afterAgentCallback);
+    this.scheduler = scheduler;
   }
 
   /** Builder for {@link ParallelAgent}. */
   public static class Builder extends BaseAgent.Builder<Builder> {
 
+    private Scheduler scheduler = io.reactivex.rxjava3.schedulers.Schedulers.io();
+
+    public Builder scheduler(Scheduler scheduler) {
+      this.scheduler = scheduler;
+      return this;
+    }
+
     @Override
     public ParallelAgent build() {
       return new ParallelAgent(
-          name, description, subAgents, beforeAgentCallback, afterAgentCallback);
+          name, description, subAgents, beforeAgentCallback, afterAgentCallback, scheduler);
     }
   }
 
@@ -131,9 +143,10 @@ protected Flowable<Event> runAsyncImpl(InvocationContext invocationContext) {
 
     List<Flowable<Event>> agentFlowables = new ArrayList<>();
     for (BaseAgent subAgent : currentSubAgents) {
-      agentFlowables.add(subAgent.runAsync(invocationContext));
+      agentFlowables.add(subAgent.runAsync(invocationContext).subscribeOn(scheduler));
     }
-    return Flowable.merge(agentFlowables);
+    return Flowable.merge(agentFlowables)
+        .takeUntil((Event event) -> event.actions().escalate().orElse(false));
   }
 
   /**
diff --git a/core/src/test/java/com/google/adk/agents/ParallelAgentEscalationTest.java b/core/src/test/java/com/google/adk/agents/ParallelAgentEscalationTest.java
new file mode 100644
index 00000000..9a3d0e88
--- /dev/null
+++ b/core/src/test/java/com/google/adk/agents/ParallelAgentEscalationTest.java
@@ -0,0 +1,136 @@
+/*
+ * Copyright 2025 Google LLC
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.google.adk.agents;
+
+import static com.google.adk.testing.TestUtils.createInvocationContext;
+import static com.google.common.truth.Truth.assertThat;
+import static java.util.concurrent.TimeUnit.MILLISECONDS;
+
+import com.google.adk.events.Event;
+import com.google.adk.events.EventActions;
+import com.google.common.collect.ImmutableList;
+import com.google.genai.types.Content;
+import com.google.genai.types.Part;
+import io.reactivex.rxjava3.core.Flowable;
+import io.reactivex.rxjava3.core.Scheduler;
+import io.reactivex.rxjava3.schedulers.TestScheduler;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.junit.runners.JUnit4;
+
+@RunWith(JUnit4.class)
+public final class ParallelAgentEscalationTest {
+
+  static class EscalatingAgent extends BaseAgent {
+    private final long delayMillis;
+    private final Scheduler scheduler;
+
+    private EscalatingAgent(String name, long delayMillis, Scheduler scheduler) {
+      super(name, "Escalating Agent", ImmutableList.of(), null, null);
+      this.delayMillis = delayMillis;
+      this.scheduler = scheduler;
+    }
+
+    @Override
+    protected Flowable<Event> runAsyncImpl(InvocationContext invocationContext) {
+      Flowable<Event> event =
+          Flowable.fromCallable(
+              () ->
+                  Event.builder()
+                      .author(name())
+                      .branch(invocationContext.branch())
+                      .invocationId(invocationContext.invocationId())
+                      .content(Content.fromParts(Part.fromText("Escalating!")))
+                      .actions(EventActions.builder().escalate(true).build())
+                      .build());
+
+      if (delayMillis > 0) {
+        return event.delay(delayMillis, MILLISECONDS, scheduler);
+      }
+      return event;
+    }
+
+    @Override
+    protected Flowable<Event> runLiveImpl(InvocationContext invocationContext) {
+      throw new UnsupportedOperationException("Not implemented");
+    }
+  }
+
+  static class SlowAgent extends BaseAgent {
+    private final long delayMillis;
+    private final Scheduler scheduler;
+
+    private SlowAgent(String name, long delayMillis, Scheduler scheduler) {
+      super(name, "Slow Agent", ImmutableList.of(), null, null);
+      this.delayMillis = delayMillis;
+      this.scheduler = scheduler;
+    }
+
+    @Override
+    protected Flowable<Event> runAsyncImpl(InvocationContext invocationContext) {
+      Flowable<Event> event =
+          Flowable.fromCallable(
+              () ->
+                  Event.builder()
+                      .author(name())
+                      .branch(invocationContext.branch())
+                      .invocationId(invocationContext.invocationId())
+                      .content(Content.fromParts(Part.fromText("Finished")))
+                      .build());
+
+      if (delayMillis > 0) {
+        return event.delay(delayMillis, MILLISECONDS, scheduler);
+      }
+      return event;
+    }
+
+    @Override
+    protected Flowable<Event> runLiveImpl(InvocationContext invocationContext) {
+      throw new UnsupportedOperationException("Not implemented");
+    }
+  }
+
+  @Test
+  public void runAsync_escalationEvent_shortCircuitsOtherAgents() {
+    TestScheduler testScheduler = new TestScheduler();
+
+    EscalatingAgent agent1 = new EscalatingAgent("agent1", 100, testScheduler);
+    SlowAgent agent2 = new SlowAgent("agent2", 500, testScheduler);
+
+    ParallelAgent parallelAgent =
+        ParallelAgent.builder()
+            .name("parallel_agent")
+            .subAgents(agent1, agent2)
+            .scheduler(testScheduler)
+            .build();
+
+    InvocationContext invocationContext = createInvocationContext(parallelAgent);
+
+    var subscriber = parallelAgent.runAsync(invocationContext).test();
+
+    testScheduler.advanceTimeBy(200, MILLISECONDS);
+
+    subscriber.assertValueCount(1);
+    Event event = subscriber.values().get(0);
+    assertThat(event.author()).isEqualTo("agent1");
+    assertThat(event.actions().escalate()).hasValue(true);
+
+    subscriber.assertComplete();
+    testScheduler.advanceTimeBy(1000, MILLISECONDS);
+    subscriber.assertValueCount(1);
+  }
+}