Observables vs Signals & Error Handling Patterns in RxJS

Angular 17+ introduced Signals, causing developers to ask how they compare to Observables—and whether they replace RxJS.
This guide explains the differences clearly and ends with practical error-handling patterns you should use in real projects.

1. What Are Observables? (Short Recap)

Observables are asynchronous data streams from RxJS.

They are ideal for:

• HTTP calls

• WebSockets

• Continuous event streams

• Streams requiring operators (filter, map, mergeMap…)

Key characteristics:

• Lazy (execute when subscribed)

• Multicast/Unicast depending on usage

• Can be cancelled

• Powerful because of operators

2. What Are Signals? (Short Recap)

Signals in Angular are reactive variables that trigger change detection efficiently.

They are ideal for:

• Local component state

• Derived reactive values

• Simple app-level state stores

Key characteristics:

• Synchronous

• Pull-based (read when needed)

• No “stream” behavior

• No need for async pipes (direct reads like counter())

Example

const count = signal(0);
count.set(5);
console.log(count());

3. Observables vs Signals — When to Use What?

A) Use Observables When You Need Streams

Perfect for:

• HTTP requests

• WebSocket data

• Real-time event listeners

• Multiple chained async operations

• Retry/backoff logic

They support operators like:

• map, switchMap, mergeMap

• catchError, debounceTime

• forkJoin, combineLatest

• retry, delay, takeUntil

B) Use Signals When You Need State

Use signals for:

• UI state

• Filtering / sorting state

• Component-level reactive values

• Derived state (computed)

• Minimal boilerplate

Signals shine for:

• Simplicity

• Performance

• Predictable reactivity

C) Should You Replace Observables With Signals?

NO.

Observables handle asynchronous streams.
Signals handle reactive state.

They complement each other.

You can even convert between them:

toSignal(myObservable$);
toObservable(mySignal);

4. Mixing Observables and Signals (Best Practices)

Best Practice 1: Use Signals for Component State

Example

const users = signal<User[]>([]);

Best Practice 2: Convert HTTP Observables → Signals

Clean approach:

users = toSignal(this.http.get<User[]>('/api/users'));

Best Practice 3: Avoid Signals for Continuous Streams

Bad use case:

• Scroll events

• Mouse move

• WebSockets

Use Observables.

5. Error Handling Patterns in RxJS (Practical Guide)

Error handling is where RxJS shines.

Below are the patterns you should use in real-world Angular apps.

Pattern 1: catchError for Transforming Errors

Recommended for HTTP.

this.http.get('/api/items').pipe(
  catchError(err => {
    console.error('API failed', err);
    return of([]); // fallback
  })
)

Pattern 2: retry / retryWhen for Network Retry Logic

Auto retry:

httpCall$.pipe(
  retry(3)
);

Retry with delay:

httpCall$.pipe(
  retryWhen(errors =>
    errors.pipe(delay(2000))
  )
);

Pattern 3: finalize for Cleanup

Useful for loaders/spinners.

loading.set(true);

this.http.get('/api').pipe(
  finalize(() => loading.set(false))
);

Pattern 4: Centralized Error Handling with tap

Log all errors in one place.

stream$.pipe(
  tap({
    error: (e) => logService.log(e)
  })
);

Pattern 5: takeUntil for Auto-Unsubscribe

Best for ngOnDestroy.

private destroy$ = new Subject<void>();

obs$.pipe(
  takeUntil(this.destroy$)
).subscribe();

Pattern 6: Fallback Strategy Using onErrorResumeNext

onErrorResumeNext(
  api1$,
  api2$
);

Ensures failure doesn't break the entire chain.

6. Which Should You Use for a New Angular App?

Scenario	Use Observables	Use Signals
HTTP requests	✔️	via toSignal()
UI state	❌	✔️
Complex async flows	✔️	❌
Local component state	❌	✔️
Real-time events	✔️	❌

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7. Summary (Easy to Remember)

Observables

• Async streams

• Powerful operators

• Best for HTTP, events, real-time data

Signals

• Simple reactive state

• Synchronous

• Local UI state and derived values