diff --git a/activerecord/lib/active_record/callbacks.rb b/activerecord/lib/active_record/callbacks.rb
index 41ec5c5e61..4edc209c65 100755
--- a/activerecord/lib/active_record/callbacks.rb
+++ b/activerecord/lib/active_record/callbacks.rb
@@ -293,14 +293,14 @@ module ActiveRecord
 
     private
       def callback(method)
-        notify(method)
-
         result = run_callbacks(method) { |result, object| result == false }
 
         if result != false && respond_to_without_attributes?(method)
           result = send(method)
         end
 
+        notify(method)
+
         return result
       end
 
diff --git a/activerecord/test/cases/callbacks_observers_test.rb b/activerecord/test/cases/callbacks_observers_test.rb
new file mode 100644
index 0000000000..87de524923
--- /dev/null
+++ b/activerecord/test/cases/callbacks_observers_test.rb
@@ -0,0 +1,38 @@
+require "cases/helper"
+
+class Comment < ActiveRecord::Base
+  attr_accessor :callers
+
+  before_validation :record_callers
+
+  def after_validation
+    record_callers
+  end
+
+  def record_callers
+    callers << self.class if callers
+  end
+end
+
+class CommentObserver < ActiveRecord::Observer
+  attr_accessor :callers
+
+  def after_validation(model)
+    callers << self.class if callers
+  end
+end
+
+class CallbacksObserversTest < ActiveRecord::TestCase
+  def test_model_callbacks_fire_before_observers_are_notified
+    callers = []
+
+    comment = Comment.new
+    comment.callers = callers
+
+    CommentObserver.instance.callers = callers
+
+    comment.valid?
+
+    assert_equal [Comment, Comment, CommentObserver], callers, "model callbacks did not fire before observers were notified"
+  end
+end