diff --git a/call.go b/call.go
index e4e7771f..a8b6dcfd 100644
--- a/call.go
+++ b/call.go
@@ -36,6 +36,7 @@ package grpc
 import (
 	"bytes"
 	"io"
+	"math"
 	"time"
 
 	"golang.org/x/net/context"
@@ -64,7 +65,7 @@ func recvResponse(dopts dialOptions, t transport.ClientTransport, c *callInfo, s
 	}
 	p := &parser{r: stream}
 	for {
-		if err = recv(p, dopts.codec, stream, dopts.dc, reply); err != nil {
+		if err = recv(p, dopts.codec, stream, dopts.dc, reply, math.MaxInt32); err != nil {
 			if err == io.EOF {
 				break
 			}
diff --git a/call_test.go b/call_test.go
index 49349858..97eb9c00 100644
--- a/call_test.go
+++ b/call_test.go
@@ -81,7 +81,7 @@ type testStreamHandler struct {
 func (h *testStreamHandler) handleStream(t *testing.T, s *transport.Stream) {
 	p := &parser{r: s}
 	for {
-		pf, req, err := p.recvMsg()
+		pf, req, err := p.recvMsg(math.MaxInt32)
 		if err == io.EOF {
 			break
 		}
diff --git a/rpc_util.go b/rpc_util.go
index d6287175..35ac9cc7 100644
--- a/rpc_util.go
+++ b/rpc_util.go
@@ -227,7 +227,7 @@ type parser struct {
 // No other error values or types must be returned, which also means
 // that the underlying io.Reader must not return an incompatible
 // error.
-func (p *parser) recvMsg() (pf payloadFormat, msg []byte, err error) {
+func (p *parser) recvMsg(maxMsgSize int) (pf payloadFormat, msg []byte, err error) {
 	if _, err := io.ReadFull(p.r, p.header[:]); err != nil {
 		return 0, nil, err
 	}
@@ -238,6 +238,9 @@ func (p *parser) recvMsg() (pf payloadFormat, msg []byte, err error) {
 	if length == 0 {
 		return pf, nil, nil
 	}
+	if length > uint32(maxMsgSize) {
+		return 0, nil, Errorf(codes.Internal, "grpc: received message length %d exceeding the max size %d", length, maxMsgSize)
+	}
 	// TODO(bradfitz,zhaoq): garbage. reuse buffer after proto decoding instead
 	// of making it for each message:
 	msg = make([]byte, int(length))
@@ -308,8 +311,8 @@ func checkRecvPayload(pf payloadFormat, recvCompress string, dc Decompressor) er
 	return nil
 }
 
-func recv(p *parser, c Codec, s *transport.Stream, dc Decompressor, m interface{}) error {
-	pf, d, err := p.recvMsg()
+func recv(p *parser, c Codec, s *transport.Stream, dc Decompressor, m interface{}, maxMsgSize int) error {
+	pf, d, err := p.recvMsg(maxMsgSize)
 	if err != nil {
 		return err
 	}
@@ -319,11 +322,16 @@ func recv(p *parser, c Codec, s *transport.Stream, dc Decompressor, m interface{
 	if pf == compressionMade {
 		d, err = dc.Do(bytes.NewReader(d))
 		if err != nil {
-			return transport.StreamErrorf(codes.Internal, "grpc: failed to decompress the received message %v", err)
+			return Errorf(codes.Internal, "grpc: failed to decompress the received message %v", err)
 		}
 	}
+	if len(d) > maxMsgSize {
+		// TODO: Revisit the error code. Currently keep it consistent with java
+		// implementation.
+		return Errorf(codes.Internal, "grpc: received a message of %d bytes exceeding %d limit", len(d), maxMsgSize)
+	}
 	if err := c.Unmarshal(d, m); err != nil {
-		return transport.StreamErrorf(codes.Internal, "grpc: failed to unmarshal the received message %v", err)
+		return Errorf(codes.Internal, "grpc: failed to unmarshal the received message %v", err)
 	}
 	return nil
 }
diff --git a/rpc_util_test.go b/rpc_util_test.go
index 830546c6..8a813c62 100644
--- a/rpc_util_test.go
+++ b/rpc_util_test.go
@@ -36,6 +36,7 @@ package grpc
 import (
 	"bytes"
 	"io"
+	"math"
 	"reflect"
 	"testing"
 
@@ -66,9 +67,9 @@ func TestSimpleParsing(t *testing.T) {
 	} {
 		buf := bytes.NewReader(test.p)
 		parser := &parser{r: buf}
-		pt, b, err := parser.recvMsg()
+		pt, b, err := parser.recvMsg(math.MaxInt32)
 		if err != test.err || !bytes.Equal(b, test.b) || pt != test.pt {
-			t.Fatalf("parser{%v}.recvMsg() = %v, %v, %v\nwant %v, %v, %v", test.p, pt, b, err, test.pt, test.b, test.err)
+			t.Fatalf("parser{%v}.recvMsg(_) = %v, %v, %v\nwant %v, %v, %v", test.p, pt, b, err, test.pt, test.b, test.err)
 		}
 	}
 }
@@ -88,16 +89,16 @@ func TestMultipleParsing(t *testing.T) {
 		{compressionNone, []byte("d")},
 	}
 	for i, want := range wantRecvs {
-		pt, data, err := parser.recvMsg()
+		pt, data, err := parser.recvMsg(math.MaxInt32)
 		if err != nil || pt != want.pt || !reflect.DeepEqual(data, want.data) {
-			t.Fatalf("after %d calls, parser{%v}.recvMsg() = %v, %v, %v\nwant %v, %v, <nil>",
+			t.Fatalf("after %d calls, parser{%v}.recvMsg(_) = %v, %v, %v\nwant %v, %v, <nil>",
 				i, p, pt, data, err, want.pt, want.data)
 		}
 	}
 
-	pt, data, err := parser.recvMsg()
+	pt, data, err := parser.recvMsg(math.MaxInt32)
 	if err != io.EOF {
-		t.Fatalf("after %d recvMsgs calls, parser{%v}.recvMsg() = %v, %v, %v\nwant _, _, %v",
+		t.Fatalf("after %d recvMsgs calls, parser{%v}.recvMsg(_) = %v, %v, %v\nwant _, _, %v",
 			len(wantRecvs), p, pt, data, err, io.EOF)
 	}
 }
diff --git a/server.go b/server.go
index 9e239a46..1ed8aac9 100644
--- a/server.go
+++ b/server.go
@@ -105,12 +105,15 @@ type options struct {
 	codec                Codec
 	cp                   Compressor
 	dc                   Decompressor
+	maxMsgSize           int
 	unaryInt             UnaryServerInterceptor
 	streamInt            StreamServerInterceptor
 	maxConcurrentStreams uint32
 	useHandlerImpl       bool // use http.Handler-based server
 }
 
+var defaultMaxMsgSize = 1024 * 1024 * 4 // use 4MB as the default message size limit
+
 // A ServerOption sets options.
 type ServerOption func(*options)
 
@@ -121,20 +124,28 @@ func CustomCodec(codec Codec) ServerOption {
 	}
 }
 
-// RPCCompressor returns a ServerOption that sets a compressor for outbound message.
+// RPCCompressor returns a ServerOption that sets a compressor for outbound messages.
 func RPCCompressor(cp Compressor) ServerOption {
 	return func(o *options) {
 		o.cp = cp
 	}
 }
 
-// RPCDecompressor returns a ServerOption that sets a decompressor for inbound message.
+// RPCDecompressor returns a ServerOption that sets a decompressor for inbound messages.
 func RPCDecompressor(dc Decompressor) ServerOption {
 	return func(o *options) {
 		o.dc = dc
 	}
 }
 
+// MaxMsgSize returns a ServerOption to set the max message size in bytes for inbound mesages.
+// If this is not set, gRPC uses the default 4MB.
+func MaxMsgSize(m int) ServerOption {
+	return func(o *options) {
+		o.maxMsgSize = m
+	}
+}
+
 // MaxConcurrentStreams returns a ServerOption that will apply a limit on the number
 // of concurrent streams to each ServerTransport.
 func MaxConcurrentStreams(n uint32) ServerOption {
@@ -177,6 +188,7 @@ func StreamInterceptor(i StreamServerInterceptor) ServerOption {
 // started to accept requests yet.
 func NewServer(opt ...ServerOption) *Server {
 	var opts options
+	opts.maxMsgSize = defaultMaxMsgSize
 	for _, o := range opt {
 		o(&opts)
 	}
@@ -526,7 +538,7 @@ func (s *Server) processUnaryRPC(t transport.ServerTransport, stream *transport.
 	}
 	p := &parser{r: stream}
 	for {
-		pf, req, err := p.recvMsg()
+		pf, req, err := p.recvMsg(s.opts.maxMsgSize)
 		if err == io.EOF {
 			// The entire stream is done (for unary RPC only).
 			return err
@@ -536,6 +548,10 @@ func (s *Server) processUnaryRPC(t transport.ServerTransport, stream *transport.
 		}
 		if err != nil {
 			switch err := err.(type) {
+			case *rpcError:
+				if err := t.WriteStatus(stream, err.code, err.desc); err != nil {
+					grpclog.Printf("grpc: Server.processUnaryRPC failed to write status %v", err)
+				}
 			case transport.ConnectionError:
 				// Nothing to do here.
 			case transport.StreamError:
@@ -575,6 +591,12 @@ func (s *Server) processUnaryRPC(t transport.ServerTransport, stream *transport.
 					return err
 				}
 			}
+			if len(req) > s.opts.maxMsgSize {
+				// TODO: Revisit the error code. Currently keep it consistent with
+				// java implementation.
+				statusCode = codes.Internal
+				statusDesc = fmt.Sprintf("grpc: server received a message of %d bytes exceeding %d limit", len(req), s.opts.maxMsgSize)
+			}
 			if err := s.opts.codec.Unmarshal(req, v); err != nil {
 				return err
 			}
@@ -634,13 +656,14 @@ func (s *Server) processStreamingRPC(t transport.ServerTransport, stream *transp
 		stream.SetSendCompress(s.opts.cp.Type())
 	}
 	ss := &serverStream{
-		t:      t,
-		s:      stream,
-		p:      &parser{r: stream},
-		codec:  s.opts.codec,
-		cp:     s.opts.cp,
-		dc:     s.opts.dc,
-		trInfo: trInfo,
+		t:          t,
+		s:          stream,
+		p:          &parser{r: stream},
+		codec:      s.opts.codec,
+		cp:         s.opts.cp,
+		dc:         s.opts.dc,
+		maxMsgSize: s.opts.maxMsgSize,
+		trInfo:     trInfo,
 	}
 	if ss.cp != nil {
 		ss.cbuf = new(bytes.Buffer)
diff --git a/stream.go b/stream.go
index 008ad1e2..66bfad81 100644
--- a/stream.go
+++ b/stream.go
@@ -37,6 +37,7 @@ import (
 	"bytes"
 	"errors"
 	"io"
+	"math"
 	"sync"
 	"time"
 
@@ -291,7 +292,7 @@ func (cs *clientStream) SendMsg(m interface{}) (err error) {
 }
 
 func (cs *clientStream) RecvMsg(m interface{}) (err error) {
-	err = recv(cs.p, cs.codec, cs.s, cs.dc, m)
+	err = recv(cs.p, cs.codec, cs.s, cs.dc, m, math.MaxInt32)
 	defer func() {
 		// err != nil indicates the termination of the stream.
 		if err != nil {
@@ -310,7 +311,7 @@ func (cs *clientStream) RecvMsg(m interface{}) (err error) {
 			return
 		}
 		// Special handling for client streaming rpc.
-		err = recv(cs.p, cs.codec, cs.s, cs.dc, m)
+		err = recv(cs.p, cs.codec, cs.s, cs.dc, m, math.MaxInt32)
 		cs.closeTransportStream(err)
 		if err == nil {
 			return toRPCErr(errors.New("grpc: client streaming protocol violation: get <nil>, want <EOF>"))
@@ -411,6 +412,7 @@ type serverStream struct {
 	cp         Compressor
 	dc         Decompressor
 	cbuf       *bytes.Buffer
+	maxMsgSize int
 	statusCode codes.Code
 	statusDesc string
 	trInfo     *traceInfo
@@ -477,5 +479,5 @@ func (ss *serverStream) RecvMsg(m interface{}) (err error) {
 			ss.mu.Unlock()
 		}
 	}()
-	return recv(ss.p, ss.codec, ss.s, ss.dc, m)
+	return recv(ss.p, ss.codec, ss.s, ss.dc, m, ss.maxMsgSize)
 }
diff --git a/test/end2end_test.go b/test/end2end_test.go
index bc03000c..3b38e00a 100644
--- a/test/end2end_test.go
+++ b/test/end2end_test.go
@@ -363,6 +363,7 @@ type test struct {
 	testServer        testpb.TestServiceServer // nil means none
 	healthServer      *health.Server           // nil means disabled
 	maxStream         uint32
+	maxMsgSize        int
 	userAgent         string
 	clientCompression bool
 	serverCompression bool
@@ -413,6 +414,9 @@ func (te *test) startServer(ts testpb.TestServiceServer) {
 	e := te.e
 	te.t.Logf("Running test in %s environment...", e.name)
 	sopts := []grpc.ServerOption{grpc.MaxConcurrentStreams(te.maxStream)}
+	if te.maxMsgSize > 0 {
+		sopts = append(sopts, grpc.MaxMsgSize(te.maxMsgSize))
+	}
 	if te.serverCompression {
 		sopts = append(sopts,
 			grpc.RPCCompressor(grpc.NewGZIPCompressor()),
@@ -1068,6 +1072,65 @@ func testLargeUnary(t *testing.T, e env) {
 	}
 }
 
+func TestExceedMsgLimit(t *testing.T) {
+	defer leakCheck(t)()
+	for _, e := range listTestEnv() {
+		testExceedMsgLimit(t, e)
+	}
+}
+
+func testExceedMsgLimit(t *testing.T, e env) {
+	te := newTest(t, e)
+	te.maxMsgSize = 1024
+	te.startServer(&testServer{security: e.security})
+	defer te.tearDown()
+	tc := testpb.NewTestServiceClient(te.clientConn())
+
+	argSize := int32(te.maxMsgSize + 1)
+	const respSize = 1
+
+	payload, err := newPayload(testpb.PayloadType_COMPRESSABLE, argSize)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	req := &testpb.SimpleRequest{
+		ResponseType: testpb.PayloadType_COMPRESSABLE.Enum(),
+		ResponseSize: proto.Int32(respSize),
+		Payload:      payload,
+	}
+	if _, err := tc.UnaryCall(context.Background(), req); err == nil || grpc.Code(err) != codes.Internal {
+		t.Fatalf("TestService/UnaryCall(_, _) = _, %v, want _, error code: %d", err, codes.Internal)
+	}
+
+	stream, err := tc.FullDuplexCall(te.ctx)
+	if err != nil {
+		t.Fatalf("%v.FullDuplexCall(_) = _, %v, want <nil>", tc, err)
+	}
+	respParam := []*testpb.ResponseParameters{
+		{
+			Size: proto.Int32(1),
+		},
+	}
+
+	spayload, err := newPayload(testpb.PayloadType_COMPRESSABLE, int32(te.maxMsgSize+1))
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	sreq := &testpb.StreamingOutputCallRequest{
+		ResponseType:       testpb.PayloadType_COMPRESSABLE.Enum(),
+		ResponseParameters: respParam,
+		Payload:            spayload,
+	}
+	if err := stream.Send(sreq); err != nil {
+		t.Fatalf("%v.Send(%v) = %v, want <nil>", stream, sreq, err)
+	}
+	if _, err := stream.Recv(); err == nil || grpc.Code(err) != codes.Internal {
+		t.Fatalf("%v.Recv() = _, %v, want _, error code: %d", stream, err, codes.Internal)
+	}
+}
+
 func TestMetadataUnaryRPC(t *testing.T) {
 	defer leakCheck(t)()
 	for _, e := range listTestEnv() {