diff --git a/call.go b/call.go
index 8b688091..b5f92929 100644
--- a/call.go
+++ b/call.go
@@ -117,7 +117,7 @@ func Invoke(ctx context.Context, method string, args, reply interface{}, cc *Cli
 		}
 	}()
 	if EnableTracing {
-		c.traceInfo.tr = trace.New("grpc.Sent."+methodFamily(method), method)
+		c.traceInfo.tr = trace.New("grpc.Sent."+transport.MethodFamily(method), method)
 		defer c.traceInfo.tr.Finish()
 		c.traceInfo.firstLine.client = true
 		if deadline, ok := ctx.Deadline(); ok {
diff --git a/server.go b/server.go
index ee44d1e7..a5c8dc35 100644
--- a/server.go
+++ b/server.go
@@ -247,7 +247,7 @@ func (s *Server) Serve(lis net.Listener) error {
 			c.Close()
 			return nil
 		}
-		st, err := transport.NewServerTransport("http2", c, s.opts.maxConcurrentStreams, authInfo)
+		st, err := transport.NewServerTransport("http2", c, s.opts.maxConcurrentStreams, authInfo, EnableTracing)
 		if err != nil {
 			s.errorf("NewServerTransport(%q) failed: %v", c.RemoteAddr(), err)
 			s.mu.Unlock()
@@ -285,19 +285,16 @@ func (s *Server) sendResponse(t transport.ServerTransport, stream *transport.Str
 }
 
 func (s *Server) processUnaryRPC(t transport.ServerTransport, stream *transport.Stream, srv *service, md *MethodDesc) (err error) {
-	ctx, cancel := context.WithCancel(stream.Context())
-	defer cancel()
 	var traceInfo traceInfo
 	if EnableTracing {
-		traceInfo.tr = trace.New("grpc.Recv."+methodFamily(stream.Method()), stream.Method())
+		traceInfo.tr = stream.Trace()
 		defer traceInfo.tr.Finish()
 		traceInfo.firstLine.client = false
 		traceInfo.firstLine.remoteAddr = t.RemoteAddr()
-		if dl, ok := ctx.Deadline(); ok {
+		if dl, ok := stream.Context().Deadline(); ok {
 			traceInfo.firstLine.deadline = dl.Sub(time.Now())
 		}
 		traceInfo.tr.LazyLog(&traceInfo.firstLine, false)
-		ctx = trace.NewContext(ctx, traceInfo.tr)
 		defer func() {
 			if err != nil && err != io.EOF {
 				traceInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
@@ -338,7 +335,7 @@ func (s *Server) processUnaryRPC(t transport.ServerTransport, stream *transport.
 				}
 				return nil
 			}
-			reply, appErr := md.Handler(srv.server, ctx, df)
+			reply, appErr := md.Handler(srv.server, stream.Context(), df)
 			if appErr != nil {
 				if err, ok := appErr.(rpcError); ok {
 					statusCode = err.code
@@ -389,25 +386,21 @@ func (s *Server) processUnaryRPC(t transport.ServerTransport, stream *transport.
 }
 
 func (s *Server) processStreamingRPC(t transport.ServerTransport, stream *transport.Stream, srv *service, sd *StreamDesc) (err error) {
-	ctx, cancel := context.WithCancel(stream.Context())
-	defer cancel()
 	ss := &serverStream{
 		t:       t,
 		s:       stream,
-		ctx:     ctx,
 		p:       &parser{s: stream},
 		codec:   s.opts.codec,
 		tracing: EnableTracing,
 	}
 	if ss.tracing {
-		ss.traceInfo.tr = trace.New("grpc.Recv."+methodFamily(stream.Method()), stream.Method())
+		ss.traceInfo.tr = stream.Trace()
 		ss.traceInfo.firstLine.client = false
 		ss.traceInfo.firstLine.remoteAddr = t.RemoteAddr()
-		if dl, ok := ctx.Deadline(); ok {
+		if dl, ok := stream.Context().Deadline(); ok {
 			ss.traceInfo.firstLine.deadline = dl.Sub(time.Now())
 		}
 		ss.traceInfo.tr.LazyLog(&ss.traceInfo.firstLine, false)
-		ss.ctx = trace.NewContext(ss.ctx, ss.traceInfo.tr)
 		defer func() {
 			ss.mu.Lock()
 			if err != nil && err != io.EOF {
diff --git a/stream.go b/stream.go
index 34774f03..28938a3c 100644
--- a/stream.go
+++ b/stream.go
@@ -126,7 +126,7 @@ func NewClientStream(ctx context.Context, desc *StreamDesc, cc *ClientConn, meth
 		tracing: EnableTracing,
 	}
 	if cs.tracing {
-		cs.traceInfo.tr = trace.New("grpc.Sent."+methodFamily(method), method)
+		cs.traceInfo.tr = trace.New("grpc.Sent."+transport.MethodFamily(method), method)
 		cs.traceInfo.firstLine.client = true
 		if deadline, ok := ctx.Deadline(); ok {
 			cs.traceInfo.firstLine.deadline = deadline.Sub(time.Now())
@@ -294,7 +294,6 @@ type ServerStream interface {
 type serverStream struct {
 	t          transport.ServerTransport
 	s          *transport.Stream
-	ctx        context.Context // provides trace.FromContext when tracing
 	p          *parser
 	codec      Codec
 	statusCode codes.Code
@@ -309,7 +308,7 @@ type serverStream struct {
 }
 
 func (ss *serverStream) Context() context.Context {
-	return ss.ctx
+	return ss.s.Context()
 }
 
 func (ss *serverStream) SendHeader(md metadata.MD) error {
diff --git a/trace.go b/trace.go
index cde04fbf..9b88444f 100644
--- a/trace.go
+++ b/trace.go
@@ -38,7 +38,6 @@ import (
 	"fmt"
 	"io"
 	"net"
-	"strings"
 	"time"
 
 	"golang.org/x/net/trace"
@@ -48,19 +47,6 @@ import (
 // This should only be set before any RPCs are sent or received by this program.
 var EnableTracing = true
 
-// methodFamily returns the trace family for the given method.
-// It turns "/pkg.Service/GetFoo" into "pkg.Service".
-func methodFamily(m string) string {
-	m = strings.TrimPrefix(m, "/") // remove leading slash
-	if i := strings.Index(m, "/"); i >= 0 {
-		m = m[:i] // remove everything from second slash
-	}
-	if i := strings.LastIndex(m, "."); i >= 0 {
-		m = m[i+1:] // cut down to last dotted component
-	}
-	return m
-}
-
 // traceInfo contains tracing information for an RPC.
 type traceInfo struct {
 	tr        trace.Trace
diff --git a/transport/http2_server.go b/transport/http2_server.go
index c9a2a36b..89371c23 100644
--- a/transport/http2_server.go
+++ b/transport/http2_server.go
@@ -45,6 +45,7 @@ import (
 	"golang.org/x/net/context"
 	"golang.org/x/net/http2"
 	"golang.org/x/net/http2/hpack"
+	"golang.org/x/net/trace"
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/credentials"
 	"google.golang.org/grpc/grpclog"
@@ -80,6 +81,8 @@ type http2Server struct {
 	fc         *inFlow
 	// sendQuotaPool provides flow control to outbound message.
 	sendQuotaPool *quotaPool
+	// tracing indicates whether tracing is on for this http2Server transport.
+	tracing bool
 
 	mu            sync.Mutex // guard the following
 	state         transportState
@@ -90,7 +93,7 @@ type http2Server struct {
 
 // newHTTP2Server constructs a ServerTransport based on HTTP2. ConnectionError is
 // returned if something goes wrong.
-func newHTTP2Server(conn net.Conn, maxStreams uint32, authInfo credentials.AuthInfo) (_ ServerTransport, err error) {
+func newHTTP2Server(conn net.Conn, maxStreams uint32, authInfo credentials.AuthInfo, tracing bool) (_ ServerTransport, err error) {
 	framer := newFramer(conn)
 	// Send initial settings as connection preface to client.
 	var settings []http2.Setting
@@ -124,6 +127,7 @@ func newHTTP2Server(conn net.Conn, maxStreams uint32, authInfo credentials.AuthI
 		controlBuf:      newRecvBuffer(),
 		fc:              &inFlow{limit: initialConnWindowSize},
 		sendQuotaPool:   newQuotaPool(defaultWindowSize),
+		tracing:         tracing,
 		state:           reachable,
 		writableChan:    make(chan int, 1),
 		shutdownChan:    make(chan struct{}),
@@ -202,7 +206,10 @@ func (t *http2Server) operateHeaders(hDec *hpackDecoder, s *Stream, frame header
 		recv: s.buf,
 	}
 	s.method = hDec.state.method
-
+	if t.tracing {
+		s.tr = trace.New("grpc.Recv."+MethodFamily(s.method), s.method)
+		s.ctx = trace.NewContext(s.ctx, s.tr)
+	}
 	wg.Add(1)
 	go func() {
 		handle(s)
diff --git a/transport/transport.go b/transport/transport.go
index d33f2de7..93efeae8 100644
--- a/transport/transport.go
+++ b/transport/transport.go
@@ -43,15 +43,30 @@ import (
 	"fmt"
 	"io"
 	"net"
+	"strings"
 	"sync"
 	"time"
 
 	"golang.org/x/net/context"
+	"golang.org/x/net/trace"
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/credentials"
 	"google.golang.org/grpc/metadata"
 )
 
+// MethodFamily returns the trace family for the given method.
+// It turns "/pkg.Service/GetFoo" into "pkg.Service".
+func MethodFamily(m string) string {
+	m = strings.TrimPrefix(m, "/") // remove leading slash
+	if i := strings.Index(m, "/"); i >= 0 {
+		m = m[:i] // remove everything from second slash
+	}
+	if i := strings.LastIndex(m, "."); i >= 0 {
+		m = m[i+1:] // cut down to last dotted component
+	}
+	return m
+}
+
 // recvMsg represents the received msg from the transport. All transport
 // protocol specific info has been removed.
 type recvMsg struct {
@@ -198,6 +213,8 @@ type Stream struct {
 	// the status received from the server.
 	statusCode codes.Code
 	statusDesc string
+	// tracing information
+	tr trace.Trace
 }
 
 // Header acquires the key-value pairs of header metadata once it
@@ -232,6 +249,11 @@ func (s *Stream) Context() context.Context {
 	return s.ctx
 }
 
+// Trace returns the trace.Trace of the stream.
+func (s *Stream) Trace() trace.Trace {
+	return s.tr
+}
+
 // Method returns the method for the stream.
 func (s *Stream) Method() string {
 	return s.method
@@ -308,8 +330,8 @@ const (
 
 // NewServerTransport creates a ServerTransport with conn or non-nil error
 // if it fails.
-func NewServerTransport(protocol string, conn net.Conn, maxStreams uint32, authInfo credentials.AuthInfo) (ServerTransport, error) {
-	return newHTTP2Server(conn, maxStreams, authInfo)
+func NewServerTransport(protocol string, conn net.Conn, maxStreams uint32, authInfo credentials.AuthInfo, tracing bool) (ServerTransport, error) {
+	return newHTTP2Server(conn, maxStreams, authInfo, tracing)
 }
 
 // ConnectOptions covers all relevant options for dialing a server.
diff --git a/transport/transport_test.go b/transport/transport_test.go
index 07ba0051..70d345ac 100644
--- a/transport/transport_test.go
+++ b/transport/transport_test.go
@@ -150,7 +150,7 @@ func (s *server) start(t *testing.T, port int, maxStreams uint32, ht hType) {
 		if err != nil {
 			return
 		}
-		transport, err := NewServerTransport("http2", conn, maxStreams, nil)
+		transport, err := NewServerTransport("http2", conn, maxStreams, nil, false)
 		if err != nil {
 			return
 		}