diff --git a/transport/.control.go.swp b/transport/.control.go.swp
new file mode 100644
index 00000000..1d0a4f36
Binary files /dev/null and b/transport/.control.go.swp differ
diff --git a/transport/.http2_server.go.swp b/transport/.http2_server.go.swp
new file mode 100644
index 00000000..b51fa10c
Binary files /dev/null and b/transport/.http2_server.go.swp differ
diff --git a/transport/.transport.go.swp b/transport/.transport.go.swp
new file mode 100644
index 00000000..785feb91
Binary files /dev/null and b/transport/.transport.go.swp differ
diff --git a/transport/control.go b/transport/control.go
index fc7806a8..c00ee4b3 100644
--- a/transport/control.go
+++ b/transport/control.go
@@ -164,12 +164,10 @@ type inFlow struct {
 
 	mu sync.Mutex
 	// pendingData is the overall data which have been received but not been
-	// fully consumed (either pending for application to read or pending for
-	// window update).
+	// consumed by applications.
 	pendingData uint32
 	// The amount of data the application has consumed but grpc has not sent
-	// window update for them. Used to reduce window update frequency. It is
-	// always part of pendingData.
+	// window update for them. Used to reduce window update frequency.
 	pendingUpdate uint32
 }
 
@@ -181,8 +179,8 @@ func (f *inFlow) onData(n uint32) error {
 	}
 	f.mu.Lock()
 	defer f.mu.Unlock()
-	if f.pendingData+n > f.limit {
-		return fmt.Errorf("recieved %d-bytes data exceeding the limit %d bytes", f.pendingData+n, f.limit)
+	if f.pendingData+f.pendingUpdate+n > f.limit {
+		return fmt.Errorf("recieved %d-bytes data exceeding the limit %d bytes", f.pendingData+f.pendingUpdate+n, f.limit)
 	}
 	if f.conn != nil {
 		if err := f.conn.onData(n); err != nil {
@@ -196,14 +194,18 @@ func (f *inFlow) onData(n uint32) error {
 // onRead is invoked when the application reads the data.
 func (f *inFlow) onRead(n uint32) uint32 {
 	if n == 0 {
-		return 0
+		return 0 
 	}
 	f.mu.Lock()
 	defer f.mu.Unlock()
+	if f.pendingData == 0 {
+		// pendingData has been adjusted by restoreConn.
+		return 0
+	}
+	f.pendingData -= n
 	f.pendingUpdate += n
 	if f.pendingUpdate >= f.limit/4 {
 		ret := f.pendingUpdate
-		f.pendingData -= ret
 		f.pendingUpdate = 0
 		return ret
 	}
@@ -218,14 +220,8 @@ func (f *inFlow) restoreConn() uint32 {
 	}
 	f.mu.Lock()
 	defer f.mu.Unlock()
-	ret := f.pendingData
-	f.conn.mu.Lock()
-	f.conn.pendingData -= ret
-	if f.conn.pendingUpdate > f.conn.pendingData {
-		f.conn.pendingUpdate = f.conn.pendingData
-	}
-	f.conn.mu.Unlock()
+	n := f.pendingData
 	f.pendingData = 0
 	f.pendingUpdate = 0
-	return ret
+	return f.conn.onRead(n)
 }
diff --git a/transport/http2_client.go b/transport/http2_client.go
index b9cef877..4803390d 100644
--- a/transport/http2_client.go
+++ b/transport/http2_client.go
@@ -479,12 +479,12 @@ func (t *http2Client) getStream(f http2.Frame) (*Stream, bool) {
 // Window updates will deliver to the controller for sending when
 // the cumulative quota exceeds the corresponding threshold.
 func (t *http2Client) updateWindow(s *Stream, n uint32) {
-	if q := t.fc.onRead(n); q > 0 {
-		t.controlBuf.put(&windowUpdate{0, q})
-	}
 	if q := s.fc.onRead(n); q > 0 {
 		t.controlBuf.put(&windowUpdate{s.id, q})
 	}
+	if q := t.fc.onRead(n); q > 0 {
+		t.controlBuf.put(&windowUpdate{0, q})
+	}
 }
 
 func (t *http2Client) handleData(f *http2.DataFrame) {
diff --git a/transport/http2_server.go b/transport/http2_server.go
index a6576584..21e487a0 100644
--- a/transport/http2_server.go
+++ b/transport/http2_server.go
@@ -305,12 +305,12 @@ func (t *http2Server) getStream(f http2.Frame) (*Stream, bool) {
 // Window updates will deliver to the controller for sending when
 // the cumulative quota exceeds the corresponding threshold.
 func (t *http2Server) updateWindow(s *Stream, n uint32) {
-	if q := t.fc.onRead(n); q > 0 {
-		t.controlBuf.put(&windowUpdate{0, q})
-	}
 	if q := s.fc.onRead(n); q > 0 {
 		t.controlBuf.put(&windowUpdate{s.id, q})
 	}
+	if q := t.fc.onRead(n); q > 0 {
+		t.controlBuf.put(&windowUpdate{0, q})
+	}
 }
 
 func (t *http2Server) handleData(f *http2.DataFrame) {
diff --git a/transport/transport.go b/transport/transport.go
index 35d31b71..f6b80738 100644
--- a/transport/transport.go
+++ b/transport/transport.go
@@ -199,7 +199,6 @@ type Stream struct {
 	// the status received from the server.
 	statusCode  codes.Code
 	statusDesc  string
-	pendingData uint32
 }
 
 // Header acquires the key-value pairs of header metadata once it
diff --git a/transport/transport_test.go b/transport/transport_test.go
index 70343396..7559cf8f 100644
--- a/transport/transport_test.go
+++ b/transport/transport_test.go
@@ -489,11 +489,11 @@ func TestServerWithMisbehavedClient(t *testing.T) {
 	// Keep sending until the server inbound window is drained for that stream.
 	for sent <= initialWindowSize {
 		<-cc.writableChan
-		if err = cc.framer.writeData(true, s.id, false, make([]byte, http2MaxFrameLen)); err != nil {
+		if err = cc.framer.writeData(true, s.id, false, make([]byte, 1)); err != nil {
 			t.Fatalf("Failed to write data: ", err)
 		}
 		cc.writableChan <- 0
-		sent += http2MaxFrameLen
+		sent += 1
 	}
 	// Server sent a resetStream for s already.
 	code := http2RSTErrConvTab[http2.ErrCodeFlowControl]
@@ -501,8 +501,8 @@ func TestServerWithMisbehavedClient(t *testing.T) {
 		t.Fatalf("%v got err %v with statusCode %d, want err <EOF> with statusCode %d", s, err, s.statusCode, code)
 	}
 
-	if ss.fc.pendingData != 0 || ss.fc.pendingUpdate != 0 || sc.fc.pendingData != 0 || sc.fc.pendingUpdate != 0 {
-		t.Fatalf("Server mistakenly resets inbound flow control params: got %d, %d, %d, %d; want 0, 0, 0, 0", ss.fc.pendingData, ss.fc.pendingUpdate, sc.fc.pendingData, sc.fc.pendingUpdate)
+	if ss.fc.pendingData != 0 || ss.fc.pendingUpdate != 0 || sc.fc.pendingData != 0 || sc.fc.pendingUpdate != initialWindowSize {
+		t.Fatalf("Server mistakenly resets inbound flow control params: got %d, %d, %d, %d; want 0, 0, 0, %d", ss.fc.pendingData, ss.fc.pendingUpdate, sc.fc.pendingData, sc.fc.pendingUpdate, initialWindowSize)
 	}
 	ct.CloseStream(s, nil)
 	// Test server behavior for violation of connection flow control window size restriction.
@@ -512,14 +512,11 @@ func TestServerWithMisbehavedClient(t *testing.T) {
 	for {
 		s, err := ct.NewStream(context.Background(), callHdr)
 		if err != nil {
-			t.Fatalf("Failed to open stream: %v", err)
-		}
-		<-cc.writableChan
-		// Write will fail when connection flow control window runs out.
-		if err := cc.framer.writeData(true, s.id, true, make([]byte, http2MaxFrameLen)); err != nil {
 			// The server tears down the connection.
 			break
 		}
+		<-cc.writableChan
+		cc.framer.writeData(true, s.id, true, make([]byte, http2MaxFrameLen))
 		cc.writableChan <- 0
 	}
 	ct.Close()
@@ -558,8 +555,8 @@ func TestClientWithMisbehavedServer(t *testing.T) {
 		t.Fatalf("Got err %v and the status code %d, want <EOF> and the code %d", err, s.statusCode, codes.Internal)
 	}
 	conn.CloseStream(s, err)
-	if s.fc.pendingData != 0 || s.fc.pendingUpdate != 0 || conn.fc.pendingData != 0 || conn.fc.pendingUpdate != 0 {
-		t.Fatalf("Client mistakenly resets inbound flow control params: got %d, %d, %d, %d; want 0, 0, 0, 0", s.fc.pendingData, s.fc.pendingUpdate, conn.fc.pendingData, conn.fc.pendingUpdate)
+	if s.fc.pendingData != 0 || s.fc.pendingUpdate != 0 || conn.fc.pendingData != 0 || conn.fc.pendingUpdate != initialWindowSize {
+		t.Fatalf("Client mistakenly resets inbound flow control params: got %d, %d, %d, %d; want 0, 0, 0, %d", s.fc.pendingData, s.fc.pendingUpdate, conn.fc.pendingData, conn.fc.pendingUpdate, initialWindowSize)
 	}
 	// Test the logic for the violation of the connection flow control window size restriction.
 	//