diff --git a/call.go b/call.go
index 84ac178c..d6326ea0 100644
--- a/call.go
+++ b/call.go
@@ -90,7 +90,10 @@ func sendRequest(ctx context.Context, codec Codec, compressor Compressor, callHd
 		return nil, transport.StreamErrorf(codes.Internal, "grpc: %v", err)
 	}
 	err = t.Write(stream, outBuf, opts)
-	if err != nil {
+	// t.NewStream(...) could lead to an early rejection of the RPC (e.g., the service/method
+	// does not exist.) so that t.Write could get io.EOF from wait(...). Leave the following
+	// recvResponse to get the final status.
+	if err != nil && err != io.EOF {
 		return nil, err
 	}
 	// Sent successfully.
diff --git a/clientconn_test.go b/clientconn_test.go
index 29db8bfc..71ba45e6 100644
--- a/clientconn_test.go
+++ b/clientconn_test.go
@@ -73,7 +73,7 @@ func TestCredentialsMisuse(t *testing.T) {
 		t.Fatalf("Failed to create authenticator %v", err)
 	}
 	// Two conflicting credential configurations
-	if _, err := Dial("Non-Existent.Server:80", WithTransportCredentials(tlsCreds), WithTimeout(time.Millisecond), WithBlock(), WithInsecure()); err != errCredentialsConflict {
+	if _, err := Dial("Non-Existent.Server:80", WithTransportCredentials(tlsCreds), WithBlock(), WithInsecure()); err != errCredentialsConflict {
 		t.Fatalf("Dial(_, _) = _, %v, want _, %v", err, errCredentialsConflict)
 	}
 	rpcCreds, err := oauth.NewJWTAccessFromKey(nil)
@@ -81,7 +81,7 @@ func TestCredentialsMisuse(t *testing.T) {
 		t.Fatalf("Failed to create credentials %v", err)
 	}
 	// security info on insecure connection
-	if _, err := Dial("Non-Existent.Server:80", WithPerRPCCredentials(rpcCreds), WithTimeout(time.Millisecond), WithBlock(), WithInsecure()); err != errTransportCredentialsMissing {
+	if _, err := Dial("Non-Existent.Server:80", WithPerRPCCredentials(rpcCreds), WithBlock(), WithInsecure()); err != errTransportCredentialsMissing {
 		t.Fatalf("Dial(_, _) = _, %v, want _, %v", err, errTransportCredentialsMissing)
 	}
 }
@@ -123,4 +123,5 @@ func testBackoffConfigSet(t *testing.T, expected *BackoffConfig, opts ...DialOpt
 	if actual != *expected {
 		t.Fatalf("unexpected backoff config on connection: %v, want %v", actual, expected)
 	}
+	conn.Close()
 }
diff --git a/stream.go b/stream.go
index 7a3bef51..5cde4be9 100644
--- a/stream.go
+++ b/stream.go
@@ -183,12 +183,21 @@ func NewClientStream(ctx context.Context, desc *StreamDesc, cc *ClientConn, meth
 	cs.t = t
 	cs.s = s
 	cs.p = &parser{r: s}
-	// Listen on ctx.Done() to detect cancellation when there is no pending
-	// I/O operations on this stream.
+	// Listen on ctx.Done() to detect cancellation and s.Done() to detect normal termination
+	// when there is no pending I/O operations on this stream.
 	go func() {
 		select {
 		case <-t.Error():
 			// Incur transport error, simply exit.
+		case <-s.Done():
+			// TODO: The trace of the RPC is terminated here when there is no pending
+			// I/O, which is probably not the optimal solution.
+			if s.StatusCode() == codes.OK {
+				cs.finish(nil)
+			} else {
+				cs.finish(Errorf(s.StatusCode(), "%s", s.StatusDesc()))
+			}
+			cs.closeTransportStream(nil)
 		case <-s.Context().Done():
 			err := s.Context().Err()
 			cs.finish(err)
@@ -326,7 +335,7 @@ func (cs *clientStream) CloseSend() (err error) {
 		}
 	}()
 	if err == nil || err == io.EOF {
-		return
+		return nil
 	}
 	if _, ok := err.(transport.ConnectionError); !ok {
 		cs.closeTransportStream(err)
diff --git a/test/end2end_test.go b/test/end2end_test.go
index cc8bae5f..fdac5815 100644
--- a/test/end2end_test.go
+++ b/test/end2end_test.go
@@ -90,7 +90,8 @@ var (
 var raceMode bool // set by race_test.go in race mode
 
 type testServer struct {
-	security string // indicate the authentication protocol used by this server.
+	security  string // indicate the authentication protocol used by this server.
+	earlyFail bool   // whether to error out the execution of a service handler prematurely.
 }
 
 func (s *testServer) EmptyCall(ctx context.Context, in *testpb.Empty) (*testpb.Empty, error) {
@@ -219,6 +220,9 @@ func (s *testServer) StreamingInputCall(stream testpb.TestService_StreamingInput
 		}
 		p := in.GetPayload().GetBody()
 		sum += len(p)
+		if s.earlyFail {
+			return grpc.Errorf(codes.NotFound, "not found")
+		}
 	}
 }
 
@@ -404,10 +408,9 @@ func (te *test) tearDown() {
 // modify it before calling its startServer and clientConn methods.
 func newTest(t *testing.T, e env) *test {
 	te := &test{
-		t:          t,
-		e:          e,
-		testServer: &testServer{security: e.security},
-		maxStream:  math.MaxUint32,
+		t:         t,
+		e:         e,
+		maxStream: math.MaxUint32,
 	}
 	te.ctx, te.cancel = context.WithCancel(context.Background())
 	return te
@@ -415,7 +418,8 @@ func newTest(t *testing.T, e env) *test {
 
 // startServer starts a gRPC server listening. Callers should defer a
 // call to te.tearDown to clean up.
-func (te *test) startServer() {
+func (te *test) startServer(ts testpb.TestServiceServer) {
+	te.testServer = ts
 	e := te.e
 	te.t.Logf("Running test in %s environment...", e.name)
 	sopts := []grpc.ServerOption{grpc.MaxConcurrentStreams(te.maxStream)}
@@ -545,7 +549,7 @@ func testTimeoutOnDeadServer(t *testing.T, e env) {
 		"grpc: Conn.resetTransport failed to create client transport: connection error",
 		"grpc: Conn.resetTransport failed to create client transport: connection error: desc = \"transport: dial unix",
 	)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -554,10 +558,7 @@ func testTimeoutOnDeadServer(t *testing.T, e env) {
 		t.Fatalf("TestService/EmptyCall(_, _) = _, %v, want _, <nil>", err)
 	}
 	te.srv.Stop()
-	// Set -1 as the timeout to make sure if transportMonitor gets error
-	// notification in time the failure path of the 1st invoke of
-	// ClientConn.wait hits the deadline exceeded error.
-	ctx, _ := context.WithTimeout(context.Background(), -1)
+	ctx, _ := context.WithTimeout(context.Background(), time.Millisecond)
 	if _, err := tc.EmptyCall(ctx, &testpb.Empty{}, grpc.FailFast(false)); grpc.Code(err) != codes.DeadlineExceeded {
 		t.Fatalf("TestService/EmptyCall(%v, _) = _, %v, want _, error code: %d", ctx, err, codes.DeadlineExceeded)
 	}
@@ -580,7 +581,7 @@ func testFailFast(t *testing.T, e env) {
 		"grpc: Conn.resetTransport failed to create client transport: connection error",
 		"grpc: Conn.resetTransport failed to create client transport: connection error: desc = \"transport: dial unix",
 	)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -629,7 +630,7 @@ func testHealthCheckOnSuccess(t *testing.T, e env) {
 	hs := health.NewHealthServer()
 	hs.SetServingStatus("grpc.health.v1.Health", 1)
 	te.healthServer = hs
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -655,7 +656,7 @@ func testHealthCheckOnFailure(t *testing.T, e env) {
 	hs := health.NewHealthServer()
 	hs.SetServingStatus("grpc.health.v1.HealthCheck", 1)
 	te.healthServer = hs
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -679,7 +680,7 @@ func TestHealthCheckOff(t *testing.T) {
 
 func testHealthCheckOff(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	want := grpc.Errorf(codes.Unimplemented, "unknown service grpc.health.v1.Health")
 	if _, err := healthCheck(1*time.Second, te.clientConn(), ""); !equalErrors(err, want) {
@@ -698,7 +699,7 @@ func testHealthCheckServingStatus(t *testing.T, e env) {
 	te := newTest(t, e)
 	hs := health.NewHealthServer()
 	te.healthServer = hs
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -741,7 +742,7 @@ func TestErrorChanNoIO(t *testing.T) {
 
 func testErrorChanNoIO(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	tc := testpb.NewTestServiceClient(te.clientConn())
@@ -760,7 +761,7 @@ func TestEmptyUnaryWithUserAgent(t *testing.T) {
 func testEmptyUnaryWithUserAgent(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.userAgent = testAppUA
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -786,7 +787,7 @@ func TestFailedEmptyUnary(t *testing.T) {
 
 func testFailedEmptyUnary(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -806,7 +807,7 @@ func TestLargeUnary(t *testing.T) {
 
 func testLargeUnary(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -843,7 +844,7 @@ func TestMetadataUnaryRPC(t *testing.T) {
 
 func testMetadataUnaryRPC(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -889,7 +890,7 @@ func TestMalformedHTTP2Metadata(t *testing.T) {
 
 func testMalformedHTTP2Metadata(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -951,7 +952,7 @@ func TestRetry(t *testing.T) {
 func testRetry(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.declareLogNoise("transport: http2Client.notifyError got notified that the client transport was broken")
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -1000,7 +1001,7 @@ func TestRPCTimeout(t *testing.T) {
 // TODO(zhaoq): Have a better test coverage of timeout and cancellation mechanism.
 func testRPCTimeout(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -1037,7 +1038,7 @@ func TestCancel(t *testing.T) {
 func testCancel(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.declareLogNoise("grpc: the client connection is closing; please retry")
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -1075,7 +1076,7 @@ func testCancelNoIO(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.declareLogNoise("http2Client.notifyError got notified that the client transport was broken")
 	te.maxStream = 1 // Only allows 1 live stream per server transport.
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -1145,8 +1146,7 @@ func TestNoService(t *testing.T) {
 
 func testNoService(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.testServer = nil // register nothing
-	te.startServer()
+	te.startServer(nil)
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -1170,7 +1170,7 @@ func TestPingPong(t *testing.T) {
 
 func testPingPong(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -1230,7 +1230,7 @@ func TestMetadataStreamingRPC(t *testing.T) {
 
 func testMetadataStreamingRPC(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -1301,7 +1301,7 @@ func TestServerStreaming(t *testing.T) {
 
 func testServerStreaming(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -1356,7 +1356,7 @@ func TestFailedServerStreaming(t *testing.T) {
 
 func testFailedServerStreaming(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -1412,8 +1412,7 @@ func TestServerStreaming_Concurrent(t *testing.T) {
 
 func testServerStreaming_Concurrent(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.testServer = concurrentSendServer{}
-	te.startServer()
+	te.startServer(concurrentSendServer{})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -1471,7 +1470,7 @@ func TestClientStreaming(t *testing.T) {
 
 func testClientStreaming(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -1504,6 +1503,46 @@ func testClientStreaming(t *testing.T, e env) {
 	}
 }
 
+func TestClientStreamingError(t *testing.T) {
+	defer leakCheck(t)()
+	for _, e := range listTestEnv() {
+		testClientStreamingError(t, e)
+	}
+}
+
+func testClientStreamingError(t *testing.T, e env) {
+	te := newTest(t, e)
+	te.startServer(&testServer{security: e.security, earlyFail: true})
+	defer te.tearDown()
+	tc := testpb.NewTestServiceClient(te.clientConn())
+
+	stream, err := tc.StreamingInputCall(te.ctx)
+	if err != nil {
+		t.Fatalf("%v.StreamingInputCall(_) = _, %v, want <nil>", tc, err)
+	}
+	payload, err := newPayload(testpb.PayloadType_COMPRESSABLE, 1)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	req := &testpb.StreamingInputCallRequest{
+		Payload: payload,
+	}
+	// The 1st request should go through.
+	if err := stream.Send(req); err != nil {
+		t.Fatalf("%v.Send(%v) = %v, want <nil>", stream, req, err)
+	}
+	for {
+		if err := stream.Send(req); err != io.EOF {
+			continue
+		}
+		if _, err := stream.CloseAndRecv(); grpc.Code(err) != codes.NotFound {
+			t.Fatalf("%v.CloseAndRecv() = %v, want error %d", stream, err, codes.NotFound)
+		}
+		break
+	}
+}
+
 func TestExceedMaxStreamsLimit(t *testing.T) {
 	defer leakCheck(t)()
 	for _, e := range listTestEnv() {
@@ -1519,7 +1558,7 @@ func testExceedMaxStreamsLimit(t *testing.T, e env) {
 		"grpc: the client connection is closing",
 	)
 	te.maxStream = 1 // Only allows 1 live stream per server transport.
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -1560,7 +1599,7 @@ func testStreamsQuotaRecovery(t *testing.T, e env) {
 		"grpc: the client connection is closing",
 	)
 	te.maxStream = 1 // Allows 1 live stream.
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	cc := te.clientConn()
@@ -1611,7 +1650,7 @@ func testCompressServerHasNoSupport(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.serverCompression = false
 	te.clientCompression = true
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -1667,7 +1706,7 @@ func testCompressOK(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.serverCompression = true
 	te.clientCompression = true
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 	tc := testpb.NewTestServiceClient(te.clientConn())
 
@@ -1730,7 +1769,7 @@ func errInjector(ctx context.Context, req interface{}, info *grpc.UnaryServerInf
 func testUnaryServerInterceptor(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.unaryInt = errInjector
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	tc := testpb.NewTestServiceClient(te.clientConn())
@@ -1761,7 +1800,7 @@ func fullDuplexOnly(srv interface{}, ss grpc.ServerStream, info *grpc.StreamServ
 func testStreamServerInterceptor(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.streamInt = fullDuplexOnly
-	te.startServer()
+	te.startServer(&testServer{security: e.security})
 	defer te.tearDown()
 
 	tc := testpb.NewTestServiceClient(te.clientConn())
@@ -1825,12 +1864,12 @@ func TestClientRequestBodyError_UnexpectedEOF(t *testing.T) {
 
 func testClientRequestBodyError_UnexpectedEOF(t *testing.T, e env) {
 	te := newTest(t, e)
-	te.testServer = &funcServer{unaryCall: func(ctx context.Context, in *testpb.SimpleRequest) (*testpb.SimpleResponse, error) {
+	ts := &funcServer{unaryCall: func(ctx context.Context, in *testpb.SimpleRequest) (*testpb.SimpleResponse, error) {
 		errUnexpectedCall := errors.New("unexpected call func server method")
 		t.Error(errUnexpectedCall)
 		return nil, errUnexpectedCall
 	}}
-	te.startServer()
+	te.startServer(ts)
 	defer te.tearDown()
 	te.withServerTester(func(st *serverTester) {
 		st.writeHeadersGRPC(1, "/grpc.testing.TestService/UnaryCall")
@@ -1850,12 +1889,12 @@ func TestClientRequestBodyError_CloseAfterLength(t *testing.T) {
 func testClientRequestBodyError_CloseAfterLength(t *testing.T, e env) {
 	te := newTest(t, e)
 	te.declareLogNoise("Server.processUnaryRPC failed to write status")
-	te.testServer = &funcServer{unaryCall: func(ctx context.Context, in *testpb.SimpleRequest) (*testpb.SimpleResponse, error) {
+	ts := &funcServer{unaryCall: func(ctx context.Context, in *testpb.SimpleRequest) (*testpb.SimpleResponse, error) {
 		errUnexpectedCall := errors.New("unexpected call func server method")
 		t.Error(errUnexpectedCall)
 		return nil, errUnexpectedCall
 	}}
-	te.startServer()
+	te.startServer(ts)
 	defer te.tearDown()
 	te.withServerTester(func(st *serverTester) {
 		st.writeHeadersGRPC(1, "/grpc.testing.TestService/UnaryCall")
@@ -1875,11 +1914,11 @@ func TestClientRequestBodyError_Cancel(t *testing.T) {
 func testClientRequestBodyError_Cancel(t *testing.T, e env) {
 	te := newTest(t, e)
 	gotCall := make(chan bool, 1)
-	te.testServer = &funcServer{unaryCall: func(ctx context.Context, in *testpb.SimpleRequest) (*testpb.SimpleResponse, error) {
+	ts := &funcServer{unaryCall: func(ctx context.Context, in *testpb.SimpleRequest) (*testpb.SimpleResponse, error) {
 		gotCall <- true
 		return new(testpb.SimpleResponse), nil
 	}}
-	te.startServer()
+	te.startServer(ts)
 	defer te.tearDown()
 	te.withServerTester(func(st *serverTester) {
 		st.writeHeadersGRPC(1, "/grpc.testing.TestService/UnaryCall")
@@ -1912,12 +1951,12 @@ func TestClientRequestBodyError_Cancel_StreamingInput(t *testing.T) {
 func testClientRequestBodyError_Cancel_StreamingInput(t *testing.T, e env) {
 	te := newTest(t, e)
 	recvErr := make(chan error, 1)
-	te.testServer = &funcServer{streamingInputCall: func(stream testpb.TestService_StreamingInputCallServer) error {
+	ts := &funcServer{streamingInputCall: func(stream testpb.TestService_StreamingInputCallServer) error {
 		_, err := stream.Recv()
 		recvErr <- err
 		return nil
 	}}
-	te.startServer()
+	te.startServer(ts)
 	defer te.tearDown()
 	te.withServerTester(func(st *serverTester) {
 		st.writeHeadersGRPC(1, "/grpc.testing.TestService/StreamingInputCall")
diff --git a/transport/http2_client.go b/transport/http2_client.go
index f66435fd..4f22be09 100644
--- a/transport/http2_client.go
+++ b/transport/http2_client.go
@@ -202,6 +202,7 @@ func (t *http2Client) newStream(ctx context.Context, callHdr *CallHdr) *Stream {
 	// TODO(zhaoq): Handle uint32 overflow of Stream.id.
 	s := &Stream{
 		id:            t.nextID,
+		done:          make(chan struct{}),
 		method:        callHdr.Method,
 		sendCompress:  callHdr.SendCompress,
 		buf:           newRecvBuffer(),
@@ -278,7 +279,7 @@ func (t *http2Client) NewStream(ctx context.Context, callHdr *CallHdr) (_ *Strea
 	checkStreamsQuota := t.streamsQuota != nil
 	t.mu.Unlock()
 	if checkStreamsQuota {
-		sq, err := wait(ctx, t.shutdownChan, t.streamsQuota.acquire())
+		sq, err := wait(ctx, nil, t.shutdownChan, t.streamsQuota.acquire())
 		if err != nil {
 			return nil, err
 		}
@@ -287,7 +288,7 @@ func (t *http2Client) NewStream(ctx context.Context, callHdr *CallHdr) (_ *Strea
 			t.streamsQuota.add(sq - 1)
 		}
 	}
-	if _, err := wait(ctx, t.shutdownChan, t.writableChan); err != nil {
+	if _, err := wait(ctx, nil, t.shutdownChan, t.writableChan); err != nil {
 		// Return the quota back now because there is no stream returned to the caller.
 		if _, ok := err.(StreamError); ok && checkStreamsQuota {
 			t.streamsQuota.add(1)
@@ -414,11 +415,6 @@ func (t *http2Client) CloseStream(s *Stream, err error) {
 	if updateStreams {
 		t.streamsQuota.add(1)
 	}
-	// In case stream sending and receiving are invoked in separate
-	// goroutines (e.g., bi-directional streaming), the caller needs
-	// to call cancel on the stream to interrupt the blocking on
-	// other goroutines.
-	s.cancel()
 	s.mu.Lock()
 	if q := s.fc.resetPendingData(); q > 0 {
 		if n := t.fc.onRead(q); n > 0 {
@@ -504,15 +500,15 @@ func (t *http2Client) Write(s *Stream, data []byte, opts *Options) error {
 			size := http2MaxFrameLen
 			s.sendQuotaPool.add(0)
 			// Wait until the stream has some quota to send the data.
-			sq, err := wait(s.ctx, t.shutdownChan, s.sendQuotaPool.acquire())
+			sq, err := wait(s.ctx, s.done, t.shutdownChan, s.sendQuotaPool.acquire())
 			if err != nil {
 				return err
 			}
 			t.sendQuotaPool.add(0)
 			// Wait until the transport has some quota to send the data.
-			tq, err := wait(s.ctx, t.shutdownChan, t.sendQuotaPool.acquire())
+			tq, err := wait(s.ctx, s.done, t.shutdownChan, t.sendQuotaPool.acquire())
 			if err != nil {
-				if _, ok := err.(StreamError); ok {
+				if _, ok := err.(StreamError); ok || err == io.EOF {
 					t.sendQuotaPool.cancel()
 				}
 				return err
@@ -544,8 +540,8 @@ func (t *http2Client) Write(s *Stream, data []byte, opts *Options) error {
 		// Indicate there is a writer who is about to write a data frame.
 		t.framer.adjustNumWriters(1)
 		// Got some quota. Try to acquire writing privilege on the transport.
-		if _, err := wait(s.ctx, t.shutdownChan, t.writableChan); err != nil {
-			if _, ok := err.(StreamError); ok {
+		if _, err := wait(s.ctx, s.done, t.shutdownChan, t.writableChan); err != nil {
+			if _, ok := err.(StreamError); ok || err == io.EOF {
 				// Return the connection quota back.
 				t.sendQuotaPool.add(len(p))
 			}
@@ -593,11 +589,7 @@ func (t *http2Client) Write(s *Stream, data []byte, opts *Options) error {
 	}
 	s.mu.Lock()
 	if s.state != streamDone {
-		if s.state == streamReadDone {
-			s.state = streamDone
-		} else {
-			s.state = streamWriteDone
-		}
+		s.state = streamWriteDone
 	}
 	s.mu.Unlock()
 	return nil
@@ -655,6 +647,7 @@ func (t *http2Client) handleData(f *http2.DataFrame) {
 			s.state = streamDone
 			s.statusCode = codes.Internal
 			s.statusDesc = err.Error()
+			close(s.done)
 			s.mu.Unlock()
 			s.write(recvMsg{err: io.EOF})
 			t.controlBuf.put(&resetStream{s.id, http2.ErrCodeFlowControl})
@@ -672,13 +665,14 @@ func (t *http2Client) handleData(f *http2.DataFrame) {
 	// the read direction is closed, and set the status appropriately.
 	if f.FrameHeader.Flags.Has(http2.FlagDataEndStream) {
 		s.mu.Lock()
-		if s.state == streamWriteDone {
-			s.state = streamDone
-		} else {
-			s.state = streamReadDone
+		if s.state == streamDone {
+			s.mu.Unlock()
+			return
 		}
+		s.state = streamDone
 		s.statusCode = codes.Internal
 		s.statusDesc = "server closed the stream without sending trailers"
+		close(s.done)
 		s.mu.Unlock()
 		s.write(recvMsg{err: io.EOF})
 	}
@@ -704,6 +698,7 @@ func (t *http2Client) handleRSTStream(f *http2.RSTStreamFrame) {
 		grpclog.Println("transport: http2Client.handleRSTStream found no mapped gRPC status for the received http2 error ", f.ErrCode)
 		s.statusCode = codes.Unknown
 	}
+	close(s.done)
 	s.mu.Unlock()
 	s.write(recvMsg{err: io.EOF})
 }
@@ -780,11 +775,11 @@ func (t *http2Client) operateHeaders(frame *http2.MetaHeadersFrame) {
 	if len(state.mdata) > 0 {
 		s.trailer = state.mdata
 	}
-	s.state = streamDone
 	s.statusCode = state.statusCode
 	s.statusDesc = state.statusDesc
+	close(s.done)
+	s.state = streamDone
 	s.mu.Unlock()
-
 	s.write(recvMsg{err: io.EOF})
 }
 
diff --git a/transport/http2_server.go b/transport/http2_server.go
index cee15429..9e35fdd8 100644
--- a/transport/http2_server.go
+++ b/transport/http2_server.go
@@ -364,11 +364,7 @@ func (t *http2Server) handleData(f *http2.DataFrame) {
 		// Received the end of stream from the client.
 		s.mu.Lock()
 		if s.state != streamDone {
-			if s.state == streamWriteDone {
-				s.state = streamDone
-			} else {
-				s.state = streamReadDone
-			}
+			s.state = streamReadDone
 		}
 		s.mu.Unlock()
 		s.write(recvMsg{err: io.EOF})
@@ -455,7 +451,7 @@ func (t *http2Server) WriteHeader(s *Stream, md metadata.MD) error {
 	}
 	s.headerOk = true
 	s.mu.Unlock()
-	if _, err := wait(s.ctx, t.shutdownChan, t.writableChan); err != nil {
+	if _, err := wait(s.ctx, nil, t.shutdownChan, t.writableChan); err != nil {
 		return err
 	}
 	t.hBuf.Reset()
@@ -495,7 +491,7 @@ func (t *http2Server) WriteStatus(s *Stream, statusCode codes.Code, statusDesc s
 		headersSent = true
 	}
 	s.mu.Unlock()
-	if _, err := wait(s.ctx, t.shutdownChan, t.writableChan); err != nil {
+	if _, err := wait(s.ctx, nil, t.shutdownChan, t.writableChan); err != nil {
 		return err
 	}
 	t.hBuf.Reset()
@@ -544,7 +540,7 @@ func (t *http2Server) Write(s *Stream, data []byte, opts *Options) error {
 	}
 	s.mu.Unlock()
 	if writeHeaderFrame {
-		if _, err := wait(s.ctx, t.shutdownChan, t.writableChan); err != nil {
+		if _, err := wait(s.ctx, nil, t.shutdownChan, t.writableChan); err != nil {
 			return err
 		}
 		t.hBuf.Reset()
@@ -572,13 +568,13 @@ func (t *http2Server) Write(s *Stream, data []byte, opts *Options) error {
 		size := http2MaxFrameLen
 		s.sendQuotaPool.add(0)
 		// Wait until the stream has some quota to send the data.
-		sq, err := wait(s.ctx, t.shutdownChan, s.sendQuotaPool.acquire())
+		sq, err := wait(s.ctx, nil, t.shutdownChan, s.sendQuotaPool.acquire())
 		if err != nil {
 			return err
 		}
 		t.sendQuotaPool.add(0)
 		// Wait until the transport has some quota to send the data.
-		tq, err := wait(s.ctx, t.shutdownChan, t.sendQuotaPool.acquire())
+		tq, err := wait(s.ctx, nil, t.shutdownChan, t.sendQuotaPool.acquire())
 		if err != nil {
 			if _, ok := err.(StreamError); ok {
 				t.sendQuotaPool.cancel()
@@ -604,7 +600,7 @@ func (t *http2Server) Write(s *Stream, data []byte, opts *Options) error {
 		t.framer.adjustNumWriters(1)
 		// Got some quota. Try to acquire writing privilege on the
 		// transport.
-		if _, err := wait(s.ctx, t.shutdownChan, t.writableChan); err != nil {
+		if _, err := wait(s.ctx, nil, t.shutdownChan, t.writableChan); err != nil {
 			if _, ok := err.(StreamError); ok {
 				// Return the connection quota back.
 				t.sendQuotaPool.add(ps)
diff --git a/transport/transport.go b/transport/transport.go
index d4c220a0..4dab5745 100644
--- a/transport/transport.go
+++ b/transport/transport.go
@@ -158,7 +158,7 @@ const (
 	streamActive    streamState = iota
 	streamWriteDone             // EndStream sent
 	streamReadDone              // EndStream received
-	streamDone                  // sendDone and recvDone or RSTStreamFrame is sent or received.
+	streamDone                  // the entire stream is finished.
 )
 
 // Stream represents an RPC in the transport layer.
@@ -169,6 +169,8 @@ type Stream struct {
 	// ctx is the associated context of the stream.
 	ctx    context.Context
 	cancel context.CancelFunc
+	// done is closed when the final status arrives.
+	done chan struct{}
 	// method records the associated RPC method of the stream.
 	method       string
 	recvCompress string
@@ -214,6 +216,10 @@ func (s *Stream) SetSendCompress(str string) {
 	s.sendCompress = str
 }
 
+func (s *Stream) Done() <-chan struct{} {
+	return s.done
+}
+
 // Header acquires the key-value pairs of header metadata once it
 // is available. It blocks until i) the metadata is ready or ii) there is no
 // header metadata or iii) the stream is cancelled/expired.
@@ -501,12 +507,22 @@ func ContextErr(err error) StreamError {
 
 // wait blocks until it can receive from ctx.Done, closing, or proceed.
 // If it receives from ctx.Done, it returns 0, the StreamError for ctx.Err.
+// If it receives from done, it returns 0, io.EOF if ctx is not done; otherwise
+// it return the StreamError for ctx.Err.
 // If it receives from closing, it returns 0, ErrConnClosing.
 // If it receives from proceed, it returns the received integer, nil.
-func wait(ctx context.Context, closing <-chan struct{}, proceed <-chan int) (int, error) {
+func wait(ctx context.Context, done, closing <-chan struct{}, proceed <-chan int) (int, error) {
 	select {
 	case <-ctx.Done():
 		return 0, ContextErr(ctx.Err())
+	case <-done:
+		// User cancellation has precedence.
+		select {
+		case <-ctx.Done():
+			return 0, ContextErr(ctx.Err())
+		default:
+		}
+		return 0, io.EOF
 	case <-closing:
 		return 0, ErrConnClosing
 	case i := <-proceed: