diff --git a/call.go b/call.go
index d6326ea0..27cf6411 100644
--- a/call.go
+++ b/call.go
@@ -179,7 +179,10 @@ func Invoke(ctx context.Context, method string, args, reply interface{}, cc *Cli
 				put()
 				put = nil
 			}
-			if _, ok := err.(transport.ConnectionError); ok {
+			// Retry a non-failfast RPC when
+			// i) there is a connection error; or
+			// ii) the server started to drain before this RPC was initiated.
+			if _, ok := err.(transport.ConnectionError); ok || err == transport.ErrStreamDrain {
 				if c.failFast {
 					return toRPCErr(err)
 				}
diff --git a/clientconn.go b/clientconn.go
index c3c7691d..3206d674 100644
--- a/clientconn.go
+++ b/clientconn.go
@@ -625,6 +625,10 @@ func (ac *addrConn) transportMonitor() {
 		// the addrConn is idle (i.e., no RPC in flight).
 		case <-ac.shutdownChan:
 			return
+		case <-t.GoAway():
+			ac.tearDown(errConnDrain)
+			ac.cc.newAddrConn(ac.addr, true)
+			return
 		case <-t.Error():
 			ac.mu.Lock()
 			if ac.state == Shutdown {
@@ -693,14 +697,21 @@ func (ac *addrConn) tearDown(err error) {
 		}
 		ac.cc.mu.Unlock()
 	}()
-	if ac.state == Shutdown {
-		return
-	}
-	ac.state = Shutdown
 	if ac.down != nil {
 		ac.down(downErrorf(false, false, "%v", err))
 		ac.down = nil
 	}
+	if err == errConnDrain && ac.transport != nil {
+		// GracefulClose(...) may be executed multiple times when
+		// i) receiving multiple GoAway frames from the server; or
+		// ii) there are concurrent name resolver/Balancer triggered
+		// address removal and GoAway.
+		ac.transport.GracefulClose()
+	}
+	if ac.state == Shutdown {
+		return
+	}
+	ac.state = Shutdown
 	ac.stateCV.Broadcast()
 	if ac.events != nil {
 		ac.events.Finish()
@@ -710,12 +721,8 @@ func (ac *addrConn) tearDown(err error) {
 		close(ac.ready)
 		ac.ready = nil
 	}
-	if ac.transport != nil {
-		if err == errConnDrain {
-			ac.transport.GracefulClose()
-		} else {
-			ac.transport.Close()
-		}
+	if ac.transport != nil && err != errConnDrain {
+		ac.transport.Close()
 	}
 	if ac.shutdownChan != nil {
 		close(ac.shutdownChan)
diff --git a/server.go b/server.go
index 7b05da6f..b167bd05 100644
--- a/server.go
+++ b/server.go
@@ -89,9 +89,13 @@ type service struct {
 type Server struct {
 	opts options
 
-	mu     sync.Mutex // guards following
-	lis    map[net.Listener]bool
-	conns  map[io.Closer]bool
+	mu    sync.Mutex // guards following
+	lis   map[net.Listener]bool
+	conns map[io.Closer]bool
+	drain bool
+	// A CondVar to let GracefulStop() blocks until all the pending RPCs are finished
+	// and all the transport goes away.
+	cv     *sync.Cond
 	m      map[string]*service // service name -> service info
 	events trace.EventLog
 }
@@ -196,6 +200,7 @@ func NewServer(opt ...ServerOption) *Server {
 		conns: make(map[io.Closer]bool),
 		m:     make(map[string]*service),
 	}
+	s.cv = sync.NewCond(&s.mu)
 	if EnableTracing {
 		_, file, line, _ := runtime.Caller(1)
 		s.events = trace.NewEventLog("grpc.Server", fmt.Sprintf("%s:%d", file, line))
@@ -478,7 +483,7 @@ func (s *Server) traceInfo(st transport.ServerTransport, stream *transport.Strea
 func (s *Server) addConn(c io.Closer) bool {
 	s.mu.Lock()
 	defer s.mu.Unlock()
-	if s.conns == nil {
+	if s.conns == nil || s.drain {
 		return false
 	}
 	s.conns[c] = true
@@ -490,6 +495,7 @@ func (s *Server) removeConn(c io.Closer) {
 	defer s.mu.Unlock()
 	if s.conns != nil {
 		delete(s.conns, c)
+		s.cv.Signal()
 	}
 }
 
@@ -782,14 +788,14 @@ func (s *Server) Stop() {
 	s.mu.Lock()
 	listeners := s.lis
 	s.lis = nil
-	cs := s.conns
+	st := s.conns
 	s.conns = nil
 	s.mu.Unlock()
 
 	for lis := range listeners {
 		lis.Close()
 	}
-	for c := range cs {
+	for c := range st {
 		c.Close()
 	}
 
@@ -801,6 +807,33 @@ func (s *Server) Stop() {
 	s.mu.Unlock()
 }
 
+// GracefulStop stops the gRPC server gracefully. It stops the server to accept new
+// connections and RPCs and blocks until all the pending RPCs are finished.
+func (s *Server) GracefulStop() {
+	s.mu.Lock()
+	if s.drain == true || s.conns == nil {
+		s.mu.Lock()
+		return
+	}
+	s.drain = true
+	for lis := range s.lis {
+		lis.Close()
+	}
+	for c := range s.conns {
+		c.(transport.ServerTransport).Drain()
+	}
+	for len(s.conns) != 0 {
+		s.cv.Wait()
+	}
+	s.lis = nil
+	s.conns = nil
+	if s.events != nil {
+		s.events.Finish()
+		s.events = nil
+	}
+	s.mu.Unlock()
+}
+
 func init() {
 	internal.TestingCloseConns = func(arg interface{}) {
 		arg.(*Server).testingCloseConns()
diff --git a/stream.go b/stream.go
index 4c3136c9..fb7e50f9 100644
--- a/stream.go
+++ b/stream.go
@@ -195,6 +195,9 @@ func NewClientStream(ctx context.Context, desc *StreamDesc, cc *ClientConn, meth
 				cs.finish(Errorf(s.StatusCode(), "%s", s.StatusDesc()))
 			}
 			cs.closeTransportStream(nil)
+		case <-s.GoAway():
+			cs.finish(errConnDrain)
+			cs.closeTransportStream(errConnDrain)
 		case <-s.Context().Done():
 			err := s.Context().Err()
 			cs.finish(err)
diff --git a/test/end2end_test.go b/test/end2end_test.go
index fdac5815..cdbc4c55 100644
--- a/test/end2end_test.go
+++ b/test/end2end_test.go
@@ -565,6 +565,127 @@ func testTimeoutOnDeadServer(t *testing.T, e env) {
 	awaitNewConnLogOutput()
 }
 
+func TestServerGoAway(t *testing.T) {
+	defer leakCheck(t)()
+	for _, e := range listTestEnv() {
+		if e.name == "handler-tls" {
+			continue
+		}
+		testServerGoAway(t, e)
+	}
+}
+
+func testServerGoAway(t *testing.T, e env) {
+	te := newTest(t, e)
+	te.userAgent = testAppUA
+	te.declareLogNoise(
+		"transport: http2Client.notifyError got notified that the client transport was broken EOF",
+		"grpc: Conn.transportMonitor exits due to: grpc: the client connection is closing",
+		"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(&testServer{security: e.security})
+	defer te.tearDown()
+
+	cc := te.clientConn()
+	tc := testpb.NewTestServiceClient(cc)
+	// Finish an RPC to make sure the connection is good.
+	if _, err := tc.EmptyCall(context.Background(), &testpb.Empty{}, grpc.FailFast(false)); err != nil {
+		t.Fatalf("TestService/EmptyCall(_, _) = _, %v, want _, <nil>", err)
+	}
+	ch := make(chan struct{})
+	go func() {
+		te.srv.GracefulStop()
+		close(ch)
+	}()
+	// Loop until the server side GoAway signal is propagated to the client.
+	for {
+		ctx, _ := context.WithTimeout(context.Background(), 10*time.Millisecond)
+		if _, err := tc.EmptyCall(ctx, &testpb.Empty{}, grpc.FailFast(false)); err == nil {
+			continue
+		}
+		break
+	}
+	// A new RPC should fail with Unavailable error.
+	if _, err := tc.EmptyCall(context.Background(), &testpb.Empty{}); err == nil || grpc.Code(err) != codes.Unavailable {
+		t.Fatalf("TestService/EmptyCall(_, _) = _, %v, want _, error code: %d", err, codes.Unavailable)
+	}
+	<-ch
+	awaitNewConnLogOutput()
+}
+
+func TestServerGoAwayPendingRPC(t *testing.T) {
+	defer leakCheck(t)()
+	for _, e := range listTestEnv() {
+		if e.name == "handler-tls" {
+			continue
+		}
+		testServerGoAwayPendingRPC(t, e)
+	}
+}
+
+func testServerGoAwayPendingRPC(t *testing.T, e env) {
+	te := newTest(t, e)
+	te.userAgent = testAppUA
+	te.declareLogNoise(
+		"transport: http2Client.notifyError got notified that the client transport was broken EOF",
+		"grpc: Conn.transportMonitor exits due to: grpc: the client connection is closing",
+		"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(&testServer{security: e.security})
+	defer te.tearDown()
+
+	cc := te.clientConn()
+	tc := testpb.NewTestServiceClient(cc)
+	ctx, cancel := context.WithCancel(context.Background())
+	stream, err := tc.FullDuplexCall(ctx, grpc.FailFast(false))
+	if err != nil {
+		t.Fatalf("%v.FullDuplexCall(_) = _, %v, want <nil>", tc, err)
+	}
+	// Finish an RPC to make sure the connection is good.
+	if _, err := tc.EmptyCall(context.Background(), &testpb.Empty{}, grpc.FailFast(false)); err != nil {
+		t.Fatalf("%v.EmptyCall(_, _, _) = _, %v, want _, <nil>", tc, err)
+	}
+	ch := make(chan struct{})
+	go func() {
+		te.srv.GracefulStop()
+		close(ch)
+	}()
+	// Loop until the server side GoAway signal is propagated to the client.
+	for {
+		ctx, _ := context.WithTimeout(context.Background(), 10*time.Millisecond)
+		if _, err := tc.EmptyCall(ctx, &testpb.Empty{}, grpc.FailFast(false)); err == nil {
+			continue
+		}
+		break
+	}
+	respParam := []*testpb.ResponseParameters{
+		{
+			Size: proto.Int32(1),
+		},
+	}
+	payload, err := newPayload(testpb.PayloadType_COMPRESSABLE, int32(100))
+	if err != nil {
+		t.Fatal(err)
+	}
+	req := &testpb.StreamingOutputCallRequest{
+		ResponseType:       testpb.PayloadType_COMPRESSABLE.Enum(),
+		ResponseParameters: respParam,
+		Payload:            payload,
+	}
+	// The existing RPC should be still good to proceed.
+	if err := stream.Send(req); err != nil {
+		t.Fatalf("%v.Send(%v) = %v, want <nil>", stream, req, err)
+	}
+	if _, err := stream.Recv(); err != nil {
+		t.Fatalf("%v.Recv() = _, %v, want _, <nil>", stream, err)
+	}
+	cancel()
+	<-ch
+	awaitNewConnLogOutput()
+}
+
 func TestFailFast(t *testing.T) {
 	defer leakCheck(t)()
 	for _, e := range listTestEnv() {
@@ -1993,6 +2114,7 @@ func interestingGoroutines() (gs []string) {
 
 		if stack == "" ||
 			strings.Contains(stack, "testing.Main(") ||
+			strings.Contains(stack, "testing.tRunner(") ||
 			strings.Contains(stack, "runtime.goexit") ||
 			strings.Contains(stack, "created by runtime.gc") ||
 			strings.Contains(stack, "created by google3/base/go/log.init") ||
diff --git a/transport/control.go b/transport/control.go
index 7e9bdf33..4ef0830b 100644
--- a/transport/control.go
+++ b/transport/control.go
@@ -72,6 +72,11 @@ type resetStream struct {
 
 func (*resetStream) item() {}
 
+type goAway struct {
+}
+
+func (*goAway) item() {}
+
 type flushIO struct {
 }
 
diff --git a/transport/handler_server.go b/transport/handler_server.go
index 5db139d2..5288657c 100644
--- a/transport/handler_server.go
+++ b/transport/handler_server.go
@@ -370,6 +370,10 @@ func (ht *serverHandlerTransport) runStream() {
 	}
 }
 
+func (ht *serverHandlerTransport) Drain() {
+	panic("Drain() is not implemented")
+}
+
 // mapRecvMsgError returns the non-nil err into the appropriate
 // error value as expected by callers of *grpc.parser.recvMsg.
 // In particular, in can only be:
diff --git a/transport/http2_client.go b/transport/http2_client.go
index 891af9a5..51cf1792 100644
--- a/transport/http2_client.go
+++ b/transport/http2_client.go
@@ -72,6 +72,9 @@ type http2Client struct {
 	shutdownChan chan struct{}
 	// errorChan is closed to notify the I/O error to the caller.
 	errorChan chan struct{}
+	// goAway is closed to notify the upper layer (i.e., addrConn.transportMonitor)
+	// that the server sent GoAway on this transport.
+	goAway chan struct{}
 
 	framer *framer
 	hBuf   *bytes.Buffer  // the buffer for HPACK encoding
@@ -98,6 +101,10 @@ type http2Client struct {
 	maxStreams int
 	// the per-stream outbound flow control window size set by the peer.
 	streamSendQuota uint32
+	// goAwayID records the Last-Stream-ID in the GoAway frame from the server.
+	goAwayID uint32
+	// prevGoAway ID records the Last-Stream-ID in the previous GOAway frame.
+	prevGoAwayID uint32
 }
 
 // newHTTP2Client constructs a connected ClientTransport to addr based on HTTP2
@@ -148,6 +155,7 @@ func newHTTP2Client(addr string, opts *ConnectOptions) (_ ClientTransport, err e
 		writableChan:    make(chan int, 1),
 		shutdownChan:    make(chan struct{}),
 		errorChan:       make(chan struct{}),
+		goAway:          make(chan struct{}),
 		framer:          newFramer(conn),
 		hBuf:            &buf,
 		hEnc:            hpack.NewEncoder(&buf),
@@ -204,6 +212,7 @@ func (t *http2Client) newStream(ctx context.Context, callHdr *CallHdr) *Stream {
 	s := &Stream{
 		id:            t.nextID,
 		done:          make(chan struct{}),
+		goAway:        make(chan struct{}),
 		method:        callHdr.Method,
 		sendCompress:  callHdr.SendCompress,
 		buf:           newRecvBuffer(),
@@ -218,8 +227,9 @@ func (t *http2Client) newStream(ctx context.Context, callHdr *CallHdr) *Stream {
 	// Make a stream be able to cancel the pending operations by itself.
 	s.ctx, s.cancel = context.WithCancel(ctx)
 	s.dec = &recvBufferReader{
-		ctx:  s.ctx,
-		recv: s.buf,
+		ctx:    s.ctx,
+		goAway: s.goAway,
+		recv:   s.buf,
 	}
 	return s
 }
@@ -280,7 +290,7 @@ func (t *http2Client) NewStream(ctx context.Context, callHdr *CallHdr) (_ *Strea
 	checkStreamsQuota := t.streamsQuota != nil
 	t.mu.Unlock()
 	if checkStreamsQuota {
-		sq, err := wait(ctx, nil, t.shutdownChan, t.streamsQuota.acquire())
+		sq, err := wait(ctx, nil, nil, t.shutdownChan, t.streamsQuota.acquire())
 		if err != nil {
 			return nil, err
 		}
@@ -289,7 +299,7 @@ func (t *http2Client) NewStream(ctx context.Context, callHdr *CallHdr) (_ *Strea
 			t.streamsQuota.add(sq - 1)
 		}
 	}
-	if _, err := wait(ctx, nil, t.shutdownChan, t.writableChan); err != nil {
+	if _, err := wait(ctx, nil, 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)
@@ -405,13 +415,13 @@ func (t *http2Client) CloseStream(s *Stream, err error) {
 	if t.streamsQuota != nil {
 		updateStreams = true
 	}
-	if t.state == draining && len(t.activeStreams) == 1 {
+	delete(t.activeStreams, s.id)
+	if t.state == draining && len(t.activeStreams) == 0 {
 		// The transport is draining and s is the last live stream on t.
 		t.mu.Unlock()
 		t.Close()
 		return
 	}
-	delete(t.activeStreams, s.id)
 	t.mu.Unlock()
 	if updateStreams {
 		t.streamsQuota.add(1)
@@ -442,13 +452,13 @@ func (t *http2Client) CloseStream(s *Stream, err error) {
 // accessed any more.
 func (t *http2Client) Close() (err error) {
 	t.mu.Lock()
-	if t.state == reachable {
-		close(t.errorChan)
-	}
 	if t.state == closing {
 		t.mu.Unlock()
 		return
 	}
+	if t.state == reachable {
+		close(t.errorChan)
+	}
 	t.state = closing
 	t.mu.Unlock()
 	close(t.shutdownChan)
@@ -476,6 +486,24 @@ func (t *http2Client) GracefulClose() error {
 		t.mu.Unlock()
 		return nil
 	}
+	// Notify the streams which were initiated after the server sent GOAWAY.
+	select {
+	case <-t.goAway:
+		n := t.prevGoAwayID
+		if n == 0 && t.nextID > 1 {
+			n = t.nextID - 2
+		}
+		m := t.goAwayID + 2
+		if m == 2 {
+			m = 1
+		}
+		for i := m; i <= n; i += 2 {
+			if s, ok := t.activeStreams[i]; ok {
+				close(s.goAway)
+			}
+		}
+	default:
+	}
 	if t.state == draining {
 		t.mu.Unlock()
 		return nil
@@ -501,13 +529,13 @@ 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, s.done, t.shutdownChan, s.sendQuotaPool.acquire())
+			sq, err := wait(s.ctx, s.done, s.goAway, 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, s.done, t.shutdownChan, t.sendQuotaPool.acquire())
+			tq, err := wait(s.ctx, s.done, s.goAway, t.shutdownChan, t.sendQuotaPool.acquire())
 			if err != nil {
 				if _, ok := err.(StreamError); ok || err == io.EOF {
 					t.sendQuotaPool.cancel()
@@ -541,7 +569,7 @@ 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, s.done, t.shutdownChan, t.writableChan); err != nil {
+		if _, err := wait(s.ctx, s.done, s.goAway, t.shutdownChan, t.writableChan); err != nil {
 			if _, ok := err.(StreamError); ok || err == io.EOF {
 				// Return the connection quota back.
 				t.sendQuotaPool.add(len(p))
@@ -725,7 +753,32 @@ func (t *http2Client) handlePing(f *http2.PingFrame) {
 }
 
 func (t *http2Client) handleGoAway(f *http2.GoAwayFrame) {
-	// TODO(zhaoq): GoAwayFrame handler to be implemented
+	t.mu.Lock()
+	if t.state == reachable || t.state == draining {
+		if f.LastStreamID > 0 && f.LastStreamID%2 != 1 {
+			t.mu.Unlock()
+			t.notifyError(ConnectionErrorf("received illegal http2 GOAWAY frame: stream ID %d is even", f.LastStreamID))
+			return
+		}
+		select {
+		case <-t.goAway:
+			id := t.goAwayID
+			// t.goAway has been closed (i.e.,multiple GoAways).
+			if id < f.LastStreamID {
+				t.mu.Unlock()
+				t.notifyError(ConnectionErrorf("received illegal http2 GOAWAY frame: previously recv GOAWAY frame with LastStramID %d, currently recv %d", id, f.LastStreamID))
+				return
+			}
+			t.prevGoAwayID = id
+			t.goAwayID = f.LastStreamID
+			t.mu.Unlock()
+			return
+		default:
+		}
+		t.goAwayID = f.LastStreamID
+		close(t.goAway)
+	}
+	t.mu.Unlock()
 }
 
 func (t *http2Client) handleWindowUpdate(f *http2.WindowUpdateFrame) {
@@ -934,6 +987,10 @@ func (t *http2Client) Error() <-chan struct{} {
 	return t.errorChan
 }
 
+func (t *http2Client) GoAway() <-chan struct{} {
+	return t.goAway
+}
+
 func (t *http2Client) notifyError(err error) {
 	t.mu.Lock()
 	defer t.mu.Unlock()
diff --git a/transport/http2_server.go b/transport/http2_server.go
index 168326aa..2322c938 100644
--- a/transport/http2_server.go
+++ b/transport/http2_server.go
@@ -142,7 +142,7 @@ func newHTTP2Server(conn net.Conn, maxStreams uint32, authInfo credentials.AuthI
 }
 
 // operateHeader takes action on the decoded headers.
-func (t *http2Server) operateHeaders(frame *http2.MetaHeadersFrame, handle func(*Stream)) {
+func (t *http2Server) operateHeaders(frame *http2.MetaHeadersFrame, handle func(*Stream)) (close bool) {
 	buf := newRecvBuffer()
 	s := &Stream{
 		id:  frame.Header().StreamID,
@@ -205,6 +205,13 @@ func (t *http2Server) operateHeaders(frame *http2.MetaHeadersFrame, handle func(
 		t.controlBuf.put(&resetStream{s.id, http2.ErrCodeRefusedStream})
 		return
 	}
+	if s.id%2 != 1 || s.id <= t.maxStreamID {
+		t.mu.Unlock()
+		// illegal gRPC stream id.
+		grpclog.Println("transport: http2Server.HandleStreams received an illegal stream id: ", s.id)
+		return true
+	}
+	t.maxStreamID = s.id
 	s.sendQuotaPool = newQuotaPool(int(t.streamSendQuota))
 	t.activeStreams[s.id] = s
 	t.mu.Unlock()
@@ -212,6 +219,7 @@ func (t *http2Server) operateHeaders(frame *http2.MetaHeadersFrame, handle func(
 		t.updateWindow(s, uint32(n))
 	}
 	handle(s)
+	return
 }
 
 // HandleStreams receives incoming streams using the given handler. This is
@@ -262,15 +270,10 @@ func (t *http2Server) HandleStreams(handle func(*Stream)) {
 		}
 		switch frame := frame.(type) {
 		case *http2.MetaHeadersFrame:
-			id := frame.Header().StreamID
-			if id%2 != 1 || id <= t.maxStreamID {
-				// illegal gRPC stream id.
-				grpclog.Println("transport: http2Server.HandleStreams received an illegal stream id: ", id)
+			if t.operateHeaders(frame, handle) {
 				t.Close()
 				break
 			}
-			t.maxStreamID = id
-			t.operateHeaders(frame, handle)
 		case *http2.DataFrame:
 			t.handleData(frame)
 		case *http2.RSTStreamFrame:
@@ -282,7 +285,7 @@ func (t *http2Server) HandleStreams(handle func(*Stream)) {
 		case *http2.WindowUpdateFrame:
 			t.handleWindowUpdate(frame)
 		case *http2.GoAwayFrame:
-			break
+			// TODO: Handle GoAway from the client appropriately.
 		default:
 			grpclog.Printf("transport: http2Server.HandleStreams found unhandled frame type %v.", frame)
 		}
@@ -451,7 +454,7 @@ func (t *http2Server) WriteHeader(s *Stream, md metadata.MD) error {
 	}
 	s.headerOk = true
 	s.mu.Unlock()
-	if _, err := wait(s.ctx, nil, t.shutdownChan, t.writableChan); err != nil {
+	if _, err := wait(s.ctx, nil, nil, t.shutdownChan, t.writableChan); err != nil {
 		return err
 	}
 	t.hBuf.Reset()
@@ -491,7 +494,7 @@ func (t *http2Server) WriteStatus(s *Stream, statusCode codes.Code, statusDesc s
 		headersSent = true
 	}
 	s.mu.Unlock()
-	if _, err := wait(s.ctx, nil, t.shutdownChan, t.writableChan); err != nil {
+	if _, err := wait(s.ctx, nil, nil, t.shutdownChan, t.writableChan); err != nil {
 		return err
 	}
 	t.hBuf.Reset()
@@ -540,7 +543,7 @@ func (t *http2Server) Write(s *Stream, data []byte, opts *Options) error {
 	}
 	s.mu.Unlock()
 	if writeHeaderFrame {
-		if _, err := wait(s.ctx, nil, t.shutdownChan, t.writableChan); err != nil {
+		if _, err := wait(s.ctx, nil, nil, t.shutdownChan, t.writableChan); err != nil {
 			return err
 		}
 		t.hBuf.Reset()
@@ -568,13 +571,13 @@ 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, nil, t.shutdownChan, s.sendQuotaPool.acquire())
+		sq, err := wait(s.ctx, nil, 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, nil, t.shutdownChan, t.sendQuotaPool.acquire())
+		tq, err := wait(s.ctx, nil, nil, t.shutdownChan, t.sendQuotaPool.acquire())
 		if err != nil {
 			if _, ok := err.(StreamError); ok {
 				t.sendQuotaPool.cancel()
@@ -600,7 +603,7 @@ 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, nil, t.shutdownChan, t.writableChan); err != nil {
+		if _, err := wait(s.ctx, nil, nil, t.shutdownChan, t.writableChan); err != nil {
 			if _, ok := err.(StreamError); ok {
 				// Return the connection quota back.
 				t.sendQuotaPool.add(ps)
@@ -675,6 +678,12 @@ func (t *http2Server) controller() {
 					}
 				case *resetStream:
 					t.framer.writeRSTStream(true, i.streamID, i.code)
+				case *goAway:
+					t.mu.Lock()
+					sid := t.maxStreamID
+					t.state = draining
+					t.mu.Unlock()
+					t.framer.writeGoAway(true, sid, http2.ErrCodeNo, nil)
 				case *flushIO:
 					t.framer.flushWrite()
 				case *ping:
@@ -720,6 +729,9 @@ func (t *http2Server) Close() (err error) {
 func (t *http2Server) closeStream(s *Stream) {
 	t.mu.Lock()
 	delete(t.activeStreams, s.id)
+	if t.state == draining && len(t.activeStreams) == 0 {
+		defer t.Close()
+	}
 	t.mu.Unlock()
 	// In case stream sending and receiving are invoked in separate
 	// goroutines (e.g., bi-directional streaming), cancel needs to be
@@ -742,3 +754,7 @@ func (t *http2Server) closeStream(s *Stream) {
 func (t *http2Server) RemoteAddr() net.Addr {
 	return t.conn.RemoteAddr()
 }
+
+func (t *http2Server) Drain() {
+	t.controlBuf.put(&goAway{})
+}
diff --git a/transport/transport.go b/transport/transport.go
index 42472fd2..c41436e1 100644
--- a/transport/transport.go
+++ b/transport/transport.go
@@ -121,10 +121,11 @@ func (b *recvBuffer) get() <-chan item {
 // recvBufferReader implements io.Reader interface to read the data from
 // recvBuffer.
 type recvBufferReader struct {
-	ctx  context.Context
-	recv *recvBuffer
-	last *bytes.Reader // Stores the remaining data in the previous calls.
-	err  error
+	ctx    context.Context
+	goAway chan struct{}
+	recv   *recvBuffer
+	last   *bytes.Reader // Stores the remaining data in the previous calls.
+	err    error
 }
 
 // Read reads the next len(p) bytes from last. If last is drained, it tries to
@@ -142,6 +143,8 @@ func (r *recvBufferReader) Read(p []byte) (n int, err error) {
 	select {
 	case <-r.ctx.Done():
 		return 0, ContextErr(r.ctx.Err())
+	case <-r.goAway:
+		return 0, ErrStreamDrain
 	case i := <-r.recv.get():
 		r.recv.load()
 		m := i.(*recvMsg)
@@ -172,6 +175,8 @@ type Stream struct {
 	cancel context.CancelFunc
 	// done is closed when the final status arrives.
 	done chan struct{}
+	// goAway is closed when the server sent GoAways signal before this stream was initiated.
+	goAway chan struct{}
 	// method records the associated RPC method of the stream.
 	method       string
 	recvCompress string
@@ -217,10 +222,18 @@ func (s *Stream) SetSendCompress(str string) {
 	s.sendCompress = str
 }
 
+// Done returns a chanel which is closed when it receives the final status
+// from the server.
 func (s *Stream) Done() <-chan struct{} {
 	return s.done
 }
 
+// GoAway returns a channel which is closed when the server sent GoAways signal
+// before this stream was initiated.
+func (s *Stream) GoAway() <-chan struct{} {
+	return s.goAway
+}
+
 // 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.
@@ -424,6 +437,11 @@ type ClientTransport interface {
 	// and create a new one) in error case. It should not return nil
 	// once the transport is initiated.
 	Error() <-chan struct{}
+
+	// GoAway returns a channel that is closed when ClientTranspor
+	// receives the draining signal from the server (e.g., GOAWAY frame in
+	// HTTP/2).
+	GoAway() <-chan struct{}
 }
 
 // ServerTransport is the common interface for all gRPC server-side transport
@@ -455,6 +473,9 @@ type ServerTransport interface {
 
 	// RemoteAddr returns the remote network address.
 	RemoteAddr() net.Addr
+
+	// Drain notifies the client this ServerTransport stops accepting new RPCs.
+	Drain()
 }
 
 // StreamErrorf creates an StreamError with the specified error code and description.
@@ -482,8 +503,13 @@ func (e ConnectionError) Error() string {
 	return fmt.Sprintf("connection error: desc = %q", e.Desc)
 }
 
-// ErrConnClosing indicates that the transport is closing.
-var ErrConnClosing = ConnectionError{Desc: "transport is closing"}
+var (
+	// ErrConnClosing indicates that the transport is closing.
+	ErrConnClosing = ConnectionError{Desc: "transport is closing"}
+	// ErrStreamDrain indicates that the stream is rejected by the server because
+	// the server stops accepting new RPCs.
+	ErrStreamDrain = StreamErrorf(codes.Unavailable, "the server stops accepting new RPCs")
+)
 
 // StreamError is an error that only affects one stream within a connection.
 type StreamError struct {
@@ -510,9 +536,10 @@ func ContextErr(err error) StreamError {
 // 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 goAway, it returns 0, ErrStreamDrain.
 // 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, done, closing <-chan struct{}, proceed <-chan int) (int, error) {
+func wait(ctx context.Context, done, goAway, closing <-chan struct{}, proceed <-chan int) (int, error) {
 	select {
 	case <-ctx.Done():
 		return 0, ContextErr(ctx.Err())
@@ -524,6 +551,8 @@ func wait(ctx context.Context, done, closing <-chan struct{}, proceed <-chan int
 		default:
 		}
 		return 0, io.EOF
+	case <-goAway:
+		return 0, ErrStreamDrain
 	case <-closing:
 		return 0, ErrConnClosing
 	case i := <-proceed: