diff --git a/server.go b/server.go
index d3a8073d9..2df90dbf5 100644
--- a/server.go
+++ b/server.go
@@ -257,12 +257,14 @@ func (s *Server) useTransportAuthenticator(rawConn net.Conn) (net.Conn, credenti
 // Serve accepts incoming connections on the listener lis, creating a new
 // ServerTransport and service goroutine for each. The service goroutines
 // read gRPC requests and then call the registered handlers to reply to them.
-// Service returns when lis.Accept fails.
+// Service returns when lis.Accept fails. lis will be closed when
+// this method returns.
 func (s *Server) Serve(lis net.Listener) error {
 	s.mu.Lock()
 	s.printf("serving")
 	if s.lis == nil {
 		s.mu.Unlock()
+		lis.Close()
 		return ErrServerStopped
 	}
 	s.lis[lis] = true
diff --git a/server_test.go b/server_test.go
new file mode 100644
index 000000000..bf2323754
--- /dev/null
+++ b/server_test.go
@@ -0,0 +1,61 @@
+/*
+ *
+ * Copyright 2016, Google Inc.
+ * All rights reserved.
+ *
+ * Redistribution and use in source and binary forms, with or without
+ * modification, are permitted provided that the following conditions are
+ * met:
+ *
+ *     * Redistributions of source code must retain the above copyright
+ * notice, this list of conditions and the following disclaimer.
+ *     * Redistributions in binary form must reproduce the above
+ * copyright notice, this list of conditions and the following disclaimer
+ * in the documentation and/or other materials provided with the
+ * distribution.
+ *     * Neither the name of Google Inc. nor the names of its
+ * contributors may be used to endorse or promote products derived from
+ * this software without specific prior written permission.
+ *
+ * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS
+ * "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT
+ * LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+ * A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT
+ * OWNER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+ * SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT
+ * LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE,
+ * DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY
+ * THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+ * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE
+ * OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+ *
+ */
+
+package grpc
+
+import (
+	"net"
+	"strings"
+	"testing"
+)
+
+func TestStopBeforeServe(t *testing.T) {
+	lis, err := net.Listen("tcp", "localhost:0")
+	if err != nil {
+		t.Fatalf("failed to create listener: %v", err)
+	}
+
+	server := NewServer()
+	server.Stop()
+	err = server.Serve(lis)
+	if err != ErrServerStopped {
+		t.Fatalf("server.Serve() error = %v, want %v", err, ErrServerStopped)
+	}
+
+	// server.Serve is responsible for closing the listener, even if the
+	// server was already stopped.
+	err = lis.Close()
+	if got, want := ErrorDesc(err), "use of closed network connection"; !strings.Contains(got, want) {
+		t.Errorf("Close() error = %q, want %q", got, want)
+	}
+}