diff --git a/netty/src/main/java/io/grpc/netty/NettyClientHandler.java b/netty/src/main/java/io/grpc/netty/NettyClientHandler.java
index c9b12a767a..0028f0b2ad 100644
--- a/netty/src/main/java/io/grpc/netty/NettyClientHandler.java
+++ b/netty/src/main/java/io/grpc/netty/NettyClientHandler.java
@@ -123,17 +123,19 @@ class NettyClientHandler extends AbstractNettyHandler {
     Http2Connection connection = new DefaultHttp2Connection(false);
 
     return newHandler(connection, frameReader, frameWriter, lifecycleManager, keepAliveManager,
-        flowControlWindow, ticker);
+        flowControlWindow, maxHeaderListSize, ticker);
   }
 
   @VisibleForTesting
   static NettyClientHandler newHandler(Http2Connection connection, Http2FrameReader frameReader,
       Http2FrameWriter frameWriter, ClientTransportLifecycleManager lifecycleManager,
-      KeepAliveManager keepAliveManager, int flowControlWindow, Ticker ticker) {
+      KeepAliveManager keepAliveManager, int flowControlWindow, int maxHeaderListSize,
+      Ticker ticker) {
     Preconditions.checkNotNull(connection, "connection");
     Preconditions.checkNotNull(frameReader, "frameReader");
     Preconditions.checkNotNull(lifecycleManager, "lifecycleManager");
     Preconditions.checkArgument(flowControlWindow > 0, "flowControlWindow must be positive");
+    Preconditions.checkArgument(maxHeaderListSize > 0, "maxHeaderListSize must be positive");
     Preconditions.checkNotNull(ticker, "ticker");
 
     Http2FrameLogger frameLogger = new Http2FrameLogger(LogLevel.DEBUG, NettyClientHandler.class);
@@ -154,6 +156,7 @@ class NettyClientHandler extends AbstractNettyHandler {
     settings.pushEnabled(false);
     settings.initialWindowSize(flowControlWindow);
     settings.maxConcurrentStreams(0);
+    settings.maxHeaderListSize(maxHeaderListSize);
 
     return new NettyClientHandler(decoder, encoder, settings, lifecycleManager, keepAliveManager,
         ticker);
diff --git a/netty/src/main/java/io/grpc/netty/NettyServerHandler.java b/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
index 163c406dfd..d89b1ce81a 100644
--- a/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
+++ b/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
@@ -113,7 +113,7 @@ class NettyServerHandler extends AbstractNettyHandler {
     Http2FrameWriter frameWriter =
         new Http2OutboundFrameLogger(new DefaultHttp2FrameWriter(), frameLogger);
     return newHandler(frameReader, frameWriter, transportListener, maxStreams, flowControlWindow,
-        maxMessageSize);
+        maxHeaderListSize, maxMessageSize);
   }
 
   @VisibleForTesting
@@ -121,9 +121,11 @@ class NettyServerHandler extends AbstractNettyHandler {
                                        ServerTransportListener transportListener,
                                        int maxStreams,
                                        int flowControlWindow,
+                                       int maxHeaderListSize,
                                        int maxMessageSize) {
     Preconditions.checkArgument(maxStreams > 0, "maxStreams must be positive");
     Preconditions.checkArgument(flowControlWindow > 0, "flowControlWindow must be positive");
+    Preconditions.checkArgument(maxHeaderListSize > 0, "maxHeaderListSize must be positive");
     Preconditions.checkArgument(maxMessageSize > 0, "maxMessageSize must be positive");
 
     Http2Connection connection = new DefaultHttp2Connection(true);
@@ -140,6 +142,7 @@ class NettyServerHandler extends AbstractNettyHandler {
     Http2Settings settings = new Http2Settings();
     settings.initialWindowSize(flowControlWindow);
     settings.maxConcurrentStreams(maxStreams);
+    settings.maxHeaderListSize(maxHeaderListSize);
 
     return new NettyServerHandler(transportListener, decoder, encoder, settings, maxMessageSize);
   }
diff --git a/netty/src/test/java/io/grpc/netty/NettyClientHandlerTest.java b/netty/src/test/java/io/grpc/netty/NettyClientHandlerTest.java
index 5ccdd90ceb..9149a13f1b 100644
--- a/netty/src/test/java/io/grpc/netty/NettyClientHandlerTest.java
+++ b/netty/src/test/java/io/grpc/netty/NettyClientHandlerTest.java
@@ -109,6 +109,7 @@ public class NettyClientHandlerTest extends NettyHandlerTestBase<NettyClientHand
   private Http2Headers grpcHeaders;
   private long nanoTime; // backs a ticker, for testing ping round-trip time measurement
   private int flowControlWindow = DEFAULT_WINDOW_SIZE;
+  private int maxHeaderListSize = Integer.MAX_VALUE;
   private int streamId = 3;
   private ClientTransportLifecycleManager lifecycleManager;
   private KeepAliveManager mockKeepAliveManager = null;
@@ -574,7 +575,7 @@ public class NettyClientHandlerTest extends NettyHandlerTestBase<NettyClientHand
     };
 
     return NettyClientHandler.newHandler(connection, frameReader(), frameWriter(),
-        lifecycleManager, mockKeepAliveManager, flowControlWindow, ticker);
+        lifecycleManager, mockKeepAliveManager, flowControlWindow, maxHeaderListSize, ticker);
   }
 
   @Override
diff --git a/netty/src/test/java/io/grpc/netty/NettyClientTransportTest.java b/netty/src/test/java/io/grpc/netty/NettyClientTransportTest.java
index f2b4fc4d8e..f8b251db6d 100644
--- a/netty/src/test/java/io/grpc/netty/NettyClientTransportTest.java
+++ b/netty/src/test/java/io/grpc/netty/NettyClientTransportTest.java
@@ -70,7 +70,6 @@ import io.netty.channel.nio.NioEventLoopGroup;
 import io.netty.channel.socket.SocketChannelConfig;
 import io.netty.channel.socket.nio.NioServerSocketChannel;
 import io.netty.channel.socket.nio.NioSocketChannel;
-import io.netty.handler.codec.http2.Http2Exception;
 import io.netty.handler.codec.http2.StreamBufferingEncoder;
 import io.netty.handler.ssl.SslContext;
 import io.netty.handler.ssl.SupportedCipherSuiteFilter;
@@ -290,8 +289,10 @@ public class NettyClientTransportTest {
           + " size limit!");
     } catch (Exception e) {
       Throwable rootCause = getRootCause(e);
-      assertTrue(rootCause instanceof Http2Exception);
-      assertEquals("Header size exceeded max allowed size (1)", rootCause.getMessage());
+      Status status = ((StatusException) rootCause).getStatus();
+      assertEquals(Status.Code.INTERNAL, status.getCode());
+      assertEquals("HTTP/2 error code: PROTOCOL_ERROR\nReceived Rst Stream",
+          status.getDescription());
     }
   }
 
diff --git a/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java b/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
index 77318fdb81..0e3c83aaf8 100644
--- a/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
+++ b/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
@@ -106,6 +106,7 @@ public class NettyServerHandlerTest extends NettyHandlerTestBase<NettyServerHand
 
   private int flowControlWindow = DEFAULT_WINDOW_SIZE;
   private int maxConcurrentStreams = Integer.MAX_VALUE;
+  private int maxHeaderListSize = Integer.MAX_VALUE;
 
   private class ServerTransportListenerImpl implements ServerTransportListener {
 
@@ -275,6 +276,18 @@ public class NettyServerHandlerTest extends NettyHandlerTestBase<NettyServerHand
     assertEquals(maxConcurrentStreams, captor.getValue().maxConcurrentStreams().intValue());
   }
 
+  @Test
+  public void shouldAdvertiseMaxHeaderListSize() throws Exception {
+    maxHeaderListSize = 123;
+    setUp();
+
+    ArgumentCaptor<Http2Settings> captor = ArgumentCaptor.forClass(Http2Settings.class);
+    verifyWrite().writeSettings(
+        any(ChannelHandlerContext.class), captor.capture(), any(ChannelPromise.class));
+
+    assertEquals(maxHeaderListSize, captor.getValue().maxHeaderListSize().intValue());
+  }
+
   @Test
   @Ignore("Re-enable once https://github.com/grpc/grpc-java/issues/1175 is fixed")
   public void connectionWindowShouldBeOverridden() throws Exception {
@@ -357,7 +370,7 @@ public class NettyServerHandlerTest extends NettyHandlerTestBase<NettyServerHand
   @Override
   protected NettyServerHandler newHandler() {
     return NettyServerHandler.newHandler(frameReader(), frameWriter(), transportListener,
-        maxConcurrentStreams, flowControlWindow, DEFAULT_MAX_MESSAGE_SIZE);
+        maxConcurrentStreams, flowControlWindow, maxHeaderListSize, DEFAULT_MAX_MESSAGE_SIZE);
   }
 
   @Override