diff --git a/core/src/main/java/io/grpc/ClientInterceptors.java b/core/src/main/java/io/grpc/ClientInterceptors.java
index 9ad38fedbd..635d1374bd 100644
--- a/core/src/main/java/io/grpc/ClientInterceptors.java
+++ b/core/src/main/java/io/grpc/ClientInterceptors.java
@@ -32,13 +32,11 @@
 package io.grpc;
 
 import com.google.common.base.Preconditions;
-import com.google.common.collect.ImmutableList;
 
 import io.grpc.ForwardingClientCall.SimpleForwardingClientCall;
 import io.grpc.ForwardingClientCallListener.SimpleForwardingClientCallListener;
 
 import java.util.Arrays;
-import java.util.Iterator;
 import java.util.List;
 
 /**
@@ -51,7 +49,8 @@ public class ClientInterceptors {
 
   /**
    * Create a new {@link Channel} that will call {@code interceptors} before starting a call on the
-   * given channel.
+   * given channel. The last interceptor will have its {@link ClientInterceptor#interceptCall}
+   * called first.
    *
    * @param channel the underlying channel to intercept.
    * @param interceptors array of interceptors to bind to {@code channel}.
@@ -63,7 +62,8 @@ public class ClientInterceptors {
 
   /**
    * Create a new {@link Channel} that will call {@code interceptors} before starting a call on the
-   * given channel.
+   * given channel. The last interceptor will have its {@link ClientInterceptor#interceptCall}
+   * called first.
    *
    * @param channel the underlying channel to intercept.
    * @param interceptors a list of interceptors to bind to {@code channel}.
@@ -71,51 +71,25 @@ public class ClientInterceptors {
    */
   public static Channel intercept(Channel channel, List<ClientInterceptor> interceptors) {
     Preconditions.checkNotNull(channel);
-    if (interceptors.isEmpty()) {
-      return channel;
+    for (ClientInterceptor interceptor : interceptors) {
+      channel = new InterceptorChannel(channel, interceptor);
     }
-    return new InterceptorChannel(channel, interceptors);
+    return channel;
   }
 
   private static class InterceptorChannel extends Channel {
     private final Channel channel;
-    private final Iterable<ClientInterceptor> interceptors;
+    private final ClientInterceptor interceptor;
 
-    private InterceptorChannel(Channel channel, List<ClientInterceptor> interceptors) {
+    private InterceptorChannel(Channel channel, ClientInterceptor interceptor) {
       this.channel = channel;
-      this.interceptors = ImmutableList.copyOf(interceptors);
+      this.interceptor = Preconditions.checkNotNull(interceptor, "interceptor");
     }
 
     @Override
     public <ReqT, RespT> ClientCall<ReqT, RespT> newCall(
         MethodDescriptor<ReqT, RespT> method, CallOptions callOptions) {
-      return new ProcessInterceptorChannel(channel, interceptors).newCall(method, callOptions);
-    }
-  }
-
-  private static class ProcessInterceptorChannel extends Channel {
-    private final Channel channel;
-    private Iterator<ClientInterceptor> interceptors;
-
-    private ProcessInterceptorChannel(Channel channel, Iterable<ClientInterceptor> interceptors) {
-      this.channel = channel;
-      this.interceptors = interceptors.iterator();
-    }
-
-    @Override
-    public <ReqT, RespT> ClientCall<ReqT, RespT> newCall(
-        MethodDescriptor<ReqT, RespT> method, CallOptions callOptions) {
-      if (interceptors != null && interceptors.hasNext()) {
-        return interceptors.next().interceptCall(method, callOptions, this);
-      } else {
-        Preconditions.checkState(interceptors != null,
-            "The channel has already been called. "
-            + "Some interceptor must have called on \"next\" twice.");
-        interceptors = null;
-        return channel.newCall(
-            Preconditions.checkNotNull(method, "method"),
-            Preconditions.checkNotNull(callOptions, "callOptions"));
-      }
+      return interceptor.interceptCall(method, callOptions, channel);
     }
   }
 
diff --git a/core/src/main/java/io/grpc/ServerInterceptors.java b/core/src/main/java/io/grpc/ServerInterceptors.java
index a8588fc99a..0965b96a30 100644
--- a/core/src/main/java/io/grpc/ServerInterceptors.java
+++ b/core/src/main/java/io/grpc/ServerInterceptors.java
@@ -32,13 +32,11 @@
 package io.grpc;
 
 import com.google.common.base.Preconditions;
-import com.google.common.collect.ImmutableList;
 
 import io.grpc.ForwardingServerCall.SimpleForwardingServerCall;
 import io.grpc.ForwardingServerCallListener.SimpleForwardingServerCallListener;
 
 import java.util.Arrays;
-import java.util.Iterator;
 import java.util.List;
 
 /**
@@ -50,7 +48,8 @@ public class ServerInterceptors {
 
   /**
    * Create a new {@code ServerServiceDefinition} whose {@link ServerCallHandler}s will call
-   * {@code interceptors} before calling the pre-existing {@code ServerCallHandler}.
+   * {@code interceptors} before calling the pre-existing {@code ServerCallHandler}. The last
+   * interceptor will have its {@link ServerInterceptor#interceptCall} called first.
    *
    * @param serviceDef the service definition for which to intercept all its methods.
    * @param interceptors array of interceptors to apply to the service.
@@ -63,7 +62,8 @@ public class ServerInterceptors {
 
   /**
    * Create a new {@code ServerServiceDefinition} whose {@link ServerCallHandler}s will call
-   * {@code interceptors} before calling the pre-existing {@code ServerCallHandler}.
+   * {@code interceptors} before calling the pre-existing {@code ServerCallHandler}. The last
+   * interceptor will have its {@link ServerInterceptor#interceptCall} called first.
    *
    * @param serviceDef the service definition for which to intercept all its methods.
    * @param interceptors list of interceptors to apply to the service.
@@ -72,14 +72,13 @@ public class ServerInterceptors {
   public static ServerServiceDefinition intercept(ServerServiceDefinition serviceDef,
       List<ServerInterceptor> interceptors) {
     Preconditions.checkNotNull(serviceDef);
-    List<ServerInterceptor> immutableInterceptors = ImmutableList.copyOf(interceptors);
-    if (immutableInterceptors.isEmpty()) {
+    if (interceptors.isEmpty()) {
       return serviceDef;
     }
     ServerServiceDefinition.Builder serviceDefBuilder
         = ServerServiceDefinition.builder(serviceDef.getName());
     for (ServerMethodDefinition<?, ?> method : serviceDef.getMethods()) {
-      wrapAndAddMethod(serviceDefBuilder, method, immutableInterceptors);
+      wrapAndAddMethod(serviceDefBuilder, method, interceptors);
     }
     return serviceDefBuilder.build();
   }
@@ -87,62 +86,32 @@ public class ServerInterceptors {
   private static <ReqT, RespT> void wrapAndAddMethod(
       ServerServiceDefinition.Builder serviceDefBuilder, ServerMethodDefinition<ReqT, RespT> method,
       List<ServerInterceptor> interceptors) {
-    ServerCallHandler<ReqT, RespT> callHandler
-        = InterceptCallHandler.create(interceptors, method.getServerCallHandler());
+    ServerCallHandler<ReqT, RespT> callHandler = method.getServerCallHandler();
+    for (ServerInterceptor interceptor : interceptors) {
+      callHandler = InterceptCallHandler.create(interceptor, callHandler);
+    }
     serviceDefBuilder.addMethod(method.withServerCallHandler(callHandler));
   }
 
   private static class InterceptCallHandler<ReqT, RespT> implements ServerCallHandler<ReqT, RespT> {
     public static <ReqT, RespT> InterceptCallHandler<ReqT, RespT> create(
-        List<ServerInterceptor> interceptors, ServerCallHandler<ReqT, RespT> callHandler) {
-      return new InterceptCallHandler<ReqT, RespT>(interceptors, callHandler);
+        ServerInterceptor interceptor, ServerCallHandler<ReqT, RespT> callHandler) {
+      return new InterceptCallHandler<ReqT, RespT>(interceptor, callHandler);
     }
 
-    private final List<ServerInterceptor> interceptors;
+    private final ServerInterceptor interceptor;
     private final ServerCallHandler<ReqT, RespT> callHandler;
 
-    private InterceptCallHandler(List<ServerInterceptor> interceptors,
+    private InterceptCallHandler(ServerInterceptor interceptor,
         ServerCallHandler<ReqT, RespT> callHandler) {
-      this.interceptors = interceptors;
+      this.interceptor = Preconditions.checkNotNull(interceptor, "interceptor");
       this.callHandler = callHandler;
     }
 
     @Override
     public ServerCall.Listener<ReqT> startCall(String method, ServerCall<RespT> call,
         Metadata.Headers headers) {
-      return ProcessInterceptorsCallHandler.create(interceptors.iterator(), callHandler)
-          .startCall(method, call, headers);
-    }
-  }
-
-  private static class ProcessInterceptorsCallHandler<ReqT, RespT>
-      implements ServerCallHandler<ReqT, RespT> {
-    public static <ReqT, RespT> ProcessInterceptorsCallHandler<ReqT, RespT> create(
-        Iterator<ServerInterceptor> interceptors, ServerCallHandler<ReqT, RespT> callHandler) {
-      return new ProcessInterceptorsCallHandler<ReqT, RespT>(interceptors, callHandler);
-    }
-
-    private Iterator<ServerInterceptor> interceptors;
-    private final ServerCallHandler<ReqT, RespT> callHandler;
-
-    private ProcessInterceptorsCallHandler(Iterator<ServerInterceptor> interceptors,
-        ServerCallHandler<ReqT, RespT> callHandler) {
-      this.interceptors = interceptors;
-      this.callHandler = callHandler;
-    }
-
-    @Override
-    public ServerCall.Listener<ReqT> startCall(String method, ServerCall<RespT> call,
-        Metadata.Headers headers) {
-      if (interceptors != null && interceptors.hasNext()) {
-        return interceptors.next().interceptCall(method, call, headers, this);
-      } else {
-        Preconditions.checkState(interceptors != null,
-            "The call handler has already been called. "
-            + "Some interceptor must have called on \"next\" twice.");
-        interceptors = null;
-        return callHandler.startCall(method, call, headers);
-      }
+      return interceptor.interceptCall(method, call, headers, callHandler);
     }
   }
 
diff --git a/core/src/test/java/io/grpc/ClientInterceptorsTest.java b/core/src/test/java/io/grpc/ClientInterceptorsTest.java
index 84c4813634..abd0abdcef 100644
--- a/core/src/test/java/io/grpc/ClientInterceptorsTest.java
+++ b/core/src/test/java/io/grpc/ClientInterceptorsTest.java
@@ -139,7 +139,7 @@ public class ClientInterceptorsTest {
     verifyNoMoreInteractions(channel, interceptor);
   }
 
-  @Test(expected = IllegalStateException.class)
+  @Test
   public void callNextTwice() {
     ClientInterceptor interceptor = new ClientInterceptor() {
       @Override
@@ -147,12 +147,15 @@ public class ClientInterceptorsTest {
           MethodDescriptor<ReqT, RespT> method,
           CallOptions callOptions,
           Channel next) {
-        next.newCall(method, callOptions);
+        // Calling next twice is permitted, although should only rarely be useful.
+        assertSame(call, next.newCall(method, callOptions));
         return next.newCall(method, callOptions);
       }
     };
     Channel intercepted = ClientInterceptors.intercept(channel, interceptor);
-    intercepted.newCall(method, CallOptions.DEFAULT);
+    assertSame(call, intercepted.newCall(method, CallOptions.DEFAULT));
+    verify(channel, times(2)).newCall(same(method), same(CallOptions.DEFAULT));
+    verifyNoMoreInteractions(channel);
   }
 
   @Test
@@ -189,7 +192,7 @@ public class ClientInterceptorsTest {
     };
     Channel intercepted = ClientInterceptors.intercept(channel, interceptor1, interceptor2);
     assertSame(call, intercepted.newCall(method, CallOptions.DEFAULT));
-    assertEquals(Arrays.asList("i1", "i2", "channel"), order);
+    assertEquals(Arrays.asList("i2", "i1", "channel"), order);
   }
 
   @Test
diff --git a/core/src/test/java/io/grpc/ServerInterceptorsTest.java b/core/src/test/java/io/grpc/ServerInterceptorsTest.java
index 95d6eec4a1..80b27e9b95 100644
--- a/core/src/test/java/io/grpc/ServerInterceptorsTest.java
+++ b/core/src/test/java/io/grpc/ServerInterceptorsTest.java
@@ -158,19 +158,23 @@ public class ServerInterceptorsTest {
     verifyNoMoreInteractions(handler2);
   }
 
-  @Test(expected = IllegalStateException.class)
+  @Test
   public void callNextTwice() {
     ServerInterceptor interceptor = new ServerInterceptor() {
       @Override
       public <ReqT, RespT> ServerCall.Listener<ReqT> interceptCall(String method,
           ServerCall<RespT> call, Headers headers, ServerCallHandler<ReqT, RespT> next) {
-        next.startCall(method, call, headers);
+        // Calling next twice is permitted, although should only rarely be useful.
+        assertSame(listener, next.startCall(method, call, headers));
         return next.startCall(method, call, headers);
       }
     };
     ServerServiceDefinition intercepted = ServerInterceptors.intercept(serviceDefinition,
         interceptor);
-    getSoleMethod(intercepted).getServerCallHandler().startCall(methodName, call, headers);
+    assertSame(listener,
+        getSoleMethod(intercepted).getServerCallHandler().startCall(methodName, call, headers));
+    verify(handler, times(2)).startCall(same(methodName), same(call), same(headers));
+    verifyNoMoreInteractions(handler);
   }
 
   @Test
@@ -207,7 +211,7 @@ public class ServerInterceptorsTest {
         serviceDefinition, Arrays.asList(interceptor1, interceptor2));
     assertSame(listener,
         getSoleMethod(intercepted).getServerCallHandler().startCall(methodName, call, headers));
-    assertEquals(Arrays.asList("i1", "i2", "handler"), order);
+    assertEquals(Arrays.asList("i2", "i1", "handler"), order);
   }
 
   @Test