diff --git a/core/src/main/java/io/grpc/internal/DelayedClientTransport.java b/core/src/main/java/io/grpc/internal/DelayedClientTransport.java
index dfabfeeffb..5c841189d5 100644
--- a/core/src/main/java/io/grpc/internal/DelayedClientTransport.java
+++ b/core/src/main/java/io/grpc/internal/DelayedClientTransport.java
@@ -322,7 +322,11 @@ class DelayedClientTransport implements ManagedClientTransport {
    */
   void startBackoff(final Status status) {
     synchronized (lock) {
-      Preconditions.checkState(backoffStatus == null);
+      if (shutdown) {
+        return;
+      }
+      Preconditions.checkState(backoffStatus == null,
+          "Error when calling startBackoff: transport is already in backoff period");
       backoffStatus = Status.UNAVAILABLE.withDescription("Channel in TRANSIENT_FAILURE state")
           .withCause(status.asRuntimeException());
       final ArrayList<PendingStream> failFastPendingStreams = new ArrayList<PendingStream>();
@@ -335,14 +339,17 @@ class DelayedClientTransport implements ManagedClientTransport {
             it.remove();
           }
         }
-        streamCreationExecutor.execute(new Runnable() {
+
+        class FailTheFailFastPendingStreams implements Runnable {
           @Override
           public void run() {
             for (PendingStream stream : failFastPendingStreams) {
               stream.setStream(new FailingClientStream(status));
             }
           }
-        });
+        }
+
+        streamCreationExecutor.execute(new FailTheFailFastPendingStreams());
       }
     }
   }
@@ -353,6 +360,8 @@ class DelayedClientTransport implements ManagedClientTransport {
    */
   void endBackoff() {
     synchronized (lock) {
+      Preconditions.checkState(backoffStatus != null,
+          "Error when calling endBackoff: transport is not in backoff period");
       backoffStatus = null;
     }
   }
diff --git a/core/src/main/java/io/grpc/internal/TransportSet.java b/core/src/main/java/io/grpc/internal/TransportSet.java
index d89a8ac49c..3941a88d6c 100644
--- a/core/src/main/java/io/grpc/internal/TransportSet.java
+++ b/core/src/main/java/io/grpc/internal/TransportSet.java
@@ -227,21 +227,14 @@ final class TransportSet implements WithLogId {
    * @param status the causal status when the channel begins transition to
    *     TRANSIENT_FAILURE.
    */
-  @CheckReturnValue
-  @GuardedBy("lock")
-  private Runnable scheduleBackoff(
+  private void scheduleBackoff(
       final DelayedClientTransport delayedTransport, final Status status) {
-    Preconditions.checkState(reconnectTask == null, "previous reconnectTask is not done");
+    // This must be run outside of lock. The TransportSet lock is a channel level lock.
+    // startBackoff() will acquire the delayed transport lock, which is a transport level
+    // lock. Our lock ordering mandates transport lock > channel lock.  Otherwise a deadlock
+    // could happen (https://github.com/grpc/grpc-java/issues/2152).
+    delayedTransport.startBackoff(status);
 
-    if (reconnectPolicy == null) {
-      reconnectPolicy = backoffPolicyProvider.get();
-    }
-    long delayMillis =
-        reconnectPolicy.nextBackoffMillis() - connectingTimer.elapsed(TimeUnit.MILLISECONDS);
-    if (log.isLoggable(Level.FINE)) {
-      log.log(Level.FINE, "[{0}] Scheduling backoff for {1} ms",
-          new Object[]{getLogId(), delayMillis});
-    }
     class EndOfCurrentBackoff implements Runnable {
       @Override
       public void run() {
@@ -285,18 +278,25 @@ final class TransportSet implements WithLogId {
       }
     }
 
-    reconnectTask = scheduledExecutor.schedule(
-        new LogExceptionRunnable(new EndOfCurrentBackoff()), delayMillis, TimeUnit.MILLISECONDS);
-    return new Runnable() {
-      @Override
-      public void run() {
-        // This must be run outside of lock. The TransportSet lock is a channel level lock.
-        // startBackoff() will acquire the delayed transport lock, which is a transport level
-        // lock. Our lock ordering mandates transport lock > channel lock.  Otherwise a deadlock
-        // could happen (https://github.com/grpc/grpc-java/issues/2152).
-        delayedTransport.startBackoff(status);
+    synchronized (lock) {
+      if (shutdown) {
+        return;
       }
-    };
+      if (reconnectPolicy == null) {
+        reconnectPolicy = backoffPolicyProvider.get();
+      }
+      long delayMillis =
+          reconnectPolicy.nextBackoffMillis() - connectingTimer.elapsed(TimeUnit.MILLISECONDS);
+      if (log.isLoggable(Level.FINE)) {
+        log.log(Level.FINE, "[{0}] Scheduling backoff for {1} ms",
+            new Object[]{getLogId(), delayMillis});
+      }
+      Preconditions.checkState(reconnectTask == null, "previous reconnectTask is not done");
+      reconnectTask = scheduledExecutor.schedule(
+          new LogExceptionRunnable(new EndOfCurrentBackoff()),
+          delayMillis,
+          TimeUnit.MILLISECONDS);
+    }
   }
 
   /**
@@ -464,15 +464,17 @@ final class TransportSet implements WithLogId {
           // Continue reconnect if there are still addresses to try.
           if (nextAddressIndex == 0) {
             allAddressesFailed = true;
-            // Initiate backoff
-            // Transition to TRANSIENT_FAILURE
-            runnable = scheduleBackoff(delayedTransport, s);
           } else {
             // Still CONNECTING
             runnable = startNewTransport(delayedTransport);
           }
         }
       }
+      if (allAddressesFailed) {
+        // Initiate backoff
+        // Transition to TRANSIENT_FAILURE
+        scheduleBackoff(delayedTransport, s);
+      }
       if (runnable != null) {
         runnable.run();
       }
diff --git a/core/src/test/java/io/grpc/internal/DelayedClientTransportTest.java b/core/src/test/java/io/grpc/internal/DelayedClientTransportTest.java
index b3c64d4465..1ef82998ff 100644
--- a/core/src/test/java/io/grpc/internal/DelayedClientTransportTest.java
+++ b/core/src/test/java/io/grpc/internal/DelayedClientTransportTest.java
@@ -324,4 +324,13 @@ public class DelayedClientTransportTest {
     delayedTransport.newStream(method, headers, waitForReadyCallOptions);
     assertEquals(1, delayedTransport.getPendingStreamsCount());
   }
+
+  @Test public void startBackoff_DoNothingIfAlreadyShutDown() {
+    delayedTransport.shutdown();
+
+    final Status cause = Status.UNAVAILABLE.withDescription("some error when connecting");
+    delayedTransport.startBackoff(cause);
+
+    assertFalse(delayedTransport.isInBackoffPeriod());
+  }
 }
diff --git a/core/src/test/java/io/grpc/internal/TransportSetTest.java b/core/src/test/java/io/grpc/internal/TransportSetTest.java
index ea26822cfd..94ee2052a9 100644
--- a/core/src/test/java/io/grpc/internal/TransportSetTest.java
+++ b/core/src/test/java/io/grpc/internal/TransportSetTest.java
@@ -69,6 +69,7 @@ import org.mockito.MockitoAnnotations;
 import java.net.SocketAddress;
 import java.util.Arrays;
 import java.util.concurrent.BlockingQueue;
+import java.util.concurrent.Executor;
 
 /**
  * Unit tests for {@link TransportSet}.
@@ -671,6 +672,39 @@ public class TransportSetTest {
     verify(mockTransportSetCallback, times(inUse)).onInUse(transportSet);
   }
 
+  @Test
+  public void scheduleBackoff_DoNotScheduleEndOfBackoffIfAlreadyShutdown() {
+    // Setup
+    final boolean[] startBackoffAndShutdownAreCalled = {false};
+    Executor executor = new Executor() {
+      @Override
+      public void execute(Runnable command) {
+        if (command.getClass().getName().contains("FailTheFailFastPendingStreams")) {
+          // shutdown during startBackoff
+          transportSet.shutdown();
+          startBackoffAndShutdownAreCalled[0] = true;
+        }
+        fakeExecutor.scheduledExecutorService.execute(command);
+      }
+    };
+    SocketAddress addr = mock(SocketAddress.class);
+    addressGroup = new EquivalentAddressGroup(Arrays.asList(addr));
+    transportSet = new TransportSet(addressGroup, authority, userAgent, mockLoadBalancer,
+        mockBackoffPolicyProvider, mockTransportFactory, fakeClock.scheduledExecutorService,
+        fakeClock.stopwatchSupplier, executor, mockTransportSetCallback);
+
+    // Attempt and fail, scheduleBackoff should be triggered,
+    // and transportSet.shutdown should be triggered by setup
+    transportSet.obtainActiveTransport().newStream(method, new Metadata(), waitForReadyCallOptions);
+    transports.poll().listener.transportShutdown(Status.UNAVAILABLE);
+    verify(mockTransportSetCallback, times(1)).onAllAddressesFailed();
+    assertTrue(startBackoffAndShutdownAreCalled[0]);
+
+    fakeExecutor.runDueTasks();
+    // verify endOfBackoff not scheduled
+    verify(mockBackoffPolicy1, never()).nextBackoffMillis();
+  }
+
   private void createTransportSet(SocketAddress ... addrs) {
     addressGroup = new EquivalentAddressGroup(Arrays.asList(addrs));
     transportSet = new TransportSet(addressGroup, authority, userAgent, mockLoadBalancer,