diff --git a/core/src/main/java/io/grpc/transport/AbstractClientStream.java b/core/src/main/java/io/grpc/transport/AbstractClientStream.java
index 8a59890a7c..55fb78662e 100644
--- a/core/src/main/java/io/grpc/transport/AbstractClientStream.java
+++ b/core/src/main/java/io/grpc/transport/AbstractClientStream.java
@@ -88,8 +88,12 @@ public abstract class AbstractClientStream<IdT> extends AbstractStream<IdT>
    * responsible for properly closing streams when protocol errors occur.
    *
    * @param errorStatus the error to report
+   * @param stopDelivery if {@code true}, interrupts any further delivery of inbound messages that
+   *        may already be queued up in the deframer. If {@code false}, the listener will be
+   *        notified immediately after all currently completed messages in the deframer have been
+   *        delivered to the application.
    */
-  protected void inboundTransportError(Status errorStatus) {
+  protected void inboundTransportError(Status errorStatus, boolean stopDelivery) {
     if (inboundPhase() == Phase.STATUS) {
       log.log(Level.INFO, "Received transport error on closed stream {0} {1}",
           new Object[]{id(), errorStatus});
@@ -97,7 +101,7 @@ public abstract class AbstractClientStream<IdT> extends AbstractStream<IdT>
     }
     // For transport errors we immediately report status to the application layer
     // and do not wait for additional payloads.
-    transportReportStatus(errorStatus, false, new Metadata.Trailers());
+    transportReportStatus(errorStatus, stopDelivery, new Metadata.Trailers());
   }
 
   /**
@@ -121,22 +125,30 @@ public abstract class AbstractClientStream<IdT> extends AbstractStream<IdT>
    * Processes the contents of a received data frame from the server.
    *
    * @param frame the received data frame. Its ownership is transferred to this method.
+   * @param 
    */
   protected void inboundDataReceived(Buffer frame) {
     Preconditions.checkNotNull(frame, "frame");
-    if (inboundPhase() == Phase.STATUS) {
-      frame.close();
-      return;
-    }
-    if (inboundPhase() == Phase.HEADERS) {
-      // Have not received headers yet so error
-      inboundTransportError(Status.INTERNAL.withDescription("headers not received before payload"));
-      frame.close();
-      return;
-    }
-    inboundPhase(Phase.MESSAGE);
+    boolean needToCloseFrame = true;
+    try {
+      if (inboundPhase() == Phase.STATUS) {
+        return;
+      }
+      if (inboundPhase() == Phase.HEADERS) {
+        // Have not received headers yet so error
+        inboundTransportError(Status.INTERNAL
+            .withDescription("headers not received before payload"), false);
+        return;
+      }
+      inboundPhase(Phase.MESSAGE);
 
-    deframe(frame, false);
+      needToCloseFrame = false;
+      deframe(frame, false);
+    } finally {
+      if (needToCloseFrame) {
+        frame.close();
+      }
+    }
   }
 
   @Override
diff --git a/core/src/main/java/io/grpc/transport/Http2ClientStream.java b/core/src/main/java/io/grpc/transport/Http2ClientStream.java
index 4938cc4482..c9f09a59aa 100644
--- a/core/src/main/java/io/grpc/transport/Http2ClientStream.java
+++ b/core/src/main/java/io/grpc/transport/Http2ClientStream.java
@@ -125,7 +125,7 @@ public abstract class Http2ClientStream extends AbstractClientStream<Integer> {
           Buffers.readAsString(frame, errorCharset));
       frame.close();
       if (transportError.getDescription().length() > 1000 || endOfStream) {
-        inboundTransportError(transportError);
+        inboundTransportError(transportError, false);
         if (!endOfStream) {
           // We have enough error detail so lets cancel.
           sendCancel();
@@ -136,8 +136,7 @@ public abstract class Http2ClientStream extends AbstractClientStream<Integer> {
       if (endOfStream) {
         // This is a protocol violation as we expect to receive trailers.
         transportError = Status.INTERNAL.withDescription("Recevied EOS on DATA frame");
-        frame.close();
-        inboundTransportError(transportError);
+        inboundTransportError(transportError, true);
       }
     }
   }
@@ -156,7 +155,7 @@ public abstract class Http2ClientStream extends AbstractClientStream<Integer> {
       transportError = checkContentType(trailers);
     }
     if (transportError != null) {
-      inboundTransportError(transportError);
+      inboundTransportError(transportError, false);
     } else {
       Status status = statusFromTrailers(trailers);
       stripTransportDetails(trailers);
diff --git a/core/src/main/java/io/grpc/transport/MessageDeframer.java b/core/src/main/java/io/grpc/transport/MessageDeframer.java
index cfab174759..183e9690a9 100644
--- a/core/src/main/java/io/grpc/transport/MessageDeframer.java
+++ b/core/src/main/java/io/grpc/transport/MessageDeframer.java
@@ -153,14 +153,23 @@ public class MessageDeframer implements Closeable {
    *         {@code endOfStream=true}.
    */
   public void deframe(Buffer data, boolean endOfStream) {
-    checkNotClosed();
     Preconditions.checkNotNull(data, "data");
-    Preconditions.checkState(!this.endOfStream, "Past end of stream");
-    unprocessed.addBuffer(data);
+    boolean needToCloseData = true;
+    try {
+      checkNotClosed();
+      Preconditions.checkState(!this.endOfStream, "Past end of stream");
 
-    // Indicate that all of the data for this stream has been received.
-    this.endOfStream = endOfStream;
-    deliver();
+      needToCloseData = false;
+      unprocessed.addBuffer(data);
+
+      // Indicate that all of the data for this stream has been received.
+      this.endOfStream = endOfStream;
+      deliver();
+    } finally {
+      if (needToCloseData) {
+        data.close();
+      }
+    }
   }
 
   /**
diff --git a/netty/src/test/java/io/grpc/transport/netty/NettyClientStreamTest.java b/netty/src/test/java/io/grpc/transport/netty/NettyClientStreamTest.java
index ba2026feb7..e01104f2c7 100644
--- a/netty/src/test/java/io/grpc/transport/netty/NettyClientStreamTest.java
+++ b/netty/src/test/java/io/grpc/transport/netty/NettyClientStreamTest.java
@@ -253,6 +253,25 @@ public class NettyClientStreamTest extends NettyStreamTestBase {
     verify(listener).closed(eq(Status.CANCELLED), eq(trailers));
   }
 
+  @Test
+  public void dataFrameWithEosShouldDeframeAndThenFail() {
+    stream().id(1);
+    stream().request(1);
+
+    // Receive headers first so that it's a valid GRPC response.
+    stream().transportHeadersReceived(grpcResponseHeaders(), false);
+
+    // Receive a DATA frame with EOS set.
+    stream().transportDataReceived(simpleGrpcFrame(), true);
+
+    // Verify that the message was delivered.
+    verify(listener).messageRead(any(InputStream.class));
+
+    ArgumentCaptor<Status> captor = ArgumentCaptor.forClass(Status.class);
+    verify(listener).closed(captor.capture(), any(Metadata.Trailers.class));
+    assertEquals(Status.Code.INTERNAL, captor.getValue().getCode());
+  }
+
   @Override
   protected AbstractStream<Integer> createStream() {
     AbstractStream<Integer> stream = new NettyClientStream(listener, channel, handler);