diff --git a/netty/src/main/java/io/grpc/netty/NettyServerHandler.java b/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
index e7d6ea2dd9..06b5a3fb9f 100644
--- a/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
+++ b/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
@@ -261,18 +261,21 @@ class NettyServerHandler extends AbstractNettyHandler {
    */
   @Override
   public void channelInactive(ChannelHandlerContext ctx) throws Exception {
-    super.channelInactive(ctx);
-    // Any streams that are still active must be closed
-    connection().forEachActiveStream(new Http2StreamVisitor() {
-      @Override
-      public boolean visit(Http2Stream stream) throws Http2Exception {
-        NettyServerStream serverStream = serverStream(stream);
-        if (serverStream != null) {
-          serverStream.abortStream(GOAWAY_STATUS, false);
+    try {
+      // Any streams that are still active must be closed
+      connection().forEachActiveStream(new Http2StreamVisitor() {
+        @Override
+        public boolean visit(Http2Stream stream) throws Http2Exception {
+          NettyServerStream serverStream = serverStream(stream);
+          if (serverStream != null) {
+            serverStream.abortStream(GOAWAY_STATUS, false);
+          }
+          return true;
         }
-        return true;
-      }
-    });
+      });
+    } finally {
+      super.channelInactive(ctx);
+    }
   }
 
   WriteQueue getWriteQueue() {
diff --git a/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java b/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
index 87078c2a4d..52ec3fd402 100644
--- a/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
+++ b/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
@@ -237,6 +237,15 @@ public class NettyServerHandlerTest extends NettyHandlerTestBase<NettyServerHand
     assertFalse(channel().isOpen());
   }
 
+  @Test
+  public void channelInactiveShouldCloseStreams() throws Exception {
+    createStream();
+    handler().channelInactive(ctx());
+    ArgumentCaptor<Status> captor = ArgumentCaptor.forClass(Status.class);
+    verify(streamListener).closed(captor.capture());
+    assertFalse(captor.getValue().isOk());
+  }
+
   @Test
   public void shouldAdvertiseMaxConcurrentStreams() throws Exception {
     maxConcurrentStreams = 314;