diff --git a/core/src/main/java/io/grpc/internal/ServerImpl.java b/core/src/main/java/io/grpc/internal/ServerImpl.java
index 85d8579323..6e9cb9bf5e 100644
--- a/core/src/main/java/io/grpc/internal/ServerImpl.java
+++ b/core/src/main/java/io/grpc/internal/ServerImpl.java
@@ -486,6 +486,7 @@ public final class ServerImpl extends io.grpc.Server implements InternalInstrume
         String encoding = headers.get(MESSAGE_ENCODING_KEY);
         Decompressor decompressor = decompressorRegistry.lookupDecompressor(encoding);
         if (decompressor == null) {
+          stream.setListener(NOOP_LISTENER);
           stream.close(
               Status.UNIMPLEMENTED.withDescription(
                   String.format("Can't find decompressor for %s", encoding)),
diff --git a/core/src/test/java/io/grpc/internal/ServerImplTest.java b/core/src/test/java/io/grpc/internal/ServerImplTest.java
index d2011f9541..2fe2692bcd 100644
--- a/core/src/test/java/io/grpc/internal/ServerImplTest.java
+++ b/core/src/test/java/io/grpc/internal/ServerImplTest.java
@@ -487,6 +487,7 @@ public class ServerImplTest {
 
     transportListener.streamCreated(stream, "Waiter/nonexist", requestHeaders);
 
+    verify(stream).setListener(isA(ServerStreamListener.class));
     verify(stream).streamId();
     verify(stream).close(statusCaptor.capture(), any(Metadata.class));
     Status status = statusCaptor.getValue();