diff --git a/okhttp/src/main/java/io/grpc/okhttp/OkHttpClientTransport.java b/okhttp/src/main/java/io/grpc/okhttp/OkHttpClientTransport.java
index 2649b63c9e..3a1feae039 100644
--- a/okhttp/src/main/java/io/grpc/okhttp/OkHttpClientTransport.java
+++ b/okhttp/src/main/java/io/grpc/okhttp/OkHttpClientTransport.java
@@ -754,7 +754,7 @@ class OkHttpClientTransport implements ConnectionClientTransport {
         // nothing, otherwise, we finish all streams since it's a real IO issue.
         startGoAway(0, ErrorCode.INTERNAL_ERROR,
             Status.UNAVAILABLE.withDescription("End of stream or IOException"));
-      } catch (Exception t) {
+      } catch (Throwable t) {
         // TODO(madongfly): Send the exception message to the server.
         startGoAway(0, ErrorCode.PROTOCOL_ERROR, Status.UNAVAILABLE.withCause(t));
       } finally {
diff --git a/okhttp/src/test/java/io/grpc/okhttp/OkHttpClientTransportTest.java b/okhttp/src/test/java/io/grpc/okhttp/OkHttpClientTransportTest.java
index 816c8cf2d0..2a78f68c01 100644
--- a/okhttp/src/test/java/io/grpc/okhttp/OkHttpClientTransportTest.java
+++ b/okhttp/src/test/java/io/grpc/okhttp/OkHttpClientTransportTest.java
@@ -123,6 +123,7 @@ import javax.annotation.Nullable;
 public class OkHttpClientTransportTest {
   private static final int TIME_OUT_MS = 2000;
   private static final String NETWORK_ISSUE_MESSAGE = "network issue";
+  private static final String ERROR_MESSAGE = "simulated error";
   // The gRPC header length, which includes 1 byte compression flag and 4 bytes message length.
   private static final int HEADER_LENGTH = 5;
 
@@ -243,6 +244,7 @@ public class OkHttpClientTransportTest {
     frameReader.throwIoExceptionForNextFrame();
     listener1.waitUntilStreamClosed();
     listener2.waitUntilStreamClosed();
+
     assertEquals(0, activeStreamCount());
     assertEquals(Status.UNAVAILABLE.getCode(), listener1.status.getCode());
     assertEquals(NETWORK_ISSUE_MESSAGE, listener1.status.getCause().getMessage());
@@ -253,6 +255,31 @@ public class OkHttpClientTransportTest {
     shutdownAndVerify();
   }
 
+  /**
+   * Test that even if an Error is thrown from the reading loop of the transport,
+   * it can still clean up and call transportShutdown() and transportTerminated() as expected
+   * by the channel.
+   */
+  @Test
+  public void nextFrameThrowsError() throws Exception {
+    initTransport();
+    MockStreamListener listener = new MockStreamListener();
+    OkHttpClientStream stream = clientTransport.newStream(method, new Metadata());
+    stream.start(listener);
+    stream.request(1);
+    assertEquals(1, activeStreamCount());
+    assertContainStream(3);
+    frameReader.throwErrorForNextFrame();
+    listener.waitUntilStreamClosed();
+
+    assertEquals(0, activeStreamCount());
+    assertEquals(Status.UNAVAILABLE.getCode(), listener.status.getCode());
+    assertEquals(ERROR_MESSAGE, listener.status.getCause().getMessage());
+    verify(transportListener, timeout(TIME_OUT_MS)).transportShutdown(isA(Status.class));
+    verify(transportListener, timeout(TIME_OUT_MS)).transportTerminated();
+    shutdownAndVerify();
+  }
+
   @Test
   public void nextFrameReturnFalse() throws Exception {
     initTransport();
@@ -1426,6 +1453,7 @@ public class OkHttpClientTransportTest {
     CountDownLatch closed = new CountDownLatch(1);
     boolean throwExceptionForNextFrame;
     boolean returnFalseInNextFrame;
+    boolean throwErrorForNextFrame;
 
     @Override
     public void close() throws IOException {
@@ -1445,6 +1473,9 @@ public class OkHttpClientTransportTest {
 
     @Override
     public synchronized boolean nextFrame(Handler handler) throws IOException {
+      if (throwErrorForNextFrame) {
+        throw new Error(ERROR_MESSAGE);
+      }
       if (throwExceptionForNextFrame) {
         throw new IOException(NETWORK_ISSUE_MESSAGE);
       }
@@ -1468,6 +1499,11 @@ public class OkHttpClientTransportTest {
       notifyAll();
     }
 
+    synchronized void throwErrorForNextFrame() {
+      throwErrorForNextFrame = true;
+      notifyAll();
+    }
+
     synchronized void nextFrameAtEndOfStream() {
       returnFalseInNextFrame = true;
       notifyAll();