diff --git a/integration-testing/src/main/java/io/grpc/testing/integration/AbstractTransportTest.java b/integration-testing/src/main/java/io/grpc/testing/integration/AbstractTransportTest.java
index b1d632a327..e696b14d69 100644
--- a/integration-testing/src/main/java/io/grpc/testing/integration/AbstractTransportTest.java
+++ b/integration-testing/src/main/java/io/grpc/testing/integration/AbstractTransportTest.java
@@ -572,7 +572,6 @@ public abstract class AbstractTransportTest {
     return 10485760;
   }
 
-  @org.junit.Ignore
   @Test(timeout = 10000)
   public void gracefulShutdown() throws Exception {
     final List<StreamingOutputCallRequest> requests = Arrays.asList(
diff --git a/lib/netty b/lib/netty
index a3cea186ce..4ae8bdc6ec 160000
--- a/lib/netty
+++ b/lib/netty
@@ -1 +1 @@
-Subproject commit a3cea186ce559037b8cf04ea272f09908657e9e3
+Subproject commit 4ae8bdc6ec8d37106f386a7d667a9cd279a8f5d8
diff --git a/netty/src/main/java/io/grpc/transport/netty/NettyClientHandler.java b/netty/src/main/java/io/grpc/transport/netty/NettyClientHandler.java
index 6c7f4cd55f..9807846792 100644
--- a/netty/src/main/java/io/grpc/transport/netty/NettyClientHandler.java
+++ b/netty/src/main/java/io/grpc/transport/netty/NettyClientHandler.java
@@ -294,7 +294,7 @@ class NettyClientHandler extends Http2ConnectionHandler {
    */
   private void goingAway() {
     final Status goAwayStatus = goAwayStatus();
-    final int lastKnownStream = connection().local().lastKnownStream();
+    final int lastKnownStream = connection().local().lastStreamKnownByPeer();
     try {
       connection().forEachActiveStream(new Http2StreamVisitor() {
         @Override