diff --git a/pkg/registry/generic/registry/decorated_watcher.go b/pkg/registry/generic/registry/decorated_watcher.go
index e341b371d..e066d2a7f 100644
--- a/pkg/registry/generic/registry/decorated_watcher.go
+++ b/pkg/registry/generic/registry/decorated_watcher.go
@@ -29,8 +29,8 @@ type decoratedWatcher struct {
 	resultCh  chan watch.Event
 }
 
-func newDecoratedWatcher(w watch.Interface, decorator func(runtime.Object)) *decoratedWatcher {
-	ctx, cancel := context.WithCancel(context.Background())
+func newDecoratedWatcher(ctx context.Context, w watch.Interface, decorator func(runtime.Object)) *decoratedWatcher {
+	ctx, cancel := context.WithCancel(ctx)
 	d := &decoratedWatcher{
 		w:         w,
 		decorator: decorator,
@@ -41,14 +41,18 @@ func newDecoratedWatcher(w watch.Interface, decorator func(runtime.Object)) *dec
 	return d
 }
 
+// run decorates watch events from the underlying watcher until its result channel
+// is closed or the passed in context is done.
+// When run() returns, decoratedWatcher#resultCh is closed.
 func (d *decoratedWatcher) run(ctx context.Context) {
 	var recv, send watch.Event
 	var ok bool
+	defer close(d.resultCh)
 	for {
 		select {
 		case recv, ok = <-d.w.ResultChan():
-			// The underlying channel may be closed after timeout.
 			if !ok {
+				// The underlying channel was closed, cancel our context
 				d.cancel()
 				return
 			}
@@ -61,20 +65,24 @@ func (d *decoratedWatcher) run(ctx context.Context) {
 			}
 			select {
 			case d.resultCh <- send:
-				if send.Type == watch.Error {
-					d.cancel()
-				}
+				// propagated event successfully
 			case <-ctx.Done():
+				// context timed out or was cancelled, stop the underlying watcher
+				d.w.Stop()
+				return
 			}
 		case <-ctx.Done():
+			// context timed out or was cancelled, stop the underlying watcher
 			d.w.Stop()
-			close(d.resultCh)
 			return
 		}
 	}
 }
 
 func (d *decoratedWatcher) Stop() {
+	// stop the underlying watcher
+	d.w.Stop()
+	// cancel our context
 	d.cancel()
 }
 
diff --git a/pkg/registry/generic/registry/decorated_watcher_test.go b/pkg/registry/generic/registry/decorated_watcher_test.go
index 33e47c8af..d6a3872d5 100644
--- a/pkg/registry/generic/registry/decorated_watcher_test.go
+++ b/pkg/registry/generic/registry/decorated_watcher_test.go
@@ -17,6 +17,7 @@ limitations under the License.
 package registry
 
 import (
+	"context"
 	"testing"
 	"time"
 
@@ -30,24 +31,78 @@ import (
 func TestDecoratedWatcher(t *testing.T) {
 	w := watch.NewFake()
 	decorator := func(obj runtime.Object) {
-		pod := obj.(*example.Pod)
-		pod.Annotations = map[string]string{"decorated": "true"}
+		if pod, ok := obj.(*example.Pod); ok {
+			pod.Annotations = map[string]string{"decorated": "true"}
+		}
 	}
-	dw := newDecoratedWatcher(w, decorator)
+	ctx, cancel := context.WithCancel(context.Background())
+	dw := newDecoratedWatcher(ctx, w, decorator)
 	defer dw.Stop()
 
-	go w.Add(&example.Pod{ObjectMeta: metav1.ObjectMeta{Name: "foo"}})
+	go func() {
+		w.Error(&metav1.Status{Status: "Failure"})
+		w.Add(&example.Pod{ObjectMeta: metav1.ObjectMeta{Name: "foo"}})
+		w.Error(&metav1.Status{Status: "Failure"})
+		w.Modify(&example.Pod{ObjectMeta: metav1.ObjectMeta{Name: "foo"}})
+		w.Error(&metav1.Status{Status: "Failure"})
+		w.Delete(&example.Pod{ObjectMeta: metav1.ObjectMeta{Name: "foo"}})
+	}()
+
+	expectErrorEvent(t, dw) // expect error is plumbed and doesn't force close the watcher
+	expectPodEvent(t, dw, watch.Added)
+	expectErrorEvent(t, dw) // expect error is plumbed and doesn't force close the watcher
+	expectPodEvent(t, dw, watch.Modified)
+	expectErrorEvent(t, dw) // expect error is plumbed and doesn't force close the watcher
+	expectPodEvent(t, dw, watch.Deleted)
+
+	// cancel the passed-in context to simulate request timeout
+	cancel()
+
+	// expect the decorated channel to be closed
 	select {
-	case e := <-dw.ResultChan():
-		pod, ok := e.Object.(*example.Pod)
-		if !ok {
-			t.Errorf("Should received object of type *api.Pod, get type (%T)", e.Object)
-			return
-		}
-		if pod.Annotations["decorated"] != "true" {
-			t.Errorf("pod.Annotations[\"decorated\"], want=%s, get=%s", "true", pod.Labels["decorated"])
+	case e, ok := <-dw.ResultChan():
+		if ok {
+			t.Errorf("expected result chan closed, got %#v", e)
 		}
 	case <-time.After(wait.ForeverTestTimeout):
 		t.Errorf("timeout after %v", wait.ForeverTestTimeout)
 	}
+
+	// expect the underlying watcher to have been stopped as a result of the context cancellation
+	if !w.IsStopped() {
+		t.Errorf("expected underlying watcher to be stopped")
+	}
+}
+
+func expectPodEvent(t *testing.T, dw *decoratedWatcher, watchType watch.EventType) {
+	select {
+	case e := <-dw.ResultChan():
+		pod, ok := e.Object.(*example.Pod)
+		if !ok {
+			t.Fatalf("Should received object of type *api.Pod, get type (%T)", e.Object)
+		}
+		if pod.Annotations["decorated"] != "true" {
+			t.Fatalf("pod.Annotations[\"decorated\"], want=%s, get=%s", "true", pod.Labels["decorated"])
+		}
+		if e.Type != watchType {
+			t.Fatalf("expected type %s, got %s", watchType, e.Type)
+		}
+	case <-time.After(wait.ForeverTestTimeout):
+		t.Fatalf("timeout after %v", wait.ForeverTestTimeout)
+	}
+}
+
+func expectErrorEvent(t *testing.T, dw *decoratedWatcher) {
+	select {
+	case e := <-dw.ResultChan():
+		_, ok := e.Object.(*metav1.Status)
+		if !ok {
+			t.Fatalf("Should received object of type *metav1.Status, get type (%T)", e.Object)
+		}
+		if e.Type != watch.Error {
+			t.Fatalf("expected type %s, got %s", watch.Error, e.Type)
+		}
+	case <-time.After(wait.ForeverTestTimeout):
+		t.Fatalf("timeout after %v", wait.ForeverTestTimeout)
+	}
 }
diff --git a/pkg/registry/generic/registry/store.go b/pkg/registry/generic/registry/store.go
index d40214f9d..0fe82ed0c 100644
--- a/pkg/registry/generic/registry/store.go
+++ b/pkg/registry/generic/registry/store.go
@@ -1226,7 +1226,7 @@ func (e *Store) WatchPredicate(ctx context.Context, p storage.SelectionPredicate
 				return nil, err
 			}
 			if e.Decorator != nil {
-				return newDecoratedWatcher(w, e.Decorator), nil
+				return newDecoratedWatcher(ctx, w, e.Decorator), nil
 			}
 			return w, nil
 		}
@@ -1239,7 +1239,7 @@ func (e *Store) WatchPredicate(ctx context.Context, p storage.SelectionPredicate
 		return nil, err
 	}
 	if e.Decorator != nil {
-		return newDecoratedWatcher(w, e.Decorator), nil
+		return newDecoratedWatcher(ctx, w, e.Decorator), nil
 	}
 	return w, nil
 }