diff --git a/netty/src/main/java/io/grpc/netty/NettyClientHandler.java b/netty/src/main/java/io/grpc/netty/NettyClientHandler.java
index 07134939673..393b3644961 100644
--- a/netty/src/main/java/io/grpc/netty/NettyClientHandler.java
+++ b/netty/src/main/java/io/grpc/netty/NettyClientHandler.java
@@ -569,20 +569,22 @@ private void createStream(CreateStreamCommand command, ChannelPromise promise)
       }
       return;
     }
-    if (connection().goAwayReceived()
-        && streamId > connection().local().lastStreamKnownByPeer()) {
-      // This should only be reachable during onGoAwayReceived, as otherwise
-      // getShutdownThrowable() != null
-      command.stream().setNonExistent();
-      Status s = abruptGoAwayStatus;
-      if (s == null) {
-        // Should be impossible, but handle psuedo-gracefully
-        s = Status.INTERNAL.withDescription(
-            "Failed due to abrupt GOAWAY, but can't find GOAWAY details");
+    if (connection().goAwayReceived()) {
+      if (streamId > connection().local().lastStreamKnownByPeer()
+           || connection().local().numActiveStreams() == connection().local().maxActiveStreams()) {
+        // This should only be reachable during onGoAwayReceived, as otherwise
+        // getShutdownThrowable() != null
+        command.stream().setNonExistent();
+        Status s = abruptGoAwayStatus;
+        if (s == null) {
+          // Should be impossible, but handle psuedo-gracefully
+          s = Status.INTERNAL.withDescription(
+              "Failed due to abrupt GOAWAY, but can't find GOAWAY details");
+        }
+        command.stream().transportReportStatus(s, RpcProgress.REFUSED, true, new Metadata());
+        promise.setFailure(s.asRuntimeException());
+        return;
       }
-      command.stream().transportReportStatus(s, RpcProgress.REFUSED, true, new Metadata());
-      promise.setFailure(s.asRuntimeException());
-      return;
     }
 
     NettyClientStream.TransportState stream = command.stream();
diff --git a/netty/src/test/java/io/grpc/netty/NettyClientHandlerTest.java b/netty/src/test/java/io/grpc/netty/NettyClientHandlerTest.java
index 25813621cc6..b901ceeb642 100644
--- a/netty/src/test/java/io/grpc/netty/NettyClientHandlerTest.java
+++ b/netty/src/test/java/io/grpc/netty/NettyClientHandlerTest.java
@@ -383,6 +383,36 @@ public void receivedAbruptGoAwayShouldFailRacingQueuedStreamid() throws Exceptio
     assertTrue(future.isDone());
   }
 
+  @Test
+  public void receivedGoAway_shouldFailBufferedStreamsExceedingMaxConcurrentStreams()
+      throws Exception {
+    NettyClientStream.TransportState streamTransportState1 = new TransportStateImpl(
+        handler(),
+        channel().eventLoop(),
+        DEFAULT_MAX_MESSAGE_SIZE,
+        transportTracer);
+    streamTransportState1.setListener(mock(ClientStreamListener.class));
+    NettyClientStream.TransportState streamTransportState2 = new TransportStateImpl(
+        handler(),
+        channel().eventLoop(),
+        DEFAULT_MAX_MESSAGE_SIZE,
+        transportTracer);
+    streamTransportState2.setListener(mock(ClientStreamListener.class));
+    receiveMaxConcurrentStreams(1);
+    ChannelFuture future1 = writeQueue().enqueue(
+        newCreateStreamCommand(grpcHeaders, streamTransportState1), true);
+    ChannelFuture future2 = writeQueue().enqueue(
+        newCreateStreamCommand(grpcHeaders, streamTransportState2), true);
+
+    // GOAWAY
+    channelRead(goAwayFrame(Integer.MAX_VALUE));
+    assertTrue(future1.isSuccess());
+    assertTrue(future2.isDone());
+    assertThat(Status.fromThrowable(future2.cause()).getCode()).isEqualTo(Status.Code.UNAVAILABLE);
+    assertThat(future2.cause().getMessage()).contains(
+        "Abrupt GOAWAY closed unsent stream. HTTP/2 error code: NO_ERROR");
+  }
+
   @Test
   public void receivedResetWithRefuseCode() throws Exception {
     ChannelFuture future = enqueue(newCreateStreamCommand(grpcHeaders, streamTransportState));