diff --git a/call.go b/call.go
index b5f9292..8b68809 100644
--- a/call.go
+++ b/call.go
@@ -117,7 +117,7 @@
 		}
 	}()
 	if EnableTracing {
-		c.traceInfo.tr = trace.New("grpc.Sent."+transport.MethodFamily(method), method)
+		c.traceInfo.tr = trace.New("grpc.Sent."+methodFamily(method), method)
 		defer c.traceInfo.tr.Finish()
 		c.traceInfo.firstLine.client = true
 		if deadline, ok := ctx.Deadline(); ok {
diff --git a/rpc_util.go b/rpc_util.go
index 024ef23..78c5f2e 100644
--- a/rpc_util.go
+++ b/rpc_util.go
@@ -127,7 +127,8 @@
 	s io.Reader
 }
 
-// msgFixedHeader defines the header of a gRPC message (go/grpc-wirefmt).
+// msgFixedHeader defines the header of a gRPC message. Find more detail
+// at http://www.grpc.io/docs/guides/wire.html.
 type msgFixedHeader struct {
 	T      payloadFormat
 	Length uint32
@@ -198,7 +199,11 @@
 	switch pf {
 	case compressionNone:
 		if err := c.Unmarshal(d, m); err != nil {
-			return Errorf(codes.Internal, "grpc: %v", err)
+			if rErr, ok := err.(rpcError); ok {
+				return rErr
+			} else {
+				return Errorf(codes.Internal, "grpc: %v", err)
+			}
 		}
 	default:
 		return Errorf(codes.Internal, "gprc: compression is not supported yet.")
diff --git a/server.go b/server.go
index a5c8dc3..487a75c 100644
--- a/server.go
+++ b/server.go
@@ -247,7 +247,7 @@
 			c.Close()
 			return nil
 		}
-		st, err := transport.NewServerTransport("http2", c, s.opts.maxConcurrentStreams, authInfo, EnableTracing)
+		st, err := transport.NewServerTransport("http2", c, s.opts.maxConcurrentStreams, authInfo)
 		if err != nil {
 			s.errorf("NewServerTransport(%q) failed: %v", c.RemoteAddr(), err)
 			s.mu.Unlock()
@@ -259,9 +259,27 @@
 		s.mu.Unlock()
 
 		go func() {
+			var wg sync.WaitGroup
 			st.HandleStreams(func(stream *transport.Stream) {
-				s.handleStream(st, stream)
+				var trInfo *traceInfo
+				if EnableTracing {
+					trInfo = &traceInfo{
+						tr: trace.New("grpc.Recv."+methodFamily(stream.Method()), stream.Method()),
+					}
+					trInfo.firstLine.client = false
+					trInfo.firstLine.remoteAddr = st.RemoteAddr()
+					stream.TraceContext(trInfo.tr)
+					if dl, ok := stream.Context().Deadline(); ok {
+						trInfo.firstLine.deadline = dl.Sub(time.Now())
+					}
+				}
+				wg.Add(1)
+				go func() {
+					s.handleStream(st, stream, trInfo)
+					wg.Done()
+				}()
 			})
+			wg.Wait()
 			s.mu.Lock()
 			delete(s.conns, st)
 			s.mu.Unlock()
@@ -284,21 +302,15 @@
 	return t.Write(stream, p, opts)
 }
 
-func (s *Server) processUnaryRPC(t transport.ServerTransport, stream *transport.Stream, srv *service, md *MethodDesc) (err error) {
-	var traceInfo traceInfo
-	if EnableTracing {
-		traceInfo.tr = stream.Trace()
-		defer traceInfo.tr.Finish()
-		traceInfo.firstLine.client = false
-		traceInfo.firstLine.remoteAddr = t.RemoteAddr()
-		if dl, ok := stream.Context().Deadline(); ok {
-			traceInfo.firstLine.deadline = dl.Sub(time.Now())
-		}
-		traceInfo.tr.LazyLog(&traceInfo.firstLine, false)
+func (s *Server) processUnaryRPC(t transport.ServerTransport, stream *transport.Stream, srv *service, md *MethodDesc, trInfo *traceInfo) (err error) {
+	if trInfo != nil {
+		defer trInfo.tr.Finish()
+		trInfo.firstLine.client = false
+		trInfo.tr.LazyLog(&trInfo.firstLine, false)
 		defer func() {
 			if err != nil && err != io.EOF {
-				traceInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
-				traceInfo.tr.SetError()
+				trInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
+				trInfo.tr.SetError()
 			}
 		}()
 	}
@@ -330,8 +342,8 @@
 				if err := s.opts.codec.Unmarshal(req, v); err != nil {
 					return err
 				}
-				if traceInfo.tr != nil {
-					traceInfo.tr.LazyLog(&payload{sent: false, msg: v}, true)
+				if trInfo != nil {
+					trInfo.tr.LazyLog(&payload{sent: false, msg: v}, true)
 				}
 				return nil
 			}
@@ -344,9 +356,9 @@
 					statusCode = convertCode(appErr)
 					statusDesc = appErr.Error()
 				}
-				if traceInfo.tr != nil && statusCode != codes.OK {
-					traceInfo.tr.LazyLog(stringer(statusDesc), true)
-					traceInfo.tr.SetError()
+				if trInfo != nil && statusCode != codes.OK {
+					trInfo.tr.LazyLog(stringer(statusDesc), true)
+					trInfo.tr.SetError()
 				}
 
 				if err := t.WriteStatus(stream, statusCode, statusDesc); err != nil {
@@ -355,8 +367,8 @@
 				}
 				return nil
 			}
-			if traceInfo.tr != nil {
-				traceInfo.tr.LazyLog(stringer("OK"), false)
+			if trInfo != nil {
+				trInfo.tr.LazyLog(stringer("OK"), false)
 			}
 			opts := &transport.Options{
 				Last:  true,
@@ -375,8 +387,8 @@
 				}
 				return err
 			}
-			if traceInfo.tr != nil {
-				traceInfo.tr.LazyLog(&payload{sent: true, msg: reply}, true)
+			if trInfo != nil {
+				trInfo.tr.LazyLog(&payload{sent: true, msg: reply}, true)
 			}
 			return t.WriteStatus(stream, statusCode, statusDesc)
 		default:
@@ -385,30 +397,24 @@
 	}
 }
 
-func (s *Server) processStreamingRPC(t transport.ServerTransport, stream *transport.Stream, srv *service, sd *StreamDesc) (err error) {
+func (s *Server) processStreamingRPC(t transport.ServerTransport, stream *transport.Stream, srv *service, sd *StreamDesc, trInfo *traceInfo) (err error) {
 	ss := &serverStream{
-		t:       t,
-		s:       stream,
-		p:       &parser{s: stream},
-		codec:   s.opts.codec,
-		tracing: EnableTracing,
+		t:      t,
+		s:      stream,
+		p:      &parser{s: stream},
+		codec:  s.opts.codec,
+		trInfo: trInfo,
 	}
-	if ss.tracing {
-		ss.traceInfo.tr = stream.Trace()
-		ss.traceInfo.firstLine.client = false
-		ss.traceInfo.firstLine.remoteAddr = t.RemoteAddr()
-		if dl, ok := stream.Context().Deadline(); ok {
-			ss.traceInfo.firstLine.deadline = dl.Sub(time.Now())
-		}
-		ss.traceInfo.tr.LazyLog(&ss.traceInfo.firstLine, false)
+	if trInfo != nil {
+		trInfo.tr.LazyLog(&trInfo.firstLine, false)
 		defer func() {
 			ss.mu.Lock()
 			if err != nil && err != io.EOF {
-				ss.traceInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
-				ss.traceInfo.tr.SetError()
+				trInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
+				trInfo.tr.SetError()
 			}
-			ss.traceInfo.tr.Finish()
-			ss.traceInfo.tr = nil
+			trInfo.tr.Finish()
+			trInfo.tr = nil
 			ss.mu.Unlock()
 		}()
 	}
@@ -421,13 +427,13 @@
 			ss.statusDesc = appErr.Error()
 		}
 	}
-	if ss.tracing {
+	if trInfo != nil {
 		ss.mu.Lock()
 		if ss.statusCode != codes.OK {
-			ss.traceInfo.tr.LazyLog(stringer(ss.statusDesc), true)
-			ss.traceInfo.tr.SetError()
+			trInfo.tr.LazyLog(stringer(ss.statusDesc), true)
+			trInfo.tr.SetError()
 		} else {
-			ss.traceInfo.tr.LazyLog(stringer("OK"), false)
+			trInfo.tr.LazyLog(stringer("OK"), false)
 		}
 		ss.mu.Unlock()
 	}
@@ -435,7 +441,7 @@
 
 }
 
-func (s *Server) handleStream(t transport.ServerTransport, stream *transport.Stream) {
+func (s *Server) handleStream(t transport.ServerTransport, stream *transport.Stream, trInfo *traceInfo) {
 	sm := stream.Method()
 	if sm != "" && sm[0] == '/' {
 		sm = sm[1:]
@@ -458,11 +464,11 @@
 	}
 	// Unary RPC or Streaming RPC?
 	if md, ok := srv.md[method]; ok {
-		s.processUnaryRPC(t, stream, srv, md)
+		s.processUnaryRPC(t, stream, srv, md, trInfo)
 		return
 	}
 	if sd, ok := srv.sd[method]; ok {
-		s.processStreamingRPC(t, stream, srv, sd)
+		s.processStreamingRPC(t, stream, srv, sd, trInfo)
 		return
 	}
 	if err := t.WriteStatus(stream, codes.Unimplemented, fmt.Sprintf("unknown method %v", method)); err != nil {
diff --git a/stream.go b/stream.go
index 28938a3..21c51e8 100644
--- a/stream.go
+++ b/stream.go
@@ -126,13 +126,13 @@
 		tracing: EnableTracing,
 	}
 	if cs.tracing {
-		cs.traceInfo.tr = trace.New("grpc.Sent."+transport.MethodFamily(method), method)
-		cs.traceInfo.firstLine.client = true
+		cs.trInfo.tr = trace.New("grpc.Sent."+methodFamily(method), method)
+		cs.trInfo.firstLine.client = true
 		if deadline, ok := ctx.Deadline(); ok {
-			cs.traceInfo.firstLine.deadline = deadline.Sub(time.Now())
+			cs.trInfo.firstLine.deadline = deadline.Sub(time.Now())
 		}
-		cs.traceInfo.tr.LazyLog(&cs.traceInfo.firstLine, false)
-		ctx = trace.NewContext(ctx, cs.traceInfo.tr)
+		cs.trInfo.tr.LazyLog(&cs.trInfo.firstLine, false)
+		ctx = trace.NewContext(ctx, cs.trInfo.tr)
 	}
 	s, err := t.NewStream(ctx, callHdr)
 	if err != nil {
@@ -154,10 +154,10 @@
 
 	tracing bool // set to EnableTracing when the clientStream is created.
 
-	mu sync.Mutex // protects traceInfo
-	// traceInfo.tr is set when the clientStream is created (if EnableTracing is true),
+	mu sync.Mutex // protects trInfo.tr
+	// trInfo.tr is set when the clientStream is created (if EnableTracing is true),
 	// and is set to nil when the clientStream's finish method is called.
-	traceInfo traceInfo
+	trInfo traceInfo
 }
 
 func (cs *clientStream) Context() context.Context {
@@ -181,8 +181,8 @@
 func (cs *clientStream) SendMsg(m interface{}) (err error) {
 	if cs.tracing {
 		cs.mu.Lock()
-		if cs.traceInfo.tr != nil {
-			cs.traceInfo.tr.LazyLog(&payload{sent: true, msg: m}, true)
+		if cs.trInfo.tr != nil {
+			cs.trInfo.tr.LazyLog(&payload{sent: true, msg: m}, true)
 		}
 		cs.mu.Unlock()
 	}
@@ -213,8 +213,8 @@
 	if err == nil {
 		if cs.tracing {
 			cs.mu.Lock()
-			if cs.traceInfo.tr != nil {
-				cs.traceInfo.tr.LazyLog(&payload{sent: false, msg: m}, true)
+			if cs.trInfo.tr != nil {
+				cs.trInfo.tr.LazyLog(&payload{sent: false, msg: m}, true)
 			}
 			cs.mu.Unlock()
 		}
@@ -266,15 +266,15 @@
 	}
 	cs.mu.Lock()
 	defer cs.mu.Unlock()
-	if cs.traceInfo.tr != nil {
+	if cs.trInfo.tr != nil {
 		if err == nil || err == io.EOF {
-			cs.traceInfo.tr.LazyPrintf("RPC: [OK]")
+			cs.trInfo.tr.LazyPrintf("RPC: [OK]")
 		} else {
-			cs.traceInfo.tr.LazyPrintf("RPC: [%v]", err)
-			cs.traceInfo.tr.SetError()
+			cs.trInfo.tr.LazyPrintf("RPC: [%v]", err)
+			cs.trInfo.tr.SetError()
 		}
-		cs.traceInfo.tr.Finish()
-		cs.traceInfo.tr = nil
+		cs.trInfo.tr.Finish()
+		cs.trInfo.tr = nil
 	}
 }
 
@@ -298,13 +298,9 @@
 	codec      Codec
 	statusCode codes.Code
 	statusDesc string
+	trInfo     *traceInfo
 
-	tracing bool // set to EnableTracing when the serverStream is created.
-
-	mu sync.Mutex // protects traceInfo
-	// traceInfo.tr is set when the serverStream is created (if EnableTracing is true),
-	// and is set to nil when the serverStream's finish method is called.
-	traceInfo traceInfo
+	mu sync.Mutex // protects trInfo.tr after the service handler runs.
 }
 
 func (ss *serverStream) Context() context.Context {
@@ -325,13 +321,15 @@
 
 func (ss *serverStream) SendMsg(m interface{}) (err error) {
 	defer func() {
-		if ss.tracing {
+		if ss.trInfo != nil {
 			ss.mu.Lock()
-			if err == nil {
-				ss.traceInfo.tr.LazyLog(&payload{sent: true, msg: m}, true)
-			} else {
-				ss.traceInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
-				ss.traceInfo.tr.SetError()
+			if ss.trInfo.tr != nil {
+				if err == nil {
+					ss.trInfo.tr.LazyLog(&payload{sent: true, msg: m}, true)
+				} else {
+					ss.trInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
+					ss.trInfo.tr.SetError()
+				}
 			}
 			ss.mu.Unlock()
 		}
@@ -346,13 +344,15 @@
 
 func (ss *serverStream) RecvMsg(m interface{}) (err error) {
 	defer func() {
-		if ss.tracing {
+		if ss.trInfo != nil {
 			ss.mu.Lock()
-			if err == nil {
-				ss.traceInfo.tr.LazyLog(&payload{sent: false, msg: m}, true)
-			} else if err != io.EOF {
-				ss.traceInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
-				ss.traceInfo.tr.SetError()
+			if ss.trInfo.tr != nil {
+				if err == nil {
+					ss.trInfo.tr.LazyLog(&payload{sent: false, msg: m}, true)
+				} else if err != io.EOF {
+					ss.trInfo.tr.LazyLog(&fmtStringer{"%v", []interface{}{err}}, true)
+					ss.trInfo.tr.SetError()
+				}
 			}
 			ss.mu.Unlock()
 		}
diff --git a/trace.go b/trace.go
index 9b88444..cde04fb 100644
--- a/trace.go
+++ b/trace.go
@@ -38,6 +38,7 @@
 	"fmt"
 	"io"
 	"net"
+	"strings"
 	"time"
 
 	"golang.org/x/net/trace"
@@ -47,6 +48,19 @@
 // This should only be set before any RPCs are sent or received by this program.
 var EnableTracing = true
 
+// methodFamily returns the trace family for the given method.
+// It turns "/pkg.Service/GetFoo" into "pkg.Service".
+func methodFamily(m string) string {
+	m = strings.TrimPrefix(m, "/") // remove leading slash
+	if i := strings.Index(m, "/"); i >= 0 {
+		m = m[:i] // remove everything from second slash
+	}
+	if i := strings.LastIndex(m, "."); i >= 0 {
+		m = m[i+1:] // cut down to last dotted component
+	}
+	return m
+}
+
 // traceInfo contains tracing information for an RPC.
 type traceInfo struct {
 	tr        trace.Trace
diff --git a/transport/http2_server.go b/transport/http2_server.go
index 89371c2..52d0ee5 100644
--- a/transport/http2_server.go
+++ b/transport/http2_server.go
@@ -45,7 +45,6 @@
 	"golang.org/x/net/context"
 	"golang.org/x/net/http2"
 	"golang.org/x/net/http2/hpack"
-	"golang.org/x/net/trace"
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/credentials"
 	"google.golang.org/grpc/grpclog"
@@ -81,8 +80,6 @@
 	fc         *inFlow
 	// sendQuotaPool provides flow control to outbound message.
 	sendQuotaPool *quotaPool
-	// tracing indicates whether tracing is on for this http2Server transport.
-	tracing bool
 
 	mu            sync.Mutex // guard the following
 	state         transportState
@@ -93,7 +90,7 @@
 
 // newHTTP2Server constructs a ServerTransport based on HTTP2. ConnectionError is
 // returned if something goes wrong.
-func newHTTP2Server(conn net.Conn, maxStreams uint32, authInfo credentials.AuthInfo, tracing bool) (_ ServerTransport, err error) {
+func newHTTP2Server(conn net.Conn, maxStreams uint32, authInfo credentials.AuthInfo) (_ ServerTransport, err error) {
 	framer := newFramer(conn)
 	// Send initial settings as connection preface to client.
 	var settings []http2.Setting
@@ -118,16 +115,15 @@
 	}
 	var buf bytes.Buffer
 	t := &http2Server{
-		conn:            conn,
-		authInfo:        authInfo,
-		framer:          framer,
-		hBuf:            &buf,
-		hEnc:            hpack.NewEncoder(&buf),
-		maxStreams:      maxStreams,
-		controlBuf:      newRecvBuffer(),
-		fc:              &inFlow{limit: initialConnWindowSize},
-		sendQuotaPool:   newQuotaPool(defaultWindowSize),
-		tracing:         tracing,
+		conn:          conn,
+		authInfo:      authInfo,
+		framer:        framer,
+		hBuf:          &buf,
+		hEnc:          hpack.NewEncoder(&buf),
+		maxStreams:    maxStreams,
+		controlBuf:    newRecvBuffer(),
+		fc:            &inFlow{limit: initialConnWindowSize},
+		sendQuotaPool: newQuotaPool(defaultWindowSize),
 		state:           reachable,
 		writableChan:    make(chan int, 1),
 		shutdownChan:    make(chan struct{}),
@@ -142,7 +138,7 @@
 // operateHeader takes action on the decoded headers. It returns the current
 // stream if there are remaining headers on the wire (in the following
 // Continuation frame).
-func (t *http2Server) operateHeaders(hDec *hpackDecoder, s *Stream, frame headerFrame, endStream bool, handle func(*Stream), wg *sync.WaitGroup) (pendingStream *Stream) {
+func (t *http2Server) operateHeaders(hDec *hpackDecoder, s *Stream, frame headerFrame, endStream bool, handle func(*Stream)) (pendingStream *Stream) {
 	defer func() {
 		if pendingStream == nil {
 			hDec.state = decodeState{}
@@ -206,15 +202,7 @@
 		recv: s.buf,
 	}
 	s.method = hDec.state.method
-	if t.tracing {
-		s.tr = trace.New("grpc.Recv."+MethodFamily(s.method), s.method)
-		s.ctx = trace.NewContext(s.ctx, s.tr)
-	}
-	wg.Add(1)
-	go func() {
-		handle(s)
-		wg.Done()
-	}()
+	handle(s)
 	return nil
 }
 
@@ -250,8 +238,6 @@
 
 	hDec := newHPACKDecoder()
 	var curStream *Stream
-	var wg sync.WaitGroup
-	defer wg.Wait()
 	for {
 		frame, err := t.framer.readFrame()
 		if err != nil {
@@ -280,9 +266,9 @@
 				fc:  fc,
 			}
 			endStream := frame.Header().Flags.Has(http2.FlagHeadersEndStream)
-			curStream = t.operateHeaders(hDec, curStream, frame, endStream, handle, &wg)
+			curStream = t.operateHeaders(hDec, curStream, frame, endStream, handle)
 		case *http2.ContinuationFrame:
-			curStream = t.operateHeaders(hDec, curStream, frame, false, handle, &wg)
+			curStream = t.operateHeaders(hDec, curStream, frame, false, handle)
 		case *http2.DataFrame:
 			t.handleData(frame)
 		case *http2.RSTStreamFrame:
diff --git a/transport/transport.go b/transport/transport.go
index 93efeae..e1e7f57 100644
--- a/transport/transport.go
+++ b/transport/transport.go
@@ -43,7 +43,6 @@
 	"fmt"
 	"io"
 	"net"
-	"strings"
 	"sync"
 	"time"
 
@@ -54,19 +53,6 @@
 	"google.golang.org/grpc/metadata"
 )
 
-// MethodFamily returns the trace family for the given method.
-// It turns "/pkg.Service/GetFoo" into "pkg.Service".
-func MethodFamily(m string) string {
-	m = strings.TrimPrefix(m, "/") // remove leading slash
-	if i := strings.Index(m, "/"); i >= 0 {
-		m = m[:i] // remove everything from second slash
-	}
-	if i := strings.LastIndex(m, "."); i >= 0 {
-		m = m[i+1:] // cut down to last dotted component
-	}
-	return m
-}
-
 // recvMsg represents the received msg from the transport. All transport
 // protocol specific info has been removed.
 type recvMsg struct {
@@ -213,8 +199,6 @@
 	// the status received from the server.
 	statusCode codes.Code
 	statusDesc string
-	// tracing information
-	tr trace.Trace
 }
 
 // Header acquires the key-value pairs of header metadata once it
@@ -249,9 +233,9 @@
 	return s.ctx
 }
 
-// Trace returns the trace.Trace of the stream.
-func (s *Stream) Trace() trace.Trace {
-	return s.tr
+// TraceContext recreates the context of s with a trace.Trace.
+func (s *Stream) TraceContext(tr trace.Trace) {
+	s.ctx = trace.NewContext(s.ctx, tr)
 }
 
 // Method returns the method for the stream.
@@ -330,8 +314,8 @@
 
 // NewServerTransport creates a ServerTransport with conn or non-nil error
 // if it fails.
-func NewServerTransport(protocol string, conn net.Conn, maxStreams uint32, authInfo credentials.AuthInfo, tracing bool) (ServerTransport, error) {
-	return newHTTP2Server(conn, maxStreams, authInfo, tracing)
+func NewServerTransport(protocol string, conn net.Conn, maxStreams uint32, authInfo credentials.AuthInfo) (ServerTransport, error) {
+	return newHTTP2Server(conn, maxStreams, authInfo)
 }
 
 // ConnectOptions covers all relevant options for dialing a server.
diff --git a/transport/transport_test.go b/transport/transport_test.go
index 70d345a..9bf3ed3 100644
--- a/transport/transport_test.go
+++ b/transport/transport_test.go
@@ -100,7 +100,9 @@
 
 // handleStreamSuspension blocks until s.ctx is canceled.
 func (h *testStreamHandler) handleStreamSuspension(s *Stream) {
-	<-s.ctx.Done()
+	go func() {
+		<-s.ctx.Done()
+	}()
 }
 
 func (h *testStreamHandler) handleStreamMisbehave(t *testing.T, s *Stream) {
@@ -150,7 +152,7 @@
 		if err != nil {
 			return
 		}
-		transport, err := NewServerTransport("http2", conn, maxStreams, nil, false)
+		transport, err := NewServerTransport("http2", conn, maxStreams, nil)
 		if err != nil {
 			return
 		}
@@ -168,11 +170,11 @@
 			go transport.HandleStreams(h.handleStreamSuspension)
 		case misbehaved:
 			go transport.HandleStreams(func(s *Stream) {
-				h.handleStreamMisbehave(t, s)
+				go h.handleStreamMisbehave(t, s)
 			})
 		default:
 			go transport.HandleStreams(func(s *Stream) {
-				h.handleStream(t, s)
+				go h.handleStream(t, s)
 			})
 		}
 	}