diff --git a/netty/src/main/java/io/grpc/netty/NettyServerHandler.java b/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
index 79715ca2996..58166f50f7e 100644
--- a/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
+++ b/netty/src/main/java/io/grpc/netty/NettyServerHandler.java
@@ -252,6 +252,7 @@ static NettyServerHandler newHandler(
         maxMessageSize);
 
     final Http2Connection connection = new DefaultHttp2Connection(true);
+    connection.remote().maxActiveStreams(maxStreams);
     UniformStreamByteDistributor dist = new UniformStreamByteDistributor(connection);
     dist.minAllocationChunk(MIN_ALLOCATED_CHUNK); // Increased for benchmarks performance.
     DefaultHttp2RemoteFlowController controller =
diff --git a/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java b/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
index 1c8d2b5479d..84a1a48b37f 100644
--- a/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
+++ b/netty/src/test/java/io/grpc/netty/NettyServerHandlerTest.java
@@ -454,6 +454,14 @@ public void shouldAdvertiseMaxConcurrentStreams() throws Exception {
     assertEquals(maxConcurrentStreams, captor.getValue().maxConcurrentStreams().longValue());
   }
 
+  @Test
+  public void connectionRemoteMaxActiveStreamsShouldBeEnforcedLocallyOnStartup() throws Exception {
+    maxConcurrentStreams = 314;
+    manualSetUp();
+
+    assertEquals(maxConcurrentStreams, connection().remote().maxActiveStreams());
+  }
+
   @Test
   public void shouldAdvertiseMaxHeaderListSize() throws Exception {
     maxHeaderListSize = 123;