diff --git a/core/src/main/java/io/grpc/internal/RetriableStream.java b/core/src/main/java/io/grpc/internal/RetriableStream.java
index ab85ec1bdb5..7f1b41cb2d1 100644
--- a/core/src/main/java/io/grpc/internal/RetriableStream.java
+++ b/core/src/main/java/io/grpc/internal/RetriableStream.java
@@ -282,14 +282,12 @@ private void drain(Substream substream) {
 
       synchronized (lock) {
         savedState = state;
-        if (streamStarted) {
-          if (savedState.winningSubstream != null && savedState.winningSubstream != substream) {
-            // committed but not me, to be cancelled
-            break;
-          }
-          if (savedState.cancelled) {
-            break;
-          }
+        if (savedState.winningSubstream != null && savedState.winningSubstream != substream) {
+          // committed but not me, to be cancelled
+          break;
+        }
+        if (savedState.cancelled) {
+          break;
         }
         if (index == savedState.buffer.size()) { // I'm drained
           state = savedState.substreamDrained(substream);
@@ -326,15 +324,13 @@ public void run() {
         if (bufferEntry instanceof RetriableStream.StartEntry) {
           streamStarted = true;
         }
-        if (streamStarted) {
-          savedState = state;
-          if (savedState.winningSubstream != null && savedState.winningSubstream != substream) {
-            // committed but not me, to be cancelled
-            break;
-          }
-          if (savedState.cancelled) {
-            break;
-          }
+        savedState = state;
+        if (savedState.winningSubstream != null && savedState.winningSubstream != substream) {
+          // committed but not me, to be cancelled
+          break;
+        }
+        if (savedState.cancelled) {
+          break;
         }
       }
     }
@@ -344,6 +340,10 @@ public void run() {
       return;
     }
 
+    if (!streamStarted) {
+      // Start stream so inFlightSubStreams is decremented in Sublistener.closed()
+      substream.stream.start(new Sublistener(substream));
+    }
     substream.stream.cancel(
         state.winningSubstream == substream ? cancellationStatus : CANCELLED_BECAUSE_COMMITTED);
   }
@@ -484,6 +484,8 @@ public void run() {
               }
 
               if (cancelled) {
+                // Start stream so inFlightSubStreams is decremented in Sublistener.closed()
+                newSubstream.stream.start(new Sublistener(newSubstream));
                 newSubstream.stream.cancel(Status.CANCELLED.withDescription("Unneeded hedging"));
                 return;
               }
@@ -507,6 +509,9 @@ public final void cancel(final Status reason) {
     Runnable runnable = commit(noopSubstream);
 
     if (runnable != null) {
+      synchronized (lock) {
+        state = state.substreamDrained(noopSubstream);
+      }
       runnable.run();
       safeCloseMasterListener(reason, RpcProgress.PROCESSED, new Metadata());
       return;
diff --git a/core/src/test/java/io/grpc/internal/RetriableStreamTest.java b/core/src/test/java/io/grpc/internal/RetriableStreamTest.java
index bbbf36d37c5..e14e71cb2aa 100644
--- a/core/src/test/java/io/grpc/internal/RetriableStreamTest.java
+++ b/core/src/test/java/io/grpc/internal/RetriableStreamTest.java
@@ -188,7 +188,7 @@ Status prestart() {
     }
   }
 
-  private final RetriableStream<String> retriableStream =
+  private RetriableStream<String> retriableStream =
       newThrottledRetriableStream(null /* throttle */);
   private final RetriableStream<String> hedgingStream =
       newThrottledHedgingStream(null /* throttle */);
@@ -196,10 +196,13 @@ Status prestart() {
   private ClientStreamTracer bufferSizeTracer;
 
   private RetriableStream<String> newThrottledRetriableStream(Throttle throttle) {
+    return newThrottledRetriableStream(throttle, MoreExecutors.directExecutor());
+  }
+
+  private RetriableStream<String> newThrottledRetriableStream(Throttle throttle, Executor drainer) {
     return new RecordedRetriableStream(
         method, new Metadata(), channelBufferUsed, PER_RPC_BUFFER_LIMIT, CHANNEL_BUFFER_LIMIT,
-        MoreExecutors.directExecutor(), fakeClock.getScheduledExecutorService(), RETRY_POLICY,
-        null, throttle);
+        drainer, fakeClock.getScheduledExecutorService(), RETRY_POLICY, null, throttle);
   }
 
   private RetriableStream<String> newThrottledHedgingStream(Throttle throttle) {
@@ -598,6 +601,44 @@ public void retry_cancel_closed() {
     inOrder.verify(retriableStreamRecorder, never()).postCommit();
   }
 
+  @Test
+  public void transparentRetry_cancel_race() {
+    FakeClock drainer = new FakeClock();
+    retriableStream = newThrottledRetriableStream(null, drainer.getScheduledExecutorService());
+    ClientStream mockStream1 = mock(ClientStream.class);
+    doReturn(mockStream1).when(retriableStreamRecorder).newSubstream(0);
+    InOrder inOrder = inOrder(retriableStreamRecorder);
+
+    retriableStream.start(masterListener);
+
+    ArgumentCaptor<ClientStreamListener> sublistenerCaptor1 =
+        ArgumentCaptor.forClass(ClientStreamListener.class);
+    verify(mockStream1).start(sublistenerCaptor1.capture());
+
+    // retry, but don't drain
+    ClientStream mockStream2 = mock(ClientStream.class);
+    doReturn(mockStream2).when(retriableStreamRecorder).newSubstream(0);
+    sublistenerCaptor1.getValue().closed(
+        Status.fromCode(NON_RETRIABLE_STATUS_CODE), MISCARRIED, new Metadata());
+    assertEquals(1, drainer.numPendingTasks());
+
+    // cancel
+    retriableStream.cancel(Status.CANCELLED);
+    // drain transparent retry
+    drainer.runDueTasks();
+    inOrder.verify(retriableStreamRecorder).postCommit();
+
+    ArgumentCaptor<ClientStreamListener> sublistenerCaptor2 =
+        ArgumentCaptor.forClass(ClientStreamListener.class);
+    verify(mockStream2).start(sublistenerCaptor2.capture());
+    ArgumentCaptor<Status> statusCaptor = ArgumentCaptor.forClass(Status.class);
+    verify(mockStream2).cancel(statusCaptor.capture());
+    assertEquals(Status.CANCELLED.getCode(), statusCaptor.getValue().getCode());
+    assertEquals(CANCELLED_BECAUSE_COMMITTED, statusCaptor.getValue().getDescription());
+    sublistenerCaptor2.getValue().closed(statusCaptor.getValue(), PROCESSED, new Metadata());
+    verify(masterListener).closed(same(Status.CANCELLED), same(PROCESSED), any(Metadata.class));
+  }
+
   @Test
   public void unretriableClosed_cancel() {
     ClientStream mockStream1 = mock(ClientStream.class);