diff --git a/v2/client/client_test.go b/v2/client/client_test.go
index e9fd21ea5..ad0c6bca9 100644
--- a/v2/client/client_test.go
+++ b/v2/client/client_test.go
@@ -12,10 +12,12 @@ import (
 	"fmt"
 	"io/ioutil"
 	"log"
+	"net"
 	"net/http"
 	"net/http/httptest"
 	"net/url"
 	"strings"
+	"sync"
 	"testing"
 	"time"
 
@@ -357,6 +359,48 @@ func TestClientReceive(t *testing.T) {
 	}
 }
 
+func TestClientContext(t *testing.T) {
+	listener, err := net.Listen("tcp", ":0")
+	if err != nil {
+		t.Fatalf("error creating listener: %v", err)
+	}
+	defer listener.Close()
+	type key string
+
+	c, err := client.NewHTTP(cehttp.WithListener(listener), cehttp.WithMiddleware(func(next http.Handler) http.Handler {
+		return http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+			ctx := context.WithValue(r.Context(), key("inner"), "bar")
+			next.ServeHTTP(w, r.WithContext(ctx))
+		})
+	}))
+
+	if err != nil {
+		t.Fatalf("error creating client: %v", err)
+	}
+	var wg sync.WaitGroup
+	wg.Add(1)
+	handler := func(ctx context.Context) {
+		if v := ctx.Value(key("outer")); v != "foo" {
+			t.Errorf("expected context to have outer value, got %v", v)
+		}
+		if v := ctx.Value(key("inner")); v != "bar" {
+			t.Errorf("expected context to have inner value, got %v", v)
+		}
+		wg.Done()
+	}
+	go func() {
+		c.StartReceiver(context.WithValue(context.Background(), key("outer"), "foo"), handler)
+	}()
+
+	body := strings.NewReader(`{"data":{"msg":"hello","sq":"42"},"datacontenttype":"application/json","id":"AABBCCDDEE","source":"/unit/test/client","specversion":"0.3","time":%q,"type":"unit.test.client"}`)
+	resp, err := http.Post(fmt.Sprintf("http://%s", listener.Addr().String()), "application/cloudevents+json", body)
+	if err != nil {
+		t.Errorf("err sending request, response: %v, err: %v", resp, err)
+	}
+
+	wg.Wait()
+}
+
 type requestValidation struct {
 	Host    string
 	Headers http.Header
diff --git a/v2/client/invoker.go b/v2/client/invoker.go
index a3a83016c..403fb0f55 100644
--- a/v2/client/invoker.go
+++ b/v2/client/invoker.go
@@ -128,7 +128,7 @@ func (r *receiveInvoker) IsResponder() bool {
 func computeInboundContext(message binding.Message, fallback context.Context, inboundContextDecorators []func(context.Context, binding.Message) context.Context) context.Context {
 	result := fallback
 	if mctx, ok := message.(binding.MessageContext); ok {
-		result = mctx.Context()
+		result = cecontext.ValuesDelegating(mctx.Context(), fallback)
 	}
 	for _, f := range inboundContextDecorators {
 		result = f(result, message)
diff --git a/v2/context/delegating.go b/v2/context/delegating.go
new file mode 100644
index 000000000..434a4da7a
--- /dev/null
+++ b/v2/context/delegating.go
@@ -0,0 +1,25 @@
+package context
+
+import "context"
+
+type valuesDelegating struct {
+	context.Context
+	parent context.Context
+}
+
+// ValuesDelegating wraps a child and parent context. It will perform Value()
+// lookups first on the child, and then fall back to the child. All other calls
+// go solely to the child context.
+func ValuesDelegating(child, parent context.Context) context.Context {
+	return &valuesDelegating{
+		Context: child,
+		parent:  parent,
+	}
+}
+
+func (c *valuesDelegating) Value(key interface{}) interface{} {
+	if val := c.Context.Value(key); val != nil {
+		return val
+	}
+	return c.parent.Value(key)
+}
diff --git a/v2/context/delegating_test.go b/v2/context/delegating_test.go
new file mode 100644
index 000000000..62ad004f9
--- /dev/null
+++ b/v2/context/delegating_test.go
@@ -0,0 +1,78 @@
+package context
+
+import (
+	"context"
+	"testing"
+
+	"github.com/google/go-cmp/cmp"
+	"github.com/google/go-cmp/cmp/cmpopts"
+)
+
+func TestValuesDelegating(t *testing.T) {
+	type key string
+	tests := []struct {
+		name   string
+		child  context.Context
+		parent context.Context
+		assert func(*testing.T, context.Context)
+	}{
+		{
+			name:   "it delegates to child first",
+			child:  context.WithValue(context.Background(), key("foo"), "foo"),
+			parent: context.WithValue(context.Background(), key("foo"), "bar"),
+			assert: func(t *testing.T, c context.Context) {
+				if v := c.Value(key("foo")); v != "foo" {
+					t.Errorf("expected child value, got %s", v)
+				}
+			},
+		},
+		{
+			name:   "it delegates to parent if missing from child",
+			child:  context.Background(),
+			parent: context.WithValue(context.Background(), key("foo"), "foo"),
+			assert: func(t *testing.T, c context.Context) {
+				if v := c.Value(key("foo")); v != "foo" {
+					t.Errorf("expected parent value, got %s", v)
+				}
+			},
+		},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := ValuesDelegating(tt.child, tt.parent)
+			tt.assert(t, got)
+		})
+	}
+}
+func TestValuesDelegatingDelegatesOtherwiseToChild(t *testing.T) {
+	parent, parentCancel := context.WithCancel(context.Background())
+	child, childCancel := context.WithCancel(context.Background())
+	derived := ValuesDelegating(child, parent)
+
+	ch := make(chan string)
+	go func() {
+		<-derived.Done()
+		ch <- "derived"
+	}()
+	go func() {
+		<-child.Done()
+		ch <- "child"
+	}()
+	go func() {
+		<-parent.Done()
+		ch <- "parent"
+	}()
+
+	parentCancel()
+	v1 := <-ch
+	if v1 != "parent" {
+		t.Errorf("cancelling parent should not cancel child or derived: %s", v1)
+	}
+	childCancel()
+	v2 := <-ch
+	v3 := <-ch
+	diff := cmp.Diff([]string{"derived", "child"}, []string{v2, v3}, cmpopts.SortSlices(func(a, b string) bool { return a < b }))
+	if diff != "" {
+		t.Errorf("unexpected (-want, +got) = %v", diff)
+	}
+}