diff --git a/internal/transport/controlbuf.go b/internal/transport/controlbuf.go
index b8e0aa4db275..ddee20b6bef2 100644
--- a/internal/transport/controlbuf.go
+++ b/internal/transport/controlbuf.go
@@ -107,8 +107,8 @@ func (*registerStream) isTransportResponseFrame() bool { return false }
 type headerFrame struct {
 	streamID   uint32
 	hf         []hpack.HeaderField
-	endStream  bool                       // Valid on server side.
-	initStream func(uint32) (bool, error) // Used only on the client side.
+	endStream  bool               // Valid on server side.
+	initStream func(uint32) error // Used only on the client side.
 	onWrite    func()
 	wq         *writeQuota    // write quota for the stream created.
 	cleanup    *cleanupStream // Valid on the server side.
@@ -637,21 +637,17 @@ func (l *loopyWriter) headerHandler(h *headerFrame) error {
 
 func (l *loopyWriter) originateStream(str *outStream) error {
 	hdr := str.itl.dequeue().(*headerFrame)
-	sendPing, err := hdr.initStream(str.id)
-	if err != nil {
+	if err := hdr.initStream(str.id); err != nil {
 		if err == ErrConnClosing {
 			return err
 		}
 		// Other errors(errStreamDrain) need not close transport.
 		return nil
 	}
-	if err = l.writeHeader(str.id, hdr.endStream, hdr.hf, hdr.onWrite); err != nil {
+	if err := l.writeHeader(str.id, hdr.endStream, hdr.hf, hdr.onWrite); err != nil {
 		return err
 	}
 	l.estdStreams[str.id] = str
-	if sendPing {
-		return l.pingHandler(&ping{data: [8]byte{}})
-	}
 	return nil
 }
 
diff --git a/internal/transport/http2_client.go b/internal/transport/http2_client.go
index 39ab5c075a61..9bd8c27b3655 100644
--- a/internal/transport/http2_client.go
+++ b/internal/transport/http2_client.go
@@ -62,8 +62,6 @@ type http2Client struct {
 	// goAway is closed to notify the upper layer (i.e., addrConn.transportMonitor)
 	// that the server sent GoAway on this transport.
 	goAway chan struct{}
-	// awakenKeepalive is used to wake up keepalive when after it has gone dormant.
-	awakenKeepalive chan struct{}
 
 	framer *framer
 	// controlBuf delivers all the control related tasks (e.g., window
@@ -110,6 +108,16 @@ type http2Client struct {
 	// goAwayReason records the http2.ErrCode and debug data received with the
 	// GoAway frame.
 	goAwayReason GoAwayReason
+	// A condition variable used to signal when the keepalive goroutine should
+	// go dormant. The condition for dormancy is based on the number of active
+	// streams and the `PermitWithoutStream` keepalive client parameter. And
+	// since the number of active streams is guarded by the above mutex, we use
+	// the same for this condition variable as well.
+	kpDormancyCond *sync.Cond
+	// A boolean to track whether the keepalive goroutine is dormant or not.
+	// This is checked before attempting to signal the above condition
+	// variable.
+	kpDormant bool
 
 	// Fields below are for channelz metric collection.
 	channelzID int64 // channelz unique identification number
@@ -232,7 +240,6 @@ func newHTTP2Client(connectCtx, ctx context.Context, addr TargetInfo, opts Conne
 		readerDone:            make(chan struct{}),
 		writerDone:            make(chan struct{}),
 		goAway:                make(chan struct{}),
-		awakenKeepalive:       make(chan struct{}, 1),
 		framer:                newFramer(conn, writeBufSize, readBufSize, maxHeaderListSize),
 		fc:                    &trInFlow{limit: uint32(icwz)},
 		scheme:                scheme,
@@ -264,9 +271,6 @@ func newHTTP2Client(connectCtx, ctx context.Context, addr TargetInfo, opts Conne
 			updateFlowControl: t.updateFlowControl,
 		}
 	}
-	// Make sure awakenKeepalive can't be written upon.
-	// keepalive routine will make it writable, if need be.
-	t.awakenKeepalive <- struct{}{}
 	if t.statsHandler != nil {
 		t.ctx = t.statsHandler.TagConn(t.ctx, &stats.ConnTagInfo{
 			RemoteAddr: t.remoteAddr,
@@ -281,6 +285,7 @@ func newHTTP2Client(connectCtx, ctx context.Context, addr TargetInfo, opts Conne
 		t.channelzID = channelz.RegisterNormalSocket(t, opts.ChannelzParentID, fmt.Sprintf("%s -> %s", t.localAddr, t.remoteAddr))
 	}
 	if t.keepaliveEnabled {
+		t.kpDormancyCond = sync.NewCond(&t.mu)
 		go t.keepalive()
 	}
 	// Start the reader goroutine for incoming message. Each transport has
@@ -564,7 +569,7 @@ func (t *http2Client) NewStream(ctx context.Context, callHdr *CallHdr) (_ *Strea
 	hdr := &headerFrame{
 		hf:        headerFields,
 		endStream: false,
-		initStream: func(id uint32) (bool, error) {
+		initStream: func(id uint32) error {
 			t.mu.Lock()
 			if state := t.state; state != reachable {
 				t.mu.Unlock()
@@ -574,29 +579,19 @@ func (t *http2Client) NewStream(ctx context.Context, callHdr *CallHdr) (_ *Strea
 					err = ErrConnClosing
 				}
 				cleanup(err)
-				return false, err
+				return err
 			}
 			t.activeStreams[id] = s
 			if channelz.IsOn() {
 				atomic.AddInt64(&t.czData.streamsStarted, 1)
 				atomic.StoreInt64(&t.czData.lastStreamCreatedTime, time.Now().UnixNano())
 			}
-			var sendPing bool
-			// If the number of active streams change from 0 to 1, then check if keepalive
-			// has gone dormant. If so, wake it up.
-			if len(t.activeStreams) == 1 && t.keepaliveEnabled {
-				select {
-				case t.awakenKeepalive <- struct{}{}:
-					sendPing = true
-					// Fill the awakenKeepalive channel again as this channel must be
-					// kept non-writable except at the point that the keepalive()
-					// goroutine is waiting either to be awaken or shutdown.
-					t.awakenKeepalive <- struct{}{}
-				default:
-				}
+			// If the keepalive goroutine has gone dormant, wake it up.
+			if t.kpDormant {
+				t.kpDormancyCond.Signal()
 			}
 			t.mu.Unlock()
-			return sendPing, nil
+			return nil
 		},
 		onOrphaned: cleanup,
 		wq:         s.wq,
@@ -778,6 +773,11 @@ func (t *http2Client) Close() error {
 	t.state = closing
 	streams := t.activeStreams
 	t.activeStreams = nil
+	if t.kpDormant {
+		// If the keepalive goroutine is blocked on this condition variable, we
+		// should unblock it so that the goroutine eventually exits.
+		t.kpDormancyCond.Signal()
+	}
 	t.mu.Unlock()
 	t.controlBuf.finish()
 	t.cancel()
@@ -1303,29 +1303,32 @@ func (t *http2Client) keepalive() {
 				timer.Reset(t.kp.Time)
 				continue
 			}
-			// Check if keepalive should go dormant.
 			t.mu.Lock()
-			if len(t.activeStreams) < 1 && !t.kp.PermitWithoutStream {
-				// Make awakenKeepalive writable.
-				<-t.awakenKeepalive
+			if t.state == closing {
+				// If the transport is closing, we should exit from the
+				// keepalive goroutine here. If not, we could have a race
+				// between the call to Signal() from Close() and the call to
+				// Wait() here, whereby the keepalive goroutine ends up
+				// blocking on the condition variable which will never be
+				// signalled again.
 				t.mu.Unlock()
-				select {
-				case <-t.awakenKeepalive:
-					// If the control gets here a ping has been sent
-					// need to reset the timer with keepalive.Timeout.
-				case <-t.ctx.Done():
-					return
-				}
-			} else {
-				t.mu.Unlock()
-				if channelz.IsOn() {
-					atomic.AddInt64(&t.czData.kpCount, 1)
-				}
-				// Send ping.
-				t.controlBuf.put(p)
+				return
+			}
+			if len(t.activeStreams) < 1 && !t.kp.PermitWithoutStream {
+				t.kpDormant = true
+				t.kpDormancyCond.Wait()
+			}
+			t.kpDormant = false
+			t.mu.Unlock()
+
+			if channelz.IsOn() {
+				atomic.AddInt64(&t.czData.kpCount, 1)
 			}
+			// We get here either because we were dormant and a new stream was
+			// created which unblocked the Wait() call, or because the
+			// keepalive timer expired. In both cases, we need to send a ping.
+			t.controlBuf.put(p)
 
-			// By the time control gets here a ping has been sent one way or the other.
 			timer.Reset(t.kp.Timeout)
 			select {
 			case <-timer.C: