diff --git a/internal/transport/transport.go b/internal/transport/transport.go
index bfab940bd0de..6aa2d7e671dd 100644
--- a/internal/transport/transport.go
+++ b/internal/transport/transport.go
@@ -285,6 +285,10 @@ type Stream struct {
 	contentSubtype string
 }
 
+func (s *Stream) ID() uint32 {
+	return s.id
+}
+
 // isHeaderSent is only valid on the server-side.
 func (s *Stream) isHeaderSent() bool {
 	return atomic.LoadUint32(&s.headerSent) == 1
diff --git a/server.go b/server.go
index ae369b71ab97..5b26d18a638b 100644
--- a/server.go
+++ b/server.go
@@ -712,15 +712,53 @@ func (s *Server) newHTTP2Transport(c net.Conn, authInfo credentials.AuthInfo) tr
 	return st
 }
 
+func floorCPUCount() uint32 {
+	n := uint32(runtime.NumCPU())
+	for i := uint32(1 << 31); i >= 2; i >>= 1 {
+		if n&i > 0 {
+			return i
+		}
+	}
+
+	return 1
+}
+
+// numWorkers defines the number of stream handling workers. After experiments
+// with different CPU counts, using the floor of the number of CPUs available
+// was found to be the number optimal for performance across the board (QPS,
+// latency).
+var numWorkers = floorCPUCount()
+
+// workerMask is used to perform bitwise AND operations instead of expensive
+// module operations on integers.
+var workerMask = numWorkers - 1
+
 func (s *Server) serveStreams(st transport.ServerTransport) {
 	defer st.Close()
 	var wg sync.WaitGroup
-	st.HandleStreams(func(stream *transport.Stream) {
-		wg.Add(1)
+
+	streamChannels := make([]chan *transport.Stream, numWorkers)
+	for i := range streamChannels {
+		ch := make(chan *transport.Stream)
 		go func() {
-			defer wg.Done()
-			s.handleStream(st, stream, s.traceInfo(st, stream))
+			for stream := range ch {
+				s.handleStream(st, stream, s.traceInfo(st, stream))
+				wg.Done()
+			}
 		}()
+		streamChannels[i] = ch
+	}
+
+	st.HandleStreams(func(stream *transport.Stream) {
+		wg.Add(1)
+		select {
+		case streamChannels[stream.ID() & workerMask] <- stream:
+		default:
+			go func() {
+				s.handleStream(st, stream, s.traceInfo(st, stream))
+				wg.Done()
+			}()
+		}
 	}, func(ctx context.Context, method string) context.Context {
 		if !EnableTracing {
 			return ctx
@@ -729,6 +767,10 @@ func (s *Server) serveStreams(st transport.ServerTransport) {
 		return trace.NewContext(ctx, tr)
 	})
 	wg.Wait()
+
+	for _, ch := range streamChannels {
+		close(ch)
+	}
 }
 
 var _ http.Handler = (*Server)(nil)