diff --git a/encoding/encoding.go b/encoding/encoding.go
index 30a75da99d5e..0b3fe2c7fac1 100644
--- a/encoding/encoding.go
+++ b/encoding/encoding.go
@@ -48,6 +48,14 @@ type Compressor interface {
 	Name() string
 }
 
+// CompressorSizer is optional, can be implemented to improve efficiency.
+// This API is EXPERIMENTAL.
+type CompressorSizer interface {
+	// DecompressedSize returns the exact size the message will
+	// uncompress into, if known.
+	DecompressedSize(buf []byte, maxSize int) (int, error)
+}
+
 var registeredCompressor = make(map[string]Compressor)
 
 // RegisterCompressor registers the compressor with gRPC by its name.  It can
diff --git a/encoding/gzip/gzip.go b/encoding/gzip/gzip.go
index 09564db197fe..265d0c5719dc 100644
--- a/encoding/gzip/gzip.go
+++ b/encoding/gzip/gzip.go
@@ -23,9 +23,11 @@ package gzip
 
 import (
 	"compress/gzip"
+	"encoding/binary"
 	"fmt"
 	"io"
 	"io/ioutil"
+	"math"
 	"sync"
 
 	"google.golang.org/grpc/encoding"
@@ -107,6 +109,20 @@ func (z *reader) Read(p []byte) (n int, err error) {
 	return n, err
 }
 
+// RFC1952 specifies that the last four bytes "contains the size of
+// the original (uncompressed) input data modulo 2^32."
+func (c *compressor) DecompressedSize(buf []byte, maxSize int) (int, error) {
+	if maxSize > math.MaxUint32 {
+		return 0, fmt.Errorf("grpc: message size not known when messages can be longer than 4GB")
+	}
+	last := len(buf)
+	if last < 4 {
+		return 0, fmt.Errorf("grpc: invalid gzip buffer")
+	}
+	size := binary.LittleEndian.Uint32(buf[last-4 : last])
+	return int(size), nil
+}
+
 func (c *compressor) Name() string {
 	return Name
 }
diff --git a/rpc_util.go b/rpc_util.go
index 088c3f1b2528..86c75a6e22f4 100644
--- a/rpc_util.go
+++ b/rpc_util.go
@@ -648,35 +648,60 @@ func recvAndDecompress(p *parser, s *transport.Stream, dc Decompressor, maxRecei
 		return nil, st.Err()
 	}
 
+	var size int
 	if pf == compressionMade {
 		// To match legacy behavior, if the decompressor is set by WithDecompressor or RPCDecompressor,
 		// use this decompressor as the default.
 		if dc != nil {
 			d, err = dc.Do(bytes.NewReader(d))
-			if err != nil {
-				return nil, status.Errorf(codes.Internal, "grpc: failed to decompress the received message %v", err)
-			}
+			size = len(d)
 		} else {
-			dcReader, err := compressor.Decompress(bytes.NewReader(d))
-			if err != nil {
-				return nil, status.Errorf(codes.Internal, "grpc: failed to decompress the received message %v", err)
-			}
-			// Read from LimitReader with limit max+1. So if the underlying
-			// reader is over limit, the result will be bigger than max.
-			d, err = ioutil.ReadAll(io.LimitReader(dcReader, int64(maxReceiveMessageSize)+1))
-			if err != nil {
-				return nil, status.Errorf(codes.Internal, "grpc: failed to decompress the received message %v", err)
-			}
+			d, size, err = decompress(compressor, d, maxReceiveMessageSize)
+		}
+		if err != nil {
+			return nil, status.Errorf(codes.Internal, "grpc: failed to decompress the received message %v", err)
 		}
+	} else {
+		size = len(d)
 	}
-	if len(d) > maxReceiveMessageSize {
+	if size > maxReceiveMessageSize {
 		// TODO: Revisit the error code. Currently keep it consistent with java
 		// implementation.
-		return nil, status.Errorf(codes.ResourceExhausted, "grpc: received message larger than max (%d vs. %d)", len(d), maxReceiveMessageSize)
+		return nil, status.Errorf(codes.ResourceExhausted, "grpc: received message larger than max (%d vs. %d)", size, maxReceiveMessageSize)
 	}
 	return d, nil
 }
 
+// Using compressor, decompress d, returning data and size.
+// Optionally, if data will be over maxReceiveMessageSize, just return the size.
+func decompress(compressor encoding.Compressor, d []byte, maxReceiveMessageSize int) ([]byte, int, error) {
+	dcReader, err := compressor.Decompress(bytes.NewReader(d))
+	if err != nil {
+		return nil, 0, err
+	}
+	if dcFromBytes, ok := compressor.(encoding.CompressorSizer); ok {
+		if size, err := dcFromBytes.DecompressedSize(d, maxReceiveMessageSize); err == nil {
+			if size > maxReceiveMessageSize {
+				return nil, size, nil
+			}
+			var buf bytes.Buffer
+			buf.Grow(size + bytes.MinRead) // extra space guarantees no reallocation
+			bytesRead, err := buf.ReadFrom(dcReader)
+			if err != nil {
+				return nil, size, err
+			}
+			if bytesRead != int64(size) {
+				return nil, size, fmt.Errorf("read different size than expected (%d vs. %d)", bytesRead, size)
+			}
+			return buf.Bytes(), size, nil
+		}
+	}
+	// Read from LimitReader with limit max+1. So if the underlying
+	// reader is over limit, the result will be bigger than max.
+	d, err = ioutil.ReadAll(io.LimitReader(dcReader, int64(maxReceiveMessageSize)+1))
+	return d, len(d), err
+}
+
 // For the two compressor parameters, both should not be set, but if they are,
 // dc takes precedence over compressor.
 // TODO(dfawley): wrap the old compressor/decompressor using the new API?