diff --git a/internal/transport/http2_client.go b/internal/transport/http2_client.go
index 28c77af70ab..53643fa9747 100644
--- a/internal/transport/http2_client.go
+++ b/internal/transport/http2_client.go
@@ -326,6 +326,8 @@ func newHTTP2Client(connectCtx, ctx context.Context, addr resolver.Address, opts
 		keepaliveEnabled:      keepaliveEnabled,
 		bufferPool:            newBufferPool(),
 	}
+	// Add peer information to the http2client context.
+	t.ctx = peer.NewContext(t.ctx, t.getPeer())
 
 	if md, ok := addr.Metadata.(*metadata.MD); ok {
 		t.md = *md
@@ -469,7 +471,7 @@ func (t *http2Client) newStream(ctx context.Context, callHdr *CallHdr) *Stream {
 func (t *http2Client) getPeer() *peer.Peer {
 	return &peer.Peer{
 		Addr:     t.remoteAddr,
-		AuthInfo: t.authInfo,
+		AuthInfo: t.authInfo, // Can be nil
 	}
 }
 
diff --git a/internal/transport/http2_server.go b/internal/transport/http2_server.go
index 28bcba0a33c..3dd15647bc8 100644
--- a/internal/transport/http2_server.go
+++ b/internal/transport/http2_server.go
@@ -265,6 +265,9 @@ func NewServerTransport(conn net.Conn, config *ServerConfig) (_ ServerTransport,
 		czData:            new(channelzData),
 		bufferPool:        newBufferPool(),
 	}
+	// Add peer information to the http2server context.
+	t.ctx = peer.NewContext(t.ctx, t.getPeer())
+
 	t.controlBuf = newControlBuffer(t.done)
 	if dynamicWindow {
 		t.bdpEst = &bdpEstimator{
@@ -485,14 +488,7 @@ func (t *http2Server) operateHeaders(frame *http2.MetaHeadersFrame, handle func(
 	} else {
 		s.ctx, s.cancel = context.WithCancel(t.ctx)
 	}
-	pr := &peer.Peer{
-		Addr: t.remoteAddr,
-	}
-	// Attach Auth info if there is any.
-	if t.authInfo != nil {
-		pr.AuthInfo = t.authInfo
-	}
-	s.ctx = peer.NewContext(s.ctx, pr)
+
 	// Attach the received metadata to the context.
 	if len(mdata) > 0 {
 		s.ctx = metadata.NewIncomingContext(s.ctx, mdata)
@@ -1416,6 +1412,13 @@ func (t *http2Server) getOutFlowWindow() int64 {
 	}
 }
 
+func (t *http2Server) getPeer() *peer.Peer {
+	return &peer.Peer{
+		Addr:     t.remoteAddr,
+		AuthInfo: t.authInfo, // Can be nil
+	}
+}
+
 func getJitter(v time.Duration) time.Duration {
 	if v == infinity {
 		return 0
diff --git a/internal/transport/transport_test.go b/internal/transport/transport_test.go
index c1f9664ada6..760e1b64f35 100644
--- a/internal/transport/transport_test.go
+++ b/internal/transport/transport_test.go
@@ -35,6 +35,8 @@ import (
 	"testing"
 	"time"
 
+	"google.golang.org/grpc/peer"
+
 	"github.com/google/go-cmp/cmp"
 	"golang.org/x/net/http2"
 	"golang.org/x/net/http2/hpack"
@@ -2450,3 +2452,52 @@ func TestConnectionError_Unwrap(t *testing.T) {
 		t.Error("ConnectionError does not unwrap")
 	}
 }
+
+func (s) TestPeerSetInServerContext(t *testing.T) {
+	// create client and server transports.
+	server, client, cancel := setUp(t, 0, math.MaxUint32, normal)
+	defer cancel()
+	defer server.stop()
+	defer client.Close(fmt.Errorf("closed manually by test"))
+
+	// create a stream with client transport.
+	ctx, cancel := context.WithTimeout(context.Background(), defaultTestTimeout)
+	defer cancel()
+	stream, err := client.NewStream(ctx, &CallHdr{})
+	if err != nil {
+		t.Fatalf("failed to create a stream: %v", err)
+	}
+
+	waitWhileTrue(t, func() (bool, error) {
+		server.mu.Lock()
+		defer server.mu.Unlock()
+
+		if len(server.conns) == 0 {
+			return true, fmt.Errorf("timed-out while waiting for connection to be created on the server")
+		}
+		return false, nil
+	})
+
+	// verify peer is set in client transport context.
+	if _, ok := peer.FromContext(client.ctx); !ok {
+		t.Fatalf("Peer expected in client transport's context, but actually not found.")
+	}
+
+	// verify peer is set in stream context.
+	if _, ok := peer.FromContext(stream.ctx); !ok {
+		t.Fatalf("Peer expected in stream context, but actually not found.")
+	}
+
+	// verify peer is set in server transport context.
+	server.mu.Lock()
+	for k := range server.conns {
+		sc, ok := k.(*http2Server)
+		if !ok {
+			t.Fatalf("ServerTransport is of type %T, want %T", k, &http2Server{})
+		}
+		if _, ok = peer.FromContext(sc.ctx); !ok {
+			t.Fatalf("Peer expected in server transport's context, but actually not found.")
+		}
+	}
+	server.mu.Unlock()
+}