diff --git a/src/python/grpcio/grpc/_cython/_cygrpc/aio/server.pyx.pxi b/src/python/grpcio/grpc/_cython/_cygrpc/aio/server.pyx.pxi
index ef7160a3059..ef4b7f8c51d 100644
--- a/src/python/grpcio/grpc/_cython/_cygrpc/aio/server.pyx.pxi
+++ b/src/python/grpcio/grpc/_cython/_cygrpc/aio/server.pyx.pxi
@@ -14,6 +14,7 @@
 
 # TODO(https://github.com/grpc/grpc/issues/20850) refactor this.
 _LOGGER = logging.getLogger(__name__)
+cdef int _EMPTY_FLAG = 0
 
 
 cdef class _HandlerCallDetails:
@@ -171,6 +172,9 @@ async def _handle_unary_unary_rpc(object method_handler,
     await callback_start_batch(rpc_state, send_ops, loop)
 
 
+
+
+
 async def _handle_rpc(list generic_handlers, RPCState rpc_state, object loop):
     # Finds the method handler (application logic)
     cdef object method_handler = _find_method_handler(
@@ -180,6 +184,7 @@ async def _handle_rpc(list generic_handlers, RPCState rpc_state, object loop):
     if method_handler is None:
         # TODO(lidiz) return unimplemented error to client side
         raise NotImplementedError()
+
     # TODO(lidiz) extend to all 4 types of RPC
     if method_handler.request_streaming or method_handler.response_streaming:
         raise NotImplementedError()
@@ -223,6 +228,16 @@ async def _server_call_request_call(Server server,
     return rpc_state
 
 
+async def _handle_cancellation_from_core(object rpc_task,
+                                          RPCState rpc_state,
+                                          object loop):
+    cdef ReceiveCloseOnServerOperation op = ReceiveCloseOnServerOperation(_EMPTY_FLAG)
+    cdef tuple ops = (op,)
+    await callback_start_batch(rpc_state, ops, loop)
+    if op.cancelled() and not rpc_task.done():
+        rpc_task.cancel()
+
+
 cdef _CallbackFailureHandler CQ_SHUTDOWN_FAILURE_HANDLER = _CallbackFailureHandler(
     'grpc_completion_queue_shutdown',
     'Unknown',
@@ -277,7 +292,7 @@ cdef class AioServer:
         self.add_generic_rpc_handlers(generic_handlers)
         self._serving_task = None
 
-        self._shutdown_lock = asyncio.Lock()
+        self._shutdown_lock = asyncio.Lock(loop=self._loop)
         self._shutdown_completed = self._loop.create_future()
         self._shutdown_callback_wrapper = CallbackWrapper(
             self._shutdown_completed,
@@ -320,10 +335,20 @@ cdef class AioServer:
                 self._cq,
                 self._loop)
 
-            self._loop.create_task(_handle_rpc(
-                self._generic_handlers,
-                rpc_state,
-                self._loop))
+            rpc_task = self._loop.create_task(
+                _handle_rpc(
+                    self._generic_handlers,
+                    rpc_state,
+                    self._loop
+                )
+            )
+            self._loop.create_task(
+                _handle_cancellation_from_core(
+                    rpc_task,
+                    rpc_state,
+                    self._loop
+                )
+            )
 
     def _serving_task_crash_handler(self, object task):
         """Shutdown the server immediately if unexpectedly exited."""
@@ -389,7 +414,14 @@ cdef class AioServer:
             await self._shutdown_completed
         else:
             try:
-                await asyncio.wait_for(asyncio.shield(self._shutdown_completed), grace)
+                await asyncio.wait_for(
+                    asyncio.shield(
+                        self._shutdown_completed,
+                        loop=self._loop
+                    ),
+                    grace,
+                    loop=self._loop,
+                )
             except asyncio.TimeoutError:
                 # Cancels all ongoing calls by the end of grace period.
                 grpc_server_cancel_all_calls(self._server.c_server)
@@ -410,7 +442,14 @@ cdef class AioServer:
             await self._shutdown_completed
         else:
             try:
-                await asyncio.wait_for(asyncio.shield(self._shutdown_completed), timeout)
+                await asyncio.wait_for(
+                    asyncio.shield(
+                        self._shutdown_completed,
+                        loop=self._loop,
+                    ),
+                    timeout,
+                    loop=self._loop,
+                )
             except asyncio.TimeoutError:
                 if self._crash_exception is not None:
                     raise self._crash_exception