diff --git a/call.go b/call.go
index e73812fd18b4..a2b89ac6a36e 100644
--- a/call.go
+++ b/call.go
@@ -119,7 +119,7 @@ func sendRequest(ctx context.Context, dopts dialOptions, compressor Compressor,
 	}
 	outBuf, err := encode(dopts.codec, args, compressor, cbuf, outPayload)
 	if err != nil {
-		return err
+		return Errorf(codes.Internal, "grpc: %v", err)
 	}
 	if c.maxSendMessageSize == nil {
 		return Errorf(codes.Internal, "callInfo maxSendMessageSize field uninitialized(nil)")
diff --git a/rpc_util.go b/rpc_util.go
index 9862b32725ca..a24257afe907 100644
--- a/rpc_util.go
+++ b/rpc_util.go
@@ -314,7 +314,7 @@ func encode(c Codec, msg interface{}, cp Compressor, cbuf *bytes.Buffer, outPayl
 		// TODO(zhaoq): optimize to reduce memory alloc and copying.
 		b, err = c.Marshal(msg)
 		if err != nil {
-			return nil, Errorf(codes.Internal, "grpc: error while marshaling: %v", err.Error())
+			return nil, err
 		}
 		if outPayload != nil {
 			outPayload.Payload = msg
@@ -324,7 +324,7 @@ func encode(c Codec, msg interface{}, cp Compressor, cbuf *bytes.Buffer, outPayl
 		}
 		if cp != nil {
 			if err := cp.Do(cbuf, b); err != nil {
-				return nil, Errorf(codes.Internal, "grpc: error while compressing: %v", err.Error())
+				return nil, err
 			}
 			b = cbuf.Bytes()
 		}
diff --git a/server.go b/server.go
index 9e9a3442ef57..c2b523c7acd3 100644
--- a/server.go
+++ b/server.go
@@ -664,8 +664,14 @@ func (s *Server) sendResponse(t transport.ServerTransport, stream *transport.Str
 	}
 	p, err := encode(s.opts.codec, msg, cp, cbuf, outPayload)
 	if err != nil {
-		grpclog.Println("grpc: server failed to encode response: ", err)
-		return err
+		// This typically indicates a fatal issue (e.g., memory
+		// corruption or hardware faults) the application program
+		// cannot handle.
+		//
+		// TODO(zhaoq): There exist other options also such as only closing the
+		// faulty stream locally and remotely (Other streams can keep going). Find
+		// the optimal option.
+		grpclog.Fatalf("grpc: Server failed to encode response %v", err)
 	}
 	if len(p) > s.opts.maxSendMessageSize {
 		return status.Errorf(codes.ResourceExhausted, "grpc: trying to send message larger than max (%d vs. %d)", len(p), s.opts.maxSendMessageSize)
diff --git a/stream.go b/stream.go
index 2106d3ecb28f..ed0ebe7b73ec 100644
--- a/stream.go
+++ b/stream.go
@@ -364,7 +364,7 @@ func (cs *clientStream) SendMsg(m interface{}) (err error) {
 		}
 	}()
 	if err != nil {
-		return err
+		return Errorf(codes.Internal, "grpc: %v", err)
 	}
 	if cs.c.maxSendMessageSize == nil {
 		return Errorf(codes.Internal, "callInfo maxSendMessageSize field uninitialized(nil)")
@@ -606,6 +606,7 @@ func (ss *serverStream) SendMsg(m interface{}) (err error) {
 		}
 	}()
 	if err != nil {
+		err = Errorf(codes.Internal, "grpc: %v", err)
 		return err
 	}
 	if len(out) > ss.maxSendMessageSize {
diff --git a/test/end2end_test.go b/test/end2end_test.go
index 141048300dc2..0456cb7ab25f 100644
--- a/test/end2end_test.go
+++ b/test/end2end_test.go
@@ -454,7 +454,6 @@ type test struct {
 	clientInitialWindowSize     int32
 	clientInitialConnWindowSize int32
 	perRPCCreds                 credentials.PerRPCCredentials
-	customCodec                 grpc.Codec
 
 	// srv and srvAddr are set once startServer is called.
 	srv     *grpc.Server
@@ -4796,46 +4795,3 @@ func testPerRPCCredentialsViaDialOptionsAndCallOptions(t *testing.T, e env) {
 		t.Fatalf("Test failed. Reason: %v", err)
 	}
 }
-
-type errCodec struct {
-	noError bool
-}
-
-func (c *errCodec) Marshal(v interface{}) ([]byte, error) {
-	if c.noError {
-		return []byte{}, nil
-	}
-	return nil, fmt.Errorf("3987^12 + 4365^12 = 4472^12")
-}
-
-func (c *errCodec) Unmarshal(data []byte, v interface{}) error {
-	return nil
-}
-
-func (c *errCodec) String() string {
-	return "Fermat's near-miss."
-}
-
-func TestEncodeDoesntPanic(t *testing.T) {
-	defer leakCheck(t)()
-	for _, e := range listTestEnv() {
-		testEncodeDoesntPanic(t, e)
-	}
-}
-
-func testEncodeDoesntPanic(t *testing.T, e env) {
-	te := newTest(t, e)
-	erc := &errCodec{}
-	te.customCodec = erc
-	te.startServer(&testServer{security: e.security})
-	defer te.tearDown()
-	te.customCodec = nil
-	tc := testpb.NewTestServiceClient(te.clientConn())
-	// Failure case, should not panic.
-	tc.EmptyCall(context.Background(), &testpb.Empty{})
-	erc.noError = true
-	// Passing case.
-	if _, err := tc.EmptyCall(context.Background(), &testpb.Empty{}); err != nil {
-		t.Fatalf("EmptyCall(_, _) = _, %v, want _, <nil>", err)
-	}
-}