diff --git a/pkg/storage/etcd3/watcher.go b/pkg/storage/etcd3/watcher.go
index 4473602e799..6d1490c01d6 100644
--- a/pkg/storage/etcd3/watcher.go
+++ b/pkg/storage/etcd3/watcher.go
@@ -31,6 +31,8 @@ import (
 	etcdrpc "github.com/coreos/etcd/etcdserver/api/v3rpc/rpctypes"
 	"github.com/golang/glog"
 	"golang.org/x/net/context"
+	"google.golang.org/grpc"
+	"google.golang.org/grpc/codes"
 )
 
 const (
@@ -78,6 +80,12 @@ func (w *watcher) Watch(ctx context.Context, key string, rev int64, recursive bo
 	if recursive && !strings.HasSuffix(key, "/") {
 		key += "/"
 	}
+	wc := w.createWatchChan(ctx, key, rev, recursive, filter)
+	go wc.run()
+	return wc, nil
+}
+
+func (w *watcher) createWatchChan(ctx context.Context, key string, rev int64, recursive bool, filter storage.FilterFunc) *watchChan {
 	wc := &watchChan{
 		watcher:           w,
 		key:               key,
@@ -89,8 +97,7 @@ func (w *watcher) Watch(ctx context.Context, key string, rev int64, recursive bo
 		errChan:           make(chan error, 1),
 	}
 	wc.ctx, wc.cancel = context.WithCancel(ctx)
-	go wc.run()
-	return wc, nil
+	return wc
 }
 
 func (wc *watchChan) run() {
@@ -276,6 +283,12 @@ func parseError(err error) *watch.Event {
 }
 
 func (wc *watchChan) sendError(err error) {
+	// Context.canceled is an expected behavior.
+	// We should just stop all goroutines in watchChan without returning error.
+	// TODO: etcd client should return context.Canceled instead of grpc specific error.
+	if grpc.Code(err) == codes.Canceled || err == context.Canceled {
+		return
+	}
 	select {
 	case wc.errChan <- err:
 	case <-wc.ctx.Done():
diff --git a/pkg/storage/etcd3/watcher_test.go b/pkg/storage/etcd3/watcher_test.go
index 137fe96d5f3..66578e56c0e 100644
--- a/pkg/storage/etcd3/watcher_test.go
+++ b/pkg/storage/etcd3/watcher_test.go
@@ -168,6 +168,25 @@ func TestWatchError(t *testing.T) {
 	testCheckResult(t, 0, watch.Error, w, nil)
 }
 
+func TestWatchContextCancel(t *testing.T) {
+	ctx, store, cluster := testSetup(t)
+	defer cluster.Terminate(t)
+	canceledCtx, cancel := context.WithCancel(ctx)
+	cancel()
+	w := store.watcher.createWatchChan(canceledCtx, "/abc", 0, false, storage.Everything)
+	// When we do a client.Get with a canceled context, it will return error.
+	// Nonetheless, when we try to send it over internal errChan, we should detect
+	// it's context canceled and not send it.
+	err := w.sync()
+	w.ctx = ctx
+	w.sendError(err)
+	select {
+	case err := <-w.errChan:
+		t.Errorf("cancelling context shouldn't return any error. Err: %v", err)
+	default:
+	}
+}
+
 type testWatchStruct struct {
 	obj         *api.Pod
 	expectEvent bool