diff --git a/staging/src/k8s.io/apiserver/pkg/storage/etcd3/BUILD b/staging/src/k8s.io/apiserver/pkg/storage/etcd3/BUILD
index 6853f0f5472..1e683a48d7f 100644
--- a/staging/src/k8s.io/apiserver/pkg/storage/etcd3/BUILD
+++ b/staging/src/k8s.io/apiserver/pkg/storage/etcd3/BUILD
@@ -24,7 +24,6 @@ go_test(
         "//staging/src/k8s.io/apimachinery/pkg/runtime:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/runtime/schema:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/runtime/serializer:go_default_library",
-        "//staging/src/k8s.io/apimachinery/pkg/util/diff:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/util/runtime:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/util/wait:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/watch:go_default_library",
diff --git a/staging/src/k8s.io/apiserver/pkg/storage/etcd3/store.go b/staging/src/k8s.io/apiserver/pkg/storage/etcd3/store.go
index d8aa8b2fd37..2e12e914185 100644
--- a/staging/src/k8s.io/apiserver/pkg/storage/etcd3/store.go
+++ b/staging/src/k8s.io/apiserver/pkg/storage/etcd3/store.go
@@ -35,7 +35,6 @@ import (
 	"k8s.io/apimachinery/pkg/api/meta"
 	"k8s.io/apimachinery/pkg/conversion"
 	"k8s.io/apimachinery/pkg/runtime"
-	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
 	"k8s.io/apimachinery/pkg/watch"
 	"k8s.io/apiserver/pkg/storage"
 	"k8s.io/apiserver/pkg/storage/etcd"
@@ -594,8 +593,7 @@ func (s *store) List(ctx context.Context, key, resourceVersion string, pred stor
 
 			data, _, err := s.transformer.TransformFromStorage(kv.Value, authenticatedDataString(kv.Key))
 			if err != nil {
-				utilruntime.HandleError(fmt.Errorf("unable to transform key %q: %v", kv.Key, err))
-				continue
+				return storage.NewInternalErrorf("unable to transform key %q: %v", kv.Key, err)
 			}
 
 			if err := appendListItem(v, data, uint64(kv.ModRevision), pred, s.codec, s.versioner); err != nil {
diff --git a/staging/src/k8s.io/apiserver/pkg/storage/etcd3/store_test.go b/staging/src/k8s.io/apiserver/pkg/storage/etcd3/store_test.go
index ff811a0e2af..f50f8b251d4 100644
--- a/staging/src/k8s.io/apiserver/pkg/storage/etcd3/store_test.go
+++ b/staging/src/k8s.io/apiserver/pkg/storage/etcd3/store_test.go
@@ -39,7 +39,6 @@ import (
 	"k8s.io/apimachinery/pkg/labels"
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/runtime/serializer"
-	"k8s.io/apimachinery/pkg/util/diff"
 	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
 	"k8s.io/apimachinery/pkg/watch"
 	"k8s.io/apiserver/pkg/apis/example"
@@ -718,14 +717,11 @@ func TestTransformationFailure(t *testing.T) {
 	}
 	store.transformer = oldTransformer
 
-	// only the first item is returned, and no error
+	// List should fail
 	var got example.PodList
-	if err := store.List(ctx, "/", "", storage.Everything, &got); err != nil {
+	if err := store.List(ctx, "/", "", storage.Everything, &got); !storage.IsInternalError(err) {
 		t.Errorf("Unexpected error %v", err)
 	}
-	if e, a := []example.Pod{*preset[0].storedObj}, got.Items; !reflect.DeepEqual(e, a) {
-		t.Errorf("Unexpected: %s", diff.ObjectReflectDiff(e, a))
-	}
 
 	// Get should fail
 	if err := store.Get(ctx, preset[1].key, "", &example.Pod{}, false); !storage.IsInternalError(err) {