diff --git a/src/csharp/Grpc.Core.Tests/CallOptionsTest.cs b/src/csharp/Grpc.Core.Tests/CallOptionsTest.cs
new file mode 100644
index 00000000000..519cebb1450
--- /dev/null
+++ b/src/csharp/Grpc.Core.Tests/CallOptionsTest.cs
@@ -0,0 +1,88 @@
+#region Copyright notice and license
+
+// Copyright 2015, Google Inc.
+// All rights reserved.
+//
+// Redistribution and use in source and binary forms, with or without
+// modification, are permitted provided that the following conditions are
+// met:
+//
+//     * Redistributions of source code must retain the above copyright
+// notice, this list of conditions and the following disclaimer.
+//     * Redistributions in binary form must reproduce the above
+// copyright notice, this list of conditions and the following disclaimer
+// in the documentation and/or other materials provided with the
+// distribution.
+//     * Neither the name of Google Inc. nor the names of its
+// contributors may be used to endorse or promote products derived from
+// this software without specific prior written permission.
+//
+// THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS
+// "AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT
+// LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
+// A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHT
+// OWNER OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
+// SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT
+// LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE,
+// DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY
+// THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
+// (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE
+// OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
+
+#endregion
+
+using System;
+using System.Collections.Generic;
+using System.Threading;
+using Grpc.Core;
+using Grpc.Core.Internal;
+using Grpc.Core.Utils;
+using NUnit.Framework;
+
+namespace Grpc.Core.Internal.Tests
+{
+    public class CallOptionsTest
+    {
+        [Test]
+        public void WithMethods()
+        {
+            var options = new CallOptions();
+            
+            var metadata = new Metadata();
+            Assert.AreSame(metadata, options.WithHeaders(metadata).Headers);
+
+            var deadline = DateTime.UtcNow;
+            Assert.AreEqual(deadline, options.WithDeadline(deadline).Deadline.Value);
+
+            var token = new CancellationTokenSource().Token;
+            Assert.AreEqual(token, options.WithCancellationToken(token).CancellationToken);
+
+            // Change original instance is unchanged.
+            Assert.IsNull(options.Headers);
+            Assert.IsNull(options.Deadline);
+            Assert.AreEqual(CancellationToken.None, options.CancellationToken);
+            Assert.IsNull(options.WriteOptions);
+            Assert.IsNull(options.PropagationToken);
+            Assert.IsNull(options.Credentials);
+        }
+
+        [Test]
+        public void Normalize()
+        {
+            Assert.AreSame(Metadata.Empty, new CallOptions().Normalize().Headers);
+            Assert.AreEqual(DateTime.MaxValue, new CallOptions().Normalize().Deadline.Value);
+
+            var deadline = DateTime.UtcNow;
+            var propagationToken1 = new ContextPropagationToken(CallSafeHandle.NullInstance, deadline, CancellationToken.None,
+                new ContextPropagationOptions(propagateDeadline: true, propagateCancellation: false));
+            Assert.AreEqual(deadline, new CallOptions(propagationToken: propagationToken1).Normalize().Deadline.Value);
+            Assert.Throws(typeof(ArgumentException), () => new CallOptions(deadline: deadline, propagationToken: propagationToken1).Normalize());
+
+            var token = new CancellationTokenSource().Token;
+            var propagationToken2 = new ContextPropagationToken(CallSafeHandle.NullInstance, deadline, token,
+                new ContextPropagationOptions(propagateDeadline: false, propagateCancellation: true));
+            Assert.AreEqual(token, new CallOptions(propagationToken: propagationToken2).Normalize().CancellationToken);
+            Assert.Throws(typeof(ArgumentException), () => new CallOptions(cancellationToken: token, propagationToken: propagationToken2).Normalize());
+        }
+    }
+}
diff --git a/src/csharp/Grpc.Core.Tests/Grpc.Core.Tests.csproj b/src/csharp/Grpc.Core.Tests/Grpc.Core.Tests.csproj
index 70b83f7fb14..a171855ee04 100644
--- a/src/csharp/Grpc.Core.Tests/Grpc.Core.Tests.csproj
+++ b/src/csharp/Grpc.Core.Tests/Grpc.Core.Tests.csproj
@@ -64,6 +64,7 @@
       <Link>Version.cs</Link>
     </Compile>
     <Compile Include="CallCredentialsTest.cs" />
+    <Compile Include="CallOptionsTest.cs" />
     <Compile Include="UserAgentStringTest.cs" />
     <Compile Include="FakeCredentials.cs" />
     <Compile Include="MarshallingErrorsTest.cs" />
diff --git a/src/csharp/Grpc.Core/CallOptions.cs b/src/csharp/Grpc.Core/CallOptions.cs
index c0f94c63c2f..1fda80cb901 100644
--- a/src/csharp/Grpc.Core/CallOptions.cs
+++ b/src/csharp/Grpc.Core/CallOptions.cs
@@ -184,6 +184,7 @@ namespace Grpc.Core
                 {
                     Preconditions.CheckArgument(!newOptions.cancellationToken.CanBeCanceled,
                         "Cannot propagate cancellation token from parent call. The cancellation token has already been set to a non-default value.");
+                    newOptions.cancellationToken = propagationToken.ParentCancellationToken;
                 }
             }