diff --git a/session.go b/session.go
index bc56066..11a3189 100644
--- a/session.go
+++ b/session.go
@@ -338,9 +338,24 @@ func (s *Session) recvLoop() {
 				}
 				s.streamLock.Unlock()
 			case cmdFIN:
+				var reason string
+				if hdr.Length() > 0 {
+					newbuf := defaultAllocator.Get(int(hdr.Length()))
+					if _, err := io.ReadFull(s.conn, newbuf); err == nil {
+						reason = string(newbuf)
+					} else {
+						s.notifyReadError(err)
+						return
+					}
+				}
+
 				s.streamLock.Lock()
 				if stream, ok := s.streams[sid]; ok {
-					stream.fin()
+					if reason != "" {
+						stream.rst(reason)
+					} else {
+						stream.fin()
+					}
 					stream.notifyReadEvent()
 				}
 				s.streamLock.Unlock()
diff --git a/session_test.go b/session_test.go
index 3479570..ca4b322 100644
--- a/session_test.go
+++ b/session_test.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	crand "crypto/rand"
 	"encoding/binary"
+	"errors"
 	"fmt"
 	"io"
 	"log"
@@ -451,6 +452,24 @@ func TestStreamDoubleClose(t *testing.T) {
 	session.Close()
 }
 
+func TestStreamCloseWithError(t *testing.T) {
+	cs, ss, err := getSmuxStreamPair()
+	if err != nil {
+		t.Fatal(err)
+	}
+	ss.CloseWithError(errors.New("test error"))
+
+	tinybuf := make([]byte, 6)
+	_, err = cs.Read(tinybuf)
+	if err == nil {
+		t.Fatal("stream cancel must return error")
+	}
+
+	if err.Error() != "test error" {
+		t.Fatal("client stream must handle the same error as server stream send after cancel")
+	}
+}
+
 func TestConcurrentClose(t *testing.T) {
 	_, stop, cli, err := setupServer(t)
 	if err != nil {
diff --git a/stream.go b/stream.go
index b21bdef..aef31d1 100644
--- a/stream.go
+++ b/stream.go
@@ -2,6 +2,7 @@ package smux
 
 import (
 	"encoding/binary"
+	"errors"
 	"io"
 	"net"
 	"sync"
@@ -31,6 +32,8 @@ type Stream struct {
 	chFinEvent   chan struct{}
 	finEventOnce sync.Once
 
+	finReason string
+
 	// deadlines
 	readDeadline  atomic.Value
 	writeDeadline atomic.Value
@@ -110,7 +113,11 @@ func (s *Stream) tryRead(b []byte) (n int, err error) {
 
 	select {
 	case <-s.die:
-		return 0, io.EOF
+		if s.finReason != "" {
+			return 0, errors.New(s.finReason)
+		} else {
+			return 0, io.EOF
+		}
 	default:
 		return 0, ErrWouldBlock
 	}
@@ -161,7 +168,11 @@ func (s *Stream) tryReadv2(b []byte) (n int, err error) {
 
 	select {
 	case <-s.die:
-		return 0, io.EOF
+		if s.finReason != "" {
+			return 0, errors.New(s.finReason)
+		} else {
+			return 0, io.EOF
+		}
 	default:
 		return 0, ErrWouldBlock
 	}
@@ -272,7 +283,11 @@ func (s *Stream) waitRead() error {
 	case <-s.chReadEvent:
 		return nil
 	case <-s.chFinEvent:
-		return io.EOF
+		if s.finReason != "" {
+			return errors.New(s.finReason)
+		} else {
+			return io.EOF
+		}
 	case <-s.sess.chSocketReadError:
 		return s.sess.socketReadError.Load().(error)
 	case <-s.sess.chProtoError:
@@ -402,7 +417,11 @@ func (s *Stream) writeV2(b []byte) (n int, err error) {
 		if len(b) > 0 {
 			select {
 			case <-s.chFinEvent: // if fin arrived, future window update is impossible
-				return 0, io.EOF
+				if s.finReason != "" {
+					return 0, errors.New(s.finReason)
+				} else {
+					return 0, io.EOF
+				}
 			case <-s.die:
 				return sent, io.ErrClosedPipe
 			case <-deadline:
@@ -420,15 +439,31 @@ func (s *Stream) writeV2(b []byte) (n int, err error) {
 
 // Close implements net.Conn
 func (s *Stream) Close() error {
+	return s.close(nil)
+}
+
+func (s *Stream) CloseWithError(reason error) error {
+	return s.close(reason)
+}
+
+func (s *Stream) close(reason error) error {
 	var once bool
 	var err error
 	s.dieOnce.Do(func() {
 		close(s.die)
 		once = true
+		if reason != nil {
+			s.finReason = reason.Error()
+		}
 	})
 
 	if once {
-		_, err = s.sess.writeFrame(newFrame(byte(s.sess.config.Version), cmdFIN, s.id))
+		fr := newFrame(byte(s.sess.config.Version), cmdFIN, s.id)
+		if reason != nil && s.sess.config.Version > 1 {
+			fr.data = []byte(reason.Error())
+		}
+
+		_, err = s.sess.writeFrame(fr)
 		s.sess.streamClosed(s.id)
 		return err
 	} else {
@@ -541,3 +576,11 @@ func (s *Stream) fin() {
 		close(s.chFinEvent)
 	})
 }
+
+// mark this stream has been canceled in protocol
+func (s *Stream) rst(reason string) {
+	s.finEventOnce.Do(func() {
+		s.finReason = reason
+		close(s.chFinEvent)
+	})
+}
\ No newline at end of file