diff --git a/etcdserver/api/v3rpc/watch.go b/etcdserver/api/v3rpc/watch.go
index 208c453ffa56..f326d710e4cd 100644
--- a/etcdserver/api/v3rpc/watch.go
+++ b/etcdserver/api/v3rpc/watch.go
@@ -194,23 +194,29 @@ func (ws *watchServer) Watch(stream pb.Watch_WatchServer) (err error) {
 		close(sws.ctrlStream)
 
 	case <-stream.Context().Done():
-		err = stream.Context().Err()
-		if err == context.Canceled {
-			err = rpctypes.ErrGRPCWatchCanceled
-			// Try to determine a more specific cancellation error. Use the stream context
-			// and local leader state to detect leader loss. If the reason is inconclusive,
-			// assume a client cancellation.
-			if md, hasMetadata := metadata.FromIncomingContext(stream.Context()); hasMetadata {
-				if rl := md[rpctypes.MetadataRequireLeaderKey]; len(rl) > 0 && rl[0] == rpctypes.MetadataHasLeader {
-					if sws.sg.Leader() == types.ID(raft.None) {
-						err = rpctypes.ErrGRPCNoLeader
-					}
+		err = getClientStreamClosureError(stream.Context(), sws.sg)
+	}
+
+	sws.close()
+	return err
+}
+
+// getClientStreamClosureError tries to determine a more specific client stream
+// cancellation error. If the context error appears to be a cancellation, use
+// the stream context and local leader state to detect leader loss. If the
+// reason is inconclusive, assume a client cancellation.
+func getClientStreamClosureError(ctx context.Context, statusGetter etcdserver.RaftStatusGetter) error {
+	err := ctx.Err()
+	if err == context.Canceled {
+		err = rpctypes.ErrGRPCWatchCanceled
+		if md, hasMetadata := metadata.FromIncomingContext(ctx); hasMetadata {
+			if rl := md[rpctypes.MetadataRequireLeaderKey]; len(rl) > 0 && rl[0] == rpctypes.MetadataHasLeader {
+				if statusGetter.Leader() == types.ID(raft.None) {
+					err = rpctypes.ErrGRPCNoLeader
 				}
 			}
 		}
 	}
-
-	sws.close()
 	return err
 }
 
diff --git a/etcdserver/api/v3rpc/watch_test.go b/etcdserver/api/v3rpc/watch_test.go
index f507f5eabd88..ce7b8f99bf3e 100644
--- a/etcdserver/api/v3rpc/watch_test.go
+++ b/etcdserver/api/v3rpc/watch_test.go
@@ -16,11 +16,19 @@ package v3rpc
 
 import (
 	"bytes"
+	"context"
+	"fmt"
 	"math"
 	"testing"
 
+	"google.golang.org/grpc/metadata"
+
+	"go.etcd.io/etcd/v3/etcdserver"
+	"go.etcd.io/etcd/v3/etcdserver/api/v3rpc/rpctypes"
 	pb "go.etcd.io/etcd/v3/etcdserver/etcdserverpb"
 	"go.etcd.io/etcd/v3/mvcc/mvccpb"
+	"go.etcd.io/etcd/v3/pkg/types"
+	"go.etcd.io/etcd/v3/raft"
 )
 
 func TestSendFragment(t *testing.T) {
@@ -93,3 +101,75 @@ func createResponse(dataSize, events int) (resp *pb.WatchResponse) {
 	}
 	return resp
 }
+
+func TestWatchCloseErrorDetection(t *testing.T) {
+	unknownError := fmt.Errorf("unknown")
+
+	tests := map[string]struct{
+		ctx context.Context
+		leaderRequired bool
+		hasLeader bool
+		expect error
+	}{
+		"no error": {
+			ctx: context.TODO(), leaderRequired: false,  hasLeader: true, expect: nil,
+		},
+		"generic cancellation": {
+			ctx: cancelledContext(), leaderRequired: false,  hasLeader: true, expect: rpctypes.ErrGRPCWatchCanceled,
+		},
+		"leader required and present": {
+			ctx: cancelledContext(), leaderRequired: true,  hasLeader: true, expect: rpctypes.ErrGRPCWatchCanceled,
+		},
+		"leader required but missing": {
+			ctx: cancelledContext(), leaderRequired: true,  hasLeader: false, expect: rpctypes.ErrGRPCNoLeader,
+		},
+		"unknown error": {
+			ctx: errorContext(unknownError), leaderRequired: false,  hasLeader: true, expect: unknownError,
+		},
+	}
+
+	for name, test := range tests {
+		if test.leaderRequired {
+			md := metadata.New(map[string]string{rpctypes.MetadataRequireLeaderKey: rpctypes.MetadataHasLeader})
+			test.ctx = metadata.NewIncomingContext(test.ctx, md)
+		}
+
+		rsg := fakeRaftStatusGetter{leader: 1}
+		if !test.hasLeader {
+			rsg.leader = types.ID(raft.None)
+		}
+
+		actual := getClientStreamClosureError(test.ctx, rsg)
+		if test.expect != actual {
+			t.Errorf("test %q expected %v, got %v", name, test.expect, actual)
+		}
+	}
+}
+
+func cancelledContext() context.Context {
+	ctx, cancel := context.WithCancel(context.TODO())
+	cancel()
+	return ctx
+}
+
+func errorContext(err error) context.Context {
+	return genericErrorContext{err: err}
+}
+
+type genericErrorContext struct {
+	context.Context
+	err error
+}
+
+func (c genericErrorContext) Err() error {
+	return c.err
+}
+
+type fakeRaftStatusGetter struct {
+	etcdserver.RaftStatusGetter
+	leader types.ID
+}
+
+func (f fakeRaftStatusGetter) Leader() types.ID {
+	return f.leader
+}