diff --git a/binder/src/androidTest/java/io/grpc/binder/internal/BinderClientTransportTest.java b/binder/src/androidTest/java/io/grpc/binder/internal/BinderClientTransportTest.java
index 7446905194e..7625b43f4ab 100644
--- a/binder/src/androidTest/java/io/grpc/binder/internal/BinderClientTransportTest.java
+++ b/binder/src/androidTest/java/io/grpc/binder/internal/BinderClientTransportTest.java
@@ -24,6 +24,8 @@
 import android.os.RemoteException;
 import androidx.test.core.app.ApplicationProvider;
 import androidx.test.ext.junit.runners.AndroidJUnit4;
+import com.google.common.util.concurrent.Futures;
+import com.google.common.util.concurrent.ListenableFuture;
 import com.google.common.util.concurrent.SettableFuture;
 import com.google.protobuf.Empty;
 import io.grpc.CallOptions;
@@ -35,6 +37,7 @@
 import io.grpc.Status;
 import io.grpc.Status.Code;
 import io.grpc.binder.AndroidComponentAddress;
+import io.grpc.binder.AsyncSecurityPolicy;
 import io.grpc.binder.BinderServerBuilder;
 import io.grpc.binder.HostServices;
 import io.grpc.binder.SecurityPolicy;
@@ -381,6 +384,34 @@ public void testBlackHoleSecurityPolicyConnectTimeout() throws Exception {
     blockingSecurityPolicy.provideNextCheckAuthorizationResult(Status.OK);
   }
 
+  @Test
+  public void testAsyncSecurityPolicyFailure() throws Exception {
+    SettableAsyncSecurityPolicy securityPolicy = new SettableAsyncSecurityPolicy();
+    transport = new BinderClientTransportBuilder()
+        .setSecurityPolicy(securityPolicy)
+        .build();
+    RuntimeException exception = new NullPointerException();
+    securityPolicy.setAuthorizationException(exception);
+    transport.start(transportListener).run();
+    Status transportStatus = transportListener.awaitShutdown();
+    assertThat(transportStatus.getCode()).isEqualTo(Code.INTERNAL);
+    assertThat(transportStatus.getCause()).isEqualTo(exception);
+    transportListener.awaitTermination();
+  }
+
+  @Test
+  public void testAsyncSecurityPolicySuccess() throws Exception {
+    SettableAsyncSecurityPolicy securityPolicy = new SettableAsyncSecurityPolicy();
+    transport = new BinderClientTransportBuilder()
+        .setSecurityPolicy(securityPolicy)
+        .build();
+    securityPolicy.setAuthorizationResult(Status.PERMISSION_DENIED);
+    transport.start(transportListener).run();
+    Status transportStatus = transportListener.awaitShutdown();
+    assertThat(transportStatus.getCode()).isEqualTo(Code.PERMISSION_DENIED);
+    transportListener.awaitTermination();
+  }
+
   private static void startAndAwaitReady(
       BinderTransport.BinderClientTransport transport, TestTransportListener transportListener)
       throws Exception {
@@ -540,4 +571,27 @@ public Status checkAuthorization(int uid) {
       }
     }
   }
+
+  /**
+   * An AsyncSecurityPolicy that lets a test specify the outcome of checkAuthorizationAsync().
+   */
+  static class SettableAsyncSecurityPolicy extends AsyncSecurityPolicy {
+    private SettableFuture<Status> result = SettableFuture.create();
+
+    public void clearAuthorizationResult() {
+      result = SettableFuture.create();
+    }
+
+    public boolean setAuthorizationResult(Status status) {
+      return result.set(status);
+    }
+
+    public boolean setAuthorizationException(Throwable t) {
+      return result.setException(t);
+    }
+
+    public ListenableFuture<Status> checkAuthorizationAsync(int uid) {
+      return Futures.nonCancellationPropagating(result);
+    }
+  }
 }
diff --git a/binder/src/main/java/io/grpc/binder/internal/BinderTransport.java b/binder/src/main/java/io/grpc/binder/internal/BinderTransport.java
index 9deb2bfaea1..dbdcaef6908 100644
--- a/binder/src/main/java/io/grpc/binder/internal/BinderTransport.java
+++ b/binder/src/main/java/io/grpc/binder/internal/BinderTransport.java
@@ -32,6 +32,8 @@
 import com.google.common.annotations.VisibleForTesting;
 import com.google.common.base.Ticker;
 import com.google.common.base.Verify;
+import com.google.common.util.concurrent.FutureCallback;
+import com.google.common.util.concurrent.Futures;
 import com.google.common.util.concurrent.ListenableFuture;
 import io.grpc.Attributes;
 import io.grpc.CallOptions;
@@ -47,6 +49,7 @@
 import io.grpc.Status;
 import io.grpc.StatusException;
 import io.grpc.binder.AndroidComponentAddress;
+import io.grpc.binder.AsyncSecurityPolicy;
 import io.grpc.binder.InboundParcelablePolicy;
 import io.grpc.binder.SecurityPolicy;
 import io.grpc.internal.ClientStream;
@@ -743,8 +746,8 @@ void notifyTerminated() {
     @Override
     @GuardedBy("this")
     protected void handleSetupTransport(Parcel parcel) {
-      // Add the remote uid to our attributes.
-      attributes = setSecurityAttrs(attributes, Binder.getCallingUid());
+      int remoteUid = Binder.getCallingUid();
+      attributes = setSecurityAttrs(attributes, remoteUid);
       if (inState(TransportState.SETUP)) {
         int version = parcel.readInt();
         IBinder binder = parcel.readStrongBinder();
@@ -755,46 +758,54 @@ protected void handleSetupTransport(Parcel parcel) {
           shutdownInternal(
               Status.UNAVAILABLE.withDescription("Malformed SETUP_TRANSPORT data"), true);
         } else {
-          offloadExecutor.execute(() -> checkSecurityPolicy(binder));
+          ListenableFuture<Status> authFuture = (securityPolicy instanceof AsyncSecurityPolicy) ?
+              ((AsyncSecurityPolicy) securityPolicy).checkAuthorizationAsync(remoteUid) :
+              Futures.submit(() -> securityPolicy.checkAuthorization(remoteUid), offloadExecutor);
+          Futures.addCallback(
+              authFuture,
+              new FutureCallback<Status>() {
+                @Override
+                public void onSuccess(Status result) { handleAuthResult(binder, result); }
+
+                @Override
+                public void onFailure(Throwable t) { handleAuthResult(t); }
+              },
+              offloadExecutor);
         }
       }
     }
 
-    private void checkSecurityPolicy(IBinder binder) {
-      Status authorization;
-      Integer remoteUid;
-      synchronized (this) {
-        remoteUid = attributes.get(REMOTE_UID);
-      }
-      if (remoteUid == null) {
-        authorization = Status.UNAUTHENTICATED.withDescription("No remote UID available");
-      } else {
-        authorization = securityPolicy.checkAuthorization(remoteUid);
-      }
-      synchronized (this) {
-        if (inState(TransportState.SETUP)) {
-          if (!authorization.isOk()) {
-            shutdownInternal(authorization, true);
-          } else if (!setOutgoingBinder(OneWayBinderProxy.wrap(binder, offloadExecutor))) {
-            shutdownInternal(
-                Status.UNAVAILABLE.withDescription("Failed to observe outgoing binder"), true);
-          } else {
-            // Check state again, since a failure inside setOutgoingBinder (or a callback it
-            // triggers), could have shut us down.
-            if (!isShutdown()) {
-              setState(TransportState.READY);
-              attributes = clientTransportListener.filterTransport(attributes);
-              clientTransportListener.transportReady();
-              if (readyTimeoutFuture != null) {
-                readyTimeoutFuture.cancel(false);
-                readyTimeoutFuture = null;
-              }
+    private synchronized void handleAuthResult(IBinder binder, Status authorization) {
+      if (inState(TransportState.SETUP)) {
+        if (!authorization.isOk()) {
+          shutdownInternal(authorization, true);
+        } else if (!setOutgoingBinder(OneWayBinderProxy.wrap(binder, offloadExecutor))) {
+          shutdownInternal(
+              Status.UNAVAILABLE.withDescription("Failed to observe outgoing binder"), true);
+        } else {
+          // Check state again, since a failure inside setOutgoingBinder (or a callback it
+          // triggers), could have shut us down.
+          if (!isShutdown()) {
+            setState(TransportState.READY);
+            attributes = clientTransportListener.filterTransport(attributes);
+            clientTransportListener.transportReady();
+            if (readyTimeoutFuture != null) {
+              readyTimeoutFuture.cancel(false);
+              readyTimeoutFuture = null;
             }
           }
         }
       }
     }
 
+    private synchronized void handleAuthResult(Throwable t) {
+      shutdownInternal(
+          Status.INTERNAL
+              .withDescription("Could not evaluate SecurityPolicy")
+              .withCause(t),
+          true);
+    }
+
     @GuardedBy("this")
     @Override
     protected void handlePingResponse(Parcel parcel) {