diff --git a/google/api_core/grpc_helpers.py b/google/api_core/grpc_helpers.py
index 4d63beb..c47b09f 100644
--- a/google/api_core/grpc_helpers.py
+++ b/google/api_core/grpc_helpers.py
@@ -65,6 +65,19 @@
     def __init__(self, wrapped):
         self._wrapped = wrapped
 
+        # This iterator is used in a retry context, and returned outside after init.
+        # gRPC will not throw an exception until the stream is consumed, so we need
+        # to retrieve the first result, in order to fail, in order to trigger a retry.
+        try:
+            self._stored_first_result = six.next(self._wrapped)
+        except TypeError:
+            # It is possible the wrapped method isn't an iterable (a grpc.Call
+            # for instance). If this happens don't store the first result.
+            pass
+        except StopIteration:
+            # ignore stop iteration at this time. This should be handled outside of retry.
+            pass
+
     def __iter__(self):
         """This iterator is also an iterable that returns itself."""
         return self
@@ -76,8 +89,13 @@
             protobuf.Message: A single response from the stream.
         """
         try:
+            if hasattr(self, "_stored_first_result"):
+                result = self._stored_first_result
+                del self._stored_first_result
+                return result
             return six.next(self._wrapped)
         except grpc.RpcError as exc:
+            # If the stream has already returned data, we cannot recover here.
             six.raise_from(exceptions.from_grpc_error(exc), exc)
 
     # Alias needed for Python 2/3 support.
diff --git a/tests/unit/test_grpc_helpers.py b/tests/unit/test_grpc_helpers.py
index c37c3ee..1fec64f 100644
--- a/tests/unit/test_grpc_helpers.py
+++ b/tests/unit/test_grpc_helpers.py
@@ -129,24 +129,55 @@
     assert exc_info.value.response == grpc_error
 
 
+def test_wrap_stream_empty_iterator():
+    expected_responses = []
+    callable_ = mock.Mock(spec=["__call__"], return_value=iter(expected_responses))
+
+    wrapped_callable = grpc_helpers._wrap_stream_errors(callable_)
+
+    got_iterator = wrapped_callable()
+
+    responses = list(got_iterator)
+
+    callable_.assert_called_once_with()
+    assert responses == expected_responses
+
+
 class RpcResponseIteratorImpl(object):
-    def __init__(self, exception):
-        self._exception = exception
+    def __init__(self, iterable):
+        self._iterable = iter(iterable)
 
     def next(self):
-        raise self._exception
+        next_item = next(self._iterable)
+        if isinstance(next_item, RpcErrorImpl):
+            raise next_item
+        return next_item
 
     __next__ = next
 
 
-def test_wrap_stream_errors_iterator():
+def test_wrap_stream_errors_iterator_initialization():
     grpc_error = RpcErrorImpl(grpc.StatusCode.UNAVAILABLE)
-    response_iter = RpcResponseIteratorImpl(grpc_error)
+    response_iter = RpcResponseIteratorImpl([grpc_error])
     callable_ = mock.Mock(spec=["__call__"], return_value=response_iter)
 
     wrapped_callable = grpc_helpers._wrap_stream_errors(callable_)
 
+    with pytest.raises(exceptions.ServiceUnavailable) as exc_info:
+        wrapped_callable(1, 2, three="four")
+
+    callable_.assert_called_once_with(1, 2, three="four")
+    assert exc_info.value.response == grpc_error
+
+
+def test_wrap_stream_errors_during_iteration():
+    grpc_error = RpcErrorImpl(grpc.StatusCode.UNAVAILABLE)
+    response_iter = RpcResponseIteratorImpl([1, grpc_error])
+    callable_ = mock.Mock(spec=["__call__"], return_value=response_iter)
+
+    wrapped_callable = grpc_helpers._wrap_stream_errors(callable_)
     got_iterator = wrapped_callable(1, 2, three="four")
+    next(got_iterator)
 
     with pytest.raises(exceptions.ServiceUnavailable) as exc_info:
         next(got_iterator)