diff --git a/rootfs/etc/nginx/template/nginx.tmpl b/rootfs/etc/nginx/template/nginx.tmpl
index 4c0da2eb9..1f3f0ee37 100644
--- a/rootfs/etc/nginx/template/nginx.tmpl
+++ b/rootfs/etc/nginx/template/nginx.tmpl
@@ -1481,6 +1481,13 @@ stream {
             proxy_next_upstream_timeout             {{ $location.Proxy.NextUpstreamTimeout }};
             proxy_next_upstream_tries               {{ $location.Proxy.NextUpstreamTries }};
 
+            # Grpc settings
+            {{ if or (eq $location.BackendProtocol "GRPC") (eq $location.BackendProtocol "GRPCS")}}
+            grpc_connect_timeout                    {{ $location.Proxy.ConnectTimeout }}s;
+            grpc_send_timeout                       {{ $location.Proxy.SendTimeout }}s;
+            grpc_read_timeout                       {{ $location.Proxy.ReadTimeout }}s;
+            {{ end }}
+
             {{/* Add any additional configuration defined */}}
             {{ $location.ConfigurationSnippet }}
 
diff --git a/test/e2e/annotations/grpc.go b/test/e2e/annotations/grpc.go
index b3be82c2a..e5aef7971 100644
--- a/test/e2e/annotations/grpc.go
+++ b/test/e2e/annotations/grpc.go
@@ -35,7 +35,10 @@ import (
 	"k8s.io/ingress-nginx/test/e2e/framework"
 )
 
-const echoHost = "echo"
+const (
+	echoHost = "echo"
+	host     = "grpc"
+)
 
 var _ = framework.DescribeAnnotation("backend-protocol - GRPC", func() {
 	f := framework.NewDefaultFramework("grpc", framework.WithHTTPBunEnabled())
@@ -43,8 +46,6 @@ var _ = framework.DescribeAnnotation("backend-protocol - GRPC", func() {
 	ginkgo.It("should use grpc_pass in the configuration file", func() {
 		f.NewGRPCFortuneTellerDeployment()
 
-		host := "grpc"
-
 		annotations := map[string]string{
 			"nginx.ingress.kubernetes.io/backend-protocol": "GRPC",
 		}
@@ -259,4 +260,48 @@ var _ = framework.DescribeAnnotation("backend-protocol - GRPC", func() {
 		metadata := res.GetMetadata()
 		assert.Equal(ginkgo.GinkgoT(), metadata["content-type"].Values[0], "application/grpc")
 	})
+
+	ginkgo.It("should set valid grpc timeouts for grpc", func() {
+		proxyConnectTimeout := "5"
+		proxySendTimeout := "30"
+		proxyReadtimeout := "30"
+
+		annotations := make(map[string]string)
+		annotations["nginx.ingress.kubernetes.io/backend-protocol"] = "grpc"
+		annotations["nginx.ingress.kubernetes.io/proxy-connect-timeout"] = proxyConnectTimeout
+		annotations["nginx.ingress.kubernetes.io/proxy-send-timeout"] = proxySendTimeout
+		annotations["nginx.ingress.kubernetes.io/proxy-read-timeout"] = proxyReadtimeout
+
+		ing := framework.NewSingleIngress(host, "/", host, f.Namespace, framework.EchoService, 80, annotations)
+		f.EnsureIngress(ing)
+
+		f.WaitForNginxServer(host,
+			func(server string) bool {
+				return strings.Contains(server, fmt.Sprintf("grpc_connect_timeout %ss;", proxyConnectTimeout)) &&
+					strings.Contains(server, fmt.Sprintf("grpc_send_timeout %ss;", proxySendTimeout)) &&
+					strings.Contains(server, fmt.Sprintf("grpc_read_timeout %ss;", proxyReadtimeout))
+			})
+	})
+
+	ginkgo.It("should set valid grpc timeouts for grpcs", func() {
+		proxyConnectTimeout := "5"
+		proxySendTimeout := "30"
+		proxyReadtimeout := "30"
+
+		annotations := make(map[string]string)
+		annotations["nginx.ingress.kubernetes.io/backend-protocol"] = "grpcs"
+		annotations["nginx.ingress.kubernetes.io/proxy-connect-timeout"] = proxyConnectTimeout
+		annotations["nginx.ingress.kubernetes.io/proxy-send-timeout"] = proxySendTimeout
+		annotations["nginx.ingress.kubernetes.io/proxy-read-timeout"] = proxyReadtimeout
+
+		ing := framework.NewSingleIngress(host, "/", host, f.Namespace, framework.EchoService, 80, annotations)
+		f.EnsureIngress(ing)
+
+		f.WaitForNginxServer(host,
+			func(server string) bool {
+				return strings.Contains(server, fmt.Sprintf("grpc_connect_timeout %ss;", proxyConnectTimeout)) &&
+					strings.Contains(server, fmt.Sprintf("grpc_send_timeout %ss;", proxySendTimeout)) &&
+					strings.Contains(server, fmt.Sprintf("grpc_read_timeout %ss;", proxyReadtimeout))
+			})
+	})
 })