diff --git a/samples/grpc-server/src/test/java/org/springframework/grpc/sample/GrpcServerIntegrationTests.java b/samples/grpc-server/src/test/java/org/springframework/grpc/sample/GrpcServerIntegrationTests.java
index 8daea1c..17c7dc6 100644
--- a/samples/grpc-server/src/test/java/org/springframework/grpc/sample/GrpcServerIntegrationTests.java
+++ b/samples/grpc-server/src/test/java/org/springframework/grpc/sample/GrpcServerIntegrationTests.java
@@ -338,6 +338,23 @@ class GrpcServerIntegrationTests {
 
 	}
 
+	@Nested
+	@SpringBootTest(properties = { "spring.grpc.server.inprocess.name=foo", "spring.grpc.server.host=0.0.0.0",
+			"spring.grpc.server.port=0" })
+	class ServerWithRegularAndInProcessChannelsAndFactories {
+
+		@Test
+		void servesResponseToNonInProcessClient(@Autowired GrpcChannelFactory channels, @LocalGrpcPort int port) {
+			assertThatResponseIsServedToChannel(channels.createChannel("0.0.0.0:" + port));
+		}
+
+		@Test
+		void servesResponseToInProcessClient(@Autowired GrpcChannelFactory channels) {
+			assertThatResponseIsServedToChannel(channels.createChannel("in-process:foo"));
+		}
+
+	}
+
 	private void assertThatResponseIsServedToChannel(ManagedChannel clientChannel) {
 		SimpleGrpc.SimpleBlockingStub client = SimpleGrpc.newBlockingStub(clientChannel);
 		HelloReply response = client.sayHello(HelloRequest.newBuilder().setName("Alien").build());
diff --git a/spring-grpc-core/src/main/java/org/springframework/grpc/server/lifecycle/GrpcServerLifecycle.java b/spring-grpc-core/src/main/java/org/springframework/grpc/server/lifecycle/GrpcServerLifecycle.java
index 47a3be5..0840315 100644
--- a/spring-grpc-core/src/main/java/org/springframework/grpc/server/lifecycle/GrpcServerLifecycle.java
+++ b/spring-grpc-core/src/main/java/org/springframework/grpc/server/lifecycle/GrpcServerLifecycle.java
@@ -107,6 +107,14 @@ public class GrpcServerLifecycle implements SmartLifecycle {
 		return this.server == null ? 0 : this.server.getPort();
 	}
 
+	/**
+	 * Gets the server factory used to create the server.
+	 * @return the server factory to create the server
+	 */
+	public GrpcServerFactory getFactory() {
+		return this.factory;
+	}
+
 	/**
 	 * Creates and starts the grpc server.
 	 * @throws IOException If the server is unable to bind the port.
diff --git a/spring-grpc-spring-boot-autoconfigure/src/main/java/org/springframework/grpc/autoconfigure/client/ClientPropertiesChannelBuilderCustomizer.java b/spring-grpc-spring-boot-autoconfigure/src/main/java/org/springframework/grpc/autoconfigure/client/ClientPropertiesChannelBuilderCustomizer.java
index 18a887a..2a7acbe 100644
--- a/spring-grpc-spring-boot-autoconfigure/src/main/java/org/springframework/grpc/autoconfigure/client/ClientPropertiesChannelBuilderCustomizer.java
+++ b/spring-grpc-spring-boot-autoconfigure/src/main/java/org/springframework/grpc/autoconfigure/client/ClientPropertiesChannelBuilderCustomizer.java
@@ -49,7 +49,7 @@ class ClientPropertiesChannelBuilderCustomizer<T extends ManagedChannelBuilder<T
 		ChannelConfig channel = this.properties.getChannel(authority);
 		PropertyMapper mapper = PropertyMapper.get().alwaysApplyingWhenNonNull();
 		mapper.from(channel.getUserAgent()).to(builder::userAgent);
-		if (!authority.startsWith("unix:")) {
+		if (!authority.startsWith("unix:") && !authority.startsWith("in-process:")) {
 			mapper.from(channel.getDefaultLoadBalancingPolicy()).to(builder::defaultLoadBalancingPolicy);
 		}
 		mapper.from(channel.getMaxInboundMessageSize()).asInt(DataSize::toBytes).to(builder::maxInboundMessageSize);
diff --git a/spring-grpc-test/src/main/java/org/springframework/grpc/test/ServerPortInfoApplicationContextInitializer.java b/spring-grpc-test/src/main/java/org/springframework/grpc/test/ServerPortInfoApplicationContextInitializer.java
index 3e4b373..f59d928 100644
--- a/spring-grpc-test/src/main/java/org/springframework/grpc/test/ServerPortInfoApplicationContextInitializer.java
+++ b/spring-grpc-test/src/main/java/org/springframework/grpc/test/ServerPortInfoApplicationContextInitializer.java
@@ -26,6 +26,7 @@ import org.springframework.core.env.ConfigurableEnvironment;
 import org.springframework.core.env.MapPropertySource;
 import org.springframework.core.env.MutablePropertySources;
 import org.springframework.core.env.PropertySource;
+import org.springframework.grpc.server.InProcessGrpcServerFactory;
 import org.springframework.grpc.server.lifecycle.GrpcServerStartedEvent;
 
 public class ServerPortInfoApplicationContextInitializer implements
@@ -43,6 +44,9 @@ public class ServerPortInfoApplicationContextInitializer implements
 
 	@Override
 	public void onApplicationEvent(GrpcServerStartedEvent event) {
+		if (event.getSource().getFactory() instanceof InProcessGrpcServerFactory) {
+			return;
+		}
 		String propertyName = "local.grpc.port";
 		setPortProperty(applicationContext, propertyName, event.getPort());
 	}