diff --git a/CHANGELOG_PENDING.md b/CHANGELOG_PENDING.md
index 0156b7f4b..22416fc3f 100644
--- a/CHANGELOG_PENDING.md
+++ b/CHANGELOG_PENDING.md
@@ -25,3 +25,5 @@ Friendly reminder, we have a [bug bounty program](https://hackerone.com/tendermi
 - [statesync] \#5516 Check that all heights necessary to rebuild state for a snapshot exist before adding the snapshot to the pool. (@erikgrinaker)
 
 ### BUG FIXES
+
+- [abci/grpc] \#5520 Return async responses in order, to avoid mempool panics. (@erikgrinaker)
diff --git a/abci/client/grpc_client.go b/abci/client/grpc_client.go
index da84bb77d..265b55532 100644
--- a/abci/client/grpc_client.go
+++ b/abci/client/grpc_client.go
@@ -22,8 +22,9 @@ type grpcClient struct {
 	service.BaseService
 	mustConnect bool
 
-	client types.ABCIApplicationClient
-	conn   *grpc.ClientConn
+	client   types.ABCIApplicationClient
+	conn     *grpc.ClientConn
+	chReqRes chan *ReqRes // dispatches "async" responses to callbacks *in order*, needed by mempool
 
 	mtx   tmsync.Mutex
 	addr  string
@@ -35,6 +36,13 @@ func NewGRPCClient(addr string, mustConnect bool) Client {
 	cli := &grpcClient{
 		addr:        addr,
 		mustConnect: mustConnect,
+		// Buffering the channel is needed to make calls appear asynchronous,
+		// which is required when the caller makes multiple async calls before
+		// processing callbacks (e.g. due to holding locks). 64 means that a
+		// caller can make up to 64 async calls before a callback must be
+		// processed (otherwise it deadlocks). It also means that we can make 64
+		// gRPC calls while processing a slow callback at the channel head.
+		chReqRes: make(chan *ReqRes, 64),
 	}
 	cli.BaseService = *service.NewBaseService(nil, "grpcClient", cli)
 	return cli
@@ -48,6 +56,34 @@ func (cli *grpcClient) OnStart() error {
 	if err := cli.BaseService.OnStart(); err != nil {
 		return err
 	}
+
+	// This processes asynchronous request/response messages and dispatches
+	// them to callbacks.
+	go func() {
+		// Use a separate function to use defer for mutex unlocks (this handles panics)
+		callCb := func(reqres *ReqRes) {
+			cli.mtx.Lock()
+			defer cli.mtx.Unlock()
+
+			// Notify client listener if set
+			if cli.resCb != nil {
+				cli.resCb(reqres.Request, reqres.Response)
+			}
+
+			// Notify reqRes listener if set
+			if cb := reqres.GetCallback(); cb != nil {
+				cb(reqres.Response)
+			}
+		}
+		for reqres := range cli.chReqRes {
+			if reqres != nil {
+				callCb(reqres)
+			} else {
+				cli.Logger.Error("Received nil reqres")
+			}
+		}
+	}()
+
 RETRY_LOOP:
 	for {
 		conn, err := grpc.Dial(cli.addr, grpc.WithInsecure(), grpc.WithContextDialer(dialerFunc))
@@ -85,6 +121,7 @@ func (cli *grpcClient) OnStop() {
 	if cli.conn != nil {
 		cli.conn.Close()
 	}
+	close(cli.chReqRes)
 }
 
 func (cli *grpcClient) StopForError(err error) {
@@ -263,26 +300,10 @@ func (cli *grpcClient) ApplySnapshotChunkAsync(params types.RequestApplySnapshot
 
 func (cli *grpcClient) finishAsyncCall(req *types.Request, res *types.Response) *ReqRes {
 	reqres := NewReqRes(req)
-	reqres.Response = res // Set response
-	reqres.Done()         // Release waiters
-	reqres.SetDone()      // so reqRes.SetCallback will run the callback
-
-	// goroutine for callbacks
-	go func() {
-		cli.mtx.Lock()
-		defer cli.mtx.Unlock()
-
-		// Notify client listener if set
-		if cli.resCb != nil {
-			cli.resCb(reqres.Request, res)
-		}
-
-		// Notify reqRes listener if set
-		if cb := reqres.GetCallback(); cb != nil {
-			cb(res)
-		}
-	}()
-
+	reqres.Response = res  // Set response
+	reqres.Done()          // Release waiters
+	reqres.SetDone()       // so reqRes.SetCallback will run the callback
+	cli.chReqRes <- reqres // use channel for async responses, since they must be ordered
 	return reqres
 }