diff --git a/Lib/codecs.py b/Lib/codecs.py
index f831dd63375..ab12237f888 100644
--- a/Lib/codecs.py
+++ b/Lib/codecs.py
@@ -334,7 +334,7 @@ class StreamReader(Codec):
 
         """
         data = self.read()
-        return self.splitlines(keepends)
+        return data.splitlines(keepends)
 
     def reset(self):
 
diff --git a/Lib/test/test_codecs.py b/Lib/test/test_codecs.py
index 524c247d8c3..54d9da5b0ac 100644
--- a/Lib/test/test_codecs.py
+++ b/Lib/test/test_codecs.py
@@ -458,6 +458,16 @@ class CodecsModuleTest(unittest.TestCase):
         self.assertEquals(codecs.encode(u'\xe4\xf6\xfc', 'latin-1'),
                           '\xe4\xf6\xfc')
 
+class StreamReaderTest(unittest.TestCase):
+
+    def setUp(self):
+        self.reader = codecs.getreader('utf-8')
+        self.stream = StringIO.StringIO('\xed\x95\x9c\n\xea\xb8\x80')
+
+    def test_readlines(self):
+        f = self.reader(self.stream)
+        self.assertEquals(f.readlines(), [u'\ud55c\n', u'\uae00'])
+
 def test_main():
     test_support.run_unittest(
         UTF16Test,
@@ -469,7 +479,8 @@ def test_main():
         PunycodeTest,
         NameprepTest,
         CodecTest,
-        CodecsModuleTest
+        CodecsModuleTest,
+        StreamReaderTest
     )