diff --git a/p2p/crypto/secio/rw.go b/p2p/crypto/secio/rw.go
index 959fd634a39..5267137a2e7 100644
--- a/p2p/crypto/secio/rw.go
+++ b/p2p/crypto/secio/rw.go
@@ -15,10 +15,6 @@ import (
 	context "github.com/ipfs/go-ipfs/Godeps/_workspace/src/golang.org/x/net/context"
 )
 
-const MaxMsgSize = 8 * 1024 * 1024
-
-var ErrMaxMessageSize = errors.New("attempted to read message larger than max size")
-
 // ErrMACInvalid signals that a MAC verification failed
 var ErrMACInvalid = errors.New("MAC verification failed")
 
@@ -85,9 +81,13 @@ type etmReader struct {
 	msgio.Reader
 	io.Closer
 
-	// buffer
+	// internal buffer returned from the msgio
 	buf []byte
 
+	// low and high watermark for the buffered data
+	lowat int
+	hiwat int
+
 	// params
 	msg msgio.ReadCloser // msgio for knowing where boundaries lie
 	str cipher.Stream    // the stream cipher to encrypt with
@@ -105,67 +105,91 @@ func (r *etmReader) NextMsgLen() (int, error) {
 	return r.msg.NextMsgLen()
 }
 
-func (r *etmReader) drainBuf(buf []byte) int {
-	if r.buf == nil {
+func (r *etmReader) drain(buf []byte) int {
+	// Return zero if there is no data remaining in the internal buffer.
+	if r.lowat == r.hiwat {
 		return 0
 	}
 
-	n := copy(buf, r.buf)
-	r.buf = r.buf[n:]
+	// Copy data to the output buffer.
+	n := copy(buf, r.buf[r.lowat:r.hiwat])
+
+	// Update the low watermark.
+	r.lowat += n
+
+	// Release the buffer and reset the watermarks if it has been fully read.
+	if r.lowat == r.hiwat {
+		r.msg.ReleaseMsg(r.buf)
+		r.buf = nil
+		r.lowat = 0
+		r.hiwat = 0
+	}
+
 	return n
 }
 
+func (r *etmReader) fill() error {
+	// Read a message from the underlying msgio.
+	msg, err := r.msg.ReadMsg()
+	if err != nil {
+		return err
+	}
+
+	// Check the MAC.
+	n, err := r.macCheckThenDecrypt(msg)
+	if err != nil {
+		r.msg.ReleaseMsg(msg)
+		return err
+	}
+
+	// Retain the buffer so it can be drained from and later released.
+	r.buf = msg
+	r.lowat = 0
+	r.hiwat = n
+
+	return nil
+}
+
 func (r *etmReader) Read(buf []byte) (int, error) {
 	r.Lock()
 	defer r.Unlock()
 
-	// first, check if we have anything in the buffer
-	copied := r.drainBuf(buf)
-	buf = buf[copied:]
+	// Return buffered data without reading more, if possible.
+	copied := r.drain(buf)
 	if copied > 0 {
 		return copied, nil
-		// return here to avoid complicating the rest...
-		// user can call io.ReadFull.
 	}
 
-	// check the buffer has enough space for the next msg
+	// Check the length of the next message.
 	fullLen, err := r.msg.NextMsgLen()
 	if err != nil {
 		return 0, err
 	}
 
-	if fullLen > MaxMsgSize {
-		return 0, ErrMaxMessageSize
-	}
-
-	buf2 := buf
-	changed := false
-	// if not enough space, allocate a new buffer.
+	// If the destination buffer is too short, fill an internal buffer and then
+	// drain as much of that into the output buffer as will fit.
 	if cap(buf) < fullLen {
-		buf2 = make([]byte, fullLen)
-		changed = true
+		err := r.fill()
+		if err != nil {
+			return 0, err
+		}
+
+		copied := r.drain(buf)
+		return copied, nil
 	}
-	buf2 = buf2[:fullLen]
 
-	n, err := io.ReadFull(r.msg, buf2)
+	// Otherwise, read directly into the destination buffer.
+	n, err := io.ReadFull(r.msg, buf[:fullLen])
 	if err != nil {
-		return n, err
+		return 0, err
 	}
 
-	m, err := r.macCheckThenDecrypt(buf2)
+	m, err := r.macCheckThenDecrypt(buf[:n])
 	if err != nil {
 		return 0, err
 	}
-	buf2 = buf2[:m]
-	if !changed {
-		return m, nil
-	}
 
-	n = copy(buf, buf2)
-	if len(buf2) > len(buf) {
-		r.buf = buf2[len(buf):] // had some left over? save it.
-	}
-	return n, nil
+	return m, nil
 }
 
 func (r *etmReader) ReadMsg() ([]byte, error) {