diff --git a/src/streaming.ts b/src/streaming.ts
index bcf7bb6..973f8f8 100644
--- a/src/streaming.ts
+++ b/src/streaming.ts
@@ -24,29 +24,6 @@ export class Stream<Item> implements AsyncIterable<Item> {
 
   static fromSSEResponse<Item>(response: Response, controller: AbortController) {
     let consumed = false;
-    const decoder = new SSEDecoder();
-
-    async function* iterMessages(): AsyncGenerator<ServerSentEvent, void, unknown> {
-      if (!response.body) {
-        controller.abort();
-        throw new AnthropicError(`Attempted to iterate over a response with no body`);
-      }
-
-      const lineDecoder = new LineDecoder();
-
-      const iter = readableStreamAsyncIterable<Bytes>(response.body);
-      for await (const chunk of iter) {
-        for (const line of lineDecoder.decode(chunk)) {
-          const sse = decoder.decode(line);
-          if (sse) yield sse;
-        }
-      }
-
-      for (const line of lineDecoder.flush()) {
-        const sse = decoder.decode(line);
-        if (sse) yield sse;
-      }
-    }
 
     async function* iterator(): AsyncIterator<Item, any, undefined> {
       if (consumed) {
@@ -55,7 +32,7 @@ export class Stream<Item> implements AsyncIterable<Item> {
       consumed = true;
       let done = false;
       try {
-        for await (const sse of iterMessages()) {
+        for await (const sse of _iterSSEMessages(response, controller)) {
           if (sse.event === 'completion') {
             try {
               yield JSON.parse(sse.data);
@@ -221,6 +198,97 @@ export class Stream<Item> implements AsyncIterable<Item> {
   }
 }
 
+export async function* _iterSSEMessages(
+  response: Response,
+  controller: AbortController,
+): AsyncGenerator<ServerSentEvent, void, unknown> {
+  if (!response.body) {
+    controller.abort();
+    throw new AnthropicError(`Attempted to iterate over a response with no body`);
+  }
+
+  const sseDecoder = new SSEDecoder();
+  const lineDecoder = new LineDecoder();
+
+  const iter = readableStreamAsyncIterable<Bytes>(response.body);
+  for await (const sseChunk of iterSSEChunks(iter)) {
+    for (const line of lineDecoder.decode(sseChunk)) {
+      const sse = sseDecoder.decode(line);
+      if (sse) yield sse;
+    }
+  }
+
+  for (const line of lineDecoder.flush()) {
+    const sse = sseDecoder.decode(line);
+    if (sse) yield sse;
+  }
+}
+
+/**
+ * Given an async iterable iterator, iterates over it and yields full
+ * SSE chunks, i.e. yields when a double new-line is encountered.
+ */
+async function* iterSSEChunks(iterator: AsyncIterableIterator<Bytes>): AsyncGenerator<Uint8Array> {
+  let data = new Uint8Array();
+
+  for await (const chunk of iterator) {
+    if (chunk == null) {
+      continue;
+    }
+
+    const binaryChunk =
+      chunk instanceof ArrayBuffer ? new Uint8Array(chunk)
+      : typeof chunk === 'string' ? new TextEncoder().encode(chunk)
+      : chunk;
+
+    let newData = new Uint8Array(data.length + binaryChunk.length);
+    newData.set(data);
+    newData.set(binaryChunk, data.length);
+    data = newData;
+
+    let patternIndex;
+    while ((patternIndex = findDoubleNewlineIndex(data)) !== -1) {
+      yield data.slice(0, patternIndex);
+      data = data.slice(patternIndex);
+    }
+  }
+
+  if (data.length > 0) {
+    yield data;
+  }
+}
+
+function findDoubleNewlineIndex(buffer: Uint8Array): number {
+  // This function searches the buffer for the end patterns (\r\r, \n\n, \r\n\r\n)
+  // and returns the index right after the first occurrence of any pattern,
+  // or -1 if none of the patterns are found.
+  const newline = 0x0a; // \n
+  const carriage = 0x0d; // \r
+
+  for (let i = 0; i < buffer.length - 2; i++) {
+    if (buffer[i] === newline && buffer[i + 1] === newline) {
+      // \n\n
+      return i + 2;
+    }
+    if (buffer[i] === carriage && buffer[i + 1] === carriage) {
+      // \r\r
+      return i + 2;
+    }
+    if (
+      buffer[i] === carriage &&
+      buffer[i + 1] === newline &&
+      i + 3 < buffer.length &&
+      buffer[i + 2] === carriage &&
+      buffer[i + 3] === newline
+    ) {
+      // \r\n\r\n
+      return i + 4;
+    }
+  }
+
+  return -1;
+}
+
 class SSEDecoder {
   private data: string[];
   private event: string | null;
@@ -284,8 +352,8 @@ class SSEDecoder {
  */
 class LineDecoder {
   // prettier-ignore
-  static NEWLINE_CHARS = new Set(['\n', '\r', '\x0b', '\x0c', '\x1c', '\x1d', '\x1e', '\x85', '\u2028', '\u2029']);
-  static NEWLINE_REGEXP = /\r\n|[\n\r\x0b\x0c\x1c\x1d\x1e\x85\u2028\u2029]/g;
+  static NEWLINE_CHARS = new Set(['\n', '\r']);
+  static NEWLINE_REGEXP = /\r\n|[\n\r]/g;
 
   buffer: string[];
   trailingCR: boolean;
diff --git a/tests/streaming.test.ts b/tests/streaming.test.ts
index ead469e..3e4b8ac 100644
--- a/tests/streaming.test.ts
+++ b/tests/streaming.test.ts
@@ -1,4 +1,7 @@
-import { _decodeChunks as decodeChunks } from '@anthropic-ai/sdk/streaming';
+import { Response } from 'node-fetch';
+import { PassThrough } from 'stream';
+import assert from 'assert';
+import { _iterSSEMessages, _decodeChunks as decodeChunks } from '@anthropic-ai/sdk/streaming';
 
 describe('line decoder', () => {
   test('basic', () => {
@@ -27,3 +30,243 @@ describe('line decoder', () => {
     expect(decodeChunks(['foo', ' bar\\r\\nbaz\n'])).toEqual(['foo bar\\r\\nbaz']);
   });
 });
+
+describe('streaming decoding', () => {
+  test('basic', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('event: completion\n');
+      yield Buffer.from('data: {"foo":true}\n');
+      yield Buffer.from('\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(JSON.parse(event.value.data)).toEqual({ foo: true });
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+
+  test('data without event', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('data: {"foo":true}\n');
+      yield Buffer.from('\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toBeNull();
+    expect(JSON.parse(event.value.data)).toEqual({ foo: true });
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+
+  test('event without data', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('event: foo\n');
+      yield Buffer.from('\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toEqual('foo');
+    expect(event.value.data).toEqual('');
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+
+  test('multiple events', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('event: foo\n');
+      yield Buffer.from('\n');
+      yield Buffer.from('event: ping\n');
+      yield Buffer.from('\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toEqual('foo');
+    expect(event.value.data).toEqual('');
+
+    event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toEqual('ping');
+    expect(event.value.data).toEqual('');
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+
+  test('multiple events with data', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('event: foo\n');
+      yield Buffer.from('data: {"foo":true}\n');
+      yield Buffer.from('\n');
+      yield Buffer.from('event: ping\n');
+      yield Buffer.from('data: {"bar":false}\n');
+      yield Buffer.from('\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toEqual('foo');
+    expect(JSON.parse(event.value.data)).toEqual({ foo: true });
+
+    event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toEqual('ping');
+    expect(JSON.parse(event.value.data)).toEqual({ bar: false });
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+
+  test('multiple data lines with empty line', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('event: ping\n');
+      yield Buffer.from('data: {\n');
+      yield Buffer.from('data: "foo":\n');
+      yield Buffer.from('data: \n');
+      yield Buffer.from('data:\n');
+      yield Buffer.from('data: true}\n');
+      yield Buffer.from('\n\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toEqual('ping');
+    expect(JSON.parse(event.value.data)).toEqual({ foo: true });
+    expect(event.value.data).toEqual('{\n"foo":\n\n\ntrue}');
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+
+  test('data json escaped double new line', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('event: ping\n');
+      yield Buffer.from('data: {"foo": "my long\\n\\ncontent"}');
+      yield Buffer.from('\n\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toEqual('ping');
+    expect(JSON.parse(event.value.data)).toEqual({ foo: 'my long\n\ncontent' });
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+
+  test('special new line characters', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('data: {"content": "culpa "}\n');
+      yield Buffer.from('\n');
+      yield Buffer.from('data: {"content": "');
+      yield Buffer.from([0xe2, 0x80, 0xa8]);
+      yield Buffer.from('"}\n');
+      yield Buffer.from('\n');
+      yield Buffer.from('data: {"content": "foo"}\n');
+      yield Buffer.from('\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(JSON.parse(event.value.data)).toEqual({ content: 'culpa ' });
+
+    event = await stream.next();
+    assert(event.value);
+    expect(JSON.parse(event.value.data)).toEqual({ content: Buffer.from([0xe2, 0x80, 0xa8]).toString() });
+
+    event = await stream.next();
+    assert(event.value);
+    expect(JSON.parse(event.value.data)).toEqual({ content: 'foo' });
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+
+  test('multi-byte characters across chunks', async () => {
+    async function* body(): AsyncGenerator<Buffer> {
+      yield Buffer.from('event: completion\n');
+      yield Buffer.from('data: {"content": "');
+      // bytes taken from the string 'известни' and arbitrarily split
+      // so that some multi-byte characters span multiple chunks
+      yield Buffer.from([0xd0]);
+      yield Buffer.from([0xb8, 0xd0, 0xb7, 0xd0]);
+      yield Buffer.from([0xb2, 0xd0, 0xb5, 0xd1, 0x81, 0xd1, 0x82, 0xd0, 0xbd, 0xd0, 0xb8]);
+      yield Buffer.from('"}\n');
+      yield Buffer.from('\n');
+    }
+
+    const stream = _iterSSEMessages(new Response(await iteratorToStream(body())), new AbortController())[
+      Symbol.asyncIterator
+    ]();
+
+    let event = await stream.next();
+    assert(event.value);
+    expect(event.value.event).toEqual('completion');
+    expect(JSON.parse(event.value.data)).toEqual({ content: 'известни' });
+
+    event = await stream.next();
+    expect(event.done).toBeTruthy();
+  });
+});
+
+async function iteratorToStream(iterator: AsyncGenerator<any>): Promise<PassThrough> {
+  const parts: unknown[] = [];
+
+  for await (const chunk of iterator) {
+    parts.push(chunk);
+  }
+
+  let index = 0;
+
+  const stream = new PassThrough({
+    read() {
+      const value = parts[index];
+      if (value === undefined) {
+        stream.end();
+      } else {
+        index += 1;
+        stream.write(value);
+      }
+    },
+  });
+
+  return stream;
+}