diff --git a/src/qos_core/src/io/stream.rs b/src/qos_core/src/io/stream.rs
index 49785305b..745e86907 100644
--- a/src/qos_core/src/io/stream.rs
+++ b/src/qos_core/src/io/stream.rs
@@ -25,11 +25,14 @@ const MAX_RETRY: usize = 25;
 const BACKOFF_MILLISECONDS: u64 = 10;
 const BACKLOG: usize = 128;
 
-const MEGABYTE: usize = 1024 * 1024;
+const MIB: usize = 1024 * 1024;
 
-/// Maximum payload size for a single recv / send call. We're being generous with 128MB.
+/// Maximum payload size for a single recv / send call. We're being generous with 128MiB.
 /// The goal here is to avoid server crashes if the payload size exceeds the available system memory.
-pub const MAX_PAYLOAD_SIZE: usize = 128 * MEGABYTE;
+pub const MAX_PAYLOAD_SIZE: usize = 128 * MIB;
+
+/// Even though we allow for big payloads we start by allocating a small buffer first. Then allocate more as needed.
+pub const INITIAL_RECV_BUF_SIZE: usize = 2 * MIB;
 
 /// Socket address.
 #[derive(Clone, Debug, PartialEq, Eq)]
@@ -234,33 +237,37 @@ impl Stream {
 			return Err(IOError::OversizedPayload(length));
 		}
 
-		// Read the buffer
-		let mut buf = vec![0; length];
-		{
-			let mut received_bytes = 0;
-			while received_bytes < length {
-				received_bytes += match recv(
-					self.fd,
-					&mut buf[received_bytes..length],
-					MsgFlags::empty(),
-				) {
-					Ok(0) => {
-						return Err(IOError::RecvConnectionClosed);
-					}
-					Ok(size) => size,
-					Err(nix::Error::EINTR) => {
-						return Err(IOError::RecvInterrupted);
-					}
-					Err(nix::Error::EAGAIN) => {
-						return Err(IOError::RecvTimeout);
-					}
-					Err(err) => {
-						return Err(IOError::NixError(err));
-					}
-				};
+		// Allocate conservatively to avoid clients setting 128MB as their declared length and keeping the connection open.
+		// We'd only need a few of these to run out of memory. This "as needed" allocation ensures clients have skin in the game.
+		let initial_recv_buf_len =
+			core::cmp::min(length, INITIAL_RECV_BUF_SIZE);
+		let mut recv_buf = vec![0u8; initial_recv_buf_len];
+
+		let mut received_bytes = 0;
+		while received_bytes < length {
+			// If the receive buffer is full, double it.
+			if received_bytes == recv_buf.len() {
+				// Using `saturating_mul` here out of paranoia; it's cheap enough to saturate instead of overflow.
+				// We either double the recv buffer capacity, or set it to `length` if doubling would exceed it.
+				let new_len =
+					core::cmp::min(recv_buf.len().saturating_mul(2), length);
+				recv_buf.resize(new_len, 0);
 			}
+
+			received_bytes += match recv(
+				self.fd,
+				&mut recv_buf[received_bytes..],
+				MsgFlags::empty(),
+			) {
+				Ok(0) => return Err(IOError::RecvConnectionClosed),
+				Ok(size) => size,
+				Err(nix::Error::EINTR) => return Err(IOError::RecvInterrupted),
+				Err(nix::Error::EAGAIN) => return Err(IOError::RecvTimeout),
+				Err(err) => return Err(IOError::NixError(err)),
+			};
 		}
-		Ok(buf)
+
+		Ok(recv_buf)
 	}
 }
 
@@ -533,7 +540,7 @@ mod test {
 			}
 		});
 
-		// Sending a request that is strictly less than the max size should work
+		// Sending a request that is exactly the max size should work
 		// (the response will be exactly max size)
 		let client = Stream::connect(&addr, timeval()).unwrap();
 		let req = vec![1u8; MAX_PAYLOAD_SIZE];