diff --git a/Cargo.toml b/Cargo.toml
index 8334230937..9688c7be9e 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -66,6 +66,7 @@ tokio = { version = "1", features = [
 ] }
 tokio-test = "0.4"
 tokio-util = "0.7.10"
+tracing-subscriber = "0.3"
 
 [features]
 # Nothing by default
@@ -239,6 +240,11 @@ name = "integration"
 path = "tests/integration.rs"
 required-features = ["full"]
 
+[[test]]
+name = "ready_stream"
+path = "tests/ready_stream.rs"
+required-features = ["full", "tracing"]
+
 [[test]]
 name = "server"
 path = "tests/server.rs"
diff --git a/src/proto/h1/dispatch.rs b/src/proto/h1/dispatch.rs
index 5daeb5ebf6..3ee88e17d9 100644
--- a/src/proto/h1/dispatch.rs
+++ b/src/proto/h1/dispatch.rs
@@ -171,8 +171,13 @@ where
         for _ in 0..16 {
             let _ = self.poll_read(cx)?;
             let _ = self.poll_write(cx)?;
-            let _ = self.poll_flush(cx)?;
+            let conn_ready = self.poll_flush(cx)?.is_ready();
 
+            // If we can write more body and the connection is ready, we should
+            // write again. If we return `Ready(Ok(())` here, we will yield
+            // without a guaranteed wakeup from the write side of the connection.
+            // This would lead to a deadlock if we also don't expect reads.
+            let wants_write_again = self.can_write_again() && conn_ready;
             // This could happen if reading paused before blocking on IO,
             // such as getting to the end of a framed message, but then
             // writing/flushing set the state back to Init. In that case,
@@ -181,7 +186,10 @@ where
             //
             // Using this instead of task::current() and notify() inside
             // the Conn is noticeably faster in pipelined benchmarks.
-            if !self.conn.wants_read_again() {
+            let wants_read_again = self.conn.wants_read_again();
+            // If we cannot write or read again, we yield and rely on the
+            // wakeup from the connection futures.
+            if !(wants_write_again || wants_read_again) {
                 //break;
                 return Poll::Ready(Ok(()));
             }
@@ -433,6 +441,11 @@ where
         self.conn.close_write();
     }
 
+    /// If there is pending data in body_rx, we can make progress writing if the connection is ready.
+    fn can_write_again(&mut self) -> bool {
+        self.body_rx.is_some()
+    }
+
     fn is_done(&self) -> bool {
         if self.is_closing {
             return true;
diff --git a/tests/ready_stream.rs b/tests/ready_stream.rs
new file mode 100644
index 0000000000..c90e2176ae
--- /dev/null
+++ b/tests/ready_stream.rs
@@ -0,0 +1,249 @@
+use http_body_util::StreamBody;
+use hyper::body::Bytes;
+use hyper::body::Frame;
+use hyper::rt::{Read, ReadBufCursor, Write};
+use hyper::server::conn::http1;
+use hyper::service::service_fn;
+use hyper::{Response, StatusCode};
+use pin_project_lite::pin_project;
+use std::convert::Infallible;
+use std::io;
+use std::pin::Pin;
+use std::task::{ready, Context, Poll};
+use tokio::sync::mpsc;
+use tracing::{error, info};
+
+pin_project! {
+    #[derive(Debug)]
+    pub struct TxReadyStream {
+        #[pin]
+        read_rx: mpsc::UnboundedReceiver<Vec<u8>>,
+        write_tx: mpsc::UnboundedSender<Vec<u8>>,
+        read_buffer: Vec<u8>,
+        poll_since_write:bool,
+        flush_count: usize,
+        panic_task: Option<tokio::task::JoinHandle<()>>,
+    }
+}
+
+impl TxReadyStream {
+    fn new(
+        read_rx: mpsc::UnboundedReceiver<Vec<u8>>,
+        write_tx: mpsc::UnboundedSender<Vec<u8>>,
+    ) -> Self {
+        Self {
+            read_rx,
+            write_tx,
+            read_buffer: Vec::new(),
+            poll_since_write: true,
+            flush_count: 0,
+            panic_task: None,
+        }
+    }
+
+    /// Create a new pair of connected ReadyStreams. Returns two streams that are connected to each other.
+    fn new_pair() -> (Self, Self) {
+        let (s1_tx, s2_rx) = mpsc::unbounded_channel();
+        let (s2_tx, s1_rx) = mpsc::unbounded_channel();
+        let s1 = Self::new(s1_rx, s1_tx);
+        let s2 = Self::new(s2_rx, s2_tx);
+        (s1, s2)
+    }
+
+    /// Send data to the other end of the stream (this will be available for reading on the other stream)
+    fn send(&self, data: &[u8]) -> Result<(), mpsc::error::SendError<Vec<u8>>> {
+        self.write_tx.send(data.to_vec())
+    }
+
+    /// Receive data written to this stream by the other end (async)
+    async fn recv(&mut self) -> Option<Vec<u8>> {
+        self.read_rx.recv().await
+    }
+}
+
+impl Read for TxReadyStream {
+    fn poll_read(
+        mut self: Pin<&mut Self>,
+        cx: &mut Context<'_>,
+        mut buf: ReadBufCursor<'_>,
+    ) -> Poll<io::Result<()>> {
+        let mut this = self.as_mut().project();
+
+        // First, try to satisfy the read request from the internal buffer
+        if !this.read_buffer.is_empty() {
+            let to_read = std::cmp::min(this.read_buffer.len(), buf.remaining());
+            // Copy data from internal buffer to the read buffer
+            buf.put_slice(&this.read_buffer[..to_read]);
+            // Remove the consumed data from the internal buffer
+            this.read_buffer.drain(..to_read);
+            return Poll::Ready(Ok(()));
+        }
+
+        // If internal buffer is empty, try to get data from the channel
+        match this.read_rx.try_recv() {
+            Ok(data) => {
+                // Copy as much data as we can fit in the buffer
+                let to_read = std::cmp::min(data.len(), buf.remaining());
+                buf.put_slice(&data[..to_read]);
+
+                // Store any remaining data in the internal buffer for next time
+                if to_read < data.len() {
+                    let remaining = &data[to_read..];
+                    this.read_buffer.extend_from_slice(remaining);
+                }
+                Poll::Ready(Ok(()))
+            }
+            Err(mpsc::error::TryRecvError::Empty) => {
+                match ready!(this.read_rx.poll_recv(cx)) {
+                    Some(data) => {
+                        // Copy as much data as we can fit in the buffer
+                        let to_read = std::cmp::min(data.len(), buf.remaining());
+                        buf.put_slice(&data[..to_read]);
+
+                        // Store any remaining data in the internal buffer for next time
+                        if to_read < data.len() {
+                            let remaining = &data[to_read..];
+                            this.read_buffer.extend_from_slice(remaining);
+                        }
+                        Poll::Ready(Ok(()))
+                    }
+                    None => Poll::Ready(Ok(())),
+                }
+            }
+            Err(mpsc::error::TryRecvError::Disconnected) => {
+                // Channel closed, return EOF
+                Poll::Ready(Ok(()))
+            }
+        }
+    }
+}
+
+impl Write for TxReadyStream {
+    fn poll_write(
+        mut self: Pin<&mut Self>,
+        _cx: &mut Context<'_>,
+        buf: &[u8],
+    ) -> Poll<io::Result<usize>> {
+        if !self.poll_since_write {
+            return Poll::Pending;
+        }
+        self.poll_since_write = false;
+        let this = self.project();
+        let buf = Vec::from(&buf[..buf.len()]);
+        let len = buf.len();
+
+        // Send data through the channel - this should always be ready for unbounded channels
+        match this.write_tx.send(buf) {
+            Ok(_) => {
+                // Increment write count
+                Poll::Ready(Ok(len))
+            }
+            Err(_) => {
+                error!("ReadyStream::poll_write failed - channel closed");
+                Poll::Ready(Err(io::Error::new(
+                    io::ErrorKind::BrokenPipe,
+                    "Write channel closed",
+                )))
+            }
+        }
+    }
+
+    fn poll_flush(mut self: Pin<&mut Self>, _cx: &mut Context<'_>) -> Poll<io::Result<()>> {
+        self.flush_count += 1;
+        // We require two flushes to complete each chunk, simulating a success at the end of the old
+        // poll loop. After all chunks are written, we always succeed on flush to allow for finish.
+        if self.flush_count % 2 != 0 && self.flush_count < TOTAL_CHUNKS * 2 {
+            // Spawn panic task if not already spawned
+            if self.panic_task.is_none() {
+                let task = tokio::spawn(async {
+                    tokio::time::sleep(tokio::time::Duration::from_secs(1)).await;
+                });
+                self.panic_task = Some(task);
+            }
+            return Poll::Pending;
+        }
+
+        // Abort the panic task if it exists
+        if let Some(task) = self.panic_task.take() {
+            info!("Task polled to completion. Aborting panic (aka waker stand-in task).");
+            task.abort();
+        }
+
+        self.poll_since_write = true;
+        Poll::Ready(Ok(()))
+    }
+
+    fn poll_shutdown(self: Pin<&mut Self>, _cx: &mut Context<'_>) -> Poll<io::Result<()>> {
+        Poll::Ready(Ok(()))
+    }
+}
+
+fn init_tracing() {
+    use std::sync::Once;
+    static INIT: Once = Once::new();
+    INIT.call_once(|| {
+        tracing_subscriber::fmt()
+            .with_max_level(tracing::Level::INFO)
+            .with_target(true)
+            .with_thread_ids(true)
+            .with_thread_names(true)
+            .init();
+    });
+}
+
+const TOTAL_CHUNKS: usize = 16;
+
+#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
+async fn body_test() {
+    init_tracing();
+    // Create a pair of connected streams
+    let (server_stream, mut client_stream) = TxReadyStream::new_pair();
+
+    let mut http_builder = http1::Builder::new();
+    http_builder.max_buf_size(CHUNK_SIZE);
+    const CHUNK_SIZE: usize = 64 * 1024;
+    let service = service_fn(|_| async move {
+        info!(
+            "Creating payload of {} chunks of {} KiB each ({} MiB total)...",
+            TOTAL_CHUNKS,
+            CHUNK_SIZE / 1024,
+            TOTAL_CHUNKS * CHUNK_SIZE / (1024 * 1024)
+        );
+        let bytes = Bytes::from(vec![0; CHUNK_SIZE]);
+        let data = vec![bytes.clone(); TOTAL_CHUNKS];
+        let stream = futures_util::stream::iter(
+            data.into_iter()
+                .map(|b| Ok::<_, Infallible>(Frame::data(b))),
+        );
+        let body = StreamBody::new(stream);
+        info!("Server: Sending data response...");
+        Ok::<_, hyper::Error>(
+            Response::builder()
+                .status(StatusCode::OK)
+                .header("content-type", "application/octet-stream")
+                .header("content-length", (TOTAL_CHUNKS * CHUNK_SIZE).to_string())
+                .body(body)
+                .unwrap(),
+        )
+    });
+
+    let server_task = tokio::spawn(async move {
+        let conn = http_builder.serve_connection(server_stream, service);
+        if let Err(e) = conn.await {
+            error!("Server connection error: {}", e);
+        }
+    });
+
+    let get_request = "GET / HTTP/1.1\r\nHost: localhost\r\nConnection: close\r\n\r\n";
+    client_stream.send(get_request.as_bytes()).unwrap();
+
+    info!("Client is reading response...");
+    let mut bytes_received = 0;
+    while let Some(chunk) = client_stream.recv().await {
+        bytes_received += chunk.len();
+    }
+    // Clean up
+    server_task.abort();
+
+    info!(bytes_received, "Client done receiving bytes");
+}