diff --git a/core/src/main/java/io/undertow/conduits/FixedLengthStreamSourceConduit.java b/core/src/main/java/io/undertow/conduits/FixedLengthStreamSourceConduit.java
index 1757210309..7e8a4b5846 100644
--- a/core/src/main/java/io/undertow/conduits/FixedLengthStreamSourceConduit.java
+++ b/core/src/main/java/io/undertow/conduits/FixedLengthStreamSourceConduit.java
@@ -371,6 +371,11 @@ private void exitRead(long consumed, Throwable readError) throws IOException {
         }
         long newVal = oldVal - consumed;
         state = newVal;
+        if (allAreClear(state, MASK_COUNT)) {
+            if (allAreClear(state, FLAG_FINISHED)) {
+                next.suspendReads();
+            }
+        }
     }
 
     private void invokeFinishListener() {
diff --git a/core/src/test/java/io/undertow/server/ExactLengthReadTimeoutTestCase.java b/core/src/test/java/io/undertow/server/ExactLengthReadTimeoutTestCase.java
new file mode 100644
index 0000000000..c34f27918b
--- /dev/null
+++ b/core/src/test/java/io/undertow/server/ExactLengthReadTimeoutTestCase.java
@@ -0,0 +1,143 @@
+/*
+ * JBoss, Home of Professional Open Source.
+ * Copyright 2014 Red Hat, Inc., and individual contributors
+ * as indicated by the @author tags.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ *  Unless required by applicable law or agreed to in writing, software
+ *  distributed under the License is distributed on an "AS IS" BASIS,
+ *  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *  See the License for the specific language governing permissions and
+ *  limitations under the License.
+ */
+
+package io.undertow.server;
+
+import java.io.IOException;
+import java.io.InputStream;
+import java.io.OutputStream;
+
+import io.undertow.server.handlers.BlockingHandler;
+import io.undertow.testutils.DefaultServer;
+import io.undertow.testutils.HttpOneOnly;
+import io.undertow.testutils.TestHttpClient;
+import io.undertow.util.Headers;
+import io.undertow.util.StatusCodes;
+import org.apache.http.HttpResponse;
+import org.apache.http.NoHttpResponseException;
+import org.apache.http.client.methods.HttpPost;
+import org.apache.http.entity.StringEntity;
+import org.junit.Assert;
+import org.junit.BeforeClass;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.xnio.OptionMap;
+import org.xnio.Options;
+
+/**
+ *
+ * Tests to ensure no read timeout after an exact read of the content-length
+ *
+ * @author Stuart Douglas
+ * @author Flavia Rainone
+ * @author Aaron Ogburn
+ */
+@RunWith(DefaultServer.class)
+@HttpOneOnly
+public class ExactLengthReadTimeoutTestCase {
+
+    private static volatile String message;
+
+    private static final String DATA = "1234567890ABCDEF";
+
+    private static final int DATA_MULTIPLE = 2048;
+
+    @BeforeClass
+    public static void setup() {
+        final BlockingHandler blockingHandler = new BlockingHandler();
+        DefaultServer.setRootHandler(blockingHandler);
+        blockingHandler.setRootHandler(new HttpHandler() {
+            @Override
+            public void handleRequest(final HttpServerExchange exchange) {
+                try {
+                    final OutputStream outputStream = exchange.getOutputStream();
+                    final InputStream inputStream =  exchange.getInputStream();
+
+                    long length = exchange.getRequestContentLength();
+                    byte[] b = new byte[DATA_MULTIPLE * DATA.length()];
+                    int i = 1;
+                    StringBuilder builder = new StringBuilder();
+                    // read exact content length
+                    while (i > 0 && length > 0) {
+                        i = inputStream.read(b);
+                        if (i > 0) {
+                           length -=i;
+                           builder.append(new String(b, 0, i));
+                        }
+                    }
+
+                    // this shouldn't cause timeout after complete read
+                    try {
+                        Thread.sleep(200);
+                    }  catch (InterruptedException e) {
+                        throw new RuntimeException(e);
+                    }
+
+                    Assert.assertEquals(message, builder.toString());
+                    inputStream.close();
+                    outputStream.close();
+                } catch (IOException e) {
+                    exchange.getResponseHeaders().put(Headers.CONNECTION, "close");
+                    exchange.setStatusCode(StatusCodes.INTERNAL_SERVER_ERROR);
+                    throw new RuntimeException(e);
+                }
+            }
+        });
+    }
+
+    @DefaultServer.BeforeServerStarts
+    public static void beforeClass() {
+        DefaultServer.setServerOptions(OptionMap.create(Options.READ_TIMEOUT, 100));
+    }
+
+    @DefaultServer.AfterServerStops
+    public static void afterClass() {
+        DefaultServer.setServerOptions(OptionMap.EMPTY);
+    }
+
+    @Test
+    public void testExactLengthReadTimeout() throws InterruptedException, IOException {
+        StringBuilder builder = new StringBuilder(1000 * DATA.length());
+
+        for (int i = 0; i < DATA_MULTIPLE; ++i) {
+            try {
+                builder.append(DATA);
+            } catch (Throwable e) {
+                throw new RuntimeException("test failed with i equal to " + i, e);
+            }
+        }
+
+        message = builder.toString();
+        final TestHttpClient client = new TestHttpClient();
+        try {
+            HttpPost post = new HttpPost(DefaultServer.getDefaultServerURL() + "/path");
+            post.setEntity(new StringEntity(message));
+            post.addHeader(Headers.CONNECTION_STRING, "close");
+            boolean socketFailure = false;
+            try {
+                // Request should succeed.
+                HttpResponse result = client.execute(post);
+                Assert.assertEquals(StatusCodes.OK, result.getStatusLine().getStatusCode());
+            } catch (NoHttpResponseException e) {
+                Assert.fail("No response was received, this was presumably caused by read-timeout closing the connection.");
+            }
+        } finally {
+            client.getConnectionManager().shutdown();
+        }
+    }
+}