diff --git a/ChangeLog b/ChangeLog
index e5ae158519..463d9e2402 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,11 @@
+Thu Jun 19 13:50:41 CEST 2008 Jim Meyering <meyering@redhat.com>
+
+	virsh fails to read files larger than BUFSIZ bytes
+	* src/util.c (fread_file_lim): Use VIR_REALLOC_N, not VIR_ALLOC_N.
+	Bug introduced in d3470efcda15f59549ac0aaa76cd25df319c217b.
+	* tests/Makefile.am (test_scripts): Add read-bufsiz.
+	* tests/read-bufsiz: New test for the above.
+
 Thu Jun 19 13:47:00 CEST 2008 Chris Lalancette <clalance@redhat.com>
 
 	* src/memory.c: the new memory API changed the semantics of ALLOC,
diff --git a/src/util.c b/src/util.c
index ad7683d191..5e50ef2f3b 100644
--- a/src/util.c
+++ b/src/util.c
@@ -306,7 +306,7 @@ fread_file_lim (FILE *stream, size_t max_len, size_t *length)
             if (alloc < size + BUFSIZ + 1)
                 alloc = size + BUFSIZ + 1;
 
-            if (VIR_ALLOC_N(buf, alloc) < 0) {
+            if (VIR_REALLOC_N(buf, alloc) < 0) {
                 save_errno = errno;
                 break;
             }
@@ -797,4 +797,3 @@ int virDiskNameToIndex(const char *name) {
 
     return idx;
 }
-
diff --git a/tests/Makefile.am b/tests/Makefile.am
index 303388ce49..4021a39f92 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -47,6 +47,7 @@ noinst_PROGRAMS = xmlrpctest xml2sexprtest sexpr2xmltest virshtest conftest \
 test_scripts = \
 	daemon-conf \
 	int-overflow \
+	read-bufsiz \
 	read-non-seekable \
 	vcpupin
 
diff --git a/tests/read-bufsiz b/tests/read-bufsiz
new file mode 100755
index 0000000000..3037452e14
--- /dev/null
+++ b/tests/read-bufsiz
@@ -0,0 +1,43 @@
+#!/bin/sh
+# ensure that reading a file larger than BUFSIZ works
+
+# Copyright (C) 2008 Free Software Foundation, Inc.
+
+# This program is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+
+# This program is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+
+# You should have received a copy of the GNU General Public License
+# along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+if test "$VERBOSE" = yes; then
+  set -x
+  virsh --version
+fi
+
+. $srcdir/test-lib.sh
+
+fail=0
+
+# Output a valid definition, to be used as input.
+virsh -c test:///default dumpxml 1 > xml || fail=1
+
+for i in before after; do
+  # The largest BUFSIZ I've seen is 128K.  This is slightly larger.
+  printf %132000s ' ' > sp || fail=1
+  in=in-$i
+  # Append or prepend enough spaces to push the size over the limit:
+  ( test $i = before && cat sp xml || cat xml sp ) > $in || fail=1
+
+  virsh --connect test:///default define $in > out || fail=1
+  printf "Domain test defined from $in\n\n" > exp || fail=1
+  compare out exp || fail=1
+done
+
+(exit $fail); exit $fail