diff --git a/src/Compilers/Core/CodeAnalysisTest/CodeAnalysisTest.csproj b/src/Compilers/Core/CodeAnalysisTest/CodeAnalysisTest.csproj
index 0a211286f41d25f175799f9009f62936058a319a..b2d348c1935649a15f404c900adc4c241b772126 100644
--- a/src/Compilers/Core/CodeAnalysisTest/CodeAnalysisTest.csproj
+++ b/src/Compilers/Core/CodeAnalysisTest/CodeAnalysisTest.csproj
@@ -30,6 +30,7 @@
     <Compile Include="InternalUtilities\StringExtensionsTests.cs" />
     <Compile Include="PEWriter\BinaryWriterTests.cs" />
     <Compile Include="Text\LargeEncodedTextTests.cs" />
+    <Compile Include="Text\SourceTextStreamTests.cs" />
     <Compile Include="XmlDocumentationCommentTextReaderTests.cs" />
   </ItemGroup>
   <ItemGroup Label="Project References">
diff --git a/src/Compilers/Core/CodeAnalysisTest/Text/SourceTextStreamTests.cs b/src/Compilers/Core/CodeAnalysisTest/Text/SourceTextStreamTests.cs
new file mode 100644
index 0000000000000000000000000000000000000000..26c2ef067d91d3719faaa345ee324460c4b78bd8
--- /dev/null
+++ b/src/Compilers/Core/CodeAnalysisTest/Text/SourceTextStreamTests.cs
@@ -0,0 +1,58 @@
+// Copyright (c) Microsoft.  All Rights Reserved.  Licensed under the Apache License, Version 2.0.  See License.txt in the project root for license information.
+
+using System;
+using System.Linq;
+using System.Text;
+using Microsoft.CodeAnalysis.Text;
+using Xunit;
+
+namespace Microsoft.CodeAnalysis.UnitTests.Text
+{
+    public sealed class SourceTextStreamTests
+    {
+        private static readonly Encoding s_utf8NoBom = new UTF8Encoding(encoderShouldEmitUTF8Identifier: false);
+
+        /// <summary>
+        /// In the case the destination buffer is of insufficient length to store the reading of a single 
+        /// character we will throw.  Returning 0 is not correct here as that indicates end of stream
+        /// not insufficient space in destination buffer.
+        /// </summary>
+        [Fact]
+        public void MinimumLength()
+        {
+            var sourceText = SourceText.From("hello world", s_utf8NoBom);
+            using (var stream = new SourceTextStream(sourceText))
+            {
+                var buffer = new byte[100];
+                var max = s_utf8NoBom.GetMaxByteCount(charCount: 1);
+                for (int i = 0; i < max; i++)
+                {
+                    var local = i;
+                    Assert.Throws(typeof(ArgumentException), () => stream.Read(buffer, 0, local));
+                }
+            }
+        }
+
+        /// <summary>
+        /// In the case there is insufficient number of bytes to store the next character the read should
+        /// complete with the already read data vs. throwing.
+        /// </summary>
+        [Fact]
+        public void Issue1197()
+        {
+            var baseText = "food time";
+            var text = string.Format("{0}{1}", baseText, '\u2019');
+            var encoding = s_utf8NoBom;
+            var sourceText = SourceText.From(text, encoding);
+            using (var stream = new SourceTextStream(sourceText, bufferSize: text.Length * 2))
+            {
+                var buffer = new byte[baseText.Length + 1];
+                Assert.Equal(baseText.Length, stream.Read(buffer, 0, buffer.Length));
+                Assert.True(buffer.Take(baseText.Length).SequenceEqual(encoding.GetBytes(baseText)));
+
+                Assert.Equal(3, stream.Read(buffer, 0, buffer.Length));
+                Assert.True(buffer.Take(3).SequenceEqual(encoding.GetBytes(new[] { '\u2019' })));
+            }
+        }
+    }
+}
diff --git a/src/Compilers/Core/Portable/Text/SourceTextStream.cs b/src/Compilers/Core/Portable/Text/SourceTextStream.cs
index f715f3da86e91f3f71a8a2b922cc5bd44702db3d..6e75b22f3552c0c76964763ac3149c3933f247fe 100644
--- a/src/Compilers/Core/Portable/Text/SourceTextStream.cs
+++ b/src/Compilers/Core/Portable/Text/SourceTextStream.cs
@@ -14,6 +14,7 @@ internal sealed class SourceTextStream : Stream
         private readonly SourceText _source;
         private readonly Encoder _encoder;
 
+        private int _minimumTargetBufferCount;
         private int _position;
         private int _sourceOffset;
         private readonly char[] _charBuffer;
@@ -25,6 +26,7 @@ public SourceTextStream(SourceText source, int bufferSize = 2048)
         {
             _source = source;
             _encoder = source.Encoding.GetEncoder();
+            _minimumTargetBufferCount = source.Encoding.GetMaxByteCount(charCount: 1);
             _sourceOffset = 0;
             _position = 0;
             _charBuffer = new char[Math.Min(bufferSize, _source.Length)];
@@ -60,18 +62,20 @@ public override long Length
 
         public override long Position
         {
-            get
-            {
-                return _position;
-            }
-            set
-            {
-                throw new NotSupportedException();
-            }
+            get { return _position; }
+            set { throw new NotSupportedException(); }
         }
 
         public override int Read(byte[] buffer, int offset, int count)
         {
+            if (count < _minimumTargetBufferCount)
+            {
+                // The buffer must be able to hold at least one character from the 
+                // SourceText stream.  Returning 0 for that case isn't correct because
+                // that indicates end of stream vs. insufficient buffer. 
+                throw new ArgumentException(nameof(count));
+            }
+
             int originalCount = count;
 
             if (!_preambleWritten)
@@ -81,7 +85,7 @@ public override int Read(byte[] buffer, int offset, int count)
                 count -= bytesWritten;
             }
 
-            while (count > 0 && _position < _source.Length)
+            while (count >= _minimumTargetBufferCount && _position < _source.Length)
             {
                 if (_bufferUnreadChars == 0)
                 {