diff --git a/dtool/src/prc/streamReader.h b/dtool/src/prc/streamReader.h
index a317f0a783..dc4748799b 100644
--- a/dtool/src/prc/streamReader.h
+++ b/dtool/src/prc/streamReader.h
@@ -66,10 +66,10 @@ PUBLISHED:
 
   BLOCKING void skip_bytes(size_t size);
   BLOCKING size_t extract_bytes(unsigned char *into, size_t size);
-  EXTENSION(BLOCKING PyObject *extract_bytes(size_t size));
+  EXTENSION(PyObject *extract_bytes(size_t size));
 
-  EXTENSION(BLOCKING PyObject *readline());
-  EXTENSION(BLOCKING PyObject *readlines());
+  EXTENSION(PyObject *readline());
+  EXTENSION(PyObject *readlines());
 
 public:
   BLOCKING vector_uchar extract_bytes(size_t size);
diff --git a/dtool/src/prc/streamReader_ext.cxx b/dtool/src/prc/streamReader_ext.cxx
index 9fc12dc51f..a64b568b95 100644
--- a/dtool/src/prc/streamReader_ext.cxx
+++ b/dtool/src/prc/streamReader_ext.cxx
@@ -15,6 +15,8 @@
 
 #ifdef HAVE_PYTHON
 
+#include "vector_string.h"
+
 /**
  * Extracts the indicated number of bytes in the stream and returns them as a
  * string (or bytes, in Python 3).  Returns empty string at end-of-file.
@@ -23,13 +25,25 @@ PyObject *Extension<StreamReader>::
 extract_bytes(size_t size) {
   std::istream *in = _this->get_istream();
   if (in->eof() || in->fail() || size == 0) {
+    // Note that this is only safe to call with size 0 while the GIL is held.
     return PyBytes_FromStringAndSize(nullptr, 0);
   }
 
   PyObject *bytes = PyBytes_FromStringAndSize(nullptr, size);
-  in->read(PyBytes_AS_STRING(bytes), size);
+  char *buffer = (char *)PyBytes_AS_STRING(bytes);
+
+#if defined(HAVE_THREADS) && !defined(SIMPLE_THREADS)
+  PyThreadState *_save;
+  Py_UNBLOCK_THREADS
+#endif  // HAVE_THREADS && !SIMPLE_THREADS
+
+  in->read(buffer, size);
   size_t read_bytes = in->gcount();
 
+#if defined(HAVE_THREADS) && !defined(SIMPLE_THREADS)
+  Py_BLOCK_THREADS
+#endif  // HAVE_THREADS && !SIMPLE_THREADS
+
   if (read_bytes == size || _PyBytes_Resize(&bytes, read_bytes) == 0) {
     return bytes;
   } else {
@@ -47,6 +61,11 @@ extract_bytes(size_t size) {
  */
 PyObject *Extension<StreamReader>::
 readline() {
+#if defined(HAVE_THREADS) && !defined(SIMPLE_THREADS)
+  PyThreadState *_save;
+  Py_UNBLOCK_THREADS
+#endif  // HAVE_THREADS && !SIMPLE_THREADS
+
   std::istream *in = _this->get_istream();
 
   std::string line;
@@ -60,6 +79,10 @@ readline() {
     ch = in->get();
   }
 
+#if defined(HAVE_THREADS) && !defined(SIMPLE_THREADS)
+  Py_BLOCK_THREADS
+#endif  // HAVE_THREADS && !SIMPLE_THREADS
+
 #if PY_MAJOR_VERSION >= 3
   return PyBytes_FromStringAndSize(line.data(), line.size());
 #else
@@ -73,22 +96,50 @@ readline() {
  */
 PyObject *Extension<StreamReader>::
 readlines() {
-  PyObject *lst = PyList_New(0);
+#if defined(HAVE_THREADS) && !defined(SIMPLE_THREADS)
+  PyThreadState *_save;
+  Py_UNBLOCK_THREADS
+#endif  // HAVE_THREADS && !SIMPLE_THREADS
+
+  std::istream *in = _this->get_istream();
+  vector_string lines;
+
+  while (true) {
+    std::string line;
+    int ch = in->get();
+    while (ch != EOF && !in->fail()) {
+      line += ch;
+      if (ch == '\n' || in->eof()) {
+        // Here's the newline character.
+        break;
+      }
+      ch = in->get();
+    }
+
+    if (line.empty()) {
+      break;
+    }
+
+    lines.push_back(std::move(line));
+  }
+
+#if defined(HAVE_THREADS) && !defined(SIMPLE_THREADS)
+  Py_BLOCK_THREADS
+#endif  // HAVE_THREADS && !SIMPLE_THREADS
+
+  PyObject *lst = PyList_New(lines.size());
   if (lst == nullptr) {
     return nullptr;
   }
 
-  PyObject *py_line = readline();
-
+  Py_ssize_t i = 0;
+  for (const std::string &line : lines) {
 #if PY_MAJOR_VERSION >= 3
-  while (PyBytes_GET_SIZE(py_line) > 0) {
+    PyObject *py_line = PyBytes_FromStringAndSize(line.data(), line.size());
 #else
-  while (PyString_GET_SIZE(py_line) > 0) {
+    PyObject *py_line = PyString_FromStringAndSize(line.data(), line.size());
 #endif
-    PyList_Append(lst, py_line);
-    Py_DECREF(py_line);
-
-    py_line = readline();
+    PyList_SET_ITEM(lst, i++, py_line);
   }
 
   return lst;
diff --git a/dtool/src/prc/streamReader_ext.h b/dtool/src/prc/streamReader_ext.h
index fe74694f8b..a04cdf8fdd 100644
--- a/dtool/src/prc/streamReader_ext.h
+++ b/dtool/src/prc/streamReader_ext.h
@@ -29,9 +29,9 @@
 template<>
 class Extension<StreamReader> : public ExtensionBase<StreamReader> {
 public:
-  BLOCKING PyObject *extract_bytes(size_t size);
-  BLOCKING PyObject *readline();
-  BLOCKING PyObject *readlines();
+  PyObject *extract_bytes(size_t size);
+  PyObject *readline();
+  PyObject *readlines();
 };
 
 #endif  // HAVE_PYTHON