diff --git a/builtin.c b/builtin.c
index 7353c7a68..ece574a46 100644
--- a/builtin.c
+++ b/builtin.c
@@ -1507,7 +1507,7 @@ static int builtin_read( wchar_t **argv )
 	wchar_t *nxt;
 	wchar_t *prompt = DEFAULT_READ_PROMPT;
 	wchar_t *commandline = L"";
-	int exit_res=0;
+	int exit_res=STATUS_BUILTIN_OK;
 	wchar_t *mode_name = READ_MODE_NAME;
 	
 	woptind=0;
@@ -1684,11 +1684,21 @@ static int builtin_read( wchar_t **argv )
 	*/
 	if( isatty(0) && builtin_stdin == 0 )
 	{
+		wchar_t *line;
+		
 		reader_push( mode_name );
 		reader_set_prompt( prompt );
 
 		reader_set_buffer( commandline, wcslen( commandline ) );
-		buff = wcsdup(reader_readline( ));
+		line = reader_readline( );
+		if( line )
+		{
+			buff = wcsdup( line );
+		}
+		else
+		{
+			exit_res = STATUS_BUILTIN_ERROR;
+		}
 		reader_pop();
 	}
 	else
@@ -1756,7 +1766,7 @@ static int builtin_read( wchar_t **argv )
 		sb_destroy( &sb );
 	}
 
-	if( i != argc )
+	if( i != argc && !exit_res )
 	{
 		
 		wchar_t *state;
diff --git a/reader.c b/reader.c
index 1732d643a..9a1129d88 100644
--- a/reader.c
+++ b/reader.c
@@ -135,8 +135,8 @@ commence.
 
 /**
    A struct describing the state of the interactive reader. These
-   states can be stacked, in case reader_readline is called from
-   input_read().
+   states can be stacked, in case reader_readline() calls are
+   nested. This happens when the 'read' builtin is used.
 */
 typedef struct reader_data
 {
@@ -1950,16 +1950,24 @@ static int read_i()
 			}
 			else
 			{
-				for( j = first_job; j; j=j->next )
+				if( !isatty(0) )
 				{
-					if( ! job_is_completed( j ) )
+					/*
+					  We already know that stdin is a tty since we're
+					  in interactive mode. If isatty returns false, it
+					  means stdin must have been closed. 
+					*/
+					for( j = first_job; j; j=j->next )
 					{
-						job_signal( j, SIGHUP );						
+						if( ! job_is_completed( j ) )
+						{
+							job_signal( j, SIGHUP );						
+						}
 					}
 				}
 			}
 		}
-		else
+		else if( tmp )
 		{
 			tmp = wcsdup( tmp );
 			
@@ -2644,7 +2652,7 @@ wchar_t *reader_readline()
 		set_color( FISH_COLOR_RESET, FISH_COLOR_RESET );
 	}
 	
-	return data->buff;
+	return finished ? data->buff : 0;
 }
 
 /**