diff --git a/lib/_stream_readable.js b/lib/_stream_readable.js
index ac37930d122d91..fc8c2b95c1c9c0 100644
--- a/lib/_stream_readable.js
+++ b/lib/_stream_readable.js
@@ -320,6 +320,15 @@ function addChunk(stream, state, chunk, addToFront) {
     else
       state.buffer.push(chunk);
 
+    if (!state.objectMode && state.length < state.highWaterMark) {
+      // Compact buffer if it contains lots of small elements.
+      // We estimate that each buffer element is 16 bytes
+      // (i.e. 2 properties * 8 bytes each).
+      const bufferOverhead = state.buffer.length * 16;
+      if (state.length + bufferOverhead > state.highWaterMark)
+        compact(state);
+    }
+
     if (state.needReadable)
       emitReadable(stream);
   }
@@ -1131,6 +1140,14 @@ function fromList(n, state) {
   return ret;
 }
 
+function compact({ buffer, decoder, objectMode, length }) {
+  if (!objectMode && buffer.length > 1) {
+    const v = decoder ? buffer.join('') : buffer.concat(length);
+    buffer.clear();
+    buffer.push(v);
+  }
+}
+
 function endReadable(stream) {
   const state = stream._readableState;
 
diff --git a/test/parallel/test-stream-readable-hwm-0-small.js b/test/parallel/test-stream-readable-hwm-0-small.js
new file mode 100644
index 00000000000000..515dad2d480f6a
--- /dev/null
+++ b/test/parallel/test-stream-readable-hwm-0-small.js
@@ -0,0 +1,31 @@
+'use strict';
+
+const assert = require('assert');
+const { Readable } = require('stream');
+
+{
+  const r = new Readable({
+    read: ()=> {},
+    highWaterMark: 32,
+  });
+
+  r.push('a');
+  r.push('b');
+  r.push('c');
+
+  // buffer should be compacted.
+  assert.strictEqual(r._readableState.buffer.length, 1);
+}
+
+{
+  const r = new Readable({
+    read: ()=> {},
+    highWaterMark: 50,
+  });
+
+  r.push('a');
+  r.push('b');
+
+  // buffer should not compacted.
+  assert.strictEqual(r._readableState.buffer.length, 2);
+}