diff --git a/lib/_stream_readable.js b/lib/_stream_readable.js
index 5d2300cf891bca..ba5b9b6986c3a9 100644
--- a/lib/_stream_readable.js
+++ b/lib/_stream_readable.js
@@ -374,25 +374,6 @@ Readable.prototype.setEncoding = function(enc) {
   return this;
 };
 
-// Don't raise the hwm > 8MB
-const MAX_HWM = 0x800000;
-function computeNewHighWaterMark(n) {
-  if (n >= MAX_HWM) {
-    n = MAX_HWM;
-  } else {
-    // Get the next highest power of 2 to prevent increasing hwm excessively in
-    // tiny amounts
-    n--;
-    n |= n >>> 1;
-    n |= n >>> 2;
-    n |= n >>> 4;
-    n |= n >>> 8;
-    n |= n >>> 16;
-    n++;
-  }
-  return n;
-}
-
 // This function is designed to be inlinable, so please take care when making
 // changes to the function body.
 function howMuchToRead(n, state) {
@@ -425,9 +406,11 @@ Readable.prototype.read = function(n) {
   const state = this._readableState;
   const nOrig = n;
 
-  // If we're asking for more than the current hwm, then raise the hwm.
+  // If we're asking for more than the current hwm, then raise the hwm to
+  // the next highest power of 2 to prevent increasing hwm excessively in
+  // tiny amounts.
   if (n > state.highWaterMark)
-    state.highWaterMark = computeNewHighWaterMark(n);
+    state.highWaterMark = Math.pow(2, Math.ceil(Math.log(n) / Math.log(2)));
 
   if (n !== 0)
     state.emittedReadable = false;
diff --git a/test/parallel/test-readable-large-hwm.js b/test/parallel/test-readable-large-hwm.js
new file mode 100644
index 00000000000000..d5bf25bc0e61c1
--- /dev/null
+++ b/test/parallel/test-readable-large-hwm.js
@@ -0,0 +1,27 @@
+'use strict';
+const common = require('../common');
+const { Readable } = require('stream');
+
+// Make sure that readable completes
+// even when reading larger buffer.
+const bufferSize = 10 * 1024 * 1024;
+let n = 0;
+const r = new Readable({
+  read() {
+    // Try to fill readable buffer piece by piece.
+    r.push(Buffer.alloc(bufferSize / 10));
+
+    if (n++ > 10) {
+      r.push(null);
+    }
+  }
+});
+
+r.on('readable', () => {
+  while (true) {
+    const ret = r.read(bufferSize);
+    if (ret === null)
+      break;
+  }
+});
+r.on('end', common.mustCall());