diff --git a/binary/byteslice.go b/binary/byteslice.go
index 1d0174b63..d1cd169a9 100644
--- a/binary/byteslice.go
+++ b/binary/byteslice.go
@@ -1,21 +1,35 @@
 package binary
 
 import (
+	. "github.com/tendermint/tendermint/common"
 	"io"
 )
 
+const (
+	ByteSliceChunk = 1024
+)
+
 func WriteByteSlice(bz []byte, w io.Writer, n *int64, err *error) {
 	WriteUvarint(uint(len(bz)), w, n, err)
 	WriteTo(bz, w, n, err)
 }
 
 func ReadByteSlice(r io.Reader, n *int64, err *error) []byte {
-	length := ReadUvarint(r, n, err)
+	length := int(ReadUvarint(r, n, err))
 	if *err != nil {
 		return nil
 	}
-	buf := make([]byte, int(length))
-	ReadFull(buf, r, n, err)
+
+	var buf, tmpBuf []byte
+	// read one ByteSliceChunk at a time and append
+	for i := 0; i*ByteSliceChunk < length; i++ {
+		tmpBuf = make([]byte, MinInt(ByteSliceChunk, length-i*ByteSliceChunk))
+		ReadFull(tmpBuf, r, n, err)
+		if *err != nil {
+			return nil
+		}
+		buf = append(buf, tmpBuf...)
+	}
 	return buf
 }
 
diff --git a/binary/reflect.go b/binary/reflect.go
index a517c4ab4..7ec4e2d24 100644
--- a/binary/reflect.go
+++ b/binary/reflect.go
@@ -12,6 +12,10 @@ import (
 	. "github.com/tendermint/tendermint/common"
 )
 
+const (
+	ReflectSliceChunk = 1024
+)
+
 type TypeInfo struct {
 	Type reflect.Type // The type
 
@@ -221,15 +225,25 @@ func readReflect(rv reflect.Value, rt reflect.Type, r io.Reader, n *int64, err *
 			log.Debug("Read byteslice", "bytes", byteslice)
 			rv.Set(reflect.ValueOf(byteslice))
 		} else {
+			var sliceRv reflect.Value
 			// Read length
 			length := int(ReadUvarint(r, n, err))
 			log.Debug(Fmt("Read length: %v", length))
-			sliceRv := reflect.MakeSlice(rt, length, length)
-			// Read elems
-			for i := 0; i < length; i++ {
-				elemRv := sliceRv.Index(i)
-				readReflect(elemRv, elemRt, r, n, err)
+			sliceRv = reflect.MakeSlice(rt, 0, 0)
+			// read one ReflectSliceChunk at a time and append
+			for i := 0; i*ReflectSliceChunk < length; i++ {
+				l := MinInt(ReflectSliceChunk, length-i*ReflectSliceChunk)
+				tmpSliceRv := reflect.MakeSlice(rt, l, l)
+				for j := 0; j < l; j++ {
+					elemRv := tmpSliceRv.Index(j)
+					readReflect(elemRv, elemRt, r, n, err)
+					if *err != nil {
+						return
+					}
+				}
+				sliceRv = reflect.AppendSlice(sliceRv, tmpSliceRv)
 			}
+
 			rv.Set(sliceRv)
 		}
 
diff --git a/binary/reflect_test.go b/binary/reflect_test.go
index 9b854f513..3fd3f765a 100644
--- a/binary/reflect_test.go
+++ b/binary/reflect_test.go
@@ -6,6 +6,8 @@ import (
 	"reflect"
 	"testing"
 	"time"
+
+	. "github.com/tendermint/tendermint/common"
 )
 
 type SimpleStruct struct {
@@ -447,3 +449,17 @@ func TestJSONFieldNames(t *testing.T) {
 		}
 	}
 }
+
+//------------------------------------------------------------------------------
+
+func TestBadAlloc(t *testing.T) {
+	n, err := new(int64), new(error)
+	instance := new([]byte)
+	data := RandBytes(ByteSliceChunk * 100)
+	b := new(bytes.Buffer)
+	// this slice of data claims to be much bigger than it really is
+	WriteUvarint(uint(10000000000000000), b, n, err)
+	b.Write(data)
+	res := ReadBinary(instance, b, n, err)
+	fmt.Println(res, *err)
+}