diff --git a/p2p/transport/memory/stream.go b/p2p/transport/memory/stream.go
index 6aa59bfc7b..823513a279 100644
--- a/p2p/transport/memory/stream.go
+++ b/p2p/transport/memory/stream.go
@@ -1,9 +1,12 @@
 package memory
 
 import (
+	"bytes"
 	"errors"
 	"io"
 	"net"
+	"sync"
+	"sync/atomic"
 	"time"
 
 	"github.com/libp2p/go-libp2p/core/network"
@@ -14,59 +17,149 @@ type stream struct {
 	id   int64
 	conn *conn
 
-	read   *io.PipeReader
-	write  *io.PipeWriter
-	writeC chan []byte
+	wrMu sync.Mutex    // Serialize Write operations
+	buf  *bytes.Buffer // Buffer for partial reads
 
-	reset  chan struct{}
-	close  chan struct{}
-	closed chan struct{}
+	// Used by local Read to interact with remote Write.
+	rdRx <-chan []byte
 
-	writeErr error
+	// Used by local Write to interact with remote Read.
+	wrTx chan<- []byte
+
+	once       sync.Once // Protects closing localDone
+	localDone  chan struct{}
+	remoteDone <-chan struct{}
+
+	reset       chan struct{}
+	close       chan struct{}
+	readClosed  atomic.Bool
+	writeClosed atomic.Bool
 }
 
 var ErrClosed = errors.New("stream closed")
 
 func newStreamPair() (*stream, *stream) {
-	ra, wb := io.Pipe()
-	rb, wa := io.Pipe()
-
-	sa := newStream(wa, ra, network.DirOutbound)
-	sb := newStream(wb, rb, network.DirInbound)
+	io.Pipe()
+
+	cb1 := make(chan []byte, 1)
+	cb2 := make(chan []byte, 1)
+
+	done1 := make(chan struct{})
+	done2 := make(chan struct{})
+
+	sa := &stream{
+		id:        streamCounter.Add(1),
+		rdRx:      cb1,
+		wrTx:      cb2,
+		buf:       new(bytes.Buffer),
+		localDone: done1, remoteDone: done2,
+		reset: make(chan struct{}, 1),
+		close: make(chan struct{}, 1),
+	}
+	sb := &stream{
+		rdRx:      cb2,
+		wrTx:      cb1,
+		buf:       new(bytes.Buffer),
+		localDone: done2, remoteDone: done1,
+		reset: make(chan struct{}, 1),
+		close: make(chan struct{}, 1),
+	}
 
 	return sa, sb
 }
 
-func newStream(w *io.PipeWriter, r *io.PipeReader, _ network.Direction) *stream {
+func newStream(rdRx <-chan []byte, wrTx chan<- []byte, localDone chan struct{}, remoteDone <-chan struct{}) *stream {
 	s := &stream{
-		id:     streamCounter.Add(1),
-		read:   r,
-		write:  w,
-		writeC: make(chan []byte),
-		reset:  make(chan struct{}, 1),
-		close:  make(chan struct{}, 1),
-		closed: make(chan struct{}),
+		rdRx:       rdRx,
+		wrTx:       wrTx,
+		localDone:  localDone,
+		remoteDone: remoteDone,
+		reset:      make(chan struct{}, 1),
+		close:      make(chan struct{}, 1),
 	}
 
-	go s.writeLoop()
 	return s
 }
 
-func (s *stream) Write(p []byte) (int, error) {
-	cpy := make([]byte, len(p))
-	copy(cpy, p)
+func (p *stream) Write(b []byte) (int, error) {
+	if p.writeClosed.Load() {
+		return 0, ErrClosed
+	}
+
+	n, err := p.write(b)
+	if err != nil && err != io.ErrClosedPipe {
+		err = &net.OpError{Op: "write", Net: "pipe", Err: err}
+	}
+	return n, err
+}
+
+func (p *stream) write(b []byte) (n int, err error) {
+	switch {
+	case isClosedChan(p.localDone):
+		return 0, io.ErrClosedPipe
+	case isClosedChan(p.remoteDone):
+		return 0, io.ErrClosedPipe
+	}
+
+	p.wrMu.Lock() // Ensure entirety of b is written together
+	defer p.wrMu.Unlock()
 
 	select {
-	case <-s.closed:
-		return 0, s.writeErr
-	case s.writeC <- cpy:
+	case <-p.close:
+		return n, ErrClosed
+	case <-p.reset:
+		return n, network.ErrReset
+	case p.wrTx <- b:
+		n += len(b)
+	case <-p.localDone:
+		return n, io.ErrClosedPipe
+	case <-p.remoteDone:
+		return n, io.ErrClosedPipe
 	}
 
-	return len(p), nil
+	return n, nil
 }
 
-func (s *stream) Read(p []byte) (int, error) {
-	return s.read.Read(p)
+func (p *stream) Read(b []byte) (int, error) {
+	if p.readClosed.Load() {
+		return 0, ErrClosed
+	}
+
+	n, err := p.read(b)
+	if err != nil && err != io.EOF && err != io.ErrClosedPipe {
+		err = &net.OpError{Op: "read", Net: "pipe", Err: err}
+	}
+
+	return n, err
+}
+
+func (p *stream) read(b []byte) (n int, err error) {
+	switch {
+	case isClosedChan(p.localDone):
+		return 0, io.ErrClosedPipe
+	case isClosedChan(p.remoteDone):
+		return 0, io.EOF
+	}
+
+	select {
+	case <-p.reset:
+		return n, network.ErrReset
+	case bw, ok := <-p.rdRx:
+		if !ok {
+			p.readClosed.Store(true)
+			return 0, io.EOF
+		}
+
+		p.buf.Write(bw)
+	case <-p.localDone:
+		return 0, io.ErrClosedPipe
+	case <-p.remoteDone:
+		return 0, io.EOF
+	default:
+		n, err = p.buf.Read(b)
+	}
+
+	return n, err
 }
 
 func (s *stream) CloseWrite() error {
@@ -74,16 +167,14 @@ func (s *stream) CloseWrite() error {
 	case s.close <- struct{}{}:
 	default:
 	}
-	<-s.closed
-	if !errors.Is(s.writeErr, ErrClosed) {
-		return s.writeErr
-	}
-	return nil
 
+	s.writeClosed.Store(true)
+	return nil
 }
 
 func (s *stream) CloseRead() error {
-	return s.read.CloseWithError(ErrClosed)
+	s.readClosed.Store(true)
+	return nil
 }
 
 func (s *stream) Close() error {
@@ -92,15 +183,15 @@ func (s *stream) Close() error {
 }
 
 func (s *stream) Reset() error {
-	// Cancel any pending reads/writes with an error.
-	s.write.CloseWithError(network.ErrReset)
-	s.read.CloseWithError(network.ErrReset)
-
 	select {
 	case s.reset <- struct{}{}:
 	default:
 	}
-	<-s.closed
+
+	s.once.Do(func() {
+		close(s.localDone)
+	})
+
 	// No meaningful error case here.
 	return nil
 }
@@ -117,48 +208,11 @@ func (s *stream) SetWriteDeadline(t time.Time) error {
 	return &net.OpError{Op: "set", Net: "pipe", Source: nil, Addr: nil, Err: errors.New("deadline not supported")}
 }
 
-func (s *stream) writeLoop() {
-	defer s.teardown()
-
-	for {
-		// Reset takes precedent.
-		select {
-		case <-s.reset:
-			s.writeErr = network.ErrReset
-			return
-		default:
-		}
-
-		select {
-		case <-s.reset:
-			s.writeErr = network.ErrReset
-			return
-		case <-s.close:
-			s.writeErr = s.write.Close()
-			if s.writeErr == nil {
-				s.writeErr = ErrClosed
-			}
-			return
-		case p := <-s.writeC:
-			if _, err := s.write.Write(p); err != nil {
-				s.cancelWrite(err)
-				return
-			}
-		}
-	}
-}
-
-func (s *stream) cancelWrite(err error) {
-	s.write.CloseWithError(err)
-	s.writeErr = err
-}
-
-func (s *stream) teardown() {
-	// at this point, no streams are writing.
-	if s.conn != nil {
-		s.conn.removeStream(s.id)
+func isClosedChan(c <-chan struct{}) bool {
+	select {
+	case <-c:
+		return true
+	default:
+		return false
 	}
-
-	// Mark as closed.
-	close(s.closed)
 }
diff --git a/p2p/transport/memory/stream_test.go b/p2p/transport/memory/stream_test.go
index 1f3e8fb0cd..f154bbbcdd 100644
--- a/p2p/transport/memory/stream_test.go
+++ b/p2p/transport/memory/stream_test.go
@@ -8,62 +8,60 @@ import (
 
 func TestStreamSimpleReadWriteClose(t *testing.T) {
 	t.Parallel()
-	clientStr, serverStr := newStreamPair()
+	streamLocal, streamRemote := newStreamPair()
 
 	// send a foobar from the client
-	n, err := clientStr.Write([]byte("foobar"))
+	n, err := streamLocal.Write([]byte("foobar"))
 	require.NoError(t, err)
 	require.Equal(t, 6, n)
-	require.NoError(t, clientStr.CloseWrite())
+	require.NoError(t, streamLocal.CloseWrite())
 
 	// writing after closing should error
-	_, err = clientStr.Write([]byte("foobar"))
+	_, err = streamLocal.Write([]byte("foobar"))
 	require.Error(t, err)
 
 	// now read all the data on the server side
-	b, err := io.ReadAll(serverStr)
+	b, err := io.ReadAll(streamRemote)
 	require.NoError(t, err)
 	require.Equal(t, []byte("foobar"), b)
 
 	// reading again should give another io.EOF
-	n, err = serverStr.Read(make([]byte, 10))
+	n, err = streamRemote.Read(make([]byte, 10))
 	require.Zero(t, n)
 	require.ErrorIs(t, err, io.EOF)
 
 	// send something back
-	_, err = serverStr.Write([]byte("lorem ipsum"))
+	_, err = streamRemote.Write([]byte("lorem ipsum"))
 	require.NoError(t, err)
-	require.NoError(t, serverStr.CloseWrite())
+	require.NoError(t, streamRemote.CloseWrite())
 
 	// and read it at the client
-	b, err = io.ReadAll(clientStr)
+	b, err = io.ReadAll(streamLocal)
 	require.NoError(t, err)
 	require.Equal(t, []byte("lorem ipsum"), b)
 
 	// stream is only cleaned up on calling Close or Reset
-	clientStr.Close()
-	serverStr.Close()
-	// Need to call Close for cleanup. Otherwise the FIN_ACK is never read
-	require.NoError(t, serverStr.Close())
+	require.NoError(t, streamLocal.Close())
+	require.NoError(t, streamRemote.Close())
 }
 
 func TestStreamPartialReads(t *testing.T) {
 	t.Parallel()
-	clientStr, serverStr := newStreamPair()
+	streamLocal, streamRemote := newStreamPair()
 
-	_, err := serverStr.Write([]byte("foobar"))
+	_, err := streamRemote.Write([]byte("foobar"))
 	require.NoError(t, err)
-	require.NoError(t, serverStr.CloseWrite())
+	require.NoError(t, streamRemote.CloseWrite())
 
-	n, err := clientStr.Read([]byte{}) // empty read
+	n, err := streamLocal.Read([]byte{}) // empty read
 	require.NoError(t, err)
 	require.Zero(t, n)
 	b := make([]byte, 3)
-	n, err = clientStr.Read(b)
+	n, err = streamLocal.Read(b)
 	require.Equal(t, 3, n)
 	require.NoError(t, err)
 	require.Equal(t, []byte("foo"), b)
-	b, err = io.ReadAll(clientStr)
+	b, err = io.ReadAll(streamLocal)
 	require.NoError(t, err)
 	require.Equal(t, []byte("bar"), b)
 }