diff --git a/mcp/event.go b/mcp/event.go
index 5c322c4..62dd2ad 100644
--- a/mcp/event.go
+++ b/mcp/event.go
@@ -67,9 +67,7 @@ func writeEvent(w io.Writer, evt Event) (int, error) {
 // TODO(rfindley): consider a different API here that makes failure modes more
 // apparent.
 func scanEvents(r io.Reader) iter.Seq2[Event, error] {
-	scanner := bufio.NewScanner(r)
-	const maxTokenSize = 1 * 1024 * 1024 // 1 MiB max line size
-	scanner.Buffer(nil, maxTokenSize)
+	reader := bufio.NewReader(r)
 
 	// TODO: investigate proper behavior when events are out of order, or have
 	// non-standard names.
@@ -94,31 +92,43 @@ func scanEvents(r io.Reader) iter.Seq2[Event, error] {
 			evt     Event
 			dataBuf *bytes.Buffer // if non-nil, preceding field was also data
 		)
-		flushData := func() {
+		yieldEvent := func() bool {
 			if dataBuf != nil {
 				evt.Data = dataBuf.Bytes()
 				dataBuf = nil
 			}
+			if evt.Empty() {
+				return true
+			}
+			if !yield(evt, nil) {
+				return false
+			}
+			evt = Event{}
+			return true
 		}
-		for scanner.Scan() {
-			line := scanner.Bytes()
+		for {
+			line, err := reader.ReadBytes('\n')
+			if err != nil && !errors.Is(err, io.EOF) {
+				yield(Event{}, fmt.Errorf("error reading event: %v", err))
+				return
+			}
+			line = bytes.TrimRight(line, "\r\n")
+			isEOF := errors.Is(err, io.EOF)
+
 			if len(line) == 0 {
-				flushData()
-				// \n\n is the record delimiter
-				if !evt.Empty() && !yield(evt, nil) {
+				if !yieldEvent() {
+					return
+				}
+				if isEOF {
 					return
 				}
-				evt = Event{}
 				continue
 			}
 			before, after, found := bytes.Cut(line, []byte{':'})
 			if !found {
-				yield(Event{}, fmt.Errorf("malformed line in SSE stream: %q", string(line)))
+				yield(Event{}, fmt.Errorf("%w: malformed line in SSE stream: %q", errMalformedEvent, string(line)))
 				return
 			}
-			if !bytes.Equal(before, dataKey) {
-				flushData()
-			}
 			switch {
 			case bytes.Equal(before, eventKey):
 				evt.Name = strings.TrimSpace(string(after))
@@ -128,27 +138,19 @@ func scanEvents(r io.Reader) iter.Seq2[Event, error] {
 				evt.Retry = strings.TrimSpace(string(after))
 			case bytes.Equal(before, dataKey):
 				data := bytes.TrimSpace(after)
-				if dataBuf != nil {
-					dataBuf.WriteByte('\n')
-					dataBuf.Write(data)
-				} else {
+				if dataBuf == nil {
 					dataBuf = new(bytes.Buffer)
-					dataBuf.Write(data)
+				} else {
+					dataBuf.WriteByte('\n')
 				}
+				dataBuf.Write(data)
 			}
-		}
-		if err := scanner.Err(); err != nil {
-			if errors.Is(err, bufio.ErrTooLong) {
-				err = fmt.Errorf("event exceeded max line length of %d", maxTokenSize)
-			}
-			if !yield(Event{}, err) {
+
+			if isEOF {
+				yieldEvent()
 				return
 			}
 		}
-		flushData()
-		if !evt.Empty() {
-			yield(evt, nil)
-		}
 	}
 }
 
@@ -310,6 +312,11 @@ func (s *MemoryEventStore) Append(_ context.Context, sessionID, streamID string,
 // index is no longer available.
 var ErrEventsPurged = errors.New("data purged")
 
+// errMalformedEvent is returned when an SSE event cannot be parsed due to format violations.
+// This is a hard error indicating corrupted data or protocol violations, as opposed to
+// transient I/O errors which may be retryable.
+var errMalformedEvent = errors.New("malformed event")
+
 // After implements [EventStore.After].
 func (s *MemoryEventStore) After(_ context.Context, sessionID, streamID string, index int) iter.Seq2[[]byte, error] {
 	// Return the data items to yield.
diff --git a/mcp/event_test.go b/mcp/event_test.go
index b774e10..685e648 100644
--- a/mcp/event_test.go
+++ b/mcp/event_test.go
@@ -55,6 +55,78 @@ func TestScanEvents(t *testing.T) {
 			input:   "invalid line\n\n",
 			wantErr: "malformed line",
 		},
+		{
+			name:  "message with 2 data lines and another event",
+			input: "event: message\ndata: hello\ndata: hello\ndata: hello\n\nevent:keepalive",
+			want: []Event{
+				{Name: "message", Data: []byte("hello\nhello\nhello")},
+				{Name: "keepalive"},
+			},
+		},
+		{
+			name:  "event with multiple lines",
+			input: "event: message\ndata: hello\ndata: hello\ndata: hello\nid:1",
+			want: []Event{
+				{Name: "message", ID: "1", Data: []byte("hello\nhello\nhello")},
+			},
+		},
+		{
+			name: "multiple events, out of order keys",
+			input: strings.Join([]string{
+				"event:message",
+				"data: hello0",
+				"\n",
+				"data: hello1",
+				"data: hello1",
+				"id:1",
+				"event:message",
+				"\n",
+				"event:message",
+				"data: hello3",
+				"data: hello3",
+				"id:3",
+				"\n",
+				"data: hello4",
+				"data: hello4",
+				"id:4",
+				"event:message",
+			}, "\n"),
+			want: []Event{
+				{Name: "message", Data: []byte("hello0")},
+				{Name: "message", ID: "1", Data: []byte("hello1\nhello1")},
+				{Name: "message", ID: "3", Data: []byte("hello3\nhello3")},
+				{Name: "message", ID: "4", Data: []byte("hello4\nhello4")},
+			},
+		},
+		{
+			name:  "non-continuous data items in the event",
+			input: "event: foo\ndata: 123\nretry: 5\ndata: 456",
+			want: []Event{
+				{Name: "foo", Data: []byte("123\n456"), Retry: "5"},
+			},
+		},
+		{
+			name:  "no-data events",
+			input: "event: foo\n\nevent: bar",
+			want: []Event{
+				{Name: "foo"},
+				{Name: "bar"},
+			},
+		},
+		{
+			name:  "empty data event",
+			input: "event: foo\ndata:\n\nevent: bar",
+			want: []Event{
+				{Name: "foo"},
+				{Name: "bar"},
+			},
+		},
+		{
+
+			name:    "malformed data event",
+			input:   "someline",
+			wantErr: "malformed event",
+		},
 	}
 
 	for _, tt := range tests {
diff --git a/mcp/streamable.go b/mcp/streamable.go
index 37e9ff2..893a706 100644
--- a/mcp/streamable.go
+++ b/mcp/streamable.go
@@ -1915,6 +1915,14 @@ func (c *streamableClientConn) processStream(ctx context.Context, requestSummary
 			if ctx.Err() != nil {
 				return "", 0, true // don't reconnect: client cancelled
 			}
+
+			// Malformed events are hard errors that indicate corrupted data or protocol
+			// violations. These should fail the connection permanently.
+			if errors.Is(err, errMalformedEvent) {
+				c.fail(fmt.Errorf("%s: %v", requestSummary, err))
+				return "", 0, true
+			}
+
 			break
 		}