diff --git a/src/streams.c b/src/streams.c
index e6e5940ca38..8b2ffc03034 100644
--- a/src/streams.c
+++ b/src/streams.c
@@ -1582,7 +1582,6 @@ Obj FuncPOSITION_FILE (
     Obj             fid )
 {
     Int             ret;
-
     /* check the argument                                                  */
     while ( ! IS_INTOBJ(fid) ) {
         fid = ErrorReturnObj(
@@ -1590,9 +1589,24 @@ Obj FuncPOSITION_FILE (
             (Int)TNAM_OBJ(fid), 0L,
             "you can replace <fid> via 'return <fid>;'" );
     }
-    
-    ret = SyFtell( INT_INTOBJ(fid) );
-    return ret == -1 ? Fail : INTOBJ_INT(ret);
+
+    Int ifid = INT_INTOBJ(fid);
+
+
+    ret = SyFtell(ifid);
+
+    // Return if failed
+    if (ret == -1) {
+        return Fail;
+    }
+
+    // Need to account for characters in buffer
+    if (syBuf[ifid].bufno >= 0) {
+        UInt bufno = syBuf[ifid].bufno;
+        ret -= syBuffers[bufno].buflen - syBuffers[bufno].bufstart;
+    }
+
+    return INTOBJ_INT(ret);
 }
 
 
diff --git a/tst/teststandard/files/empty.txt b/tst/teststandard/files/empty.txt
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/tst/teststandard/files/example.txt b/tst/teststandard/files/example.txt
new file mode 100644
index 00000000000..5d9a637166d
--- /dev/null
+++ b/tst/teststandard/files/example.txt
@@ -0,0 +1,3 @@
+here is line 1
+
+here is line 2
diff --git a/tst/teststandard/files/examplegz.txt.gz b/tst/teststandard/files/examplegz.txt.gz
new file mode 100644
index 00000000000..2b7630f300f
Binary files /dev/null and b/tst/teststandard/files/examplegz.txt.gz differ
diff --git a/tst/teststandard/files/files.tst b/tst/teststandard/files/files.tst
new file mode 100644
index 00000000000..9d4c15fc4a9
--- /dev/null
+++ b/tst/teststandard/files/files.tst
@@ -0,0 +1,104 @@
+gap> START_TEST("files.tst");
+gap> testRead := function(testName, openFunc, lines, hasPosition)
+> local file, i, j, read, line, byte, concatlines;
+> # Check we can read many times, to check we close properly
+> for i in [1..100] do
+>  file := openFunc();
+>  for j in [1..Length(lines)] do
+>    line := ReadAllLine(file);
+>    if lines[j] <> line then
+>      PrintFormatted("Expected {!v}, found {!v}, at line {} in {}\n",
+>                     lines[j], line, j, testName);
+>    fi;
+>    # it is valid to get, or not get, end of stream at end of last line
+>    if IsEndOfStream(file) and j < Length(lines) then
+>      Print("Unexpected end of stream in ", testName);
+>    fi;
+>    if hasPosition then
+>      if PositionStream(file) <> Sum(lines{[1..j]},Length) then
+>        PrintFormatted("At position {}, expected {}, on line {} of {}\n",
+>          PositionStream(file), Sum(lines{[1..j]},Length), j, testName);
+>      fi;
+>    else
+>      if PositionStream(file) <> fail then
+>       Print("Unexpected PositionStream success ", testName, "\n");
+>      fi;
+>    fi;
+>  od;
+>  if ReadAllLine(file) <> fail then
+>    Print("reading past end of file did not return 'fail' in ",testName, "\n");
+>  fi;
+>  if not IsEndOfStream(file) then
+>    Print("failed to find end of stream in ", testName, "\n");
+>  fi;
+>  if hasPosition then
+>    if Length(lines) > 2 then
+>       SeekPositionStream(file, Length(lines[1]));
+>       if PositionStream(file) <> Length(lines[1]) then
+>           Print("failed seek position ", testName, "\n");
+>       fi;
+>       if ReadAllLine(file) <> lines[2] then
+>           Print("failed read after seek ", testName, "\n");
+>       fi;
+>   fi;
+>   if not SeekPositionStream(file, 0) or PositionStream(file) <> 0 then
+>       Print("failed seek to 0 ", testName, "\n");
+>   fi;
+>   if not SeekPositionStream(file, Sum(lines, Length)) or
+>      PositionStream(file) <> Sum(lines, Length) then
+>       Print("failed seek to end ", testName, "\n");
+>   fi;
+>   if ReadAllLine(file) <> fail then
+>       Print("failed read past end of file ", testName, "\n");
+>   fi;
+>   if not RewindStream(file) or PositionStream(file) <> 0 then
+>      Print("failed rewind stream ", testName, "\n");
+>   fi;
+>  else
+>   if SeekPositionStream(file, 0) <> fail then
+>      Print("Unexpected SeekPositionStream success ", testName, "\n");
+>   fi;
+>   if RewindStream(file) <> fail then
+>      Print("Unexpected RewindStream success ", testName, "\n");
+>   fi;
+>  fi;
+>  CloseStream(file);
+>  file := openFunc();
+>  concatlines := Concatenation(lines);
+>  for i in [1..Length(concatlines)] do
+>    byte := ReadByte(file);
+>    if byte <> IntChar(concatlines[i]) then
+>      PrintFormatted("Expected {}, found {}, at position {} in {}\n",
+>        IntChar(concatlines[i]), byte, i, testName);
+>    fi;
+>    if i <> Length(concatlines) and IsEndOfStream(file) then
+>       PrintFormatted("Unexpected end of stream in {}\n", testName);
+>    fi;
+>    if hasPosition and PositionStream(file) <> i then
+>       PrintFormatted("Expected to be at {}, instead at {}, in {}\n",
+>         i, PositionStream(i), testName);
+>    fi;
+>  od;
+>  if ReadByte(file) <> fail then
+>    PrintFormatted("Unexpected extra byte in {}\n", testName);
+>  fi;
+>  if not IsEndOfStream(file) then
+>    PrintFormatted("Exepected end of stream in {}\n", testName);
+>  fi;
+>  CloseStream(file);
+> od;
+> end;;
+gap> dir := DirectoriesLibrary("tst/teststandard/files");;
+gap> lines := ["here is line 1\n", "\n", "here is line 2\n"];;
+gap> testRead("example.txt", {} -> InputTextFile(Filename(dir, "example.txt")),
+> lines, true);
+
+# Test automatic gzip detection
+gap> testRead("example.txt", {} -> InputTextFile(Filename(dir, "examplegz.txt")),
+> lines, false);
+gap> testRead("empty.txt", {} -> InputTextFile(Filename(dir, "empty.txt")),
+> [], true);
+gap> testRead("lines string", {} -> InputTextString(Concatenation(lines)), lines, true);
+gap> testRead("empty string", {} -> InputTextString(""), [], true);
+gap> testRead("dummy input", {} -> InputTextNone(), [], true);
+gap> STOP_TEST("files.tst", 1);