diff --git a/src/client/stdio.ts b/src/client/stdio.ts
index 816a686fce..bff8724eb7 100644
--- a/src/client/stdio.ts
+++ b/src/client/stdio.ts
@@ -28,6 +28,11 @@ export type StdioServerParameters = {
      * How to handle stderr of the child process. This matches the semantics of Node's `child_process.spawn`.
      *
      * The default is "inherit", meaning messages to stderr will be printed to the parent process's stderr.
+     *
+     * When set to "pipe" or "overlapped", stderr is exposed on `StdioClientTransport.stderr`.
+     * The SDK drains that stream so an unread pipe cannot fill and deadlock the session.
+     * Attach a `data` listener (or `.pipe()` it) before `start()` / `Client.connect` to
+     * receive every chunk; without a listener the bytes are discarded.
      */
     stderr?: IOType | Stream | number;
 
@@ -172,6 +177,10 @@ export class StdioClientTransport implements Transport {
 
             if (this._stderrStream && this._process.stderr) {
                 this._process.stderr.pipe(this._stderrStream);
+                // Flowing mode discards unread chunks so a chatty child cannot
+                // fill the PassThrough (16 KiB highWaterMark) and block on
+                // write(2). Listeners attached before start() still receive data.
+                this._stderrStream.resume();
             }
         });
     }
@@ -182,6 +191,13 @@ export class StdioClientTransport implements Transport {
      * If stderr piping was requested, a PassThrough stream is returned _immediately_, allowing callers to
      * attach listeners before the start method is invoked. This prevents loss of any early
      * error output emitted by the child process.
+     *
+     * After `start()`, the SDK puts this stream in flowing mode so piping is safe without a
+     * consumer — unread stderr is drained and cannot deadlock the session. A listener (or
+     * `.pipe()` destination) attached before `start()` still receives every chunk. A late
+     * listener sees only data written after it attached; bytes already drained are not
+     * replayed. The paused-mode API (`read()` in a loop) is not supported once `start()`
+     * has put the stream in flowing mode — use `data` events or `.pipe()`.
      */
     get stderr(): Stream | null {
         if (this._stderrStream) {
diff --git a/test/client/stdio.test.ts b/test/client/stdio.test.ts
index 577e0c946f..0e2461e42d 100644
--- a/test/client/stdio.test.ts
+++ b/test/client/stdio.test.ts
@@ -1,4 +1,5 @@
 import { JSONRPCMessage } from '../../src/types.js';
+import { Client } from '../../src/client/index.js';
 import { StdioClientTransport, StdioServerParameters } from '../../src/client/stdio.js';
 
 // Configure default server parameters based on OS
@@ -116,3 +117,119 @@ test('should fire onerror and close when ReadBuffer overflows', async () => {
     expect(error.message).toMatch(/ReadBuffer exceeded maximum size/);
     await closed;
 });
+
+/** Unique markers so late-attach tests can tell drained startup bytes from post-request bytes. */
+const STDERR_STARTUP_MARKER = 'STDERR_STARTUP_MARKER';
+const STDERR_POST_REQUEST_MARKER = 'STDERR_POST_REQUEST_MARKER';
+
+/**
+ * Minimal MCP server that floods stderr on every post-handshake request.
+ * Enough writes to fill a paused PassThrough (16 KiB) and the OS pipe (~64 KiB)
+ * so an undrained `stderr: 'pipe'` would block the child on write(2).
+ */
+function chattyStderrServerScript(): string {
+    return String.raw`
+        const { createInterface } = require('readline');
+        const send = (o) => process.stdout.write(JSON.stringify(o) + '\n');
+        process.stderr.write(${JSON.stringify(`${STDERR_STARTUP_MARKER}\n`)});
+        createInterface({ input: process.stdin }).on('line', (line) => {
+            const m = JSON.parse(line);
+            if (m.method === 'initialize') {
+                return send({
+                    jsonrpc: '2.0',
+                    id: m.id,
+                    result: {
+                        protocolVersion: '2025-06-18',
+                        capabilities: { tools: {} },
+                        serverInfo: { name: 'chatty', version: '1.0.0' }
+                    }
+                });
+            }
+            if (m.method === 'notifications/initialized') return;
+            for (let i = 0; i < 256; i++) process.stderr.write('x'.repeat(512) + '\n');
+            process.stderr.write(${JSON.stringify(`${STDERR_POST_REQUEST_MARKER}\n`)});
+            send({
+                jsonrpc: '2.0',
+                id: m.id,
+                result: { tools: [{ name: 'x', description: 'd', inputSchema: { type: 'object' } }] }
+            });
+        });
+    `;
+}
+
+function chattyStderrTransport(): StdioClientTransport {
+    return new StdioClientTransport({
+        command: process.execPath,
+        args: ['-e', chattyStderrServerScript()],
+        stderr: 'pipe'
+    });
+}
+
+/** stdout can settle before every flowing-mode stderr chunk is delivered. */
+async function waitForStderrMarker(captured: { text: string }, marker: string): Promise<void> {
+    await vi.waitFor(
+        () => {
+            if (!captured.text.includes(marker)) {
+                throw new Error(`stderr has not yet included ${marker}`);
+            }
+        },
+        { timeout: 3000, interval: 10 }
+    );
+}
+
+test('piped stderr without a reader does not deadlock listTools', async () => {
+    const transport = chattyStderrTransport();
+    const client = new Client({ name: 'demo', version: '1.0.0' });
+    try {
+        await client.connect(transport);
+        const result = await client.listTools(undefined, { timeout: 5000 });
+        expect(result.tools).toEqual([{ name: 'x', description: 'd', inputSchema: { type: 'object' } }]);
+    } finally {
+        await client.close();
+    }
+}, 8000);
+
+test('piped stderr listener attached before start still receives chunks', async () => {
+    const transport = chattyStderrTransport();
+    const stderr = transport.stderr;
+    expect(stderr).not.toBeNull();
+    const captured = { text: '' };
+    stderr!.on('data', (chunk: Buffer) => {
+        captured.text += chunk.toString();
+    });
+
+    const client = new Client({ name: 'demo', version: '1.0.0' });
+    try {
+        await client.connect(transport);
+        await waitForStderrMarker(captured, STDERR_STARTUP_MARKER);
+        const result = await client.listTools(undefined, { timeout: 5000 });
+        expect(result.tools).toHaveLength(1);
+        await waitForStderrMarker(captured, STDERR_POST_REQUEST_MARKER);
+    } finally {
+        await client.close();
+    }
+}, 8000);
+
+test('late stderr listener does not deadlock and sees only post-attach chunks', async () => {
+    const transport = chattyStderrTransport();
+    const client = new Client({ name: 'demo', version: '1.0.0' });
+    try {
+        await client.connect(transport);
+        // Flowing-mode drain of startup stderr needs a turn to settle before we attach.
+        await new Promise<void>(resolve => setImmediate(resolve));
+
+        const stderr = transport.stderr;
+        expect(stderr).not.toBeNull();
+        const captured = { text: '' };
+        stderr!.on('data', (chunk: Buffer) => {
+            captured.text += chunk.toString();
+        });
+
+        const result = await client.listTools(undefined, { timeout: 5000 });
+        expect(result.tools).toHaveLength(1);
+        await waitForStderrMarker(captured, STDERR_POST_REQUEST_MARKER);
+        expect(captured.text.includes(STDERR_STARTUP_MARKER)).toBe(false);
+    } finally {
+        await client.close();
+    }
+}, 8000);