diff --git a/libraries/stdlib/jvm/src/kotlin/io/Console.kt b/libraries/stdlib/jvm/src/kotlin/io/Console.kt
index 3b06f39dfea..1128adeffd6 100644
--- a/libraries/stdlib/jvm/src/kotlin/io/Console.kt
+++ b/libraries/stdlib/jvm/src/kotlin/io/Console.kt
@@ -8,11 +8,11 @@
 package kotlin.io
 
 import java.io.InputStream
-import java.nio.Buffer
 import java.nio.ByteBuffer
 import java.nio.CharBuffer
 import java.nio.charset.Charset
 import java.nio.charset.CharsetDecoder
+import java.nio.charset.CoderResult
 
 /** Prints the given [message] to the standard output stream. */
 @kotlin.internal.InlineOnly
@@ -140,88 +140,137 @@ public actual inline fun println() {
     System.out.println()
 }
 
-private const val BUFFER_SIZE: Int = 32
-private const val LINE_SEPARATOR_MAX_LENGTH: Int = 2
-
-private val decoder: CharsetDecoder by lazy { Charset.defaultCharset().newDecoder() }
-
 /**
  * Reads a line of input from the standard input stream.
  *
  * @return the line read or `null` if the input stream is redirected to a file and the end of file has been reached.
  */
-fun readLine(): String? = readLine(System.`in`, decoder)
+fun readLine(): String? = LineReader.readLine(System.`in`, Charset.defaultCharset())
 
-internal fun readLine(inputStream: InputStream, decoder: CharsetDecoder): String? {
-    require(decoder.maxCharsPerByte() <= 1) { "Encodings with multiple chars per byte are not supported" }
+// Singleton object lazy initializes on the first use, internal for tests
+internal object LineReader {
+    private const val BUFFER_SIZE: Int = 32
+    private lateinit var decoder: CharsetDecoder
+    private var directEOL = false
+    private val bytes = ByteArray(BUFFER_SIZE)
+    private val chars = CharArray(BUFFER_SIZE)
+    private val byteBuf: ByteBuffer = ByteBuffer.wrap(bytes)
+    private val charBuf: CharBuffer = CharBuffer.wrap(chars)
+    private val sb = StringBuilder()
 
-    val byteBuffer = ByteBuffer.allocate(BUFFER_SIZE)
-    val charBuffer = CharBuffer.allocate(LINE_SEPARATOR_MAX_LENGTH * 2) // twice for surrogate pairs
-    val stringBuilder = StringBuilder()
-
-    var read = inputStream.read()
-    if (read == -1) return null
-    do {
-        byteBuffer.put(read.toByte())
-        if (decoder.tryDecode(byteBuffer, charBuffer, false)) {
-            if (charBuffer.endsWithLineSeparator()) {
-                break
+    /**
+     * Reads line from the specified [inputStream] with the given [charset].
+     * The general design:
+     * * This function contains only fast path code and all it state is kept in local variables as much as possible.
+     * * All the slow-path code is moved to separate functions and the call-sequence bytecode is minimized for it.
+     */
+    @Synchronized
+    fun readLine(inputStream: InputStream, charset: Charset): String? { // charset == null -> use default
+        if (!::decoder.isInitialized || decoder.charset() != charset) updateCharset(charset)
+        var nBytes = 0
+        var nChars = 0
+        while (true) {
+            val readByte = inputStream.read()
+            if (readByte == -1) {
+                // The result is null only if there was absolutely nothing read
+                if (sb.isEmpty() && nBytes == 0 && nChars == 0) {
+                    return null
+                } else {
+                    nChars = decodeEndOfInput(nBytes, nChars) // throws exception if partial char
+                    break
+                }
+            } else {
+                bytes[nBytes++] = readByte.toByte()
             }
-            if (charBuffer.remaining() < 2) {
-                charBuffer.offloadPrefixTo(stringBuilder)
+            // With "directEOL" encoding bytes are batched before being decoded all at once
+            if (readByte == '\n'.toInt() || nBytes == BUFFER_SIZE || !directEOL) {
+                // Decode the bytes that were read
+                byteBuf.limit(nBytes) // byteBuf position is always zero
+                charBuf.position(nChars) // charBuf limit is always BUFFER_SIZE
+                nChars = decode(false)
+                // Break when we have decoded end of line
+                if (nChars > 0 && chars[nChars - 1] == '\n') {
+                    byteBuf.position(0) // reset position for next use
+                    break
+                }
+                // otherwise we're going to read more bytes, so compact byteBuf
+                nBytes = compactBytes()
             }
         }
-        read = inputStream.read()
-    } while (read != -1)
-
-    with(decoder) {
-        tryDecode(byteBuffer, charBuffer, true) // throws exception if undecoded bytes are left
-        reset()
+        // Trim the end of line
+        if (nChars > 0 && chars[nChars - 1] == '\n') {
+            nChars--
+            if (nChars > 0 && chars[nChars - 1] == '\r') nChars--
+        }
+        // Fast path for short lines (don't use StringBuilder)
+        if (sb.isEmpty()) return String(chars, 0, nChars)
+        // Copy the rest of chars to StringBuilder
+        sb.append(chars, 0, nChars)
+        // Build the result
+        val result = sb.toString()
+        if (sb.length > BUFFER_SIZE) trimStringBuilder()
+        sb.setLength(0)
+        return result
     }
 
-    with(charBuffer) {
-        var length = position()
-        if (length > 0 && get(length - 1) == '\n') {
-            length--
-            if (length > 0 && get(length - 1) == '\r') {
-                length--
+    // The result is the number of chars in charBuf
+    private fun decode(endOfInput: Boolean): Int {
+        while (true) {
+            val coderResult: CoderResult = decoder.decode(byteBuf, charBuf, endOfInput)
+            if (coderResult.isError) {
+                resetAll() // so that next call to readLine starts from clean state
+                coderResult.throwException()
             }
-        }
-        flip()
-        repeat(length) {
-            stringBuilder.append(get())
+            val nChars = charBuf.position()
+            if (!coderResult.isOverflow) return nChars // has room in buffer -- everything possible was decoded
+            // overflow (charBuf is full) -- offload everything from charBuf but last char into sb
+            sb.append(chars, 0, nChars - 1)
+            charBuf.position(0)
+            charBuf.limit(BUFFER_SIZE)
+            charBuf.put(chars[nChars - 1]) // retain last char
         }
     }
 
-    return stringBuilder.toString()
-}
-
-private fun CharsetDecoder.tryDecode(byteBuffer: ByteBuffer, charBuffer: CharBuffer, isEndOfStream: Boolean): Boolean {
-    val positionBefore = charBuffer.position()
-    byteBuffer.flip()
-    with(decode(byteBuffer, charBuffer, isEndOfStream)) {
-        if (isError) throwException()
+    // Slow path -- only on long lines (extra call to decode will be performed)
+    private fun compactBytes(): Int = with(byteBuf) {
+        compact()
+        return position().also { position(0) }
     }
-    return (charBuffer.position() > positionBefore).also { isDecoded ->
-        if (isDecoded) byteBuffer.clear() else byteBuffer.flipBack()
+
+    // Slow path -- only on end of input
+    private fun decodeEndOfInput(nBytes: Int, nChars: Int): Int {
+        byteBuf.limit(nBytes) // byteBuf position is always zero
+        charBuf.position(nChars) // charBuf limit is always BUFFER_SIZE
+        return decode(true).also { // throws exception if partial char
+            // reset decoder and byteBuf for next use
+            decoder.reset()
+            byteBuf.position(0)
+        }
+    }
+
+    // Slow path -- only on charset change
+    private fun updateCharset(charset: Charset) {
+        decoder = charset.newDecoder()
+        // try decoding ASCII line separator to see if this charset (like UTF-8) encodes it directly
+        byteBuf.clear()
+        charBuf.clear()
+        byteBuf.put('\n'.toByte())
+        byteBuf.flip()
+        decoder.decode(byteBuf, charBuf, false)
+        directEOL = charBuf.position() == 1 && charBuf.get(0) == '\n'
+        resetAll()
+    }
+
+    // Slow path -- only on exception in decoder and on charset change
+    private fun resetAll() {
+        decoder.reset()
+        byteBuf.position(0)
+        sb.setLength(0)
+    }
+
+    // Slow path -- only on long lines
+    private fun trimStringBuilder() {
+        sb.setLength(BUFFER_SIZE)
+        sb.trimToSize()
     }
 }
-
-private fun CharBuffer.endsWithLineSeparator(): Boolean {
-    val p = position()
-    return p > 0 && get(p - 1) == '\n'
-}
-
-private fun Buffer.flipBack() {
-    position(limit())
-    limit(capacity())
-}
-
-/** Extracts everything except the last char into [builder]. */
-private fun CharBuffer.offloadPrefixTo(builder: StringBuilder) {
-    flip()
-    repeat(limit() - 1) {
-        builder.append(get())
-    }
-    compact()
-}
diff --git a/libraries/stdlib/jvm/test/io/Console.kt b/libraries/stdlib/jvm/test/io/Console.kt
index f3e03873069..7dd350ea589 100644
--- a/libraries/stdlib/jvm/test/io/Console.kt
+++ b/libraries/stdlib/jvm/test/io/Console.kt
@@ -9,6 +9,8 @@ package test.io
 
 import org.junit.Test
 import java.nio.charset.Charset
+import kotlin.random.Random
+import kotlin.random.nextInt
 import kotlin.test.*
 
 class ConsoleTest {
@@ -64,6 +66,74 @@ class ConsoleTest {
         testReadLine("first${linuxLineSeparator}second", listOf("first", "second"), charset = Charsets.UTF_32)
     }
 
+    @Test
+    fun shouldReadAllSupportedEncodings() {
+        val lines = listOf(
+            "ONE", "TWICE", "", "0123456", 
+            "This is a very long line that will overflow buffers that are allocated in the code of LineReader object",
+            "This line is quite short",
+            "x".repeat(1000), // stress
+            "7", "8", "9" // some short stuff at the end
+        )
+        // Filter all available charsets that can be encoded
+        val charsets: List<Charset> = Charset.availableCharsets().values.filter { charset ->
+            try {
+                charset.newEncoder()
+                true // take it
+            } catch (e: UnsupportedOperationException) {
+                false // we can only test charset that supports encoding, skip it
+            }
+        }
+        // Run the test
+        for (separator in listOf(linuxLineSeparator, windowsLineSeparator)) {
+            val text = lines.joinToString(separator)
+            for (charset in charsets) {
+                val reference = readLinesReference(text, charset)
+                if (reference != lines) continue // this encoding does not support ASCII chars that we test, skip
+                // Now we can test readLine function
+                val actual = readLines(text, charset)
+                assertEquals(lines, actual, "Comparing with $charset")
+            }
+        }
+    }
+
+    @Test
+    fun shouldReadAllUnicodeCodePoints() {
+        // Generate lines of ever-increasing length with sample unicode code points to stress all corner-cases in
+        // line lengths and ability to handle different bit-lengths of unicode code points.
+        var cp = 0
+        val rnd = Random(1)
+        val logFactor = 7 // log of number of code points that are sampled per each bit length of code point
+        fun nextCP(): Int {
+            if (cp == 10 || cp == 13) cp++ // skip line endings
+            if (cp in 0xD800..0xFFFF) cp = 0x10000 // skip surrogates
+            // to make the test run faster don't test all code points, the larger they are, the sparser they are sampled
+            // For each bit length of the code point we randomly sample ~2^logFactor code points for this test
+            val maxStep = cp.coerceAtLeast(1 shl logFactor).takeHighestOneBit() shr logFactor
+            val step = rnd.nextInt(1..maxStep)
+            return cp.also { cp += step }
+        }
+        val lines = ArrayList<String>().apply {
+            var len = 1
+            while (cp < Character.MAX_CODE_POINT) {
+                add(buildString {
+                    repeat(len) {
+                        appendCodePoint(nextCP())
+                        if (cp >= Character.MAX_CODE_POINT) return@buildString
+                    }
+                })
+                len++
+            }
+        }
+        // test all standard unicode encoding that should be able to represent all code points
+        for (separator in listOf(linuxLineSeparator, windowsLineSeparator)) {
+            val text = lines.joinToString(separator)
+            for (charset in listOf(Charsets.UTF_8, Charsets.UTF_16BE, Charsets.UTF_16LE, Charsets.UTF_32BE, Charsets.UTF_32LE)) {
+                testReadLine(text, lines, charset)
+            }
+        }
+    }
+
     @Test
     fun readSurrogatePairs() {
         val c = "\uD83D\uDC4D" // thumb-up emoji
@@ -76,17 +146,15 @@ class ConsoleTest {
 
     private fun testReadLine(text: String, expected: List<String>, charset: Charset = Charsets.UTF_8) {
         val actual = readLines(text, charset)
-        assertEquals(expected, actual)
+        assertEquals(expected, actual, "Comparing with $charset")
         val referenceExpected = readLinesReference(text, charset)
         assertEquals(referenceExpected, actual, "Comparing to reference readLine")
-
     }
 
     private fun readLines(text: String, charset: Charset): List<String> {
         text.byteInputStream(charset).use { stream ->
-            val decoder = charset.newDecoder()
             @Suppress("INVISIBLE_REFERENCE", "INVISIBLE_MEMBER")
-            return generateSequence { readLine(stream, decoder) }.toList().also {
+            return generateSequence { LineReader.readLine(stream, charset) }.toList().also {
                 assertTrue("All bytes should be read") { stream.read() == -1 }
             }
         }