diff --git a/dcfs/app/sftp/handler.py b/dcfs/app/sftp/handler.py
index 90ee2bc..52da962 100644
--- a/dcfs/app/sftp/handler.py
+++ b/dcfs/app/sftp/handler.py
@@ -333,7 +333,7 @@ def __init__(self, ops: Ops, path: str, mode: str, client_name: str):
         # Read streaming state
         self._read_stream: Optional[AsyncIterator[bytes]] = None
         self._read_iter: Optional[AsyncIterator[bytes]] = None
-        self._read_pos = 0
+        self._buf_offset = 0
         self._read_buf = bytearray()
         self._read_lock = asyncio.Lock()
         self._cached_attrs: Optional[asyncssh.SFTPAttrs] = None
@@ -343,15 +343,22 @@ async def read(self, offset: int, size: int) -> bytes:
             raise asyncssh.SFTPPermissionDenied("File not open for reading")
 
         async with self._read_lock:
-            # If we don't have a stream or it's at the wrong position, start a new one.
-            if self._read_stream is None or offset != self._read_pos:
+            buf_len = len(self._read_buf)
+            buf_end = self._buf_offset + buf_len
+
+            in_buffer = (
+                self._read_stream is not None
+                and self._buf_offset <= offset <= buf_end
+            )
+
+            if not in_buffer:
                 if self._read_stream is not None:
                     await cast(AsyncGenerator[bytes, None], self._read_stream).aclose()
                     self._read_stream = None
                     self._read_iter = None
 
                 self._read_buf = bytearray()
-                self._read_pos = offset
+                self._buf_offset = offset
                 self._read_stream = await self.ops.download(
                     self.path,
                     offset,
@@ -360,9 +367,12 @@ async def read(self, offset: int, size: int) -> bytes:
                     validate=False,
                 )
                 self._read_iter = self._read_stream.__aiter__()
+            else:
+                discard = offset - self._buf_offset
+                if discard > 0:
+                    self._read_buf = self._read_buf[discard:]
+                    self._buf_offset = offset
 
-            # it is impossible for self._read_iter to be None here given the logic above,
-            # but we cast to satisfy mypy.
             it = cast(AsyncIterator[bytes], self._read_iter)
             while len(self._read_buf) < size:
                 try:
@@ -373,7 +383,7 @@ async def read(self, offset: int, size: int) -> bytes:
 
             data = self._read_buf[:size]
             self._read_buf = self._read_buf[size:]
-            self._read_pos += len(data)
+            self._buf_offset += len(data)
             return bytes(data)
 
     async def write(self, offset: int, data: bytes) -> int:
diff --git a/tests/test_sftp_handler.py b/tests/test_sftp_handler.py
new file mode 100644
index 0000000..9667416
--- /dev/null
+++ b/tests/test_sftp_handler.py
@@ -0,0 +1,90 @@
+import pytest
+from unittest.mock import AsyncMock, MagicMock
+
+import asyncssh
+
+from dcfs.app.sftp.handler import DCFSSFTPBufferedFile
+
+
+async def mock_download_gen(data_chunks):
+    for chunk in data_chunks:
+        yield chunk
+
+
+@pytest.mark.asyncio
+async def test_sftp_buffered_file_sequential_reads():
+    mock_ops = MagicMock()
+    # 3 chunks of 64KB
+    chunk1 = b"A" * 65536
+    chunk2 = b"B" * 65536
+    chunk3 = b"C" * 65536
+
+    mock_ops.download = AsyncMock(return_value=mock_download_gen([chunk1, chunk2, chunk3]))
+
+    file_handle = DCFSSFTPBufferedFile(mock_ops, "/test.txt", "r", "client1")
+
+    # Read 32KB at offset 0
+    data1 = await file_handle.read(0, 32768)
+    assert data1 == b"A" * 32768
+    assert mock_ops.download.call_count == 1
+
+    # Read next 32KB at offset 32768 (should hit buffer and NOT call download again)
+    data2 = await file_handle.read(32768, 32768)
+    assert data2 == b"A" * 32768
+    assert mock_ops.download.call_count == 1
+
+    # Read next 64KB at offset 65536
+    data3 = await file_handle.read(65536, 65536)
+    assert data3 == b"B" * 65536
+    assert mock_ops.download.call_count == 1
+
+    await file_handle.close()
+
+
+@pytest.mark.asyncio
+async def test_sftp_buffered_file_seek_out_of_order():
+    mock_ops = MagicMock()
+    chunk1 = b"0123456789"
+    chunk2 = b"ABCDEFGHIJ"
+
+    mock_ops.download = AsyncMock(
+        side_effect=[
+            mock_download_gen([chunk1]),
+            mock_download_gen([chunk2]),
+        ]
+    )
+
+    file_handle = DCFSSFTPBufferedFile(mock_ops, "/test.txt", "r", "client1")
+
+    # Read offset 0, size 5
+    d1 = await file_handle.read(0, 5)
+    assert d1 == b"01234"
+    assert mock_ops.download.call_count == 1
+
+    # Jump forward out of current buffer (e.g. offset 100)
+    d2 = await file_handle.read(100, 5)
+    assert d2 == b"ABCDE"
+    assert mock_ops.download.call_count == 2
+    mock_ops.download.assert_called_with(
+        "/test.txt", 100, -1, "test.txt", validate=False
+    )
+
+    await file_handle.close()
+
+
+@pytest.mark.asyncio
+async def test_sftp_buffered_file_eof_and_mode_checks():
+    mock_ops = MagicMock()
+    mock_ops.download = AsyncMock(return_value=mock_download_gen([b"short"]))
+
+    file_handle = DCFSSFTPBufferedFile(mock_ops, "/test.txt", "r", "client1")
+
+    # Read more bytes than available
+    data = await file_handle.read(0, 100)
+    assert data == b"short"
+
+    # Write attempt on read mode should fail
+    with pytest.raises(asyncssh.SFTPPermissionDenied):
+        await file_handle.write(0, b"data")
+
+    await file_handle.close()