diff --git a/transport/src/main/java/io/netty/channel/local/LocalChannel.java b/transport/src/main/java/io/netty/channel/local/LocalChannel.java
index d18fa3a4a1..0d4ca82075 100644
--- a/transport/src/main/java/io/netty/channel/local/LocalChannel.java
+++ b/transport/src/main/java/io/netty/channel/local/LocalChannel.java
@@ -436,7 +436,9 @@ public class LocalChannel extends AbstractChannel {
             }
         }
         ChannelPipeline peerPipeline = peer.pipeline();
-        if (peer.readInProgress) {
+        // We should only set readInProgress to false if there is any data that was read as otherwise we may miss to
+        // forward data later on.
+        if (peer.readInProgress && !peer.inboundBuffer.isEmpty()) {
             peer.readInProgress = false;
             for (;;) {
                 Object received = peer.inboundBuffer.poll();
diff --git a/transport/src/test/java/io/netty/channel/local/LocalChannelTest.java b/transport/src/test/java/io/netty/channel/local/LocalChannelTest.java
index a8def572b8..2ec4c29a6a 100644
--- a/transport/src/test/java/io/netty/channel/local/LocalChannelTest.java
+++ b/transport/src/test/java/io/netty/channel/local/LocalChannelTest.java
@@ -26,6 +26,7 @@ import io.netty.channel.ChannelFutureListener;
 import io.netty.channel.ChannelHandlerContext;
 import io.netty.channel.ChannelInboundHandlerAdapter;
 import io.netty.channel.ChannelInitializer;
+import io.netty.channel.ChannelOption;
 import io.netty.channel.ChannelPromise;
 import io.netty.channel.DefaultEventLoopGroup;
 import io.netty.channel.EventLoop;
@@ -945,4 +946,78 @@ public class LocalChannelTest {
             closeChannel(sc);
         }
     }
+
+    private static void writeAndFlushReadOnSuccess(final ChannelHandlerContext ctx, Object msg) {
+        ctx.writeAndFlush(msg).addListener(new ChannelFutureListener() {
+            @Override
+            public void operationComplete(ChannelFuture future) {
+                if (future.isSuccess()) {
+                    ctx.read();
+                }
+            }
+        });
+    }
+
+    @Test(timeout = 5000)
+    public void testAutoReadDisabledSharedGroup() throws Exception {
+        testAutoReadDisabled(sharedGroup, sharedGroup);
+    }
+
+    @Test(timeout = 5000)
+    public void testAutoReadDisabledDifferentGroup() throws Exception {
+        testAutoReadDisabled(group1, group2);
+    }
+
+    private static void testAutoReadDisabled(EventLoopGroup serverGroup, EventLoopGroup clientGroup) throws Exception {
+        final CountDownLatch latch = new CountDownLatch(100);
+        Bootstrap cb = new Bootstrap();
+        ServerBootstrap sb = new ServerBootstrap();
+
+        cb.group(serverGroup)
+                .channel(LocalChannel.class)
+                .option(ChannelOption.AUTO_READ, false)
+                .handler(new ChannelInboundHandlerAdapter() {
+
+                    @Override
+                    public void channelActive(final ChannelHandlerContext ctx) throws Exception {
+                        writeAndFlushReadOnSuccess(ctx, "test");
+                    }
+
+                    @Override
+                    public void channelRead(final ChannelHandlerContext ctx, Object msg) throws Exception {
+                        writeAndFlushReadOnSuccess(ctx, msg);
+                    }
+                });
+
+        sb.group(clientGroup)
+                .channel(LocalServerChannel.class)
+                .childOption(ChannelOption.AUTO_READ, false)
+                .childHandler(new ChannelInboundHandlerAdapter() {
+                    @Override
+                    public void channelActive(final ChannelHandlerContext ctx) throws Exception {
+                        ctx.read();
+                    }
+
+                    @Override
+                    public void channelRead(final ChannelHandlerContext ctx, Object msg) throws Exception {
+                        latch.countDown();
+                        if (latch.getCount() > 0) {
+                            writeAndFlushReadOnSuccess(ctx, msg);
+                        }
+                    }
+                });
+
+        Channel sc = null;
+        Channel cc = null;
+        try {
+            // Start server
+            sc = sb.bind(TEST_ADDRESS).sync().channel();
+            cc = cb.connect(TEST_ADDRESS).sync().channel();
+
+            latch.await();
+        } finally {
+            closeChannel(cc);
+            closeChannel(sc);
+        }
+    }
 }