diff --git a/Src/Newtonsoft.Json.Tests/JsonTextReaderTest.cs b/Src/Newtonsoft.Json.Tests/JsonTextReaderTest.cs
index 19988473..80d3e6b1 100644
--- a/Src/Newtonsoft.Json.Tests/JsonTextReaderTest.cs
+++ b/Src/Newtonsoft.Json.Tests/JsonTextReaderTest.cs
@@ -2481,6 +2481,76 @@ bye", reader.Value);
       Assert.IsTrue(reader.Read());
 #endif
     }
+
+    [Test]
+    public void ResetJsonTextReaderErrorCount()
+    {
+      ToggleReaderError toggleReaderError = new ToggleReaderError(new StringReader("{'first':1,'second':2,'third':3}"));
+      JsonTextReader jsonTextReader = new JsonTextReader(toggleReaderError);
+
+      Assert.IsTrue(jsonTextReader.Read());
+
+      toggleReaderError.Error = true;
+
+      ExceptionAssert.Throws<Exception>(
+        "Read error",
+        () => jsonTextReader.Read());
+      ExceptionAssert.Throws<Exception>(
+        "Read error",
+        () => jsonTextReader.Read());
+
+      toggleReaderError.Error = false;
+
+      Assert.IsTrue(jsonTextReader.Read());
+      Assert.AreEqual("first", jsonTextReader.Value);
+
+      toggleReaderError.Error = true;
+
+      ExceptionAssert.Throws<Exception>(
+        "Read error",
+        () => jsonTextReader.Read());
+
+      toggleReaderError.Error = false;
+
+      Assert.IsTrue(jsonTextReader.Read());
+      Assert.AreEqual(1, jsonTextReader.Value);
+
+      toggleReaderError.Error = true;
+
+      ExceptionAssert.Throws<Exception>(
+        "Read error",
+        () => jsonTextReader.Read());
+      ExceptionAssert.Throws<Exception>(
+        "Read error",
+        () => jsonTextReader.Read());
+      ExceptionAssert.Throws<Exception>(
+        "Read error",
+        () => jsonTextReader.Read());
+
+      toggleReaderError.Error = false;
+
+      Assert.IsFalse(jsonTextReader.Read());
+    }
+
+    public class ToggleReaderError : TextReader
+    {
+      private readonly TextReader _inner;
+
+      public bool Error { get; set; }
+
+      public ToggleReaderError(TextReader inner)
+      {
+        _inner = inner;
+      }
+
+      public override int Read(char[] buffer, int index, int count)
+      {
+        if (Error)
+          throw new Exception("Read error");
+
+        return _inner.Read(buffer, index, 1);
+      }
+    }
   }
 
   public class SlowStream : Stream
diff --git a/Src/Newtonsoft.Json.Tests/Serialization/SerializationErrorHandlingTests.cs b/Src/Newtonsoft.Json.Tests/Serialization/SerializationErrorHandlingTests.cs
index 05b1f3be..9100e33e 100644
--- a/Src/Newtonsoft.Json.Tests/Serialization/SerializationErrorHandlingTests.cs
+++ b/Src/Newtonsoft.Json.Tests/Serialization/SerializationErrorHandlingTests.cs
@@ -361,6 +361,84 @@ namespace Newtonsoft.Json.Tests.Serialization
     {
       public Nest A { get; set; }
     }
+
+    [Test]
+    public void InfiniteErrorHandlingLoopFromInputError()
+    {
+      IList<string> errors = new List<string>();
+
+      JsonSerializer serializer = new JsonSerializer();
+      serializer.Error += (sender, e) =>
+        {
+          errors.Add(e.ErrorContext.Error.Message);
+          e.ErrorContext.Handled = true;
+        };
+
+      ErrorPerson[] result = serializer.Deserialize<ErrorPerson[]>(new JsonTextReader(new ThrowingReader()));
+
+      Assert.IsNull(result);
+      Assert.AreEqual(4, errors.Count);
+      Assert.AreEqual("too far", errors[0]);
+      Assert.AreEqual("too far", errors[1]);
+      Assert.AreEqual("too far", errors[2]);
+      Assert.AreEqual("Unexpected end when deserializing array. Path '[1023]', line 1, position 65536.", errors[3]);
+    }
+
+    public class ThrowingReader : TextReader
+    {
+      int _position = 0;
+      static string element = "{\"FirstName\":\"Din\",\"LastName\":\"Rav\",\"Item\":{\"ItemName\":\"temp\"}}";
+      bool _firstRead = true;
+      bool _readComma = false;
+
+      public ThrowingReader()
+      {
+      }
+
+      public override int Read(char[] buffer, int index, int count)
+      {
+        char[] temp = new char[buffer.Length];
+        int charsRead = 0;
+        if (_firstRead)
+        {
+          charsRead = new StringReader("[").Read(temp, index, count);
+          _firstRead = false;
+        }
+        else
+        {
+          if (_readComma)
+          {
+            charsRead = new StringReader(",").Read(temp, index, count);
+            _readComma = false;
+          }
+          else
+          {
+            charsRead = new StringReader(element).Read(temp, index, count);
+            _readComma = true;
+          }
+        }
+
+        _position += charsRead;
+        if (_position > 65536)
+        {
+          throw new Exception("too far");
+        }
+        Array.Copy(temp, index, buffer, index, charsRead);
+        return charsRead;
+      }
+    }
+  }
+
+  public class ErrorPerson
+  {
+    public string FirstName { get; set; }
+    public string LastName { get; set; }
+    public ErrorItem Item { get; set; }
+  }
+
+  public class ErrorItem
+  {
+    public string ItemName { get; set; }
   }
 
   [JsonObject]
diff --git a/Src/Newtonsoft.Json/JsonTextReader.cs b/Src/Newtonsoft.Json/JsonTextReader.cs
index 49f8a2c6..7c1a8df0 100644
--- a/Src/Newtonsoft.Json/JsonTextReader.cs
+++ b/Src/Newtonsoft.Json/JsonTextReader.cs
@@ -55,6 +55,7 @@ namespace Newtonsoft.Json
     private const char UnicodeReplacementChar = '\uFFFD';
 
     private readonly TextReader _reader;
+    private int _readerFailureCount;
 
     private char[] _chars;
     private int _charsUsed;
@@ -75,6 +76,8 @@ namespace Newtonsoft.Json
         throw new ArgumentNullException("reader");
 
       _reader = reader;
+      _readerFailureCount = 0;
+
       _lineNumber = 1;
 
       _chars = new char[4097];
@@ -323,7 +326,26 @@ namespace Newtonsoft.Json
 
       int attemptCharReadCount = _chars.Length - _charsUsed - 1;
 
-      int charsRead = _reader.Read(_chars, _charsUsed, attemptCharReadCount);
+      int charsRead;
+
+      try
+      {
+        charsRead = _reader.Read(_chars, _charsUsed, attemptCharReadCount);
+        _readerFailureCount = 0;
+      }
+      catch
+      {
+        // to prevent infinate loop when error handling is enabled
+        if (!_isEndOfFile)
+        {
+          _readerFailureCount++;
+          if (_readerFailureCount >= 3)
+            _isEndOfFile = true;
+        }
+
+        throw;
+      }
+
       _charsUsed += charsRead;
 
       if (charsRead == 0)
diff --git a/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalBase.cs b/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalBase.cs
index dd686d98..145ac856 100644
--- a/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalBase.cs
+++ b/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalBase.cs
@@ -101,7 +101,8 @@ namespace Newtonsoft.Json.Serialization
     protected bool IsErrorHandled(object currentObject, JsonContract contract, object keyValue, string path, Exception ex)
     {
       ErrorContext errorContext = GetErrorContext(currentObject, keyValue, path, ex);
-      contract.InvokeOnError(currentObject, Serializer.Context, errorContext);
+      if (contract != null)
+        contract.InvokeOnError(currentObject, Serializer.Context, errorContext);
 
       if (!errorContext.Handled)
         Serializer.OnError(new ErrorEventArgs(currentObject, errorContext));
diff --git a/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalReader.cs b/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalReader.cs
index cbd3be81..de65037a 100644
--- a/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalReader.cs
+++ b/Src/Newtonsoft.Json/Serialization/JsonSerializerInternalReader.cs
@@ -113,17 +113,32 @@ namespace Newtonsoft.Json.Serialization
 
       JsonContract contract = GetContractSafe(objectType);
 
-      JsonConverter converter = GetConverter(contract, null, null);
-
-      if (reader.TokenType == JsonToken.None && !ReadForType(reader, contract, converter != null, false))
+      try
       {
-        if (contract != null && !contract.IsNullable)
-          throw JsonSerializationException.Create(reader, "No JSON content found and type '{0}' is not nullable.".FormatWith(CultureInfo.InvariantCulture, contract.UnderlyingType));
+        JsonConverter converter = GetConverter(contract, null, null);
 
-        return null;
+        if (reader.TokenType == JsonToken.None && !ReadForType(reader, contract, converter != null, false))
+        {
+          if (contract != null && !contract.IsNullable)
+            throw JsonSerializationException.Create(reader, "No JSON content found and type '{0}' is not nullable.".FormatWith(CultureInfo.InvariantCulture, contract.UnderlyingType));
+
+          return null;
+        }
+
+        return CreateValueNonProperty(reader, objectType, contract, converter, null);
+      }
+      catch (Exception ex)
+      {
+        if (IsErrorHandled(null, contract, null, reader.Path, ex))
+        {
+          HandleError(reader, 0);
+          return null;
+        }
+        else
+        {
+          throw;
+        }
       }
-
-      return CreateValueNonProperty(reader, objectType, contract, converter, null);
     }
 
     private JsonSerializerProxy GetInternalSerializer()