diff --git a/plugins/libplugin.c b/plugins/libplugin.c
index 4ac54bf3f..2d4fda783 100644
--- a/plugins/libplugin.c
+++ b/plugins/libplugin.c
@@ -1,6 +1,7 @@
 #include <bitcoin/chainparams.h>
 #include <ccan/err/err.h>
 #include <ccan/intmap/intmap.h>
+#include <ccan/io/io.h>
 #include <ccan/json_out/json_out.h>
 #include <ccan/membuf/membuf.h>
 #include <ccan/read_write_all/read_write_all.h>
@@ -8,6 +9,7 @@
 #include <ccan/tal/str/str.h>
 #include <ccan/timer/timer.h>
 #include <common/daemon.h>
+#include <common/json_stream.h>
 #include <common/utils.h>
 #include <errno.h>
 #include <poll.h>
@@ -38,6 +40,17 @@ bool deprecated_apis;
 extern const struct chainparams *chainparams;
 
 struct plugin {
+	/* lightningd interaction */
+	struct io_conn *stdin_conn;
+	struct io_conn *stdout_conn;
+
+	/* To read from lightningd */
+	char *buffer;
+	size_t used, len_read;
+
+	/* To write to lightningd */
+	struct json_stream **js_arr;
+
 	enum plugin_restartability restartability;
 	const struct plugin_command *commands;
 	size_t num_commands;
@@ -46,6 +59,14 @@ struct plugin {
 	const struct plugin_hook *hook_subs;
 	size_t num_hook_subs;
 	struct plugin_option *opts;
+
+	/* Anything special to do at init ? */
+	void (*init)(struct plugin_conn *,
+		     const char *buf, const jsmntok_t *);
+	/* Has the manifest been sent already ? */
+	bool manifested;
+	/* Has init been received ? */
+	bool initialized;
 };
 
 struct plugin_timer {
@@ -65,6 +86,7 @@ struct command {
 	u64 *id;
 	const char *methodname;
 	bool usage_only;
+	struct plugin *plugin;
 };
 
 struct out_req {
@@ -148,43 +170,6 @@ static int read_json(struct plugin_conn *conn)
 	return end + 2 - membuf_elems(&conn->mb);
 }
 
-static struct command *read_json_request(const tal_t *ctx,
-					 struct plugin_conn *conn,
-					 struct plugin_conn *rpc,
-					 const jsmntok_t **params,
-					 int *reqlen)
-{
-	const jsmntok_t *toks, *id, *method;
-	bool valid;
-	struct command *cmd = tal(ctx, struct command);
-
-	*reqlen = read_json(conn);
-	toks = json_parse_input(cmd, membuf_elems(&conn->mb), *reqlen, &valid);
-	if (!valid)
-		plugin_err("Malformed JSON input '%.*s'",
-			   *reqlen, membuf_elems(&conn->mb));
-
-	if (toks[0].type != JSMN_OBJECT)
-		plugin_err("Malformed JSON command '%*.s' is not an object",
-			   *reqlen, membuf_elems(&conn->mb));
-
-	method = json_get_member(membuf_elems(&conn->mb), toks, "method");
-	*params = json_get_member(membuf_elems(&conn->mb), toks, "params");
-	id = json_get_member(membuf_elems(&conn->mb), toks, "id");
-	if (id) {
-		cmd->id = tal(cmd, u64);
-		if (!json_to_u64(membuf_elems(&conn->mb), id, cmd->id))
-			plugin_err("JSON id '%*.s' is not a number",
-			           id->end - id->start,
-			           membuf_elems(&conn->mb) + id->start);
-	} else
-		cmd->id = NULL;
-	cmd->usage_only = false;
-	cmd->methodname = json_strdup(cmd, membuf_elems(&conn->mb), method);
-
-	return cmd;
-}
-
 /* This starts a JSON RPC message with boilerplate */
 static struct json_out *start_json_rpc(const tal_t *ctx, u64 id)
 {
@@ -494,10 +479,10 @@ send_outreq_(struct command *cmd,
 }
 
 static struct command_result *
-handle_getmanifest(struct command *getmanifest_cmd,
-		   struct plugin *p)
+handle_getmanifest(struct command *getmanifest_cmd)
 {
 	struct json_out *params = json_out_new(tmpctx);
+	struct plugin *p = getmanifest_cmd->plugin;
 
 	json_out_start(params, NULL, '{');
 	json_out_start(params, "options", '[');
@@ -542,18 +527,16 @@ handle_getmanifest(struct command *getmanifest_cmd,
 	return command_success(getmanifest_cmd, params);
 }
 
-static struct command_result *handle_init(struct command *init_cmd,
+static struct command_result *handle_init(struct command *cmd,
 					  const char *buf,
-					  const jsmntok_t *params,
-					  const struct plugin_option *opts,
-					  void (*init)(struct plugin_conn *,
-						       const char *buf, const jsmntok_t *))
+					  const jsmntok_t *params)
 {
 	const jsmntok_t *configtok, *rpctok, *dirtok, *opttok, *nettok, *t;
 	struct sockaddr_un addr;
 	size_t i;
 	char *dir, *network;
 	struct json_out *param_obj;
+	struct plugin *p = cmd->plugin;
 
 	configtok = json_delve(buf, params, ".configuration");
 
@@ -591,24 +574,24 @@ static struct command_result *handle_init(struct command *init_cmd,
 	opttok = json_get_member(buf, params, "options");
 	json_for_each_obj(i, t, opttok) {
 		char *opt = json_strdup(NULL, buf, t);
-		for (size_t i = 0; i < tal_count(opts); i++) {
+		for (size_t i = 0; i < tal_count(p->opts); i++) {
 			char *problem;
-			if (!streq(opts[i].name, opt))
+			if (!streq(p->opts[i].name, opt))
 				continue;
-			problem = opts[i].handle(json_strdup(opt, buf, t+1),
-						 opts[i].arg);
+			problem = p->opts[i].handle(json_strdup(opt, buf, t+1),
+						    p->opts[i].arg);
 			if (problem)
 				plugin_err("option '%s': %s",
-					   opts[i].name, problem);
+					   p->opts[i].name, problem);
 			break;
 		}
 		tal_free(opt);
 	}
 
-	if (init)
-		init(&rpc_conn, buf, configtok);
+	if (p->init)
+		p->init(&rpc_conn, buf, configtok);
 
-	return command_success_str(init_cmd, NULL);
+	return command_success_str(cmd, NULL);
 }
 
 char *u64_option(const char *arg, u64 *i)
@@ -631,47 +614,6 @@ char *charp_option(const char *arg, char **p)
 	return NULL;
 }
 
-static void handle_new_command(const tal_t *ctx,
-			       struct plugin_conn *request_conn,
-			       struct plugin_conn *rpc_conn,
-			       struct plugin *p)
-{
-	struct command *cmd;
-	const jsmntok_t *params;
-	int reqlen;
-
-	cmd = read_json_request(ctx, request_conn, rpc_conn, &params, &reqlen);
-	/* If this is a notification. */
-	if (!cmd->id) {
-		for (size_t i = 0; i < p->num_notif_subs; i++) {
-			if (streq(cmd->methodname, p->notif_subs[i].name)) {
-				p->notif_subs[i].handle(cmd, membuf_elems(&request_conn->mb),
-				                        params);
-				membuf_consume(&request_conn->mb, reqlen);
-			}
-		}
-		return;
-	}
-	for (size_t i = 0; i < p->num_hook_subs; i++) {
-		if (streq(cmd->methodname, p->hook_subs[i].name)) {
-			p->hook_subs[i].handle(cmd, membuf_elems(&request_conn->mb),
-					       params);
-			membuf_consume(&request_conn->mb, reqlen);
-			return;
-		}
-	}
-	for (size_t i = 0; i < p->num_commands; i++) {
-		if (streq(cmd->methodname, p->commands[i].name)) {
-			p->commands[i].handle(cmd, membuf_elems(&request_conn->mb),
-					      params);
-			membuf_consume(&request_conn->mb, reqlen);
-			return;
-		}
-	}
-
-	plugin_err("Unknown command '%s'", cmd->methodname);
-}
-
 static void setup_command_usage(const struct plugin_command *commands,
 				size_t num_commands)
 {
@@ -757,7 +699,215 @@ void plugin_log(enum log_level l, const char *fmt, ...)
 	va_end(ap);
 }
 
+static void ld_command_handle(struct plugin *plugin,
+			      struct command *cmd,
+			      const jsmntok_t *toks)
+{
+	const jsmntok_t *idtok, *methtok, *paramstok;
+
+	idtok = json_get_member(plugin->buffer, toks, "id");
+	methtok = json_get_member(plugin->buffer, toks, "method");
+	paramstok = json_get_member(plugin->buffer, toks, "params");
+
+	if (!methtok || !paramstok)
+		plugin_err("Malformed JSON-RPC notification missing "
+			   "\"method\" or \"params\": %.*s",
+			   json_tok_full_len(toks),
+			   json_tok_full(plugin->buffer, toks));
+
+	cmd->plugin = plugin;
+	cmd->id = NULL;
+	cmd->usage_only = false;
+	cmd->methodname = json_strdup(cmd, plugin->buffer, methtok);
+	if (idtok) {
+		cmd->id = tal(cmd, u64);
+		if (!json_to_u64(plugin->buffer, idtok, cmd->id))
+			plugin_err("JSON id '%*.s' is not a number",
+				   json_tok_full_len(idtok),
+				   json_tok_full(plugin->buffer, idtok));
+	}
+
+	if (!plugin->manifested) {
+		if (streq(cmd->methodname, "getmanifest")) {
+			handle_getmanifest(cmd);
+			plugin->manifested = true;
+			return;
+		}
+		plugin_err("Did not receive 'getmanifest' yet, but got '%s'"
+			   " instead", cmd->methodname);
+	}
+
+	if (!plugin->initialized) {
+		if (streq(cmd->methodname, "init")) {
+			handle_init(cmd, plugin->buffer, paramstok);
+			plugin->initialized = true;
+			return;
+		}
+		plugin_err("Did not receive 'init' yet, but got '%s'"
+			   " instead", cmd->methodname);
+	}
+
+	/* If that's a notification. */
+	if (!cmd->id) {
+		for (size_t i = 0; i < plugin->num_notif_subs; i++) {
+			if (streq(cmd->methodname,
+				  plugin->notif_subs[i].name)) {
+				plugin->notif_subs[i].handle(cmd,
+							     plugin->buffer,
+							     paramstok);
+				return;
+			}
+		}
+		plugin_err("Unregistered notification %.*s",
+			   json_tok_full_len(methtok),
+			   json_tok_full(plugin->buffer, methtok));
+	}
+
+	for (size_t i = 0; i < plugin->num_hook_subs; i++) {
+		if (streq(cmd->methodname, plugin->hook_subs[i].name)) {
+			plugin->hook_subs[i].handle(cmd,
+						    plugin->buffer,
+						    paramstok);
+			return;
+		}
+	}
+
+	for (size_t i = 0; i < plugin->num_commands; i++) {
+		if (streq(cmd->methodname, plugin->commands[i].name)) {
+			plugin->commands[i].handle(cmd,
+						   plugin->buffer,
+						   paramstok);
+			return;
+		}
+	}
+
+	plugin_err("Unknown command '%s'", cmd->methodname);
+}
+
+/**
+ * Try to parse a complete message from lightningd's buffer, and return true
+ * if we could handle it.
+ */
+static bool ld_read_json_one(struct plugin *plugin)
+{
+	bool valid;
+	const jsmntok_t *toks, *jrtok;
+	struct command *cmd = tal(plugin, struct command);
+
+	/* FIXME: This could be done more efficiently by storing the
+	 * toks and doing an incremental parse, like lightning-cli
+	 * does. */
+	toks = json_parse_input(NULL, plugin->buffer, plugin->used,
+				&valid);
+	if (!toks) {
+		if (!valid) {
+			plugin_err("Failed to parse JSON response '%.*s'",
+				   (int)plugin->used, plugin->buffer);
+			return false;
+		}
+		/* We need more. */
+		return false;
+	}
+
+	/* Empty buffer? (eg. just whitespace). */
+	if (tal_count(toks) == 1) {
+		plugin->used = 0;
+		return false;
+	}
+
+	jrtok = json_get_member(plugin->buffer, toks, "jsonrpc");
+	if (!jrtok) {
+		plugin_err("JSON-RPC message does not contain \"jsonrpc\" field");
+		return false;
+	}
+
+	ld_command_handle(plugin, cmd, toks);
+
+	/* Move this object out of the buffer */
+	memmove(plugin->buffer, plugin->buffer + toks[0].end,
+		tal_count(plugin->buffer) - toks[0].end);
+	plugin->used -= toks[0].end;
+	tal_free(toks);
+
+	return true;
+}
+
+static struct io_plan *ld_read_json(struct io_conn *conn,
+				    struct plugin *plugin)
+{
+	plugin->used += plugin->len_read;
+	if (plugin->used && plugin->used == tal_count(plugin->buffer))
+		tal_resize(&plugin->buffer, plugin->used * 2);
+
+	/* Read and process all messages from the connection */
+	while (ld_read_json_one(plugin))
+		;
+
+	/* Now read more from the connection */
+	return io_read_partial(plugin->stdin_conn,
+			       plugin->buffer + plugin->used,
+			       tal_count(plugin->buffer) - plugin->used,
+			       &plugin->len_read, ld_read_json, plugin);
+}
+
+static struct io_plan *ld_write_json(struct io_conn *conn,
+				     struct plugin *plugin);
+
+static struct io_plan *
+ld_stream_complete(struct io_conn *conn, struct json_stream *js,
+		   struct plugin *plugin)
+{
+	assert(tal_count(plugin->js_arr) > 0);
+	/* Remove js and shift all remainig over */
+	tal_arr_remove(&plugin->js_arr, 0);
+
+	/* It got dropped off the queue, free it. */
+	tal_free(js);
+
+	return ld_write_json(conn, plugin);
+}
+
+static struct io_plan *ld_write_json(struct io_conn *conn,
+				     struct plugin *plugin)
+{
+	if (tal_count(plugin->js_arr) > 0)
+		return json_stream_output(plugin->js_arr[0], plugin->stdout_conn,
+					  ld_stream_complete, plugin);
+
+	return io_out_wait(conn, plugin, ld_write_json, plugin);
+}
+
+static void ld_conn_finish(struct io_conn *conn, struct plugin *plugin)
+{
+	/* Without one of the conns there is no reason to stay alive. That
+	 * certainly means lightningd died, since there is no cleaner way
+	 * to stop, return 0. */
+	exit(0);
+}
+
+/* lightningd writes on our stdin */
+static struct io_plan *stdin_conn_init(struct io_conn *conn,
+				       struct plugin *plugin)
+{
+	plugin->stdin_conn = conn;
+	io_set_finish(conn, ld_conn_finish, plugin);
+	return io_read_partial(plugin->stdin_conn, plugin->buffer,
+			       tal_bytelen(plugin->buffer), &plugin->len_read,
+			       ld_read_json, plugin);
+}
+
+/* lightningd reads from our stdout */
+static struct io_plan *stdout_conn_init(struct io_conn *conn,
+                                        struct plugin *plugin)
+{
+	plugin->stdout_conn = conn;
+	io_set_finish(conn, ld_conn_finish, plugin);
+	return io_wait(plugin->stdout_conn, plugin, ld_write_json, plugin);
+}
+
 static struct plugin *new_plugin(const tal_t *ctx,
+				 void (*init)(struct plugin_conn *rpc,
+					      const char *buf, const jsmntok_t *),
 				 const enum plugin_restartability restartability,
 				 const struct plugin_command *commands,
 				 size_t num_commands,
@@ -770,7 +920,15 @@ static struct plugin *new_plugin(const tal_t *ctx,
 	const char *optname;
 	struct plugin *p = tal(ctx, struct plugin);
 
+	p->buffer = tal_arr(p, char, 64);
+	p->js_arr = tal_arr(p, struct json_stream *, 0);
+	p->used = 0;
+	p->len_read = 0;
+
+	p->init = init;
+	p->manifested = p->initialized = false;
 	p->restartability = restartability;
+
 	p->commands = commands;
 	p->num_commands = num_commands;
 	p->notif_subs = notif_subs;
@@ -805,11 +963,6 @@ void plugin_main(char *argv[],
 		 ...)
 {
 	struct plugin *plugin;
-	struct plugin_conn request_conn;
-	struct command *cmd;
-	const jsmntok_t *params;
-	int reqlen;
-	struct pollfd fds[2];
 	va_list ap;
 
 	setup_locale();
@@ -822,7 +975,7 @@ void plugin_main(char *argv[],
 	setup_command_usage(commands, num_commands);
 
 	va_start(ap, num_hook_subs);
-	plugin = new_plugin(NULL, restartability, commands, num_commands,
+	plugin = new_plugin(NULL, init, restartability, commands, num_commands,
 			    notif_subs, num_notif_subs, hook_subs,
 			    num_hook_subs, ap);
 	va_end(ap);
@@ -831,73 +984,24 @@ void plugin_main(char *argv[],
 	membuf_init(&rpc_conn.mb,
 		    tal_arr(plugin, char, READ_CHUNKSIZE), READ_CHUNKSIZE,
 		    membuf_tal_realloc);
-	request_conn.fd = STDIN_FILENO;
-	membuf_init(&request_conn.mb,
-		    tal_arr(plugin, char, READ_CHUNKSIZE), READ_CHUNKSIZE,
-		    membuf_tal_realloc);
 	uintmap_init(&out_reqs);
 
-	cmd = read_json_request(tmpctx, &request_conn, NULL,
-				&params, &reqlen);
-	if (!streq(cmd->methodname, "getmanifest"))
-		plugin_err("Expected getmanifest not %s", cmd->methodname);
-
-	membuf_consume(&request_conn.mb, reqlen);
-	handle_getmanifest(cmd, plugin);
-
-	cmd = read_json_request(tmpctx, &request_conn, &rpc_conn,
-				&params, &reqlen);
-	if (!streq(cmd->methodname, "init"))
-		plugin_err("Expected init not %s", cmd->methodname);
-
-	handle_init(cmd, membuf_elems(&request_conn.mb),
-		    params, plugin->opts, init);
-	membuf_consume(&request_conn.mb, reqlen);
-
-	/* Set up fds for poll. */
-	fds[0].fd = STDIN_FILENO;
-	fds[0].events = POLLIN;
-	fds[1].fd = rpc_conn.fd;
-	fds[1].events = POLLIN;
+	io_new_conn(plugin, STDIN_FILENO, stdin_conn_init, plugin);
+	io_new_conn(plugin, STDOUT_FILENO, stdout_conn_init, plugin);
 
 	for (;;) {
-		struct timer *expired;
-		struct timemono now, first;
-		int t;
+		struct timer *expired = NULL;
 
 		clean_tmpctx();
 
-		/* If we already have some input, process now. */
-		if (membuf_num_elems(&request_conn.mb) != 0) {
-			handle_new_command(plugin, &request_conn, &rpc_conn, plugin);
-			continue;
-		}
 		if (membuf_num_elems(&rpc_conn.mb) != 0) {
 			handle_rpc_reply(&rpc_conn);
 			continue;
 		}
 
-		/* Handle any timeouts */
-		now = time_mono();
-		expired = timers_expire(&timers, now);
-		if (expired) {
-			call_plugin_timer(&rpc_conn, expired);
-			continue;
-		}
-
-		/* If we have a pending timer, timeout then */
-		if (timer_earliest(&timers, &first))
-			t = time_to_msec(timemono_between(first, now));
-		else
-			t = -1;
-
-		/* Otherwise, we poll. */
-		poll(fds, 2, t);
-
-		if (fds[0].revents & POLLIN)
-			handle_new_command(plugin, &request_conn, &rpc_conn, plugin);
-		if (fds[1].revents & POLLIN)
-			handle_rpc_reply(&rpc_conn);
+		/* Will only exit if a timer has expired. */
+		io_loop(&timers, &expired);
+		call_plugin_timer(&rpc_conn, expired);
 	}
 
 	tal_free(plugin);