diff --git a/core/libs/CMakeLists.txt b/core/libs/CMakeLists.txt
index 5b886fafd..13e7e2bf9 100644
--- a/core/libs/CMakeLists.txt
+++ b/core/libs/CMakeLists.txt
@@ -132,6 +132,20 @@ list(APPEND PATCHED_OUTPUTS ${LIBCOHTML_PROSPERO_PATCHED})
 add_custom_target(libs DEPENDS ${PATCHED_OUTPUTS})
 
 if(BUILD_TESTING)
+    add_test_executable(savedata_memory_growth_tests tests/SaveDataMemoryGrowth.cpp)
+    target_include_directories(savedata_memory_growth_tests PRIVATE ${CMAKE_CURRENT_SOURCE_DIR})
+    target_link_libraries(savedata_memory_growth_tests PRIVATE libSceSaveData.native)
+    configure_windows_unwind(savedata_memory_growth_tests)
+    if(MINGW)
+        target_compile_options(savedata_memory_growth_tests PRIVATE -fasynchronous-unwind-tables)
+    endif()
+    add_test(NAME savedata_memory_growth COMMAND savedata_memory_growth_tests)
+    add_test(NAME savedata_memory_growth_read_failure COMMAND savedata_memory_growth_tests read-failure)
+    set_tests_properties(savedata_memory_growth_read_failure PROPERTIES SKIP_RETURN_CODE 77)
+    if(WIN32)
+        set_tests_properties(savedata_memory_growth savedata_memory_growth_read_failure PROPERTIES
+            ENVIRONMENT_MODIFICATION "PATH=path_list_prepend:$<TARGET_FILE_DIR:libSceSaveData.native>")
+    endif()
     add_library(host_thread_local_test_library SHARED tests/HostThreadLocalLibrary.cpp)
     set_target_properties(host_thread_local_test_library PROPERTIES RUNTIME_OUTPUT_DIRECTORY "$<1:${ANYPS5_TEST_OUTPUT_DIRECTORY}>")
     target_include_directories(host_thread_local_test_library PRIVATE ${CMAKE_CURRENT_SOURCE_DIR})
diff --git a/core/libs/prx/libSceSaveData.native/Export.cpp b/core/libs/prx/libSceSaveData.native/Export.cpp
index 766182748..a5bfab617 100644
--- a/core/libs/prx/libSceSaveData.native/Export.cpp
+++ b/core/libs/prx/libSceSaveData.native/Export.cpp
@@ -622,8 +622,8 @@ static int setupSaveDataMemory2(const SaveDataMemorySetup2* setup_param, SaveDat
         std::error_code ec;
         std::filesystem::create_directories(std::filesystem::path(path).parent_path(), ec);
         std::vector<char> data;
-        if (have) {
-            read_file_all(path, data);
+        if (have && !read_file_all(path, data)) {
+            return SAVE_DATA_ERROR_INTERNAL;
         }
         data.resize(setup_param->memory_size, 0);
         if (!write_file_replace(path, data)) {
diff --git a/core/libs/tests/SaveDataMemoryGrowth.cpp b/core/libs/tests/SaveDataMemoryGrowth.cpp
new file mode 100644
index 000000000..924c4d4c6
--- /dev/null
+++ b/core/libs/tests/SaveDataMemoryGrowth.cpp
@@ -0,0 +1,112 @@
+#include "SceTypes.hpp"
+#include "prx/libc/include/general/VabiMacros.hpp"
+#include <chrono>
+#include <cstdio>
+#include <cstdlib>
+#include <filesystem>
+#include <fstream>
+#include <iterator>
+#include <string>
+#include <vector>
+#ifdef _WIN32
+#include <windows.h>
+#endif
+
+extern "C" {
+int APS5_VABI sceSaveDataInitialize3(const void*);
+int APS5_VABI sceSaveDataTerminate();
+int APS5_VABI sceSaveDataSetupSaveDataMemory2(const SaveDataMemorySetup2*, SaveDataMemorySetupResult*);
+}
+
+static void Check(bool value, int line) {
+    if (!value) {
+        std::fprintf(stderr, "Save-data memory growth check failed at line %d\n", line);
+        std::abort();
+    }
+}
+#define Require(value) Check((value), __LINE__)
+
+static std::vector<char> Read(const std::filesystem::path& path) {
+    std::ifstream file(path, std::ios::binary);
+    Require(file.is_open());
+    return {std::istreambuf_iterator<char>(file), std::istreambuf_iterator<char>()};
+}
+
+int main(int argc, char**) {
+    const auto previousDirectory = std::filesystem::current_path();
+    const auto root = std::filesystem::temp_directory_path() /
+        ("anyps5-save-growth-" + std::to_string(std::chrono::steady_clock::now().time_since_epoch().count()));
+    Require(std::filesystem::create_directory(root));
+    std::filesystem::current_path(root);
+    const auto path = std::filesystem::path("_sd_mem/u7531/slot0.bin");
+    std::filesystem::create_directories(path.parent_path());
+    const std::vector<char> original{'s', 'a', 'v', 'e', '\0', '\x7f'};
+    {
+        std::ofstream file(path, std::ios::binary);
+        file.write(original.data(), static_cast<std::streamsize>(original.size()));
+        Require(static_cast<bool>(file));
+    }
+    Require(sceSaveDataInitialize3(nullptr) == 0);
+    SaveDataMemorySetup2 setup{};
+    setup.user_id = 7531;
+    setup.memory_size = original.size() + 5;
+    SaveDataMemorySetupResult result{};
+    int exitCode = 0;
+    if (argc > 1) {
+        SaveDataParam param{};
+        setup.option = 1;
+        setup.init_param = &param;
+        result.existed_memory_size = 123;
+#ifdef _WIN32
+        HANDLE lock = CreateFileW(path.c_str(), GENERIC_WRITE, FILE_SHARE_WRITE | FILE_SHARE_DELETE,
+                                  nullptr, OPEN_EXISTING, FILE_ATTRIBUTE_NORMAL, nullptr);
+        Require(lock != INVALID_HANDLE_VALUE);
+#else
+        const auto permissions = std::filesystem::status(path).permissions();
+        std::filesystem::permissions(path, std::filesystem::perms::owner_write);
+#endif
+        const bool readable = static_cast<bool>(std::ifstream(path, std::ios::binary));
+        int status = 0;
+        if (!readable) {
+            Require(std::filesystem::is_regular_file(path));
+            Require(std::filesystem::file_size(path) == original.size());
+            status = sceSaveDataSetupSaveDataMemory2(&setup, &result);
+        }
+#ifdef _WIN32
+        Require(CloseHandle(lock) != 0);
+        Require(!readable);
+#else
+        std::filesystem::permissions(path, permissions);
+#endif
+        if (readable) {
+            std::fprintf(stderr, "Read denial unavailable for this user\n");
+            exitCode = 77;
+        } else {
+            Require(Read(path) == original);
+            Require(status == static_cast<int>(0x809F000Bu));
+            Require(result.existed_memory_size == 123);
+            Require(!std::filesystem::exists("_sd_mem/u7531/slot0.param"));
+            Require(!std::filesystem::exists(path.string() + ".tmp"));
+        }
+    } else {
+        Require(sceSaveDataSetupSaveDataMemory2(&setup, &result) == 0);
+        Require(result.existed_memory_size == original.size());
+        auto expected = original;
+        expected.resize(setup.memory_size, 0);
+        Require(Read(path) == expected);
+        Require(sceSaveDataSetupSaveDataMemory2(&setup, &result) == 0);
+        Require(result.existed_memory_size == expected.size());
+        Require(Read(path) == expected);
+        setup.memory_size = 2;
+        Require(sceSaveDataSetupSaveDataMemory2(&setup, &result) == 0);
+        Require(Read(path) == expected);
+        setup.slot_id = 1;
+        Require(sceSaveDataSetupSaveDataMemory2(&setup, &result) == 0);
+        Require(result.existed_memory_size == 0);
+        Require(Read("_sd_mem/u7531/slot1.bin") == std::vector<char>(2, 0));
+    }
+    Require(sceSaveDataTerminate() == 0);
+    std::filesystem::current_path(previousDirectory);
+    std::filesystem::remove_all(root);
+    return exitCode;
+}