diff --git a/src/bun.zig b/src/bun.zig
index 3f09277bbd7cce..a93b3c5ae7b0e8 100644
--- a/src/bun.zig
+++ b/src/bun.zig
@@ -1906,3 +1906,35 @@ pub inline fn serializableInto(comptime T: type, init: anytype) T {
 
     return result.*;
 }
+
+/// Like std.fs.Dir.makePath except instead of infinite looping on dangling
+/// symlink, it deletes the symlink and tries again.
+pub fn makePath(dir: std.fs.Dir, sub_path: []const u8) !void {
+    var it = try std.fs.path.componentIterator(sub_path);
+    var component = it.last() orelse return;
+    while (true) {
+        dir.makeDir(component.path) catch |err| switch (err) {
+            error.PathAlreadyExists => {
+                var path_buf2: [MAX_PATH_BYTES * 2]u8 = undefined;
+                copy(u8, &path_buf2, component.path);
+
+                path_buf2[component.path.len] = 0;
+                var path_to_use = path_buf2[0..component.path.len :0];
+                const result = sys.lstat(path_to_use);
+                try result.throw();
+                const is_dir = std.os.S.ISDIR(result.result.mode);
+                // dangling symlink
+                if (!is_dir) {
+                    dir.deleteTree(component.path) catch {};
+                    continue;
+                }
+            },
+            error.FileNotFound => |e| {
+                component = it.previous() orelse return e;
+                continue;
+            },
+            else => |e| return e,
+        };
+        component = it.next() orelse return;
+    }
+}
diff --git a/src/http_client_async.zig b/src/http_client_async.zig
index 15e29f34521ca6..65ffbee6200f7f 100644
--- a/src/http_client_async.zig
+++ b/src/http_client_async.zig
@@ -68,6 +68,10 @@ pub const Signals = struct {
     aborted: ?*std.atomic.Atomic(bool) = null,
     cert_errors: ?*std.atomic.Atomic(bool) = null,
 
+    pub fn isEmpty(this: *const Signals) bool {
+        return this.aborted == null and this.body_streaming == null and this.header_progress == null and this.cert_errors == null;
+    }
+
     pub const Store = struct {
         header_progress: std.atomic.Atomic(bool) = std.atomic.Atomic(bool).init(false),
         body_streaming: std.atomic.Atomic(bool) = std.atomic.Atomic(bool).init(false),
@@ -1339,7 +1343,7 @@ pub const InternalState = struct {
         return this.transfer_encoding == Encoding.chunked;
     }
 
-    pub fn reset(this: *InternalState, allocator: std.mem.Allocator) void {
+    pub fn reset(this: *InternalState, buffering: bool, allocator: std.mem.Allocator) void {
         this.compressed_body.deinit();
         this.response_message_buffer.deinit();
 
@@ -1350,9 +1354,12 @@ pub const InternalState = struct {
             reader.deinit();
         }
 
-        // if we are holding a cloned_metadata we need to deinit it
-        // this should never happen because we should always return the metadata to the user
-        std.debug.assert(this.cloned_metadata == null);
+        if (!buffering) {
+            // if we are holding a cloned_metadata we need to deinit it
+            // this should never happen because we should always return the metadata to the user
+            std.debug.assert(this.cloned_metadata == null);
+        }
+
         // just in case we check and free to avoid leaks
         if (this.cloned_metadata != null) {
             this.cloned_metadata.?.deinit(allocator);
@@ -2179,7 +2186,7 @@ pub fn doRedirect(this: *HTTPClient) void {
         this.fail(error.TooManyRedirects);
         return;
     }
-    this.state.reset(this.allocator);
+    this.state.reset(this.signals.isEmpty(), this.allocator);
     // also reset proxy to redirect
     this.proxy_tunneling = false;
     if (this.proxy_tunnel != null) {
@@ -2673,7 +2680,7 @@ pub fn onData(this: *HTTPClient, comptime is_ssl: bool, incoming_data: []const u
             }
 
             var deferred_redirect: ?*URLBufferPool.Node = null;
-            const can_continue = this.handleResponseMetadata(
+            const should_continue = this.handleResponseMetadata(
                 &response,
                 // If there are multiple consecutive redirects
                 // and the redirect differs in hostname
@@ -2720,8 +2727,7 @@ pub fn onData(this: *HTTPClient, comptime is_ssl: bool, incoming_data: []const u
                 this.state.pending_response = response;
             }
 
-            if (!can_continue) {
-                log("onData: can_continue is false", .{});
+            if (should_continue == .finished) {
                 // this means that the request ended
                 // clone metadata and return the progress at this point
                 this.cloneMetadata();
@@ -2901,7 +2907,7 @@ fn fail(this: *HTTPClient, err: anyerror) void {
         _ = socket_async_http_abort_tracker.swapRemove(this.async_http_id);
     }
 
-    this.state.reset(this.allocator);
+    this.state.reset(this.signals.isEmpty(), this.allocator);
     this.proxy_tunneling = false;
 
     this.state.request_stage = .fail;
@@ -2987,7 +2993,7 @@ pub fn progressUpdate(this: *HTTPClient, comptime is_ssl: bool, ctx: *NewHTTPCon
                 socket.close(0, null);
             }
 
-            this.state.reset(this.allocator);
+            this.state.reset(this.signals.isEmpty(), this.allocator);
             this.state.response_stage = .done;
             this.state.request_stage = .done;
             this.state.stage = .done;
@@ -3355,13 +3361,19 @@ fn handleResponseBodyChunkedEncodingFromSinglePacket(
     unreachable;
 }
 
+const ShouldContinue = enum {
+    continue_streaming,
+    finished,
+};
+
 pub fn handleResponseMetadata(
     this: *HTTPClient,
     response: *picohttp.Response,
     deferred_redirect: *?*URLBufferPool.Node,
-) !bool {
+) !ShouldContinue {
     var location: string = "";
     var pretend_304 = false;
+    var is_server_sent_events = false;
     for (response.headers, 0..) |header, header_i| {
         switch (hashHeaderName(header.name)) {
             hashHeaderConst("Content-Length") => {
@@ -3373,6 +3385,11 @@ pub fn handleResponseMetadata(
                     this.state.content_length = 0;
                 }
             },
+            hashHeaderConst("Content-Type") => {
+                if (strings.contains(header.value, "text/event-stream")) {
+                    is_server_sent_events = true;
+                }
+            },
             hashHeaderConst("Content-Encoding") => {
                 if (!this.disable_decompression) {
                     if (strings.eqlComptime(header.value, "gzip")) {
@@ -3429,8 +3446,8 @@ pub fn handleResponseMetadata(
 
     if (this.proxy_tunneling and this.proxy_tunnel == null) {
         if (response.status_code == 200) {
-            //signal to continue the proxing
-            return true;
+            // signal to continue the proxing
+            return ShouldContinue.finished;
         }
 
         //proxy denied connection so return proxy result (407, 403 etc)
@@ -3623,6 +3640,10 @@ pub fn handleResponseMetadata(
     } else {
         log("handleResponseMetadata: content_length is null and transfer_encoding {}", .{this.state.transfer_encoding});
     }
-    // if no body is expected we should stop processing
-    return this.method.hasBody() and (content_length == null or content_length.? > 0 or this.state.transfer_encoding == .chunked);
+
+    if (this.method.hasBody() and ((content_length != null and content_length.? > 0) or !this.state.allow_keepalive or this.state.transfer_encoding == .chunked or is_server_sent_events)) {
+        return ShouldContinue.continue_streaming;
+    } else {
+        return ShouldContinue.finished;
+    }
 }
diff --git a/src/install/install.zig b/src/install/install.zig
index 131adb00e03c0c..6689b05acac4c8 100644
--- a/src/install/install.zig
+++ b/src/install/install.zig
@@ -1764,7 +1764,7 @@ pub const PackageManager = struct {
 
     pub fn sleep(this: *PackageManager) void {
         if (this.wait_count.swap(0, .Monotonic) > 0) return;
-        bun.Mimalloc.mi_collect(false);
+        Output.flush();
         _ = this.waiter.wait() catch 0;
     }
 
@@ -1829,7 +1829,7 @@ pub const PackageManager = struct {
                 switch (this.options.log_level) {
                     inline else => |log_level| {
                         if (log_level.showProgress()) this.startProgressBarIfNone();
-                        while (this.pending_tasks > 0) : (this.sleep()) {
+                        while (this.pending_tasks > 0) {
                             this.runTasks(
                                 void,
                                 {},
@@ -1843,6 +1843,13 @@ pub const PackageManager = struct {
                             ) catch |err| {
                                 return .{ .failure = err };
                             };
+
+                            if (PackageManager.verbose_install and this.pending_tasks > 0) {
+                                Output.prettyErrorln("<d>[PackageManager]<r> waiting for {d} tasks\n", .{this.pending_tasks});
+                            }
+
+                            if (this.pending_tasks > 0)
+                                this.sleep();
                         }
                     },
                 }
@@ -7297,7 +7304,10 @@ pub const PackageManager = struct {
                 // We use this file descriptor to know where to put it.
                 installer.node_modules_folder = cwd.openIterableDir(node_modules.relative_path, .{}) catch brk: {
                     // Avoid extra mkdir() syscall
-                    try cwd.makePath(bun.span(node_modules.relative_path));
+                    //
+                    // note: this will recursively delete any dangling symlinks
+                    // in the next.js repo, it encounters a dangling symlink in node_modules/@next/codemod/node_modules/cheerio
+                    try bun.makePath(cwd, bun.span(node_modules.relative_path));
                     break :brk try cwd.openIterableDir(node_modules.relative_path, .{});
                 };
 
@@ -7351,7 +7361,7 @@ pub const PackageManager = struct {
                 if (!installer.options.do.install_packages) return error.InstallFailed;
             }
 
-            while (this.pending_tasks > 0 and installer.options.do.install_packages) : (this.sleep()) {
+            while (this.pending_tasks > 0 and installer.options.do.install_packages) {
                 try this.runTasks(
                     *PackageInstaller,
                     &installer,
@@ -7363,6 +7373,13 @@ pub const PackageManager = struct {
                     },
                     log_level,
                 );
+
+                if (PackageManager.verbose_install and this.pending_tasks > 0) {
+                    Output.prettyErrorln("<d>[PackageManager]<r> waiting for {d} tasks\n", .{this.pending_tasks});
+                }
+
+                if (this.pending_tasks > 0)
+                    this.sleep();
             }
 
             if (!installer.options.do.install_packages) return error.InstallFailed;
@@ -7733,7 +7750,7 @@ pub const PackageManager = struct {
                 Output.flush();
             }
 
-            while (manager.pending_tasks > 0) : (manager.sleep()) {
+            while (manager.pending_tasks > 0) {
                 try manager.runTasks(
                     *PackageManager,
                     manager,
@@ -7746,6 +7763,13 @@ pub const PackageManager = struct {
                     },
                     log_level,
                 );
+
+                if (PackageManager.verbose_install and manager.pending_tasks > 0) {
+                    Output.prettyErrorln("<d>[PackageManager]<r> waiting for {d} tasks\n", .{manager.pending_tasks});
+                }
+
+                if (manager.pending_tasks > 0)
+                    manager.sleep();
             }
 
             if (comptime log_level.showProgress()) {
diff --git a/src/libarchive/libarchive.zig b/src/libarchive/libarchive.zig
index c6276b1cc94ffc..ff514d72ddedc6 100644
--- a/src/libarchive/libarchive.zig
+++ b/src/libarchive/libarchive.zig
@@ -543,13 +543,13 @@ pub const Archive = struct {
                             if (comptime Environment.isWindows) {
                                 std.os.mkdirat(dir_fd, pathname, @as(u32, @intCast(mode))) catch |err| {
                                     if (err == error.PathAlreadyExists or err == error.NotDir) break;
-                                    try dir.makePath(std.fs.path.dirname(slice) orelse return err);
+                                    try bun.makePath(dir, std.fs.path.dirname(slice) orelse return err);
                                     try std.os.mkdirat(dir_fd, pathname, 0o777);
                                 };
                             } else {
                                 std.os.mkdiratZ(dir_fd, pathname, @as(u32, @intCast(mode))) catch |err| {
                                     if (err == error.PathAlreadyExists or err == error.NotDir) break;
-                                    try dir.makePath(std.fs.path.dirname(slice) orelse return err);
+                                    try bun.makePath(dir, std.fs.path.dirname(slice) orelse return err);
                                     try std.os.mkdiratZ(dir_fd, pathname, 0o777);
                                 };
                             }
diff --git a/src/sys.zig b/src/sys.zig
index 14bb9ddf9d8348..b7542b44f3c5a2 100644
--- a/src/sys.zig
+++ b/src/sys.zig
@@ -819,6 +819,19 @@ pub fn readlink(in: [:0]const u8, buf: []u8) Maybe(usize) {
     unreachable;
 }
 
+pub fn readlinkat(fd: bun.FileDescriptor, in: [:0]const u8, buf: []u8) Maybe(usize) {
+    while (true) {
+        const rc = sys.readlinkat(fd, in, buf.ptr, buf.len);
+
+        if (Maybe(usize).errnoSys(rc, .readlink)) |err| {
+            if (err.getErrno() == .INTR) continue;
+            return err;
+        }
+        return Maybe(usize){ .result = @as(usize, @intCast(rc)) };
+    }
+    unreachable;
+}
+
 pub fn ftruncate(fd: fd_t, size: isize) Maybe(void) {
     if (comptime Environment.isWindows) {
         if (kernel32.SetFileValidData(bun.fdcast(fd), size) == 0) {
diff --git a/test/js/web/fetch/fetch.test.ts b/test/js/web/fetch/fetch.test.ts
index 4f7b20d3c99cdd..8c5e27f884deeb 100644
--- a/test/js/web/fetch/fetch.test.ts
+++ b/test/js/web/fetch/fetch.test.ts
@@ -1702,3 +1702,95 @@ it("should throw RedirectURLTooLong when location is too long", async () => {
   expect(err.code).toStrictEqual("RedirectURLTooLong");
   server.stop(true);
 });
+
+it("304 not modified with missing content-length does not cause a request timeout", async () => {
+  const server = await Bun.listen({
+    socket: {
+      open(socket) {
+        socket.write("HTTP/1.1 304 Not Modified\r\n\r\n");
+        socket.flush();
+        setTimeout(() => {
+          socket.end();
+        }, 9999).unref();
+      },
+      data() {},
+      close() {},
+    },
+    port: 0,
+    hostname: "localhost",
+  });
+
+  const response = await fetch(`http://${server.hostname}:${server.port}/`);
+  expect(response.status).toBe(304);
+  expect(await response.arrayBuffer()).toHaveLength(0);
+  server.stop(true);
+});
+
+it("304 not modified with missing content-length and connection close does not cause a request timeout", async () => {
+  const server = await Bun.listen({
+    socket: {
+      open(socket) {
+        socket.write("HTTP/1.1 304 Not Modified\r\nConnection: close\r\n\r\n");
+        socket.flush();
+        setTimeout(() => {
+          socket.end();
+        }, 9999).unref();
+      },
+      data() {},
+      close() {},
+    },
+    port: 0,
+    hostname: "localhost",
+  });
+
+  const response = await fetch(`http://${server.hostname}:${server.port}/`);
+  expect(response.status).toBe(304);
+  expect(await response.arrayBuffer()).toHaveLength(0);
+  server.stop(true);
+});
+
+it("304 not modified with content-length 0 and connection close does not cause a request timeout", async () => {
+  const server = await Bun.listen({
+    socket: {
+      open(socket) {
+        socket.write("HTTP/1.1 304 Not Modified\r\nConnection: close\r\nContent-Length: 0\r\n\r\n");
+        socket.flush();
+        setTimeout(() => {
+          socket.end();
+        }, 9999).unref();
+      },
+      data() {},
+      close() {},
+    },
+    port: 0,
+    hostname: "localhost",
+  });
+
+  const response = await fetch(`http://${server.hostname}:${server.port}/`);
+  expect(response.status).toBe(304);
+  expect(await response.arrayBuffer()).toHaveLength(0);
+  server.stop(true);
+});
+
+it("304 not modified with 0 content-length does not cause a request timeout", async () => {
+  const server = await Bun.listen({
+    socket: {
+      open(socket) {
+        socket.write("HTTP/1.1 304 Not Modified\r\nContent-Length: 0\r\n\r\n");
+        socket.flush();
+        setTimeout(() => {
+          socket.end();
+        }, 9999).unref();
+      },
+      data() {},
+      close() {},
+    },
+    port: 0,
+    hostname: "localhost",
+  });
+
+  const response = await fetch(`http://${server.hostname}:${server.port}/`);
+  expect(response.status).toBe(304);
+  expect(await response.arrayBuffer()).toHaveLength(0);
+  server.stop(true);
+});