diff --git a/README.md b/README.md
index 706c1d2..5cebfa4 100644
--- a/README.md
+++ b/README.md
@@ -15,6 +15,7 @@ var dir = require('node-dir');
 ```
 
 #### readFiles( dir, [options], fileCallback, [finishedCallback] )
+#### readFilesStream( dir, [options], streamCallback, [finishedCallback] )
 Sequentially read the content of each file in a directory, passing the contents to a callback, optionally calling a finished callback when complete.  The options and finishedCallback arguments are not required.
 
 Valid options are:
@@ -27,6 +28,7 @@ Valid options are:
 - reverse: sort files in each directory in descending order
 - shortName: whether to aggregate only the base filename rather than the full filepath
 - sort: sort files in each directory in ascending order (defaults to true)
+- doneOnErr: control if done function called on error (defaults to true)
 
 A reverse sort can also be achieved by setting the sort option to 'reverse', 'desc', or 'descending' string value.
 
@@ -45,6 +47,24 @@ dir.readFiles(__dirname,
         console.log('finished reading files:', files);
     });
 
+// display contents of huge files in this script's directory
+dir.readFilesStream(__dirname,
+    function(err, stream, next) {
+        if (err) throw err;
+        var content = '';
+        stream.on('data',function(buffer) {
+            content += buffer.toString();
+        });
+        stream.on('end',function() {
+            console.log('content:', content);
+            next();
+        });
+    },
+    function(err, files){
+        if (err) throw err;
+        console.log('finished reading files:', files);
+    });
+
 // match only filenames with a .txt extension and that don't start with a `.´
 dir.readFiles(__dirname, {
     match: /.txt$/,
diff --git a/lib/readfiles.js b/lib/readfiles.js
index 2f66ee9..ea3df03 100644
--- a/lib/readfiles.js
+++ b/lib/readfiles.js
@@ -49,7 +49,8 @@ function readFiles(dir, options, callback, complete) {
     };
     options = extend({
         recursive: true,
-        encoding: 'utf8'
+        encoding: 'utf8',
+        doneOnErr: true
     }, options);
     var files = [];
 
@@ -62,8 +63,10 @@ function readFiles(dir, options, callback, complete) {
 
     fs.readdir(dir, function(err, list) {
         if (err)  {
-            if (err.code === 'EACCES') return done();
-            return done(err);
+            if (options.doneOnErr === true) {
+              if (err.code === 'EACCES') return done();
+              return done(err);
+            }
         }
         var i = 0;
 
@@ -78,13 +81,13 @@ function readFiles(dir, options, callback, complete) {
             if (!filename) return done(null, files);
             var file = path.join(dir, filename);
             fs.stat(file, function(err, stat) {
-                if (err) return done(err);
+                if (err && options.doneOnErr === true) return done(err);
                 if (stat && stat.isDirectory()) {
                     if (options.recursive) {
                         if (options.matchDir && !matches(filename, options.matchDir)) return next();
                         if (options.excludeDir && matches(filename, options.excludeDir)) return next();
                         readFiles(file, options, callback, function(err, sfiles) {
-                            if (err) return done(err);
+                            if (err && options.doneOnErr === true) return done(err);
                             files = files.concat(sfiles);
                             next();
                         });
@@ -98,7 +101,9 @@ function readFiles(dir, options, callback, complete) {
                     fs.readFile(file, options.encoding, function(err, data) {
                         if (err) {
                             if (err.code === 'EACCES') return next();
-                            return done(err);
+                            if (options.doneOnErr === true) {
+                                return done(err);
+                            }
                         }
                         if (callback.length > 3)
                             if (options.shortName) callback(null, data, filename, next);
diff --git a/lib/readfilesstream.js b/lib/readfilesstream.js
index 9e3a35a..7071aae 100644
--- a/lib/readfilesstream.js
+++ b/lib/readfilesstream.js
@@ -58,7 +58,8 @@ function readFilesStream(dir, options, callback, complete) {
     };
     options = extend({
         recursive: true,
-        encoding: 'utf8'
+        encoding: 'utf8',
+        doneOnErr: true
     }, options);
     var files = [];
 
@@ -70,7 +71,12 @@ function readFilesStream(dir, options, callback, complete) {
     };
 
     fs.readdir(dir, function(err, list) {
-        if (err) return done(err);
+        if (err)  {
+            if (options.doneOnErr === true) {
+              if (err.code === 'EACCES') return done();
+              return done(err);
+            }
+        }
         var i = 0;
 
         if (options.reverse === true ||
@@ -84,32 +90,37 @@ function readFilesStream(dir, options, callback, complete) {
             if (!filename) return done(null, files);
             var file = path.join(dir, filename);
             fs.stat(file, function(err, stat) {
-                if (err) return done(err);
+                if (err && options.doneOnErr === true) return done(err);
                 if (stat && stat.isDirectory()) {
                     if (options.recursive) {
                         if (options.matchDir && !matches(filename, options.matchDir)) return next();
                         if (options.excludeDir && matches(filename, options.excludeDir)) return next();
                         readFilesStream(file, options, callback, function(err, sfiles) {
-                            if (err) return done(err);
+                            if (err && options.doneOnErr === true) return done(err);
                             files = files.concat(sfiles);
                             next();
                         });
                     } else next();
-                } else {
+                } else if (stat && stat.isFile()) {
                     if (options.match && !matches(filename, options.match)) return next();
                     if (options.exclude && matches(filename, options.exclude)) return next();
                     if (options.filter && !options.filter(filename)) return next();
                     if (options.shortName) files.push(filename);
                     else files.push(file);
                     var stream = fs.createReadStream(file);
+                    stream.setEncoding(options.encoding);
                     stream.on('error',function(err) {
-                      return done(err);
+                      if (options.doneOnErr === true) return done(err);
+                      next();
                     });
                     if (callback.length > 3)
                         if (options.shortName) callback(null, stream, filename, next);
                         else callback(null, stream, file, next);
                         else callback(null, stream, next);
                 }
+                else {
+                  next();
+                }
             });
         })();
 
diff --git a/test/fixtures/testdir3/broken_link.txt b/test/fixtures/testdir3/broken_link.txt
new file mode 120000
index 0000000..f69ee74
--- /dev/null
+++ b/test/fixtures/testdir3/broken_link.txt
@@ -0,0 +1 @@
+/broken_link
\ No newline at end of file
diff --git a/test/fixtures/testdir3/file1.txt b/test/fixtures/testdir3/file1.txt
new file mode 100644
index 0000000..13e03c1
--- /dev/null
+++ b/test/fixtures/testdir3/file1.txt
@@ -0,0 +1,3 @@
+begin content of file1
+content body
+end content of file1
\ No newline at end of file
diff --git a/test/test.js b/test/test.js
index f221e82..a4e9f6c 100644
--- a/test/test.js
+++ b/test/test.js
@@ -3,7 +3,8 @@
     dir = require('..'),
     fixturesDir = path.join(__dirname, 'fixtures'),
     tdir = path.join(fixturesDir, 'testdir'),
-    tdir2 = path.join(fixturesDir, 'testdir2');
+    tdir2 = path.join(fixturesDir, 'testdir2'),
+    tdir3 = path.join(fixturesDir, 'testdir3');
 
 describe('readfiles method', function() {
 
@@ -435,6 +436,33 @@ describe('readfiles method', function() {
             });
     });
 
+    it('should done on error', function(done) {
+        dir.readFiles(
+            tdir3, function(err, content, filename, next) {
+                should.not.exist(err);
+                var shortName = path.basename(filename).replace(new RegExp(path.extname(filename) + '$'), '');
+                var expected = 'begin content of ' + shortName + '\ncontent body\nend content of ' + shortName;
+                content.replace(/\r/g, '').should.equal(expected);
+                next();
+            }, function(err) {
+                should.exist(err);
+                done();
+            });
+    });
+
+    it('if given doneOnErr to false, should not done on error', function(done) {
+        dir.readFiles(
+            tdir3, { doneOnErr: false },function(err, content, filename, next) {
+                should.not.exist(err);
+                var shortName = path.basename(filename).replace(new RegExp(path.extname(filename) + '$'), '');
+                var expected = 'begin content of ' + shortName + '\ncontent body\nend content of ' + shortName;
+                content.replace(/\r/g, '').should.equal(expected);
+                next();
+            }, function() {
+                done();
+            });
+    });
+
     it('can be called with a callback in which the filename argument is omitted', function(done) {
         dir.readFiles(
             tdir, function(err, content, next) {
@@ -1018,6 +1046,49 @@ describe('readfilesstream method', function() {
             });
     });
 
+    it('should done on error', function(done) {
+        dir.readFilesStream(
+            tdir3, function(err, stream, filename, next) {
+                should.not.exist(err);
+                var content = '';
+                stream.on('data',function(buffer) {
+                    var part = buffer.toString();
+                    content += part;
+                });
+                stream.on('end',function() {
+                    content = content.replace(/\r/g, '');
+                    var shortName = path.basename(filename).replace(new RegExp(path.extname(filename) + '$'), '');
+                    var expected = 'begin content of ' + shortName + '\ncontent body\nend content of ' + shortName;
+                    content.should.equal(expected);
+                    filenames.push(shortName);
+                    next();
+                });
+            }, function(err) {
+                should.exist(err);
+                done();
+            });
+    });
+
+    it('if given doneOnErr to false, should not done on error', function(done) {
+        dir.readFilesStream(
+            tdir3, { doneOnErr: false },function(err, stream, filename, next) {
+                should.not.exist(err);
+                var shortName = path.basename(filename).replace(new RegExp(path.extname(filename) + '$'), '');
+                var expected = 'begin content of ' + shortName + '\ncontent body\nend content of ' + shortName;
+                var content = '';
+                stream.on('data',function(buffer) {
+                  var part = buffer.toString();
+                  content += part;
+                });
+                stream.on('end',function() {
+                  content.replace(/\r/g, '').should.equal(expected);
+                  next();
+                });
+            }, function() {
+                done();
+            });
+    });
+
     it('can be called with a callback in which the filename argument is omitted', function(done) {
         dir.readFilesStream(
             tdir, function(err, stream, next) {