diff --git a/cmd/xl-storage.go b/cmd/xl-storage.go
index 6d141f4a8..f8e5ee6cd 100644
--- a/cmd/xl-storage.go
+++ b/cmd/xl-storage.go
@@ -1796,15 +1796,9 @@ func (s *xlStorage) ReadFileStream(ctx context.Context, volume, path string, off
 	}
 
 	or := &xioutil.ODirectReader{
-		File:      file,
-		SmallFile: false,
-	}
-
-	if length <= smallFileThreshold {
-		or = &xioutil.ODirectReader{
-			File:      file,
-			SmallFile: true,
-		}
+		File: file,
+		// Select bigger blocks when reading at least 50% of a big block.
+		SmallFile: length <= xioutil.BlockSizeLarge/2,
 	}
 
 	r := struct {
diff --git a/internal/ioutil/read_file.go b/internal/ioutil/read_file.go
index 38391350d..ab5d35ad4 100644
--- a/internal/ioutil/read_file.go
+++ b/internal/ioutil/read_file.go
@@ -81,6 +81,10 @@ func ReadFile(name string) ([]byte, error) {
 	if err != nil {
 		return io.ReadAll(r)
 	}
+
+	// Select bigger blocks when reading at least 50% of a big block.
+	r.SmallFile = st.Size() <= BlockSizeLarge/2
+
 	dst := make([]byte, st.Size())
 	_, err = io.ReadFull(r, dst)
 	return dst, err