diff --git a/builtin/unpack-objects.c b/builtin/unpack-objects.c
index 8d68acd662..bedc494e2d 100644
--- a/builtin/unpack-objects.c
+++ b/builtin/unpack-objects.c
@@ -326,11 +326,86 @@ static void added_object(unsigned nr, enum object_type type,
 	}
 }
 
+struct input_zstream_data {
+	git_zstream *zstream;
+	unsigned char buf[8192];
+	int status;
+};
+
+static const void *feed_input_zstream(struct input_stream *in_stream, unsigned long *readlen)
+{
+	struct input_zstream_data *data = in_stream->data;
+	git_zstream *zstream = data->zstream;
+	void *in = fill(1);
+
+	if (!len || data->status == Z_STREAM_END) {
+		*readlen = 0;
+		return NULL;
+	}
+
+	zstream->next_out = data->buf;
+	zstream->avail_out = sizeof(data->buf);
+	zstream->next_in = in;
+	zstream->avail_in = len;
+
+	data->status = git_inflate(zstream, 0);
+	use(len - zstream->avail_in);
+	*readlen = sizeof(data->buf) - zstream->avail_out;
+
+	return data->buf;
+}
+
+static void write_stream_blob(unsigned nr, unsigned long size)
+{
+	char hdr[32];
+	int hdrlen;
+	git_zstream zstream;
+	struct input_zstream_data data;
+	struct input_stream in_stream = {
+		.read = feed_input_zstream,
+		.data = &data,
+		.size = size,
+	};
+	struct object_id *oid = &obj_list[nr].oid;
+	int ret;
+
+	memset(&zstream, 0, sizeof(zstream));
+	memset(&data, 0, sizeof(data));
+	data.zstream = &zstream;
+	git_inflate_init(&zstream);
+
+	/* Generate the header */
+	hdrlen = xsnprintf(hdr, sizeof(hdr), "%s %"PRIuMAX, type_name(OBJ_BLOB), (uintmax_t)size) + 1;
+
+	if ((ret = write_loose_object(oid, hdr, hdrlen, &in_stream, 0, 0)))
+		die(_("failed to write object in stream %d"), ret);
+
+	if (zstream.total_out != size || data.status != Z_STREAM_END)
+		die(_("inflate returned %d"), data.status);
+	git_inflate_end(&zstream);
+
+	if (strict && !dry_run) {
+		struct blob *blob = lookup_blob(the_repository, oid);
+		if (blob)
+			blob->object.flags |= FLAG_WRITTEN;
+		else
+			die("invalid blob object from stream");
+	}
+	obj_list[nr].obj = NULL;
+}
+
 static void unpack_non_delta_entry(enum object_type type, unsigned long size,
 				   unsigned nr)
 {
-	void *buf = get_data(size, dry_run);
+	void *buf;
+
+	/* Write large blob in stream without allocating full buffer. */
+	if (!dry_run && type == OBJ_BLOB && size > big_file_threshold) {
+		write_stream_blob(nr, size);
+		return;
+	}
 
+	buf = get_data(size, dry_run);
 	if (!dry_run && buf)
 		write_object(nr, type, buf, size);
 	else
diff --git a/object-file.c b/object-file.c
index fa54e39c2c..71d510614b 100644
--- a/object-file.c
+++ b/object-file.c
@@ -1878,9 +1878,9 @@ static const void *feed_simple_input_stream(struct input_stream *in_stream, unsi
 	return data->buf;
 }
 
-static int write_loose_object(const struct object_id *oid, char *hdr,
-			      int hdrlen, struct input_stream *in_stream,
-			      time_t mtime, unsigned flags)
+int write_loose_object(const struct object_id *oid, char *hdr,
+		       int hdrlen, struct input_stream *in_stream,
+		       time_t mtime, unsigned flags)
 {
 	int fd, ret;
 	unsigned char compressed[4096];
diff --git a/object-store.h b/object-store.h
index a84d891d60..ac5b11ec16 100644
--- a/object-store.h
+++ b/object-store.h
@@ -229,6 +229,10 @@ int hash_object_file(const struct git_hash_algo *algo, const void *buf,
 		     unsigned long len, const char *type,
 		     struct object_id *oid);
 
+int write_loose_object(const struct object_id *oid, char *hdr,
+		       int hdrlen, struct input_stream *in_stream,
+		       time_t mtime, unsigned flags);
+
 int write_object_file_flags(const void *buf, unsigned long len,
 			    const char *type, struct object_id *oid,
 			    unsigned flags);
diff --git a/t/t5590-unpack-non-delta-objects.sh b/t/t5590-unpack-non-delta-objects.sh
new file mode 100755
index 0000000000..01d950d119
--- /dev/null
+++ b/t/t5590-unpack-non-delta-objects.sh
@@ -0,0 +1,76 @@
+#!/bin/sh
+#
+# Copyright (c) 2021 Han Xin
+#
+
+test_description='Test unpack-objects when receive pack'
+
+GIT_TEST_DEFAULT_INITIAL_BRANCH_NAME=main
+export GIT_TEST_DEFAULT_INITIAL_BRANCH_NAME
+
+. ./test-lib.sh
+
+test_expect_success "create commit with big blobs (1.5 MB)" '
+	test-tool genrandom foo 1500000 >big-blob &&
+	test_commit --append foo big-blob &&
+	test-tool genrandom bar 1500000 >big-blob &&
+	test_commit --append bar big-blob &&
+	(
+		cd .git &&
+		find objects/?? -type f | sort
+	) >expect &&
+	PACK=$(echo main | git pack-objects --progress --revs test)
+'
+
+test_expect_success 'setup GIT_ALLOC_LIMIT to 1MB' '
+	GIT_ALLOC_LIMIT=1m &&
+	export GIT_ALLOC_LIMIT
+'
+
+test_expect_success 'prepare dest repository' '
+	git init --bare dest.git &&
+	git -C dest.git config core.bigFileThreshold 2m &&
+	git -C dest.git config receive.unpacklimit 100
+'
+
+test_expect_success 'fail to unpack-objects: cannot allocate' '
+	test_must_fail git -C dest.git unpack-objects <test-$PACK.pack 2>err &&
+	test_i18ngrep "fatal: attempting to allocate" err &&
+	(
+		cd dest.git &&
+		find objects/?? -type f | sort
+	) >actual &&
+	! test_cmp expect actual
+'
+
+test_expect_success 'set a lower bigfile threshold' '
+	git -C dest.git config core.bigFileThreshold 1m
+'
+
+test_expect_success 'unpack big object in stream' '
+	git -C dest.git unpack-objects <test-$PACK.pack &&
+	git -C dest.git fsck &&
+	(
+		cd dest.git &&
+		find objects/?? -type f | sort
+	) >actual &&
+	test_cmp expect actual
+'
+
+test_expect_success 'setup for unpack-objects dry-run test' '
+	git init --bare unpack-test.git
+'
+
+test_expect_success 'unpack-objects dry-run' '
+	(
+		cd unpack-test.git &&
+		git unpack-objects -n <../test-$PACK.pack
+	) &&
+	(
+		cd unpack-test.git &&
+		find objects/ -type f
+	) >actual &&
+	test_must_be_empty actual
+'
+
+test_done
