diff --git a/builtin/update-ref.c b/builtin/update-ref.c
index 1a7906545d..77cd235dfc 100644
--- a/builtin/update-ref.c
+++ b/builtin/update-ref.c
@@ -178,8 +178,8 @@ static int parse_next_oid(const char **next, const char *end,
  * line_termination is set.
  */
 
-static const char *parse_cmd_update(struct ref_transaction *transaction,
-				    const char *next, const char *end)
+static void parse_cmd_update(struct ref_transaction *transaction,
+			     const char *next, const char *end)
 {
 	struct strbuf err = STRBUF_INIT;
 	char *refname;
@@ -212,12 +212,10 @@ static const char *parse_cmd_update(struct ref_transaction *transaction,
 	update_flags = default_flags;
 	free(refname);
 	strbuf_release(&err);
-
-	return next;
 }
 
-static const char *parse_cmd_create(struct ref_transaction *transaction,
-				    const char *next, const char *end)
+static void parse_cmd_create(struct ref_transaction *transaction,
+			     const char *next, const char *end)
 {
 	struct strbuf err = STRBUF_INIT;
 	char *refname;
@@ -247,12 +245,10 @@ static const char *parse_cmd_create(struct ref_transaction *transaction,
 	update_flags = default_flags;
 	free(refname);
 	strbuf_release(&err);
-
-	return next;
 }
 
-static const char *parse_cmd_delete(struct ref_transaction *transaction,
-				    const char *next, const char *end)
+static void parse_cmd_delete(struct ref_transaction *transaction,
+			     const char *next, const char *end)
 {
 	struct strbuf err = STRBUF_INIT;
 	char *refname;
@@ -286,12 +282,10 @@ static const char *parse_cmd_delete(struct ref_transaction *transaction,
 	update_flags = default_flags;
 	free(refname);
 	strbuf_release(&err);
-
-	return next;
 }
 
-static const char *parse_cmd_verify(struct ref_transaction *transaction,
-				    const char *next, const char *end)
+static void parse_cmd_verify(struct ref_transaction *transaction,
+			     const char *next, const char *end)
 {
 	struct strbuf err = STRBUF_INIT;
 	char *refname;
@@ -318,12 +312,10 @@ static const char *parse_cmd_verify(struct ref_transaction *transaction,
 	update_flags = default_flags;
 	free(refname);
 	strbuf_release(&err);
-
-	return next;
 }
 
-static const char *parse_cmd_option(struct ref_transaction *transaction,
-				    const char *next, const char *end)
+static void parse_cmd_option(struct ref_transaction *transaction,
+			     const char *next, const char *end)
 {
 	const char *rest;
 	if (!skip_prefix(next, " ", &next))
@@ -332,48 +324,49 @@ static const char *parse_cmd_option(struct ref_transaction *transaction,
 		update_flags |= REF_NO_DEREF;
 	else
 		die("option unknown: %s", next);
-	return rest;
 }
 
 static const struct parse_cmd {
 	const char *prefix;
-	const char *(*fn)(struct ref_transaction *, const char *, const char *);
+	void (*fn)(struct ref_transaction *, const char *, const char *);
+	/*
+	 * If using NUL-terminated format, only the first argument will be
+	 * available in the first line. In case a command expects more than one
+	 * argument, we thus have to fetch an additional `extra_lines` number
+	 * of lines.
+	 */
+	unsigned extra_lines;
 } command[] = {
-	{ "update", parse_cmd_update },
-	{ "create", parse_cmd_create },
-	{ "delete", parse_cmd_delete },
-	{ "verify", parse_cmd_verify },
-	{ "option", parse_cmd_option },
+	{ "update", parse_cmd_update, 2 },
+	{ "create", parse_cmd_create, 1 },
+	{ "delete", parse_cmd_delete, 1 },
+	{ "verify", parse_cmd_verify, 1 },
+	{ "option", parse_cmd_option, 0 },
 };
 
 static void update_refs_stdin(void)
 {
 	struct strbuf input = STRBUF_INIT, err = STRBUF_INIT;
 	struct ref_transaction *transaction;
-	const char *next;
-	int i;
-
-	if (strbuf_read(&input, 0, 1000) < 0)
-		die_errno("could not read from stdin");
-	next = input.buf;
+	int i, j;
 
 	transaction = ref_transaction_begin(&err);
 	if (!transaction)
 		die("%s", err.buf);
 
 	/* Read each line dispatch its command */
-	while (next < input.buf + input.len) {
+	while (!strbuf_getwholeline(&input, stdin, line_termination)) {
 		const struct parse_cmd *cmd = NULL;
 
-		if (*next == line_termination)
+		if (*input.buf == line_termination)
 			die("empty command in input");
-		else if (isspace(*next))
-			die("whitespace before command: %s", next);
+		else if (isspace(*input.buf))
+			die("whitespace before command: %s", input.buf);
 
 		for (i = 0; i < ARRAY_SIZE(command); i++) {
 			const char *prefix = command[i].prefix;
 
-			if (!skip_prefix(next, prefix, &next))
+			if (!starts_with(input.buf, prefix))
 				continue;
 
 			/*
@@ -389,10 +382,19 @@ static void update_refs_stdin(void)
 			break;
 		}
 		if (!cmd)
-			die("unknown command: %s", next);
+			die("unknown command: %s", input.buf);
 
-		next = cmd->fn(transaction, next, input.buf + input.len);
-		next++;
+		/*
+		 * Read extra lines if NUL-terminated. Do not raise an error in
+		 * case there is an early EOF to let the command handle missing
+		 * arguments with a proper error message.
+		 */
+		for (j = 0; line_termination == '\0' && j < cmd->extra_lines; j++)
+			if (strbuf_appendwholeline(&input, stdin, line_termination))
+				break;
+
+		cmd->fn(transaction, input.buf + strlen(cmd->prefix),
+			input.buf + input.len);
 	}
 
 	if (ref_transaction_commit(transaction, &err))
