diff --git a/local/recipes/tui/tlc/source/src/vfs/sftp.rs b/local/recipes/tui/tlc/source/src/vfs/sftp.rs
index 8d6cd6076f..6a05c7ca5b 100644
--- a/local/recipes/tui/tlc/source/src/vfs/sftp.rs
+++ b/local/recipes/tui/tlc/source/src/vfs/sftp.rs
@@ -10,6 +10,11 @@
 //! `stat`, `exists`, `is_dir`, `is_file`, `open_read`, `open_write`,
 //! `mkdir`, `remove`, and `rename` are all implemented.
 //!
+//! `open_read` returns a streaming [`SftpReader`] that reads from an
+//! open SFTP file handle in chunks via `AsyncReadExt::read`. Large
+//! files are never buffered in memory — each `Read::read()` call
+//! issues a fresh SFTP read request for a bounded chunk.
+//!
 //! Host-key verification uses the [`crate::vfs::known_hosts`] store
 //! at `~/.config/tlc/known_hosts` (or `$XDG_CONFIG_HOME/tlc/known_hosts`).
 //! First-time connects TOFU-trust the host; subsequent connects
@@ -23,13 +28,13 @@
 #![cfg(feature = "sftp")]
 
 use std::io::{self, Read, Write};
-use std::sync::Arc;
+use std::sync::{Arc, Mutex};
 
 use async_trait::async_trait;
 use russh::client::Config as SshConfig;
 use russh::client::Handle as SshHandle;
 use russh_keys::key::PublicKey;
-use russh_sftp::client::fs::{DirEntry, ReadDir};
+use russh_sftp::client::fs::{DirEntry, File, ReadDir};
 use russh_sftp::client::SftpSession;
 
 use crate::fs::{FileType, Permissions, Stat};
@@ -387,21 +392,16 @@ impl Vfs for SftpVfs {
     }
 
     fn open_read(&self, p: &VfsPath) -> Result<Box<dyn Read + Send>, VfsError> {
-        // The remote file is an async russh-sftp File. The sync Vfs
-        // surface demands a `dyn Read`, so we buffer the full
-        // contents into a `Cursor<Vec<u8>>` synchronously. This
-        // matches the Phase 1 panel-listing use case (small directory
-        // entries) and avoids having to ship a custom AsyncRead →
-        // Read bridge. Large-file streaming is a Phase 7c concern.
         let path = sftp_path(p)?;
         let session = Arc::clone(&self.session);
-        let bytes = self.block_on(async move {
-            session
-                .read(&path)
-                .await
-                .map_err(|e| VfsError::Other(format!("sftp read: {e}")))
+        let file = self.block_on(async move {
+            session.open(&path).await
+                .map_err(|e| VfsError::Other(format!("sftp open: {e}")))
         })?;
-        Ok(Box::new(io::Cursor::new(bytes)))
+        Ok(Box::new(SftpReader {
+            file: Mutex::new(file),
+            handle: self.runtime.handle().clone(),
+        }))
     }
 
     fn open_write(&self, p: &VfsPath) -> Result<Box<dyn Write + Send>, VfsError> {
@@ -503,6 +503,28 @@ impl Drop for SftpVfs {
     }
 }
 
+/// Streaming reader for remote SFTP files.
+///
+/// Wraps an open [`File`] handle and a [`tokio::runtime::Handle`],
+/// bridging the async read surface to the synchronous [`Read`] trait
+/// via `block_on`. Each `read()` call issues an SFTP read request
+/// for a bounded chunk; large files are never buffered in memory
+/// (unlike the previous `session.read()` approach).
+struct SftpReader {
+    file: Mutex<File>,
+    handle: tokio::runtime::Handle,
+}
+
+impl Read for SftpReader {
+    fn read(&mut self, buf: &mut [u8]) -> io::Result<usize> {
+        use tokio::io::AsyncReadExt;
+        let mut file = self.file.lock().map_err(|e| {
+            io::Error::new(io::ErrorKind::Other, format!("sftp reader lock: {e}"))
+        })?;
+        self.handle.block_on(async { file.read(buf).await })
+    }
+}
+
 struct SftpWriter {
     session: Arc<SftpSession>,
     handle: tokio::runtime::Handle,