feat: streaming decode functionality with event-based parsing (closes #131)

README.md

@@ -777,6 +777,46 @@ for (const line of encodeLines(largeData)) {
 }
 ```
 
+**Streaming decode:**
+
+```ts
+import { decodeFromLines, decodeStreamSync } from '@toon-format/toon'
+
+// 1. Lines → value (build full JSON value)
+const value = decodeFromLines([
+  'users[2]{id,name}:',
+  '  1,Alice',
+  '  2,Bob',
+])
+// { users: [{ id: 1, name: 'Alice' }, { id: 2, name: 'Bob' }] }
+
+// 2. Lines → events (for custom streaming consumers)
+const lines = [
+  'users[2]{id,name}:',
+  '  1,Alice',
+  '  2,Bob',
+]
+for (const event of decodeStreamSync(lines)) {
+  // { type: 'startObject' }, { type: 'key', key: 'users' }, ...
+}
+```
+
+**Async streaming decode:**
+
+```ts
+// 3. Async streaming from files or network
+import { createReadStream } from 'node:fs'
+import { createInterface } from 'node:readline'
+import { decodeStream } from '@toon-format/toon'
+
+const fileStream = createReadStream('data.toon', 'utf-8')
+const rl = createInterface({ input: fileStream })
+
+for await (const event of decodeStream(rl)) {
+  // Process events as they arrive
+}
+```
+
 ## Playgrounds
 
 Experiment with TOON format interactively using these community-built tools for token comparison, format conversion, and validation:

docs/cli/index.md

@@ -108,19 +108,25 @@ cat data.toon | toon --decode
 
 Both encoding and decoding operations use streaming output, writing incrementally without building the full output string in memory. This makes the CLI efficient for large datasets without requiring additional configuration.
 
-**JSON → TOON (Encode)**
+**JSON → TOON (Encode)**:
-- Streams TOON lines to output
-- No full TOON string in memory
 
-**TOON → JSON (Decode)**
+- Streams TOON lines to output.
-- Streams JSON tokens to output
+- No full TOON string in memory.
-- No full JSON string in memory
+
+**TOON → JSON (Decode)**:
+
+- Uses the same event-based streaming decoder as the `decodeStream` API in `@toon-format/toon`.
+- Streams JSON tokens to output.
+- No full JSON string in memory.
+- When `--expand-paths safe` is enabled, falls back to non-streaming decode internally to apply deep-merge expansion before writing JSON.
+
+Process large files with minimal memory usage:
 
 ```bash
-# Encode large JSON file with minimal memory usage
+# Encode large JSON file
 toon huge-dataset.json -o output.toon
 
-# Decode large TOON file with minimal memory usage
+# Decode large TOON file
 toon huge-dataset.toon -o output.json
 
 # Process millions of records efficiently via stdin

docs/guide/getting-started.md

@@ -237,3 +237,5 @@ Round-tripping is lossless: `decode(encode(x))` always equals `x` (after normali
 ## Where to Go Next
 
 Now that you've seen your first TOON document, read the [Format Overview](/guide/format-overview) for complete syntax details (objects, arrays, quoting rules, key folding), then explore [Using TOON with LLMs](/guide/llm-prompts) to see how to use it effectively in prompts. For implementation details, check the [API reference](/reference/api) (TypeScript) or the [specification](/reference/spec) (language-agnostic normative rules).
+
+For large datasets or streaming use-cases, see `encodeLines`, `decodeFromLines`, and `decodeStream` in the [API reference](/reference/api).

docs/guide/llm-prompts.md

@@ -118,6 +118,31 @@ toon large-dataset.json --output output.toon
 
 This streaming approach prevents out-of-memory errors when preparing large context windows for LLMs. For complete details on `encodeLines()`, see the [API reference](/reference/api#encodelines).
 
+**Consuming streaming LLM outputs:** If your LLM client exposes streaming text and you buffer by lines, you can decode TOON incrementally:
+
+```ts
+import { decodeFromLines } from '@toon-format/toon'
+
+// Buffer streaming response into lines
+const lines: string[] = []
+let buffer = ''
+
+for await (const chunk of modelStream) {
+  buffer += chunk
+  let index: number
+
+  while ((index = buffer.indexOf('\n')) !== -1) {
+    lines.push(buffer.slice(0, index))
+    buffer = buffer.slice(index + 1)
+  }
+}
+
+// Decode buffered lines
+const data = decodeFromLines(lines)
+```
+
+For streaming decode APIs, see [`decodeFromLines()`](/reference/api#decodeFromLines-lines-options) and [`decodeStream()`](/reference/api#decodeStream-source-options).
+
 ## Tips and Pitfalls
 
 **Show, don't describe.** Don't explain TOON syntax in detail – just show an example. Models learn the pattern from context. A simple code block with 2-5 rows is more effective than paragraphs of explanation.

docs/reference/api.md

@@ -300,6 +300,227 @@ decode(toon, { expandPaths: 'safe', strict: false })
 ```
 :::
 
+## `decodeFromLines(lines, options?)`
+
+Decodes TOON format from pre-split lines into a JavaScript value. This is a streaming-friendly wrapper around the event-based decoder that builds the full value in memory.
+
+Useful when you already have lines as an array or iterable (e.g., from file streams, readline interfaces, or network responses) and want the standard decode behavior with path expansion support.
+
+### Parameters
+
+| Parameter | Type | Description |
+|-----------|------|-------------|
+| `lines` | `Iterable<string>` | Iterable of TOON lines (without trailing newlines) |
+| `options` | `DecodeOptions?` | Optional decoding configuration (see below) |
+
+### Options
+
+| Option | Type | Default | Description |
+|--------|------|---------|-------------|
+| `indent` | `number` | `2` | Expected number of spaces per indentation level |
+| `strict` | `boolean` | `true` | Enable strict validation (array counts, indentation, delimiter consistency) |
+| `expandPaths` | `'off'` \| `'safe'` | `'off'` | Enable path expansion to reconstruct dotted keys into nested objects |
+
+### Return Value
+
+Returns a `JsonValue` (the parsed JavaScript value: object, array, or primitive).
+
+### Example
+
+**Basic usage with arrays:**
+
+```ts
+import { decodeFromLines } from '@toon-format/toon'
+
+const lines = ['name: Alice', 'age: 30']
+const value = decodeFromLines(lines)
+// { name: 'Alice', age: 30 }
+```
+
+**Streaming from Node.js readline:**
+
+```ts
+import { createReadStream } from 'node:fs'
+import { createInterface } from 'node:readline'
+import { decodeFromLines } from '@toon-format/toon'
+
+const rl = createInterface({
+  input: createReadStream('data.toon'),
+  crlfDelay: Infinity,
+})
+
+const value = decodeFromLines(rl)
+console.log(value)
+```
+
+**With path expansion:**
+
+```ts
+const lines = ['user.name: Alice', 'user.age: 30']
+const value = decodeFromLines(lines, { expandPaths: 'safe' })
+// { user: { name: 'Alice', age: 30 } }
+```
+
+## `decodeStreamSync(lines, options?)`
+
+Synchronously decodes TOON lines into a stream of JSON events. This function yields structured events that represent the JSON data model without building the full value tree.
+
+Useful for streaming processing, custom transformations, or memory-efficient parsing of large datasets where you don't need the full value in memory.
+
+::: info Event Streaming
+This is a low-level API that returns individual parse events. For most use cases, [`decodeFromLines()`](#decodeFromLines-lines-options) or [`decode()`](#decode-input-options) are more convenient.
+
+Path expansion (`expandPaths: 'safe'`) is **not supported** in streaming mode since it requires the full value tree.
+:::
+
+### Parameters
+
+| Parameter | Type | Description |
+|-----------|------|-------------|
+| `lines` | `Iterable<string>` | Iterable of TOON lines (without trailing newlines) |
+| `options` | `DecodeStreamOptions?` | Optional streaming decoding configuration (see below) |
+
+### Options
+
+| Option | Type | Default | Description |
+|--------|------|---------|-------------|
+| `indent` | `number` | `2` | Expected number of spaces per indentation level |
+| `strict` | `boolean` | `true` | Enable strict validation (array counts, indentation, delimiter consistency) |
+
+### Return Value
+
+Returns an `Iterable<JsonStreamEvent>` that yields structured events.
+
+### Event Types
+
+Events represent the structure of the JSON data model:
+
+```ts
+type JsonStreamEvent
+  = | { type: 'startObject' }
+    | { type: 'endObject' }
+    | { type: 'startArray' }
+    | { type: 'endArray' }
+    | { type: 'key', key: string }
+    | { type: 'primitive', value: JsonPrimitive }
+
+type JsonPrimitive = string | number | boolean | null
+```
+
+### Example
+
+**Basic event streaming:**
+
+```ts
+import { decodeStreamSync } from '@toon-format/toon'
+
+const lines = ['name: Alice', 'age: 30']
+
+for (const event of decodeStreamSync(lines)) {
+  console.log(event)
+}
+
+// Output:
+// { type: 'startObject' }
+// { type: 'key', key: 'name' }
+// { type: 'primitive', value: 'Alice' }
+// { type: 'key', key: 'age' }
+// { type: 'primitive', value: 30 }
+// { type: 'endObject' }
+```
+
+**Custom processing:**
+
+```ts
+import { decodeStreamSync } from '@toon-format/toon'
+
+const lines = ['users[2]{id,name}:', '  1,Alice', '  2,Bob']
+let userCount = 0
+
+for (const event of decodeStreamSync(lines)) {
+  if (event.type === 'endObject' && userCount < 2) {
+    userCount++
+    console.log(`Processed user ${userCount}`)
+  }
+}
+```
+
+## `decodeStream(source, options?)`
+
+Asynchronously decodes TOON lines into a stream of JSON events. This is the async version of [`decodeStreamSync()`](#decodeStreamSync-lines-options), supporting both synchronous and asynchronous iterables.
+
+Useful for processing file streams, network responses, or other async sources where you want to handle data incrementally as it arrives.
+
+### Parameters
+
+| Parameter | Type | Description |
+|-----------|------|-------------|
+| `source` | `AsyncIterable<string>` \| `Iterable<string>` | Async or sync iterable of TOON lines (without trailing newlines) |
+| `options` | `DecodeStreamOptions?` | Optional streaming decoding configuration (see below) |
+
+### Options
+
+| Option | Type | Default | Description |
+|--------|------|---------|-------------|
+| `indent` | `number` | `2` | Expected number of spaces per indentation level |
+| `strict` | `boolean` | `true` | Enable strict validation (array counts, indentation, delimiter consistency) |
+
+### Return Value
+
+Returns an `AsyncIterable<JsonStreamEvent>` that yields structured events asynchronously.
+
+### Example
+
+**Streaming from file:**
+
+```ts
+import { createReadStream } from 'node:fs'
+import { createInterface } from 'node:readline'
+import { decodeStream } from '@toon-format/toon'
+
+const fileStream = createReadStream('data.toon', 'utf-8')
+const rl = createInterface({ input: fileStream, crlfDelay: Infinity })
+
+for await (const event of decodeStream(rl)) {
+  console.log(event)
+  // Process events as they arrive
+}
+```
+
+**Processing events incrementally:**
+
+```ts
+import { decodeStream } from '@toon-format/toon'
+
+const lines = getAsyncLineSource() // AsyncIterable<string>
+
+for await (const event of decodeStream(lines, { strict: true })) {
+  if (event.type === 'key' && event.key === 'id') {
+    // Next event will be the id value
+    const valueEvent = await decodeStream(lines).next()
+    if (valueEvent.value?.type === 'primitive') {
+      console.log('Found ID:', valueEvent.value.value)
+    }
+  }
+}
+```
+
+**Auto-detection of sync/async sources:**
+
+```ts
+// Works with sync iterables
+const syncLines = ['name: Alice', 'age: 30']
+for await (const event of decodeStream(syncLines)) {
+  console.log(event)
+}
+
+// Works with async iterables
+const asyncLines = readLinesFromNetwork()
+for await (const event of decodeStream(asyncLines)) {
+  console.log(event)
+}
+```
+
 ## Round-Trip Compatibility
 
 TOON provides lossless round-trips after normalization:

eslint.config.mjs

@@ -1,10 +1,15 @@
 // @ts-check
 import antfu from '@antfu/eslint-config'
 
-export default antfu().append({
+export default antfu({
+  rules: {
+    'no-cond-assign': 'off',
+  },
+}).append({
   files: ['README.md', 'SPEC.md', '**/docs/**/*'],
   rules: {
-    'yaml/quotes': 'off',
+    'import/no-duplicates': 'off',
     'style/no-tabs': 'off',
+    'yaml/quotes': 'off',
   },
 })

packages/cli/README.md

@@ -134,8 +134,9 @@ cat million-records.toon | toon --decode > output.json
 
 **Memory efficiency:**
 - **Encode (JSON → TOON)**: Streams TOON lines to output without full string in memory
-- **Decode (TOON → JSON)**: Streams JSON tokens to output without full string in memory
+- **Decode (TOON → JSON)**: Uses the same event-based streaming decoder as the `decodeStream` API in `@toon-format/toon`, streaming JSON tokens to output without full string in memory
 - Peak memory usage scales with data depth, not total size
+- When `--expand-paths safe` is enabled, decode falls back to non-streaming mode internally to apply deep-merge expansion before writing JSON
 
 > [!NOTE]
 > When using `--stats` with encode, the full output string is kept in memory for token counting. Omit `--stats` for maximum memory efficiency with very large datasets.

packages/cli/src/conversion.ts

@@ -1,14 +1,15 @@
 import type { FileHandle } from 'node:fs/promises'
-import type { DecodeOptions, EncodeOptions } from '../../toon/src'
+import type { DecodeOptions, DecodeStreamOptions, EncodeOptions } from '../../toon/src'
 import type { InputSource } from './types'
 import * as fsp from 'node:fs/promises'
 import * as path from 'node:path'
 import process from 'node:process'
 import { consola } from 'consola'
 import { estimateTokenCount } from 'tokenx'
-import { decode, encode, encodeLines } from '../../toon/src'
+import { decode, decodeStream, encode, encodeLines } from '../../toon/src'
+import { jsonStreamFromEvents } from './json-from-events'
 import { jsonStringifyLines } from './json-stringify-stream'
-import { formatInputLabel, readInput } from './utils'
+import { formatInputLabel, readInput, readLinesFromSource } from './utils'
 
 export async function encodeToToon(config: {
   input: InputSource
@@ -80,6 +81,8 @@ export async function decodeToJson(config: {
   strict: NonNullable<DecodeOptions['strict']>
   expandPaths?: NonNullable<DecodeOptions['expandPaths']>
 }): Promise<void> {
+  // Path expansion requires full value in memory, so use non-streaming path
+  if (config.expandPaths === 'safe') {
     const toonContent = await readInput(config.input)
 
     let data: unknown
@@ -96,6 +99,25 @@ export async function decodeToJson(config: {
     }
 
     await writeStreamingJson(jsonStringifyLines(data, config.indent), config.output)
+  }
+  else {
+    try {
+      const lineSource = readLinesFromSource(config.input)
+
+      const decodeStreamOptions: DecodeStreamOptions = {
+        indent: config.indent,
+        strict: config.strict,
+      }
+
+      const events = decodeStream(lineSource, decodeStreamOptions)
+      const jsonChunks = jsonStreamFromEvents(events, config.indent)
+
+      await writeStreamingJson(jsonChunks, config.output)
+    }
+    catch (error) {
+      throw new Error(`Failed to decode TOON: ${error instanceof Error ? error.message : String(error)}`)
+    }
+  }
 
   if (config.output) {
     const relativeInputPath = formatInputLabel(config.input)
@@ -109,7 +131,7 @@ export async function decodeToJson(config: {
  * Chunks are written one at a time without building the full string in memory.
  */
 async function writeStreamingJson(
-  chunks: Iterable<string>,
+  chunks: AsyncIterable<string> | Iterable<string>,
   outputPath?: string,
 ): Promise<void> {
   // Stream to file using fs/promises API
@@ -119,7 +141,7 @@ async function writeStreamingJson(
     try {
       fileHandle = await fsp.open(outputPath, 'w')
 
-      for (const chunk of chunks) {
+      for await (const chunk of chunks) {
         await fileHandle.write(chunk)
       }
     }
@@ -129,7 +151,7 @@ async function writeStreamingJson(
   }
   // Stream to stdout
   else {
-    for (const chunk of chunks) {
+    for await (const chunk of chunks) {
       process.stdout.write(chunk)
     }
 

packages/cli/src/json-from-events.ts

@@ -0,0 +1,217 @@
+import type { JsonStreamEvent } from '../../toon/src/types'
+
+/**
+ * Context for tracking JSON structure state during event streaming.
+ */
+type JsonContext
+  = | { type: 'object', needsComma: boolean, expectValue: boolean }
+    | { type: 'array', needsComma: boolean }
+
+/**
+ * Converts a stream of `JsonStreamEvent` into formatted JSON string chunks.
+ *
+ * Similar to `jsonStringifyLines` but driven by events instead of a value tree.
+ * Useful for streaming TOON decode directly to JSON output without building
+ * the full data structure in memory.
+ *
+ * @param events - Async iterable of JSON stream events
+ * @param indent - Number of spaces for indentation (0 = compact, >0 = pretty)
+ * @returns Async iterable of JSON string chunks
+ *
+ * @example
+ * ```ts
+ * const lines = readLinesFromSource(input)
+ * const events = decodeStream(lines)
+ * for await (const chunk of jsonStreamFromEvents(events, 2)) {
+ *   process.stdout.write(chunk)
+ * }
+ * ```
+ */
+export async function* jsonStreamFromEvents(
+  events: AsyncIterable<JsonStreamEvent>,
+  indent: number = 2,
+): AsyncIterable<string> {
+  const stack: JsonContext[] = []
+  let depth = 0
+
+  for await (const event of events) {
+    const parent = stack.length > 0 ? stack[stack.length - 1] : undefined
+
+    switch (event.type) {
+      case 'startObject': {
+        // Emit comma if needed (inside array or after previous object field value)
+        if (parent) {
+          if (parent.type === 'array' && parent.needsComma) {
+            yield ','
+          }
+          else if (parent.type === 'object' && !parent.expectValue) {
+            // Object field value already emitted, this is a nested object after a key
+            // The comma is handled by the key event
+          }
+        }
+
+        // Emit newline and indent for pretty printing
+        if (indent > 0 && parent) {
+          if (parent.type === 'array') {
+            yield '\n'
+            yield ' '.repeat(depth * indent)
+          }
+        }
+
+        yield '{'
+        stack.push({ type: 'object', needsComma: false, expectValue: false })
+        depth++
+        break
+      }
+
+      case 'endObject': {
+        const context = stack.pop()
+        if (!context || context.type !== 'object') {
+          throw new Error('Mismatched endObject event')
+        }
+
+        depth--
+
+        // Emit newline and indent for closing brace (pretty print)
+        if (indent > 0 && context.needsComma) {
+          yield '\n'
+          yield ' '.repeat(depth * indent)
+        }
+
+        yield '}'
+
+        // Mark parent as needing comma for next item
+        const newParent = stack.length > 0 ? stack[stack.length - 1] : undefined
+        if (newParent) {
+          if (newParent.type === 'object') {
+            newParent.expectValue = false
+            newParent.needsComma = true
+          }
+          else if (newParent.type === 'array') {
+            newParent.needsComma = true
+          }
+        }
+        break
+      }
+
+      case 'startArray': {
+        // Emit comma if needed
+        if (parent) {
+          if (parent.type === 'array' && parent.needsComma) {
+            yield ','
+          }
+        }
+
+        // Emit newline and indent for pretty printing
+        if (indent > 0 && parent) {
+          if (parent.type === 'array') {
+            yield '\n'
+            yield ' '.repeat(depth * indent)
+          }
+        }
+
+        yield '['
+        stack.push({
+          type: 'array',
+          needsComma: false,
+        })
+        depth++
+        break
+      }
+
+      case 'endArray': {
+        const context = stack.pop()
+        if (!context || context.type !== 'array') {
+          throw new Error('Mismatched endArray event')
+        }
+
+        depth--
+
+        // Emit newline and indent for closing bracket (pretty print)
+        if (indent > 0 && context.needsComma) {
+          yield '\n'
+          yield ' '.repeat(depth * indent)
+        }
+
+        yield ']'
+
+        // Mark parent as needing comma for next item
+        const newParent = stack.length > 0 ? stack[stack.length - 1] : undefined
+        if (newParent) {
+          if (newParent.type === 'object') {
+            newParent.expectValue = false
+            newParent.needsComma = true
+          }
+          else if (newParent.type === 'array') {
+            newParent.needsComma = true
+          }
+        }
+        break
+      }
+
+      case 'key': {
+        if (!parent || parent.type !== 'object') {
+          throw new Error('Key event outside of object context')
+        }
+
+        // Emit comma before this field if needed
+        if (parent.needsComma) {
+          yield ','
+        }
+
+        // Emit newline and indent (pretty print)
+        if (indent > 0) {
+          yield '\n'
+          yield ' '.repeat(depth * indent)
+        }
+
+        // Emit key
+        yield JSON.stringify(event.key)
+        yield indent > 0 ? ': ' : ':'
+
+        parent.expectValue = true
+        parent.needsComma = true
+        break
+      }
+
+      case 'primitive': {
+        // Emit comma if needed
+        if (parent) {
+          if (parent.type === 'array' && parent.needsComma) {
+            yield ','
+          }
+          else if (parent.type === 'object' && !parent.expectValue) {
+            // This shouldn't happen in well-formed events
+            throw new Error('Primitive event in object without preceding key')
+          }
+        }
+
+        // Emit newline and indent for array items (pretty print)
+        if (indent > 0 && parent && parent.type === 'array') {
+          yield '\n'
+          yield ' '.repeat(depth * indent)
+        }
+
+        // Emit primitive value
+        yield JSON.stringify(event.value)
+
+        // Update parent context
+        if (parent) {
+          if (parent.type === 'object') {
+            parent.expectValue = false
+            // needsComma already true from key event
+          }
+          else if (parent.type === 'array') {
+            parent.needsComma = true
+          }
+        }
+        break
+      }
+    }
+  }
+
+  // Ensure stack is empty
+  if (stack.length !== 0) {
+    throw new Error('Incomplete event stream: unclosed objects or arrays')
+  }
+}

packages/cli/src/utils.ts

@@ -1,4 +1,5 @@
 import type { InputSource } from './types'
+import { createReadStream } from 'node:fs'
 import * as fsp from 'node:fs/promises'
 import * as path from 'node:path'
 import process from 'node:process'
@@ -77,3 +78,32 @@ function readFromStdin(): Promise<string> {
     stdin.resume()
   })
 }
+
+export async function* readLinesFromSource(source: InputSource): AsyncIterable<string> {
+  const stream = source.type === 'stdin'
+    ? process.stdin
+    : createReadStream(source.path, { encoding: 'utf-8' })
+
+  // Explicitly set encoding for stdin
+  if (source.type === 'stdin') {
+    stream.setEncoding('utf-8')
+  }
+
+  let buffer = ''
+
+  for await (const chunk of stream) {
+    buffer += chunk
+    let index: number
+
+    while ((index = buffer.indexOf('\n')) !== -1) {
+      const line = buffer.slice(0, index)
+      buffer = buffer.slice(index + 1)
+      yield line
+    }
+  }
+
+  // Emit last line if buffer is not empty and doesn't end with newline
+  if (buffer.length > 0) {
+    yield buffer
+  }
+}

packages/toon/src/decode/event-builder.ts

@@ -0,0 +1,334 @@
+import type { JsonObject, JsonStreamEvent, JsonValue } from '../types'
+import { QUOTED_KEY_MARKER } from './expand'
+
+// #region Build context types
+
+/**
+ * Stack context for building JSON values from events.
+ */
+type BuildContext
+  = | { type: 'object', obj: JsonObject, currentKey?: string, quotedKeys: Set<string> }
+    | { type: 'array', arr: JsonValue[] }
+
+// #endregion
+
+// #region Synchronous AST builder
+
+export function buildValueFromEvents(events: Iterable<JsonStreamEvent>): JsonValue {
+  const stack: BuildContext[] = []
+  let root: JsonValue | undefined
+
+  for (const event of events) {
+    switch (event.type) {
+      case 'startObject': {
+        const obj: JsonObject = {}
+        const quotedKeys = new Set<string>()
+
+        if (stack.length === 0) {
+          // Root object
+          stack.push({ type: 'object', obj, quotedKeys })
+        }
+        else {
+          const parent = stack[stack.length - 1]!
+          if (parent.type === 'object') {
+            if (parent.currentKey === undefined) {
+              throw new Error('Object startObject event without preceding key')
+            }
+
+            parent.obj[parent.currentKey] = obj
+            parent.currentKey = undefined
+          }
+          else if (parent.type === 'array') {
+            parent.arr.push(obj)
+          }
+
+          stack.push({ type: 'object', obj, quotedKeys })
+        }
+
+        break
+      }
+
+      case 'endObject': {
+        if (stack.length === 0) {
+          throw new Error('Unexpected endObject event')
+        }
+
+        const context = stack.pop()!
+        if (context.type !== 'object') {
+          throw new Error('Mismatched endObject event')
+        }
+
+        // Attach quoted keys metadata if any keys were quoted
+        if (context.quotedKeys.size > 0) {
+          Object.defineProperty(context.obj, QUOTED_KEY_MARKER, {
+            value: context.quotedKeys,
+            enumerable: false,
+            writable: false,
+            configurable: false,
+          })
+        }
+
+        if (stack.length === 0) {
+          root = context.obj
+        }
+
+        break
+      }
+
+      case 'startArray': {
+        const arr: JsonValue[] = []
+
+        if (stack.length === 0) {
+          // Root array
+          stack.push({ type: 'array', arr })
+        }
+        else {
+          const parent = stack[stack.length - 1]!
+          if (parent.type === 'object') {
+            if (parent.currentKey === undefined) {
+              throw new Error('Array startArray event without preceding key')
+            }
+            parent.obj[parent.currentKey] = arr
+            parent.currentKey = undefined
+          }
+          else if (parent.type === 'array') {
+            parent.arr.push(arr)
+          }
+
+          stack.push({ type: 'array', arr })
+        }
+
+        break
+      }
+
+      case 'endArray': {
+        if (stack.length === 0) {
+          throw new Error('Unexpected endArray event')
+        }
+
+        const context = stack.pop()!
+        if (context.type !== 'array') {
+          throw new Error('Mismatched endArray event')
+        }
+
+        if (stack.length === 0) {
+          root = context.arr
+        }
+
+        break
+      }
+
+      case 'key': {
+        if (stack.length === 0) {
+          throw new Error('Key event outside of object context')
+        }
+
+        const parent = stack[stack.length - 1]!
+        if (parent.type !== 'object') {
+          throw new Error('Key event in non-object context')
+        }
+
+        parent.currentKey = event.key
+
+        // Track quoted keys for path expansion
+        if (event.wasQuoted) {
+          parent.quotedKeys.add(event.key)
+        }
+
+        break
+      }
+
+      case 'primitive': {
+        if (stack.length === 0) {
+          // Root primitive
+          root = event.value
+        }
+        else {
+          const parent = stack[stack.length - 1]!
+          if (parent.type === 'object') {
+            if (parent.currentKey === undefined) {
+              throw new Error('Primitive event without preceding key in object')
+            }
+            parent.obj[parent.currentKey] = event.value
+            parent.currentKey = undefined
+          }
+          else if (parent.type === 'array') {
+            parent.arr.push(event.value)
+          }
+        }
+
+        break
+      }
+    }
+  }
+
+  if (stack.length !== 0) {
+    throw new Error('Incomplete event stream: stack not empty at end')
+  }
+
+  if (root === undefined) {
+    throw new Error('No root value built from events')
+  }
+
+  return root
+}
+
+// #endregion
+
+// #region Asynchronous AST builder
+
+export async function buildValueFromEventsAsync(events: AsyncIterable<JsonStreamEvent>): Promise<JsonValue> {
+  const stack: BuildContext[] = []
+  let root: JsonValue | undefined
+
+  for await (const event of events) {
+    switch (event.type) {
+      case 'startObject': {
+        const obj: JsonObject = {}
+        const quotedKeys = new Set<string>()
+
+        if (stack.length === 0) {
+          stack.push({ type: 'object', obj, quotedKeys })
+        }
+        else {
+          const parent = stack[stack.length - 1]!
+          if (parent.type === 'object') {
+            if (parent.currentKey === undefined) {
+              throw new Error('Object startObject event without preceding key')
+            }
+            parent.obj[parent.currentKey] = obj
+            parent.currentKey = undefined
+          }
+          else if (parent.type === 'array') {
+            parent.arr.push(obj)
+          }
+
+          stack.push({ type: 'object', obj, quotedKeys })
+        }
+
+        break
+      }
+
+      case 'endObject': {
+        if (stack.length === 0) {
+          throw new Error('Unexpected endObject event')
+        }
+
+        const context = stack.pop()!
+        if (context.type !== 'object') {
+          throw new Error('Mismatched endObject event')
+        }
+
+        // Attach quoted keys metadata if any keys were quoted
+        if (context.quotedKeys.size > 0) {
+          Object.defineProperty(context.obj, QUOTED_KEY_MARKER, {
+            value: context.quotedKeys,
+            enumerable: false,
+            writable: false,
+            configurable: false,
+          })
+        }
+
+        if (stack.length === 0) {
+          root = context.obj
+        }
+
+        break
+      }
+
+      case 'startArray': {
+        const arr: JsonValue[] = []
+        if (stack.length === 0) {
+          stack.push({ type: 'array', arr })
+        }
+        else {
+          const parent = stack[stack.length - 1]!
+          if (parent.type === 'object') {
+            if (parent.currentKey === undefined) {
+              throw new Error('Array startArray event without preceding key')
+            }
+            parent.obj[parent.currentKey] = arr
+            parent.currentKey = undefined
+          }
+          else if (parent.type === 'array') {
+            parent.arr.push(arr)
+          }
+
+          stack.push({ type: 'array', arr })
+        }
+
+        break
+      }
+
+      case 'endArray': {
+        if (stack.length === 0) {
+          throw new Error('Unexpected endArray event')
+        }
+
+        const context = stack.pop()!
+        if (context.type !== 'array') {
+          throw new Error('Mismatched endArray event')
+        }
+
+        if (stack.length === 0) {
+          root = context.arr
+        }
+
+        break
+      }
+
+      case 'key': {
+        if (stack.length === 0) {
+          throw new Error('Key event outside of object context')
+        }
+
+        const parent = stack[stack.length - 1]!
+        if (parent.type !== 'object') {
+          throw new Error('Key event in non-object context')
+        }
+
+        parent.currentKey = event.key
+
+        // Track quoted keys for path expansion
+        if (event.wasQuoted) {
+          parent.quotedKeys.add(event.key)
+        }
+
+        break
+      }
+
+      case 'primitive': {
+        if (stack.length === 0) {
+          root = event.value
+        }
+        else {
+          const parent = stack[stack.length - 1]!
+          if (parent.type === 'object') {
+            if (parent.currentKey === undefined) {
+              throw new Error('Primitive event without preceding key in object')
+            }
+            parent.obj[parent.currentKey] = event.value
+            parent.currentKey = undefined
+          }
+          else if (parent.type === 'array') {
+            parent.arr.push(event.value)
+          }
+        }
+
+        break
+      }
+    }
+  }
+
+  if (stack.length !== 0) {
+    throw new Error('Incomplete event stream: stack not empty at end')
+  }
+
+  if (root === undefined) {
+    throw new Error('No root value built from events')
+  }
+
+  return root
+}
+
+// #endregion

packages/toon/src/decode/expand.ts

@@ -12,7 +12,7 @@ import { isIdentifierSegment } from '../shared/validation'
 export const QUOTED_KEY_MARKER: unique symbol = Symbol('quotedKey')
 
 /**
- * Type for objects that may have quoted key metadata attached.
+ * Objects that may have quoted key metadata attached.
  */
 export interface ObjectWithQuotedKeys extends JsonObject {
   [QUOTED_KEY_MARKER]?: Set<string>
@@ -226,6 +226,10 @@ function mergeObjects(
 
 // #endregion
 
+// #region Type Guards
+
 function canMerge(a: JsonValue, b: JsonValue): a is JsonObject {
   return isJsonObject(a) && isJsonObject(b)
 }
+
+// #endregion

packages/toon/src/decode/parser.ts

@@ -305,11 +305,11 @@ export function parseKeyToken(content: string, start: number): { key: string, en
 
 // #region Array content detection helpers
 
-export function isArrayHeaderAfterHyphen(content: string): boolean {
+export function isArrayHeaderContent(content: string): boolean {
   return content.trim().startsWith(OPEN_BRACKET) && findUnquotedChar(content, COLON) !== -1
 }
 
-export function isObjectFirstFieldAfterHyphen(content: string): boolean {
+export function isKeyValueContent(content: string): boolean {
   return findUnquotedChar(content, COLON) !== -1
 }
 

packages/toon/src/decode/scanner.ts

@@ -1,68 +1,34 @@
 import type { BlankLineInfo, Depth, ParsedLine } from '../types'
 import { SPACE, TAB } from '../constants'
 
-export interface ScanResult {
+// #region Scan state
-  lines: ParsedLine[]
+
+export interface StreamingScanState {
+  lineNumber: number
   blankLines: BlankLineInfo[]
 }
 
-export class LineCursor {
+export function createScanState(): StreamingScanState {
-  private lines: ParsedLine[]
+  return {
-  private index: number
+    lineNumber: 0,
-  private blankLines: BlankLineInfo[]
+    blankLines: [],
-
-  constructor(lines: ParsedLine[], blankLines: BlankLineInfo[] = []) {
-    this.lines = lines
-    this.index = 0
-    this.blankLines = blankLines
-  }
-
-  getBlankLines(): BlankLineInfo[] {
-    return this.blankLines
-  }
-
-  peek(): ParsedLine | undefined {
-    return this.lines[this.index]
-  }
-
-  next(): ParsedLine | undefined {
-    return this.lines[this.index++]
-  }
-
-  current(): ParsedLine | undefined {
-    return this.index > 0 ? this.lines[this.index - 1] : undefined
-  }
-
-  advance(): void {
-    this.index++
-  }
-
-  atEnd(): boolean {
-    return this.index >= this.lines.length
-  }
-
-  get length(): number {
-    return this.lines.length
-  }
-
-  peekAtDepth(targetDepth: Depth): ParsedLine | undefined {
-    const line = this.peek()
-    return line?.depth === targetDepth ? line : undefined
   }
 }
 
-export function toParsedLines(source: string, indentSize: number, strict: boolean): ScanResult {
+// #endregion
-  if (!source.trim()) {
-    return { lines: [], blankLines: [] }
-  }
 
-  const lines = source.split('\n')
+// #region Line parsing
-  const parsed: ParsedLine[] = []
-  const blankLines: BlankLineInfo[] = []
 
-  for (let i = 0; i < lines.length; i++) {
+export function parseLineIncremental(
-    const raw = lines[i]!
+  raw: string,
-    const lineNumber = i + 1
+  state: StreamingScanState,
+  indentSize: number,
+  strict: boolean,
+): ParsedLine | undefined {
+  state.lineNumber++
+  const lineNumber = state.lineNumber
+
+  // Count leading spaces
   let indent = 0
   while (indent < raw.length && raw[indent] === SPACE) {
     indent++
@@ -73,8 +39,8 @@ export function toParsedLines(source: string, indentSize: number, strict: boolea
   // Track blank lines
   if (!content.trim()) {
     const depth = computeDepthFromIndent(indent, indentSize)
-      blankLines.push({ lineNumber, indent, depth })
+    state.blankLines.push({ lineNumber, indent, depth })
-      continue
+    return undefined
   }
 
   const depth = computeDepthFromIndent(indent, indentSize)
@@ -83,7 +49,10 @@ export function toParsedLines(source: string, indentSize: number, strict: boolea
   if (strict) {
     // Find the full leading whitespace region (spaces and tabs)
     let whitespaceEndIndex = 0
-      while (whitespaceEndIndex < raw.length && (raw[whitespaceEndIndex] === SPACE || raw[whitespaceEndIndex] === TAB)) {
+    while (
+      whitespaceEndIndex < raw.length
+      && (raw[whitespaceEndIndex] === SPACE || raw[whitespaceEndIndex] === TAB)
+    ) {
       whitespaceEndIndex++
     }
 
@@ -94,16 +63,47 @@ export function toParsedLines(source: string, indentSize: number, strict: boolea
 
     // Check for exact multiples of indentSize
     if (indent > 0 && indent % indentSize !== 0) {
-        throw new SyntaxError(`Line ${lineNumber}: Indentation must be exact multiple of ${indentSize}, but found ${indent} spaces`)
+      throw new SyntaxError(
+        `Line ${lineNumber}: Indentation must be exact multiple of ${indentSize}, but found ${indent} spaces`,
+      )
     }
   }
 
-    parsed.push({ raw, indent, content, depth, lineNumber })
+  return { raw, indent, content, depth, lineNumber }
 }
 
-  return { lines: parsed, blankLines }
+export function* parseLinesSync(
+  source: Iterable<string>,
+  indentSize: number,
+  strict: boolean,
+  state: StreamingScanState,
+): Generator<ParsedLine> {
+  for (const raw of source) {
+    const parsedLine = parseLineIncremental(raw, state, indentSize, strict)
+
+    if (parsedLine !== undefined) {
+      yield parsedLine
+    }
+  }
+}
+
+export async function* parseLinesAsync(
+  source: AsyncIterable<string>,
+  indentSize: number,
+  strict: boolean,
+  state: StreamingScanState,
+): AsyncGenerator<ParsedLine> {
+  for await (const raw of source) {
+    const parsedLine = parseLineIncremental(raw, state, indentSize, strict)
+
+    if (parsedLine !== undefined) {
+      yield parsedLine
+    }
+  }
 }
 
 function computeDepthFromIndent(indentSpaces: number, indentSize: number): Depth {
   return Math.floor(indentSpaces / indentSize)
 }
+
+// #endregion

packages/toon/src/decode/validation.ts

@@ -1,7 +1,8 @@
-import type { ArrayHeaderInfo, BlankLineInfo, Delimiter, Depth, ResolvedDecodeOptions } from '../types'
+import type { ArrayHeaderInfo, BlankLineInfo, Delimiter, Depth, ParsedLine } from '../types'
-import type { LineCursor } from './scanner'
 import { COLON, LIST_ITEM_PREFIX } from '../constants'
 
+// #region Count and structure validation
+
 /**
  * Asserts that the actual count matches the expected count in strict mode.
  */
@@ -9,7 +10,7 @@ export function assertExpectedCount(
   actual: number,
   expected: number,
   itemType: string,
-  options: ResolvedDecodeOptions,
+  options: { strict: boolean },
 ): void {
   if (options.strict && actual !== expected) {
     throw new RangeError(`Expected ${expected} ${itemType}, but got ${actual}`)
@@ -20,11 +21,10 @@ export function assertExpectedCount(
  * Validates that there are no extra list items beyond the expected count.
  */
 export function validateNoExtraListItems(
-  cursor: LineCursor,
+  nextLine: ParsedLine | undefined,
   itemDepth: Depth,
   expectedCount: number,
 ): void {
-  const nextLine = cursor.peek()
   if (nextLine?.depth === itemDepth && nextLine.content.startsWith(LIST_ITEM_PREFIX)) {
     throw new RangeError(`Expected ${expectedCount} list array items, but found more`)
   }
@@ -34,11 +34,10 @@ export function validateNoExtraListItems(
  * Validates that there are no extra tabular rows beyond the expected count.
  */
 export function validateNoExtraTabularRows(
-  cursor: LineCursor,
+  nextLine: ParsedLine | undefined,
   rowDepth: Depth,
   header: ArrayHeaderInfo,
 ): void {
-  const nextLine = cursor.peek()
   if (
     nextLine?.depth === rowDepth
     && !nextLine.content.startsWith(LIST_ITEM_PREFIX)
@@ -62,8 +61,6 @@ export function validateNoBlankLinesInRange(
     return
 
   // Find blank lines within the range
-  // Note: We don't filter by depth because ANY blank line between array items is an error,
-  // regardless of its indentation level
   const firstBlank = blankLines.find(
     blank => blank.lineNumber > startLine && blank.lineNumber < endLine,
   )
@@ -75,6 +72,10 @@ export function validateNoBlankLinesInRange(
   }
 }
 
+// #endregion
+
+// #region Row classification helpers
+
 /**
  * Checks if a line is a data row (vs a key-value pair) in a tabular array.
  */
@@ -95,3 +96,5 @@ function isDataRow(content: string, delimiter: Delimiter): boolean {
   // Colon before delimiter or no delimiter = key-value pair
   return false
 }
+
+// #endregion

packages/toon/src/index.ts

@@ -1,55 +1,27 @@
-import type { DecodeOptions, EncodeOptions, JsonValue, ResolvedDecodeOptions, ResolvedEncodeOptions } from './types'
+import type { DecodeOptions, DecodeStreamOptions, EncodeOptions, JsonStreamEvent, JsonValue, ResolvedDecodeOptions, ResolvedEncodeOptions } from './types'
 import { DEFAULT_DELIMITER } from './constants'
-import { decodeValueFromLines } from './decode/decoders'
+import { decodeStream as decodeStreamCore, decodeStreamSync as decodeStreamSyncCore } from './decode/decoders'
+import { buildValueFromEvents } from './decode/event-builder'
 import { expandPathsSafe } from './decode/expand'
-import { LineCursor, toParsedLines } from './decode/scanner'
 import { encodeJsonValue } from './encode/encoders'
 import { normalizeValue } from './encode/normalize'
 
 export { DEFAULT_DELIMITER, DELIMITERS } from './constants'
 export type {
   DecodeOptions,
+  DecodeStreamOptions,
   Delimiter,
   DelimiterKey,
   EncodeOptions,
   JsonArray,
   JsonObject,
   JsonPrimitive,
+  JsonStreamEvent,
   JsonValue,
   ResolvedDecodeOptions,
   ResolvedEncodeOptions,
 } from './types'
 
-/**
- * Encodes a JavaScript value into TOON format as a sequence of lines.
- *
- * This function yields TOON lines one at a time without building the full string,
- * making it suitable for streaming large outputs to files, HTTP responses, or process stdout.
- *
- * @param input - Any JavaScript value (objects, arrays, primitives)
- * @param options - Optional encoding configuration
- * @returns Iterable of TOON lines (without trailing newlines)
- *
- * @example
- * ```ts
- * // Stream to stdout
- * for (const line of encodeLines({ name: 'Alice', age: 30 })) {
- *   console.log(line)
- * }
- *
- * // Collect to array
- * const lines = Array.from(encodeLines(data))
- *
- * // Equivalent to encode()
- * const toonString = Array.from(encodeLines(data, options)).join('\n')
- * ```
- */
-export function encodeLines(input: unknown, options?: EncodeOptions): Iterable<string> {
-  const normalizedValue = normalizeValue(input)
-  const resolvedOptions = resolveOptions(options)
-  return encodeJsonValue(normalizedValue, resolvedOptions, 0)
-}
-
 /**
  * Encodes a JavaScript value into TOON format string.
  *
@@ -94,15 +66,69 @@ export function encode(input: unknown, options?: EncodeOptions): string {
  * ```
  */
 export function decode(input: string, options?: DecodeOptions): JsonValue {
-  const resolvedOptions = resolveDecodeOptions(options)
+  const lines = input.split('\n')
-  const scanResult = toParsedLines(input, resolvedOptions.indent, resolvedOptions.strict)
+  return decodeFromLines(lines, options)
-
-  if (scanResult.lines.length === 0) {
-    return {}
 }
 
-  const cursor = new LineCursor(scanResult.lines, scanResult.blankLines)
+/**
-  const decodedValue = decodeValueFromLines(cursor, resolvedOptions)
+ * Encodes a JavaScript value into TOON format as a sequence of lines.
+ *
+ * This function yields TOON lines one at a time without building the full string,
+ * making it suitable for streaming large outputs to files, HTTP responses, or process stdout.
+ *
+ * @param input - Any JavaScript value (objects, arrays, primitives)
+ * @param options - Optional encoding configuration
+ * @returns Iterable of TOON lines (without trailing newlines)
+ *
+ * @example
+ * ```ts
+ * // Stream to stdout
+ * for (const line of encodeLines({ name: 'Alice', age: 30 })) {
+ *   console.log(line)
+ * }
+ *
+ * // Collect to array
+ * const lines = Array.from(encodeLines(data))
+ *
+ * // Equivalent to encode()
+ * const toonString = Array.from(encodeLines(data, options)).join('\n')
+ * ```
+ */
+export function encodeLines(input: unknown, options?: EncodeOptions): Iterable<string> {
+  const normalizedValue = normalizeValue(input)
+  const resolvedOptions = resolveOptions(options)
+  return encodeJsonValue(normalizedValue, resolvedOptions, 0)
+}
+
+/**
+ * Decodes TOON format from pre-split lines into a JavaScript value.
+ *
+ * This is a convenience wrapper around the streaming decoder that builds
+ * the full value in memory. Useful when you already have lines as an array
+ * or iterable and want the standard decode behavior with path expansion support.
+ *
+ * @param lines - Iterable of TOON lines (without newlines)
+ * @param options - Optional decoding configuration (supports expandPaths)
+ * @returns Parsed JavaScript value (object, array, or primitive)
+ *
+ * @example
+ * ```ts
+ * const lines = ['name: Alice', 'age: 30']
+ * decodeFromLines(lines)
+ * // { name: 'Alice', age: 30 }
+ * ```
+ */
+export function decodeFromLines(lines: Iterable<string>, options?: DecodeOptions): JsonValue {
+  const resolvedOptions = resolveDecodeOptions(options)
+
+  // Use streaming decoder without expandPaths
+  const streamOptions: DecodeStreamOptions = {
+    indent: resolvedOptions.indent,
+    strict: resolvedOptions.strict,
+  }
+
+  const events = decodeStreamSyncCore(lines, streamOptions)
+  const decodedValue = buildValueFromEvents(events)
 
   // Apply path expansion if enabled
   if (resolvedOptions.expandPaths === 'safe') {
@@ -112,6 +138,72 @@ export function decode(input: string, options?: DecodeOptions): JsonValue {
   return decodedValue
 }
 
+/**
+ * Synchronously decodes TOON lines into a stream of JSON events.
+ *
+ * This function yields structured events (startObject, endObject, startArray, endArray,
+ * key, primitive) that represent the JSON data model without building the full value tree.
+ * Useful for streaming processing, custom transformations, or memory-efficient parsing.
+ *
+ * @remarks
+ * Path expansion (`expandPaths: 'safe'`) is not supported in streaming mode.
+ *
+ * @param lines - Iterable of TOON lines (without newlines)
+ * @param options - Optional decoding configuration (expandPaths not supported)
+ * @returns Iterable of JSON stream events
+ *
+ * @example
+ * ```ts
+ * const lines = ['name: Alice', 'age: 30']
+ * for (const event of decodeStreamSync(lines)) {
+ *   console.log(event)
+ *   // { type: 'startObject' }
+ *   // { type: 'key', key: 'name' }
+ *   // { type: 'primitive', value: 'Alice' }
+ *   // ...
+ * }
+ * ```
+ */
+export function decodeStreamSync(lines: Iterable<string>, options?: DecodeStreamOptions): Iterable<JsonStreamEvent> {
+  return decodeStreamSyncCore(lines, options)
+}
+
+/**
+ * Asynchronously decodes TOON lines into a stream of JSON events.
+ *
+ * This function yields structured events (startObject, endObject, startArray, endArray,
+ * key, primitive) that represent the JSON data model without building the full value tree.
+ * Supports both sync and async iterables for maximum flexibility with file streams,
+ * network responses, or other async sources.
+ *
+ * @remarks
+ * Path expansion (`expandPaths: 'safe'`) is not supported in streaming mode.
+ *
+ * @param source - Async or sync iterable of TOON lines (without newlines)
+ * @param options - Optional decoding configuration (expandPaths not supported)
+ * @returns Async iterable of JSON stream events
+ *
+ * @example
+ * ```ts
+ * const fileStream = createReadStream('data.toon', 'utf-8')
+ * const lines = splitLines(fileStream) // Async iterable of lines
+ *
+ * for await (const event of decodeStream(lines)) {
+ *   console.log(event)
+ *   // { type: 'startObject' }
+ *   // { type: 'key', key: 'name' }
+ *   // { type: 'primitive', value: 'Alice' }
+ *   // ...
+ * }
+ * ```
+ */
+export function decodeStream(
+  source: AsyncIterable<string> | Iterable<string>,
+  options?: DecodeStreamOptions,
+): AsyncIterable<JsonStreamEvent> {
+  return decodeStreamCore(source, options)
+}
+
 function resolveOptions(options?: EncodeOptions): ResolvedEncodeOptions {
   return {
     indent: options?.indent ?? 2,

packages/toon/src/types.ts

@@ -69,6 +69,32 @@ export interface DecodeOptions {
 
 export type ResolvedDecodeOptions = Readonly<Required<DecodeOptions>>
 
+/**
+ * Options for streaming decode operations.
+ *
+ * @remarks
+ * Path expansion is not supported in streaming mode.
+ */
+export interface DecodeStreamOptions extends Omit<DecodeOptions, 'expandPaths'> {
+  /**
+   * Path expansion is not supported in streaming decode.
+   * This option is explicitly omitted.
+   */
+  expandPaths?: never
+}
+
+// #endregion
+
+// #region Streaming decoder types
+
+export type JsonStreamEvent
+  = | { type: 'startObject' }
+    | { type: 'endObject' }
+    | { type: 'startArray', length: number }
+    | { type: 'endArray' }
+    | { type: 'key', key: string, wasQuoted?: boolean }
+    | { type: 'primitive', value: JsonPrimitive }
+
 // #endregion
 
 // #region Decoder parsing types

packages/toon/test/decodeStream.test.ts

@@ -0,0 +1,343 @@
+import { describe, expect, it } from 'vitest'
+import { buildValueFromEvents } from '../src/decode/event-builder'
+import { decode, decodeFromLines, decodeStreamSync } from '../src/index'
+
+describe('streaming decode', () => {
+  describe('decodeStreamSync', () => {
+    it('should decode simple object', () => {
+      const input = 'name: Alice\nage: 30'
+      const lines = input.split('\n')
+      const events = Array.from(decodeStreamSync(lines))
+
+      expect(events).toEqual([
+        { type: 'startObject' },
+        { type: 'key', key: 'name' },
+        { type: 'primitive', value: 'Alice' },
+        { type: 'key', key: 'age' },
+        { type: 'primitive', value: 30 },
+        { type: 'endObject' },
+      ])
+    })
+
+    it('should decode nested object', () => {
+      const input = 'user:\n  name: Alice\n  age: 30'
+      const lines = input.split('\n')
+      const events = Array.from(decodeStreamSync(lines))
+
+      expect(events).toEqual([
+        { type: 'startObject' },
+        { type: 'key', key: 'user' },
+        { type: 'startObject' },
+        { type: 'key', key: 'name' },
+        { type: 'primitive', value: 'Alice' },
+        { type: 'key', key: 'age' },
+        { type: 'primitive', value: 30 },
+        { type: 'endObject' },
+        { type: 'endObject' },
+      ])
+    })
+
+    it('should decode inline primitive array', () => {
+      const input = 'scores[3]: 95, 87, 92'
+      const lines = input.split('\n')
+      const events = Array.from(decodeStreamSync(lines))
+
+      expect(events).toEqual([
+        { type: 'startObject' },
+        { type: 'key', key: 'scores' },
+        { type: 'startArray', length: 3 },
+        { type: 'primitive', value: 95 },
+        { type: 'primitive', value: 87 },
+        { type: 'primitive', value: 92 },
+        { type: 'endArray' },
+        { type: 'endObject' },
+      ])
+    })
+
+    it('should decode list array', () => {
+      const input = 'items[2]:\n  - Apple\n  - Banana'
+      const lines = input.split('\n')
+      const events = Array.from(decodeStreamSync(lines))
+
+      expect(events).toEqual([
+        { type: 'startObject' },
+        { type: 'key', key: 'items' },
+        { type: 'startArray', length: 2 },
+        { type: 'primitive', value: 'Apple' },
+        { type: 'primitive', value: 'Banana' },
+        { type: 'endArray' },
+        { type: 'endObject' },
+      ])
+    })
+
+    it('should decode tabular array', () => {
+      const input = 'users[2]{name,age}:\n  Alice, 30\n  Bob, 25'
+      const lines = input.split('\n')
+      const events = Array.from(decodeStreamSync(lines))
+
+      expect(events).toEqual([
+        { type: 'startObject' },
+        { type: 'key', key: 'users' },
+        { type: 'startArray', length: 2 },
+        { type: 'startObject' },
+        { type: 'key', key: 'name' },
+        { type: 'primitive', value: 'Alice' },
+        { type: 'key', key: 'age' },
+        { type: 'primitive', value: 30 },
+        { type: 'endObject' },
+        { type: 'startObject' },
+        { type: 'key', key: 'name' },
+        { type: 'primitive', value: 'Bob' },
+        { type: 'key', key: 'age' },
+        { type: 'primitive', value: 25 },
+        { type: 'endObject' },
+        { type: 'endArray' },
+        { type: 'endObject' },
+      ])
+    })
+
+    it('should decode root primitive', () => {
+      const input = 'Hello World'
+      const lines = input.split('\n')
+      const events = Array.from(decodeStreamSync(lines))
+
+      expect(events).toEqual([
+        { type: 'primitive', value: 'Hello World' },
+      ])
+    })
+
+    it('should decode root array', () => {
+      const input = '[2]:\n  - Apple\n  - Banana'
+      const lines = input.split('\n')
+      const events = Array.from(decodeStreamSync(lines))
+
+      expect(events).toEqual([
+        { type: 'startArray', length: 2 },
+        { type: 'primitive', value: 'Apple' },
+        { type: 'primitive', value: 'Banana' },
+        { type: 'endArray' },
+      ])
+    })
+
+    it('should decode empty input as empty object', () => {
+      const lines: string[] = []
+      const events = Array.from(decodeStreamSync(lines))
+
+      expect(events).toEqual([
+        { type: 'startObject' },
+        { type: 'endObject' },
+      ])
+    })
+
+    it('should throw on expandPaths option', () => {
+      const input = 'name: Alice'
+      const lines = input.split('\n')
+
+      expect(() => Array.from(decodeStreamSync(lines, { expandPaths: 'safe' } as any)))
+        .toThrow('expandPaths is not supported in streaming decode')
+    })
+
+    it('should enforce strict mode validation', () => {
+      const input = 'items[2]:\n  - Apple'
+      const lines = input.split('\n')
+
+      expect(() => Array.from(decodeStreamSync(lines, { strict: true })))
+        .toThrow()
+    })
+
+    it('should allow count mismatch in non-strict mode', () => {
+      const input = 'items[2]:\n  - Apple'
+      const lines = input.split('\n')
+
+      // Should not throw in non-strict mode
+      const events = Array.from(decodeStreamSync(lines, { strict: false }))
+
+      expect(events).toBeDefined()
+      expect(events[0]).toEqual({ type: 'startObject' })
+    })
+  })
+
+  describe('buildValueFromEvents', () => {
+    it('should build object from events', () => {
+      const events = [
+        { type: 'startObject' as const },
+        { type: 'key' as const, key: 'name' },
+        { type: 'primitive' as const, value: 'Alice' },
+        { type: 'key' as const, key: 'age' },
+        { type: 'primitive' as const, value: 30 },
+        { type: 'endObject' as const },
+      ]
+
+      const result = buildValueFromEvents(events)
+
+      expect(result).toEqual({ name: 'Alice', age: 30 })
+    })
+
+    it('should build nested object from events', () => {
+      const events = [
+        { type: 'startObject' as const },
+        { type: 'key' as const, key: 'user' },
+        { type: 'startObject' as const },
+        { type: 'key' as const, key: 'name' },
+        { type: 'primitive' as const, value: 'Alice' },
+        { type: 'endObject' as const },
+        { type: 'endObject' as const },
+      ]
+
+      const result = buildValueFromEvents(events)
+
+      expect(result).toEqual({ user: { name: 'Alice' } })
+    })
+
+    it('should build array from events', () => {
+      const events = [
+        { type: 'startArray' as const, length: 3 },
+        { type: 'primitive' as const, value: 1 },
+        { type: 'primitive' as const, value: 2 },
+        { type: 'primitive' as const, value: 3 },
+        { type: 'endArray' as const },
+      ]
+
+      const result = buildValueFromEvents(events)
+
+      expect(result).toEqual([1, 2, 3])
+    })
+
+    it('should build primitive from events', () => {
+      const events = [
+        { type: 'primitive' as const, value: 'Hello' },
+      ]
+
+      const result = buildValueFromEvents(events)
+
+      expect(result).toEqual('Hello')
+    })
+
+    it('should throw on incomplete event stream', () => {
+      const events = [
+        { type: 'startObject' as const },
+        { type: 'key' as const, key: 'name' },
+        // Missing primitive and endObject
+      ]
+
+      expect(() => buildValueFromEvents(events))
+        .toThrow('Incomplete event stream')
+    })
+  })
+
+  describe('decodeFromLines', () => {
+    it('should produce same result as decode', () => {
+      const input = 'name: Alice\nage: 30\nscores[3]: 95, 87, 92'
+      const lines = input.split('\n')
+
+      const fromLines = decodeFromLines(lines)
+      const fromString = decode(input)
+
+      expect(fromLines).toEqual(fromString)
+    })
+
+    it('should support expandPaths option', () => {
+      const input = 'user.name: Alice\nuser.age: 30'
+      const lines = input.split('\n')
+
+      const result = decodeFromLines(lines, { expandPaths: 'safe' })
+
+      expect(result).toEqual({
+        user: {
+          name: 'Alice',
+          age: 30,
+        },
+      })
+    })
+
+    it('should handle complex nested structures', () => {
+      const input = [
+        'users[2]:',
+        '  - name: Alice',
+        '    scores[3]: 95, 87, 92',
+        '  - name: Bob',
+        '    scores[3]: 88, 91, 85',
+      ].join('\n')
+
+      const fromLines = decodeFromLines(input.split('\n'))
+      const fromString = decode(input)
+
+      expect(fromLines).toEqual(fromString)
+      expect(fromLines).toEqual({
+        users: [
+          { name: 'Alice', scores: [95, 87, 92] },
+          { name: 'Bob', scores: [88, 91, 85] },
+        ],
+      })
+    })
+
+    it('should handle tabular arrays', () => {
+      const input = [
+        'users[3]{name,age,city}:',
+        '  Alice, 30, NYC',
+        '  Bob, 25, LA',
+        '  Charlie, 35, SF',
+      ].join('\n')
+
+      const fromLines = decodeFromLines(input.split('\n'))
+      const fromString = decode(input)
+
+      expect(fromLines).toEqual(fromString)
+      expect(fromLines).toEqual({
+        users: [
+          { name: 'Alice', age: 30, city: 'NYC' },
+          { name: 'Bob', age: 25, city: 'LA' },
+          { name: 'Charlie', age: 35, city: 'SF' },
+        ],
+      })
+    })
+  })
+
+  describe('streaming equivalence', () => {
+    // Test that streaming produces same results as non-streaming for various inputs
+    const testCases = [
+      {
+        name: 'simple object',
+        input: 'name: Alice\nage: 30',
+      },
+      {
+        name: 'nested objects',
+        input: 'user:\n  profile:\n    name: Alice\n    age: 30',
+      },
+      {
+        name: 'mixed structures',
+        input: 'name: Alice\nscores[3]: 95, 87, 92\naddress:\n  city: NYC\n  zip: 10001',
+      },
+      {
+        name: 'list array with objects',
+        input: 'users[2]:\n  - name: Alice\n    age: 30\n  - name: Bob\n    age: 25',
+      },
+      {
+        name: 'root primitive number',
+        input: '42',
+      },
+      {
+        name: 'root primitive string',
+        input: 'Hello World',
+      },
+      {
+        name: 'root primitive boolean',
+        input: 'true',
+      },
+      {
+        name: 'root primitive null',
+        input: 'null',
+      },
+    ]
+
+    for (const testCase of testCases) {
+      it(`should match decode() for: ${testCase.name}`, () => {
+        const lines = testCase.input.split('\n')
+        const streamResult = decodeFromLines(lines)
+        const regularResult = decode(testCase.input)
+
+        expect(streamResult).toEqual(regularResult)
+      })
+    }
+  })
+})