diff --git a/packages/rstream/src/stream-merge.ts b/packages/rstream/src/stream-merge.ts
index a72cd3903b..d4ae06bc49 100644
--- a/packages/rstream/src/stream-merge.ts
+++ b/packages/rstream/src/stream-merge.ts
@@ -37,7 +37,13 @@ export class StreamMerge<A, B> extends Subscription<A, B> {
         this.sources.set(
             src,
             src.subscribe({
-                next: (x) => this.next(x),
+                next: (x) => {
+                    if (x instanceof Subscription) {
+                        this.add(x);
+                    } else {
+                        this.next(x);
+                    }
+                },
                 done: () => this.markDone(src)
             }));
     }
diff --git a/packages/rstream/test/stream-merge.ts b/packages/rstream/test/stream-merge.ts
index f6d35dddd8..cf8be68424 100644
--- a/packages/rstream/test/stream-merge.ts
+++ b/packages/rstream/test/stream-merge.ts
@@ -72,4 +72,22 @@ describe("StreamMerge", () => {
         src.subscribe(check([1, 2, 2, 3, 10, 11, 20, 21], done));
     });
 
+    it("transducer streams", (done) => {
+        const sources = [
+            rs.fromIterable([1, 2, 3]),
+            rs.fromIterable([4, 5, 6]),
+        ].map(
+            (s) => s.subscribe(tx.map(x => rs.fromIterable([x, x, x])))
+        );
+        const merge = new rs.StreamMerge({ src: sources });
+        const histogram = tx.frequencies();
+        let acc: any = histogram[0]();
+        merge.subscribe({
+            next(x) { acc = histogram[2](acc, x) },
+            done() {
+                assert.deepEqual(acc, new Map([[1, 3], [2, 3], [3, 3], [4, 3], [5, 3], [6, 3]]));
+                done();
+            }
+        })
+    });
 });