diff --git a/leiningen-core/src/leiningen/core/project.clj b/leiningen-core/src/leiningen/core/project.clj
index f539b66b..f6834a7a 100644
--- a/leiningen-core/src/leiningen/core/project.clj
+++ b/leiningen-core/src/leiningen/core/project.clj
@@ -11,7 +11,7 @@
             [leiningen.core.user :as user]
             [leiningen.core.classpath :as classpath])
   (:import (clojure.lang DynamicClassLoader)
-           (java.io PushbackReader)))
+           (java.io PushbackReader Reader)))
 
 (defn make-project-properties [project]
   (with-open [baos (java.io.ByteArrayOutputStream.)]
@@ -400,10 +400,11 @@
   "The project.clj file must either def a project map or call this macro.
   See `lein help sample` to see what arguments it accepts."
   [project-name version & args]
-  `(let [args# ~(unquote-project (argument-list->argument-map args))
-         root# ~(.getParent (io/file *file*))]
-     (def ~'project
-       (make args# '~project-name ~version root#))))
+  (let [f (io/file *file*)]
+    `(let [args# ~(unquote-project (argument-list->argument-map args))
+           root# ~(if f (.getParent f))]
+       (def ~'project
+         (make args# '~project-name ~version root#)))))
 
 (defn- add-exclusions [exclusions dep]
   (dependency-vec
@@ -949,15 +950,18 @@ Also merges default profiles."
 
 (defn read-raw
   "Read project file without loading certificates, plugins, middleware, etc."
-  [file]
+  [source]
   (locking read-raw
     (binding [*ns* (find-ns 'leiningen.core.project)]
-      (try (load-file file)
-           (catch Exception e
-             (throw (Exception. (format "Error loading %s" file) e)))))
+      (try
+        (if (instance? Reader source)
+          (load-reader source)
+          (load-file source))
+        (catch Exception e
+          (throw (Exception. (format "Error loading %s" source) e)))))
     (let [project (resolve 'leiningen.core.project/project)]
       (when-not project
-        (throw (Exception. (format "%s must define project map" file))))
+        (throw (Exception. (format "%s must define project map" source))))
       ;; return it to original state
       (ns-unmap 'leiningen.core.project 'project)
       @project)))
diff --git a/leiningen-core/test/leiningen/core/test/project.clj b/leiningen-core/test/leiningen/core/test/project.clj
index bd1b3cbb..11d1af6f 100755
--- a/leiningen-core/test/leiningen/core/test/project.clj
+++ b/leiningen-core/test/leiningen/core/test/project.clj
@@ -3,11 +3,11 @@
   (:use [clojure.test]
         [leiningen.core.project :as project])
   (:require [leiningen.core.user :as user]
-            [leiningen.core.classpath :as classpath]
             [leiningen.core.test.helper :refer [abort-msg]]
             [leiningen.test.helper :as lthelper]
             [leiningen.core.utils :as utils]
-            [clojure.java.io :as io]))
+            [clojure.java.io :as io])
+  (:import (java.io StringReader)))
 
 (use-fixtures :once
               (fn [f]
@@ -64,6 +64,14 @@
       (is (= (for [p path] (lthelper/pathify (str (:root actual) "/" p)))
              (k actual))))))
 
+(deftest test-read-project-from-reader
+  (let [project-string "(defproject foo \"0.0.1-SNAPSHOT\" :description \"foo\")"
+        project-reader (StringReader. project-string)
+        project (read project-reader)]
+    (is (= "foo" (:group project)))
+    (is (= "foo" (:name project)))
+    (is (= "foo" (:description project)))))
+
 ;; TODO: test omit-default
 ;; TODO: test reading project that doesn't def project