diff --git a/src/index.spec.ts b/src/index.spec.ts
index 0d13a67..6c2ae77 100644
--- a/src/index.spec.ts
+++ b/src/index.spec.ts
@@ -17,6 +17,7 @@ import {
     merge,
     duplex,
     child,
+    reduce,
 } from ".";
 
 test.cb("fromArray() streams array elements in flowing mode", t => {
@@ -353,6 +354,100 @@ test.cb("filter() emits errors during asynchronous filtering", t => {
     source.push(null);
 });
 
+test.cb("reduce() reduces elements synchronously", t => {
+    t.plan(1);
+    const source = new Readable({ objectMode: true });
+    const expectedValue = 6;
+    source
+        .pipe(reduce((acc: number, element: string) => acc + element.length, 0))
+        .on("data", (element: string) => {
+            expect(element).to.equal(expectedValue);
+            t.pass();
+        })
+        .on("error", t.end)
+        .on("end", t.end);
+
+    source.push("ab");
+    source.push("cd");
+    source.push("ef");
+    source.push(null);
+});
+
+test.cb("reduce() reduces elements asynchronously", t => {
+    t.plan(1);
+    const source = new Readable({ objectMode: true });
+    const expectedValue = 6;
+    source
+        .pipe(
+            reduce(async (acc: number, element: string) => {
+                await Promise.resolve();
+                return acc + element.length;
+            }, 0),
+        )
+        .on("data", (element: string) => {
+            expect(element).to.equal(expectedValue);
+            t.pass();
+        })
+        .on("error", t.end)
+        .on("end", t.end);
+
+    source.push("ab");
+    source.push("cd");
+    source.push("ef");
+    source.push(null);
+});
+
+test.cb("reduce() emits errors during synchronous reduce", t => {
+    t.plan(2);
+    const source = new Readable({ objectMode: true });
+    source
+        .pipe(
+            reduce((acc: number, element: string) => {
+                if (element !== "ab") {
+                    throw new Error("Failed reduce");
+                }
+                return acc + element.length;
+            }, 0),
+        )
+        .resume()
+        .on("error", err => {
+            expect(err.message).to.equal("Failed reduce");
+            t.pass();
+        })
+        .on("end", t.end);
+
+    source.push("ab");
+    source.push("cd");
+    source.push("ef");
+    source.push(null);
+});
+
+test.cb("reduce() emits errors during asynchronous reduce", t => {
+    t.plan(2);
+    const source = new Readable({ objectMode: true });
+    source
+        .pipe(
+            reduce(async (acc: number, element: string) => {
+                await Promise.resolve();
+                if (element !== "ab") {
+                    throw new Error("Failed mapping");
+                }
+                return acc + element.length;
+            }, 0),
+        )
+        .resume()
+        .on("error", err => {
+            expect(err.message).to.equal("Failed mapping");
+            t.pass();
+        })
+        .on("end", t.end);
+
+    source.push("ab");
+    source.push("cd");
+    source.push("ef");
+    source.push(null);
+});
+
 test.cb("split() splits chunks using the default separator (\\n)", t => {
     t.plan(5);
     const source = new Readable({ objectMode: true });
diff --git a/src/index.ts b/src/index.ts
index 9690665..cde63f1 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -137,6 +137,43 @@ export function filter<T>(
     });
 }
 
+export function reduce<T, R>(
+    iteratee:
+        | ((previousValue: R, chunk: T, encoding: string) => R)
+        | ((previousValue: R, chunk: T, encoding: string) => Promise<R>),
+    initialValue: R,
+    options: TransformOptions = {
+        readableObjectMode: true,
+        writableObjectMode: true,
+    },
+) {
+    let value = initialValue;
+    return new Transform({
+        readableObjectMode: options.readableObjectMode,
+        writableObjectMode: options.writableObjectMode,
+        async transform(chunk: T, encoding, callback) {
+            let isPromise = false;
+            try {
+                const result = iteratee(value, chunk, encoding);
+                isPromise = result instanceof Promise;
+                value = await result;
+                callback();
+            } catch (err) {
+                if (isPromise) {
+                    // Calling the callback asynchronously with an error wouldn't emit the error, so emit directly
+                    this.emit("error", err);
+                    callback();
+                } else {
+                    callback(err);
+                }
+            }
+        },
+        flush(callback) {
+            callback(undefined, value);
+        },
+    });
+}
+
 /**
  * Return a ReadWrite stream that splits streamed chunks using the given separator
  * @param separator Separator to split by, defaulting to "\n"