diff --git a/docs/about/changelog.md b/docs/about/changelog.md
index 08121d80..d48125a0 100644
--- a/docs/about/changelog.md
+++ b/docs/about/changelog.md
@@ -7,6 +7,12 @@ tags:
 toc_depth: 2
 ---
 
+## v2.26.2
+
+### 🐛 Bug Fixes
+
+- Fix bug in `xreadgroup` when stream length is less than COUNT with BLOCK #344
+
 ## v2.26.1
 
 ### 🐛 Bug Fixes
diff --git a/fakeredis/commands_mixins/streams_mixin.py b/fakeredis/commands_mixins/streams_mixin.py
index ff3a34d2..be8cee63 100644
--- a/fakeredis/commands_mixins/streams_mixin.py
+++ b/fakeredis/commands_mixins/streams_mixin.py
@@ -341,7 +341,7 @@ def _xreadgroup(
         res: List[Any] = list()
         for group, stream_name, start_id in group_params:
             stream_results = group.group_read(consumer_name, start_id, count, noack)
-            if first_pass and (count is None or len(stream_results) < count):
+            if first_pass and (count is None):
                 return None
             if len(stream_results) > 0 or start_id != b">":
                 res.append([stream_name, stream_results])
diff --git a/pyproject.toml b/pyproject.toml
index fc11078c..671899b0 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -9,7 +9,7 @@ packages = [
     { include = "fakeredis" },
     { include = "LICENSE", to = "fakeredis" },
 ]
-version = "2.26.1"
+version = "2.26.2"
 description = "Python implementation of redis API, can be used for testing purposes."
 readme = "README.md"
 keywords = ["redis", "RedisJson", "RedisBloom", "tests", "redis-stack"]
diff --git a/test/test_mixins/test_streams_commands.py b/test/test_mixins/test_streams_commands.py
index f7e884cf..65058fac 100644
--- a/test/test_mixins/test_streams_commands.py
+++ b/test/test_mixins/test_streams_commands.py
@@ -812,3 +812,14 @@ def test_stream_ttl(r: redis.Redis):
     assert r.xread(streams={stream: 0}) == expected
     assert r.xtrim(stream, 0) == 1
     assert r.ttl(stream) == -1
+
+
+def test_xreadgroup_length_less_than_count(r: redis.Redis):
+    r.xadd("test-events", {"message": "hello"})
+    r.xadd("test-events", {"message": "bye"})
+
+    r.xgroup_create("test-events", "group1", id="0", mkstream=True)
+    messages = r.xreadgroup(
+        groupname="group1", consumername="consumer1", streams={"test-events": ">"}, count=10, block=2000
+    )
+    assert len(messages) == 1