diff --git a/requests/auth.py b/requests/auth.py
index 1f8d659e..805f2400 100644
--- a/requests/auth.py
+++ b/requests/auth.py
@@ -142,7 +142,7 @@ class HTTPDigestAuth(AuthBase):
 
         return 'Digest %s' % (base)
 
-    def handle_401(self, r):
+    def handle_401(self, r, **kwargs):
         """Takes the given response and tries digest-auth, if needed."""
 
         num_401_calls = getattr(self, 'num_401_calls', 1)
@@ -159,7 +159,7 @@ class HTTPDigestAuth(AuthBase):
             r.raw.release_conn()
 
             r.request.headers['Authorization'] = self.build_digest_header(r.request.method, r.request.url)
-            _r = r.connection.send(r.request)
+            _r = r.connection.send(r.request, **kwargs)
             _r.history.append(r)
 
             return _r
diff --git a/requests/hooks.py b/requests/hooks.py
index 8c661c67..5dfaf6b6 100644
--- a/requests/hooks.py
+++ b/requests/hooks.py
@@ -26,7 +26,7 @@ def default_hooks():
 # TODO: response is the only one
 
 
-def dispatch_hook(key, hooks, hook_data):
+def dispatch_hook(key, hooks, hook_data, **kwargs):
     """Dispatches a hook dictionary on a given piece of data."""
 
     hooks = hooks or dict()
@@ -38,7 +38,7 @@ def dispatch_hook(key, hooks, hook_data):
             hooks = [hooks]
 
         for hook in hooks:
-            _hook_data = hook(hook_data)
+            _hook_data = hook(hook_data, **kwargs)
             if _hook_data is not None:
                 hook_data = _hook_data
 
diff --git a/requests/sessions.py b/requests/sessions.py
index 73862991..10251087 100644
--- a/requests/sessions.py
+++ b/requests/sessions.py
@@ -419,7 +419,7 @@ class Session(SessionRedirectMixin):
         r.elapsed = datetime.utcnow() - start
 
         # Response manipulation hooks
-        r = dispatch_hook('response', hooks, r)
+        r = dispatch_hook('response', hooks, r, **kwargs)
 
         # Redirect resolving generator.
         gen = self.resolve_redirects(r, request, stream=stream,
diff --git a/test_requests.py b/test_requests.py
index 51719e67..0a2e6433 100644
--- a/test_requests.py
+++ b/test_requests.py
@@ -172,6 +172,18 @@ class RequestsTestCase(unittest.TestCase):
         r = s.get(url)
         self.assertEqual(r.status_code, 200)
 
+    def test_DIGEST_STREAM(self):
+
+        auth = HTTPDigestAuth('user', 'pass')
+        url = httpbin('digest-auth', 'auth', 'user', 'pass')
+
+        r = requests.get(url, auth=auth, stream=True)
+        self.assertNotEqual(r.raw.read(), b'')
+
+        r = requests.get(url, auth=auth, stream=False)
+        self.assertEqual(r.raw.read(), b'')
+
+
     def test_DIGESTAUTH_WRONG_HTTP_401_GET(self):
 
         auth = HTTPDigestAuth('user', 'wrongpass')