diff --git a/kotlinx-coroutines-generate/src/main/kotlin/generate.kt b/kotlinx-coroutines-generate/src/main/kotlin/generate.kt
index ca8366227d..944defc386 100644
--- a/kotlinx-coroutines-generate/src/main/kotlin/generate.kt
+++ b/kotlinx-coroutines-generate/src/main/kotlin/generate.kt
@@ -1,26 +1,27 @@
 package kotlinx.coroutines
 
+import java.util.*
+
 /**
  * Creates a Sequence object based on received coroutine [c].
  *
- * Each call of 'yield' suspend function within the coroutine lambda generates
- * next element of resulting sequence.
+ * Each call of yield suspend function within the coroutine lambda generates
+ * next element of resulting sequence. Calling yieldAll suspend function can be used to
+ * yield sequence of values efficiently.
  */
-fun <T> generate(
-        coroutine c: GeneratorController<T>.() -> Continuation<Unit>
-): Sequence<T> =
-        object : Sequence<T> {
-            override fun iterator(): Iterator<T> {
+fun <T> generate(coroutine c: GeneratorController<T>.() -> Continuation<Unit>): Sequence<T> =
+        object : NestedIterable<T> {
+            override fun nestedIterator(): NestedIterator<T> {
                 val iterator = GeneratorController<T>()
-                iterator.setNextStep(c(iterator))
+                iterator.setNextStep(iterator.c())
                 return iterator
             }
         }
 
-class GeneratorController<T> internal constructor() : AbstractIterator<T>() {
+class GeneratorController<T> internal constructor() : NestedIterator<T>() {
     private lateinit var nextStep: Continuation<Unit>
 
-    override fun computeNext() {
+    override fun computeNextItemOrIterator() {
         nextStep.resume(Unit)
     }
 
@@ -33,7 +34,106 @@ class GeneratorController<T> internal constructor() : AbstractIterator<T>() {
         setNextStep(c)
     }
 
+    private fun yieldFromIterator(iterator: Iterator<T>, c: Continuation<Unit>) {
+        setNextIterator(iterator)
+        setNextStep(c)
+    }
+
+    suspend fun yieldAll(values: Sequence<T>, c: Continuation<Unit>) {
+        yieldFromIterator(if (values is NestedIterable<T>)
+                              values.nestedIterator() else
+                              values.iterator(), c)
+    }
+
+    suspend fun yieldAll(values: Iterable<T>, c: Continuation<Unit>) {
+        yieldFromIterator(values.iterator(), c)
+    }
+
+    suspend fun yieldAll(vararg values: T, c: Continuation<Unit>) {
+        yieldFromIterator(values.iterator(), c)
+    }
+
     operator fun handleResult(result: Unit, c: Continuation<Nothing>) {
         done()
     }
 }
+
+/**
+ * Extends [AbstractIterator] adding it the ability to produce a next nested iterator instead of a next item.
+ * If [hasNext] is true, then either a next item or a next nested iterator is produced.
+ *
+ * If [nextNestedIterator] != null, the consumer should use the items from [nextNestedIterator]
+ * and then continue iterating over this iterator. Also if a next nested iterator is produced,
+ * the value returned by [next] should not be used as it is invalid, but [next] should still be called.
+ * Therefore [NestedIterator] cannot be used as a normal iterator.
+ */
+abstract class NestedIterator<T> internal constructor() : AbstractIterator<T>() {
+    /**
+     * Either `null` or the iterator that should be used before continuing iteration over this iterator.
+     * If [hasNext] is true and nextNestedIterator is null, then there's no next iterator.
+     */
+    internal var nextNestedIterator: Iterator<T>? = null
+        private set
+
+    final override fun computeNext(): Unit {
+        nextNestedIterator = null
+        computeNextItemOrIterator()
+    }
+
+    /**
+     * Computes the next item or a next nested iterator of this iterator.
+     *
+     * This callback method should call one of these three methods:
+     *
+     * * [setNext] with the next value of the iteration
+     * * [setNextIterator] with the next nested iterator of the iteration
+     * * [done] to indicate there are no more elements
+     *
+     * Failure to call either method will result in the iteration terminating with a failed state
+     */
+    internal abstract fun computeNextItemOrIterator()
+
+    protected fun setNextIterator(iterator: Iterator<T>) {
+        nextNestedIterator = iterator
+        setNext(null as T) //state transfer to Ready
+    }
+}
+
+/**
+ * Manages [NestedIterator]s, arranging them in a stack and switching between them as they produce next
+ * nested iterators or finish.
+ * The concept is taken from
+ * [this article](https://www.microsoft.com/en-us/research/wp-content/uploads/2016/02/specsharp-iterators.pdf).
+ */
+private class RootIterator<T> constructor(iterator: Iterator<T>) : AbstractIterator<T>() {
+    private val stack = Stack<Iterator<T>>().apply { push(iterator) }
+
+    override fun computeNext() {
+        while (true) {
+            if (stack.isEmpty()) {
+                done()
+                return
+            }
+            val i = stack.peek()
+            if (!i.hasNext()) {
+                stack.pop()
+            } else {
+                if (i is NestedIterator<T> && i.nextNestedIterator != null) {
+                    stack.push(i.nextNestedIterator)
+                    i.next() //state transfer to NotReady
+                } else {
+                    setNext(i.next())
+                    return
+                }
+            }
+        }
+    }
+}
+
+/**
+ * Default implementation of [Sequence] for [NestedIterator] providers.
+ */
+private interface NestedIterable<T> : Sequence<T> {
+    fun nestedIterator(): NestedIterator<T>
+    override fun iterator(): Iterator<T> = RootIterator(nestedIterator())
+}
\ No newline at end of file
diff --git a/kotlinx-coroutines-generate/src/test/kotlin/GenerateTest.kt b/kotlinx-coroutines-generate/src/test/kotlin/GenerateTest.kt
index 539edfc4c0..10d98cd7f6 100644
--- a/kotlinx-coroutines-generate/src/test/kotlin/GenerateTest.kt
+++ b/kotlinx-coroutines-generate/src/test/kotlin/GenerateTest.kt
@@ -147,4 +147,79 @@ class GenerateTest {
 
         assertEquals(listOf(Pair(1, 2), Pair(6, 8), Pair(15, 18)), result.zip(result).toList())
     }
-}
+
+    @Test
+    fun testYieldAll() {
+        val sequence = generate<Int> {
+            yield(1)
+            yieldAll(1, 2)
+            yieldAll(listOf(1, 2))
+            yieldAll(sequenceOf(1, 2))
+            yield(3)
+        }
+
+        assertEquals(listOf(1, 1, 2, 1, 2, 1, 2, 3), sequence.toList())
+    }
+
+    @Test
+    fun testYieldsAllContinuation() {
+        var continuationCalled = false
+        val sequence = generate<Int> {
+            yieldAll(sequenceOf(1, 2, 3))
+            continuationCalled = true
+            yield(4)
+        }
+        val iterator = sequence.iterator()
+        assertEquals(1, iterator.next())
+        assertEquals(2, iterator.next())
+        assertEquals(3, iterator.next())
+        assertFalse(continuationCalled)
+        assertEquals(4, iterator.next())
+        assertTrue(continuationCalled)
+        assertFalse(iterator.hasNext())
+    }
+
+    @Test
+    fun testYieldAllEmpty() {
+        var continuationCalled = false
+        val sequence = generate<Int> {
+            yieldAll(emptyList())
+            continuationCalled = true
+            yield(1)
+        }
+        val iterator = sequence.iterator()
+        assertEquals(1, iterator.next())
+        assertTrue(continuationCalled)
+    }
+
+    @Test
+    fun testYieldAllHasNext() {
+        val sequence = generate<Int> {
+            yieldAll(1, 2, 3)
+        }
+        val iterator = sequence.iterator()
+        assertEquals(1, iterator.next())
+        assertEquals(2, iterator.next())
+        assertEquals(3, iterator.next())
+        assertFalse(iterator.hasNext())
+    }
+
+    @Test
+    fun testFromToAndBack() {
+        fun fromToAndBack(from: Int, to: Int): Sequence<Int> = generate {
+            if (from > to)
+                return@generate
+            yield(from)
+            yieldAll(fromToAndBack(from + 1, to))
+            yield(from)
+        }
+
+        val sequence = fromToAndBack(1, 10000)
+        val list1 = sequence.toList()
+        val list2 = sequence.toList() //test repeated call
+
+        val expected = (1..10000).toList() + (1..10000).reversed().toList()
+        assertEquals(expected, list1)
+        assertEquals(expected, list2)
+    }
+}
\ No newline at end of file