diff --git a/mysql-test/r/read_only_innodb.result b/mysql-test/r/read_only_innodb.result
index d028e3cc207..690de085bf9 100644
--- a/mysql-test/r/read_only_innodb.result
+++ b/mysql-test/r/read_only_innodb.result
@@ -16,3 +16,33 @@ ERROR HY000: The MySQL server is running with the --read-only option so it canno
 set global read_only=0;
 drop table table_11733 ;
 drop user test@localhost;
+GRANT CREATE, SELECT, DROP ON *.* TO test@localhost;
+CREATE TABLE t1(a INT) ENGINE=INNODB;
+INSERT INTO t1 VALUES (0), (1);
+SET GLOBAL read_only=1;
+SELECT * FROM t1;
+a
+0
+1
+BEGIN;
+SELECT * FROM t1;
+a
+0
+1
+COMMIT;
+SET GLOBAL read_only=0;
+FLUSH TABLES WITH READ LOCK;
+SELECT * FROM t1;
+a
+0
+1
+BEGIN;
+SELECT * FROM t1;
+a
+0
+1
+COMMIT;
+UNLOCK TABLES;
+DROP TABLE t1;
+DROP USER test@localhost;
+echo End of 5.1 tests 
diff --git a/mysql-test/t/read_only_innodb.test b/mysql-test/t/read_only_innodb.test
index 76d9748aa60..f8c25fdee1d 100644
--- a/mysql-test/t/read_only_innodb.test
+++ b/mysql-test/t/read_only_innodb.test
@@ -41,3 +41,45 @@ set global read_only=0;
 drop table table_11733 ;
 drop user test@localhost;
 
+disconnect con1;
+
+#
+# Bug #35732: read-only blocks SELECT statements in InnoDB
+#
+# Test 1: read only mode
+GRANT CREATE, SELECT, DROP ON *.* TO test@localhost;
+connect(con1, localhost, test, , test);
+
+connection default;
+CREATE TABLE t1(a INT) ENGINE=INNODB;
+INSERT INTO t1 VALUES (0), (1);
+SET GLOBAL read_only=1;
+
+connection con1;
+SELECT * FROM t1;
+BEGIN;
+SELECT * FROM t1;
+COMMIT;
+
+connection default;
+SET GLOBAL read_only=0;
+
+#
+# Test 2: global read lock
+#
+FLUSH TABLES WITH READ LOCK;
+
+connection con1;
+SELECT * FROM t1;
+BEGIN;
+SELECT * FROM t1;
+COMMIT;
+
+connection default;
+UNLOCK TABLES;
+DROP TABLE t1;
+DROP USER test@localhost;
+
+disconnect con1;
+
+--echo echo End of 5.1 tests 
diff --git a/sql/handler.cc b/sql/handler.cc
index b334e003851..6099faa929f 100644
--- a/sql/handler.cc
+++ b/sql/handler.cc
@@ -952,16 +952,21 @@ int ha_prepare(THD *thd)
   A helper function to evaluate if two-phase commit is mandatory.
   As a side effect, propagates the read-only/read-write flags
   of the statement transaction to its enclosing normal transaction.
+  
+  If we have at least two engines with read-write changes we must
+  run a two-phase commit. Otherwise we can run several independent
+  commits as the only transactional engine has read-write changes
+  and others are read-only.
 
-  @retval TRUE   we must run a two-phase commit. Returned
-                 if we have at least two engines with read-write changes.
-  @retval FALSE  Don't need two-phase commit. Even if we have two
-                 transactional engines, we can run two independent
-                 commits if changes in one of the engines are read-only.
+  @retval   0   All engines are read-only.
+  @retval   1   We have the only engine with read-write changes.
+  @retval   >1  More than one engine have read-write changes.
+                Note: return value might NOT be the exact number of
+                engines with read-write changes.
 */
 
 static
-bool
+uint
 ha_check_and_coalesce_trx_read_only(THD *thd, Ha_trx_info *ha_list,
                                     bool all)
 {
@@ -998,7 +1003,7 @@ ha_check_and_coalesce_trx_read_only(THD *thd, Ha_trx_info *ha_list,
       break;
     }
   }
-  return rw_ha_count > 1;
+  return rw_ha_count;
 }
 
 
@@ -1061,25 +1066,8 @@ int ha_commit_trans(THD *thd, bool all)
 #ifdef USING_TRANSACTIONS
   if (ha_info)
   {
-    bool must_2pc;
-
-    if (is_real_trans && wait_if_global_read_lock(thd, 0, 0))
-    {
-      ha_rollback_trans(thd, all);
-      DBUG_RETURN(1);
-    }
-
-    if (   is_real_trans
-        && opt_readonly
-        && ! (thd->security_ctx->master_access & SUPER_ACL)
-        && ! thd->slave_thread
-       )
-    {
-      my_error(ER_OPTION_PREVENTS_STATEMENT, MYF(0), "--read-only");
-      ha_rollback_trans(thd, all);
-      error= 1;
-      goto end;
-    }
+    uint rw_ha_count;
+    bool rw_trans;
 
     DBUG_EXECUTE_IF("crash_commit_before", abort(););
 
@@ -1087,9 +1075,29 @@ int ha_commit_trans(THD *thd, bool all)
     if (is_real_trans)                          /* not a statement commit */
       thd->stmt_map.close_transient_cursors();
 
-    must_2pc= ha_check_and_coalesce_trx_read_only(thd, ha_info, all);
+    rw_ha_count= ha_check_and_coalesce_trx_read_only(thd, ha_info, all);
+    /* rw_trans is TRUE when we in a transaction changing data */
+    rw_trans= is_real_trans && (rw_ha_count > 0);
 
-    if (!trans->no_2pc && must_2pc)
+    if (rw_trans &&
+        wait_if_global_read_lock(thd, 0, 0))
+    {
+      ha_rollback_trans(thd, all);
+      DBUG_RETURN(1);
+    }
+
+    if (rw_trans &&
+        opt_readonly &&
+        !(thd->security_ctx->master_access & SUPER_ACL) &&
+        !thd->slave_thread)
+    {
+      my_error(ER_OPTION_PREVENTS_STATEMENT, MYF(0), "--read-only");
+      ha_rollback_trans(thd, all);
+      error= 1;
+      goto end;
+    }
+
+    if (!trans->no_2pc && (rw_ha_count > 1))
     {
       for (; ha_info && !error; ha_info= ha_info->next())
       {
@@ -1129,7 +1137,7 @@ int ha_commit_trans(THD *thd, bool all)
       tc_log->unlog(cookie, xid);
     DBUG_EXECUTE_IF("crash_commit_after", abort(););
 end:
-    if (is_real_trans)
+    if (rw_trans)
       start_waiting_global_read_lock(thd);
   }
 #endif /* USING_TRANSACTIONS */
diff --git a/sql/lock.cc b/sql/lock.cc
index a0d6faa6604..675b94c2175 100644
--- a/sql/lock.cc
+++ b/sql/lock.cc
@@ -1533,6 +1533,7 @@ void start_waiting_global_read_lock(THD *thd)
   if (unlikely(thd->global_read_lock))
     DBUG_VOID_RETURN;
   (void) pthread_mutex_lock(&LOCK_global_read_lock);
+  DBUG_ASSERT(protect_against_global_read_lock);
   tmp= (!--protect_against_global_read_lock &&
         (waiting_for_read_lock || global_read_lock_blocks_commit));
   (void) pthread_mutex_unlock(&LOCK_global_read_lock);