diff --git a/flask/helpers.py b/flask/helpers.py
index 3210772d..a7d8f97c 100644
--- a/flask/helpers.py
+++ b/flask/helpers.py
@@ -101,7 +101,7 @@ def stream_with_context(generator_or_function):
         gen = iter(generator_or_function)
     except TypeError:
         def decorator(*args, **kwargs):
-            gen = generator_or_function()
+            gen = generator_or_function(*args, **kwargs)
             return stream_with_context(gen)
         return update_wrapper(decorator, generator_or_function)
 
diff --git a/tests/test_helpers.py b/tests/test_helpers.py
index 620fd792..2fe2ead5 100644
--- a/tests/test_helpers.py
+++ b/tests/test_helpers.py
@@ -683,11 +683,11 @@ class TestStreaming(object):
         @app.route('/')
         def index():
             @flask.stream_with_context
-            def generate():
-                yield 'Hello '
+            def generate(hello):
+                yield hello
                 yield flask.request.args['name']
                 yield '!'
-            return flask.Response(generate())
+            return flask.Response(generate('Hello '))
         c = app.test_client()
         rv = c.get('/?name=World')
         assert rv.data == b'Hello World!'