diff --git a/dlls/ole32/storage32.c b/dlls/ole32/storage32.c
index 18f248cbfd8..ae1fd80bca3 100644
--- a/dlls/ole32/storage32.c
+++ b/dlls/ole32/storage32.c
@@ -5914,7 +5914,6 @@ HRESULT WINAPI StgOpenStorage(
     goto end;
   }
 
-  /* STGM_PRIORITY implies exclusive access */
   if (grfMode & STGM_PRIORITY)
   {
     if (grfMode & (STGM_TRANSACTED|STGM_SIMPLE|STGM_NOSCRATCH|STGM_NOSNAPSHOT))
@@ -5924,13 +5923,20 @@ HRESULT WINAPI StgOpenStorage(
     if(STGM_ACCESS_MODE(grfMode) != STGM_READ)
       return STG_E_INVALIDFLAG;
     grfMode &= ~0xf0; /* remove the existing sharing mode */
-    grfMode |= STGM_SHARE_DENY_WRITE;
+    grfMode |= STGM_SHARE_DENY_NONE;
+
+    /* STGM_PRIORITY stops other IStorage objects on the same file from
+     * committing until the STGM_PRIORITY IStorage is closed. it also
+     * stops non-transacted mode StgOpenStorage calls with write access from
+     * succeeding. obviously, both of these cannot be achieved through just
+     * file share flags */
+    FIXME("STGM_PRIORITY mode not implemented correctly\n");
   }
 
   /*
    * Validate the sharing mode
    */
-  if (!(grfMode & STGM_TRANSACTED))
+  if (!(grfMode & (STGM_TRANSACTED|STGM_PRIORITY)))
     switch(STGM_SHARE_MODE(grfMode))
     {
       case STGM_SHARE_EXCLUSIVE:
diff --git a/dlls/ole32/tests/storage32.c b/dlls/ole32/tests/storage32.c
index 19361505a12..708508969a0 100644
--- a/dlls/ole32/tests/storage32.c
+++ b/dlls/ole32/tests/storage32.c
@@ -626,6 +626,7 @@ static void test_storage_refcount(void)
     static const WCHAR szDot[] = { '.',0 };
     WCHAR filename[MAX_PATH];
     IStorage *stg = NULL;
+    IStorage *stgprio = NULL;
     HRESULT r;
     IStream *stm = NULL;
     static const WCHAR stmname[] = { 'C','O','N','T','E','N','T','S',0 };
@@ -673,10 +674,24 @@ static void test_storage_refcount(void)
     r = IStream_Release(stm);
     ok (r == 0, "stream not released\n");
 
-    /* test for grfMode open issue */
+    /* tests that STGM_PRIORITY doesn't prevent readwrite access from other
+     * StgOpenStorage calls in transacted mode */
+    r = StgOpenStorage( filename, NULL, STGM_PRIORITY, NULL, 0, &stgprio);
+    ok(r==S_OK, "StgOpenStorage failed with error 0x%08lx\n", r);
+
+    todo_wine {
+    /* non-transacted mode read/write fails */
+    r = StgOpenStorage( filename, NULL, STGM_SHARE_EXCLUSIVE|STGM_READWRITE, NULL, 0, &stg);
+    ok(r==STG_E_LOCKVIOLATION, "StgOpenStorage should return STG_E_LOCKVIOLATION instead of 0x%08lx\n", r);
+    }
+
+    /* non-transacted mode read-only succeeds */
+    r = StgOpenStorage( filename, NULL, STGM_SHARE_DENY_WRITE|STGM_READ, NULL, 0, &stg);
+    ok(r==S_OK, "StgOpenStorage failed with error 0x%08lx\n", r);
+    IStorage_Release(stg);
 
     r = StgOpenStorage( filename, NULL, STGM_TRANSACTED|STGM_SHARE_DENY_WRITE|STGM_READWRITE, NULL, 0, &stg);
-    ok(r==S_OK, "StgOpenStorage failed\n");
+    ok(r==S_OK, "StgOpenStorage failed with error 0x%08lx\n", r);
     if(stg)
     {
         static const WCHAR stgname[] = { ' ',' ',' ','2','9',0 };
@@ -727,6 +742,7 @@ static void test_storage_refcount(void)
         r = IStorage_Release(stg);
         ok(r == 0, "wrong ref count\n");
     }
+    IStorage_Release(stgprio);
 
     DeleteFileW(filename);
 }