node.js: read a text file into an array. (Each line an item in the array.)

If you can fit the final data into an array then wouldn't you also be able to fit it in a string and split it, as has been suggested? In any case if you would like to process the file one line at a time you can also try something like this:

var fs = require('fs');

function readLines(input, func) {
  var remaining = '';

  input.on('data', function(data) {
    remaining += data;
    var index = remaining.indexOf('\n');
    while (index > -1) {
      var line = remaining.substring(0, index);
      remaining = remaining.substring(index + 1);
      func(line);
      index = remaining.indexOf('\n');
    }
  });

  input.on('end', function() {
    if (remaining.length > 0) {
      func(remaining);
    }
  });
}

function func(data) {
  console.log('Line: ' + data);
}

var input = fs.createReadStream('lines.txt');
readLines(input, func);

EDIT: (in response to comment by phopkins) I think (at least in newer versions) substring does not copy data but creates a special SlicedString object (from a quick glance at the v8 source code). In any case here is a modification that avoids the mentioned substring (tested on a file several megabytes worth of "All work and no play makes Jack a dull boy"):

function readLines(input, func) {
  var remaining = '';

  input.on('data', function(data) {
    remaining += data;
    var index = remaining.indexOf('\n');
    var last  = 0;
    while (index > -1) {
      var line = remaining.substring(last, index);
      last = index + 1;
      func(line);
      index = remaining.indexOf('\n', last);
    }

    remaining = remaining.substring(last);
  });

  input.on('end', function() {
    if (remaining.length > 0) {
      func(remaining);
    }
  });
}

Synchronous:

var fs = require('fs');
var array = fs.readFileSync('file.txt').toString().split("\n");
for(i in array) {
    console.log(array[i]);
}

Asynchronous:

var fs = require('fs');
fs.readFile('file.txt', function(err, data) {
    if(err) throw err;
    var array = data.toString().split("\n");
    for(i in array) {
        console.log(array[i]);
    }
});