diff --git a/module/zfs/dmu_recv.c b/module/zfs/dmu_recv.c
index 61cfe3651..ddaa4a5c7 100644
--- a/module/zfs/dmu_recv.c
+++ b/module/zfs/dmu_recv.c
@@ -76,6 +76,12 @@ static int zfs_recv_best_effort_corrective = 0;
 static const void *const dmu_recv_tag = "dmu_recv_tag";
 const char *const recv_clone_name = "%recv";
 
+typedef enum {
+	ORNS_NO,
+	ORNS_YES,
+	ORNS_MAYBE
+} or_need_sync_t;
+
 static int receive_read_payload_and_next_header(dmu_recv_cookie_t *ra, int len,
     void *buf);
 
@@ -129,6 +135,9 @@ struct receive_writer_arg {
 	uint8_t or_mac[ZIO_DATA_MAC_LEN];
 	boolean_t or_byteorder;
 	zio_t *heal_pio;
+
+	/* Keep track of DRR_FREEOBJECTS right after DRR_OBJECT_RANGE */
+	or_need_sync_t or_need_sync;
 };
 
 typedef struct dmu_recv_begin_arg {
@@ -1914,10 +1923,22 @@ receive_object(struct receive_writer_arg *rwa, struct drr_object *drro,
 		/* object was freed and we are about to allocate a new one */
 		object_to_hold = DMU_NEW_OBJECT;
 	} else {
+		/*
+		 * If the only record in this range so far was DRR_FREEOBJECTS
+		 * with at least one actually freed object, it's possible that
+		 * the block will now be converted to a hole. We need to wait
+		 * for the txg to sync to prevent races.
+		 */
+		if (rwa->or_need_sync == ORNS_YES)
+			txg_wait_synced(dmu_objset_pool(rwa->os), 0);
+
 		/* object is free and we are about to allocate a new one */
 		object_to_hold = DMU_NEW_OBJECT;
 	}
 
+	/* Only relevant for the first object in the range */
+	rwa->or_need_sync = ORNS_NO;
+
 	/*
 	 * If this is a multi-slot dnode there is a chance that this
 	 * object will expand into a slot that is already used by
@@ -2111,6 +2132,9 @@ receive_freeobjects(struct receive_writer_arg *rwa,
 
 		if (err != 0)
 			return (err);
+
+		if (rwa->or_need_sync == ORNS_MAYBE)
+			rwa->or_need_sync = ORNS_YES;
 	}
 	if (next_err != ESRCH)
 		return (next_err);
@@ -2604,6 +2628,8 @@ receive_object_range(struct receive_writer_arg *rwa,
 	memcpy(rwa->or_mac, drror->drr_mac, ZIO_DATA_MAC_LEN);
 	rwa->or_byteorder = byteorder;
 
+	rwa->or_need_sync = ORNS_MAYBE;
+
 	return (0);
 }
 
diff --git a/tests/runfiles/common.run b/tests/runfiles/common.run
index 5350746db..005c539fc 100644
--- a/tests/runfiles/common.run
+++ b/tests/runfiles/common.run
@@ -842,7 +842,7 @@ tests = ['recv_dedup', 'recv_dedup_encrypted_zvol', 'rsend_001_pos',
     'send-c_recv_lz4_disabled', 'send-c_mixed_compression',
     'send-c_stream_size_estimate', 'send-c_embedded_blocks', 'send-c_resume',
     'send-cpL_varied_recsize', 'send-c_recv_dedup', 'send-L_toggle',
-    'send_encrypted_incremental.ksh',
+    'send_encrypted_incremental.ksh', 'send_encrypted_freeobjects',
     'send_encrypted_hierarchy', 'send_encrypted_props',
     'send_encrypted_truncated_files', 'send_freeobjects', 'send_realloc_files',
     'send_realloc_encrypted_files', 'send_spill_block', 'send_holds',
diff --git a/tests/runfiles/sanity.run b/tests/runfiles/sanity.run
index b3a173725..449bf1c0f 100644
--- a/tests/runfiles/sanity.run
+++ b/tests/runfiles/sanity.run
@@ -550,6 +550,7 @@ tests = ['recv_dedup', 'recv_dedup_encrypted_zvol', 'rsend_001_pos',
     'rsend_014_pos', 'rsend_016_neg', 'send-c_verify_contents',
     'send-c_volume', 'send-c_zstreamdump', 'send-c_recv_dedup',
     'send-L_toggle', 'send_encrypted_hierarchy', 'send_encrypted_props',
+    'send_encrypted_freeobjects',
     'send_encrypted_truncated_files', 'send_freeobjects', 'send_holds',
     'send_mixed_raw', 'send-wR_encrypted_zvol', 'send_partial_dataset',
     'send_invalid']
diff --git a/tests/zfs-tests/tests/Makefile.am b/tests/zfs-tests/tests/Makefile.am
index 7d734b831..bbe94f917 100644
--- a/tests/zfs-tests/tests/Makefile.am
+++ b/tests/zfs-tests/tests/Makefile.am
@@ -1810,6 +1810,7 @@ nobase_dist_datadir_zfs_tests_tests_SCRIPTS += \
 	functional/rsend/send_doall.ksh \
 	functional/rsend/send_encrypted_incremental.ksh \
 	functional/rsend/send_encrypted_files.ksh \
+	functional/rsend/send_encrypted_freeobjects.ksh \
 	functional/rsend/send_encrypted_hierarchy.ksh \
 	functional/rsend/send_encrypted_props.ksh \
 	functional/rsend/send_encrypted_truncated_files.ksh \
diff --git a/tests/zfs-tests/tests/functional/rsend/send_encrypted_freeobjects.ksh b/tests/zfs-tests/tests/functional/rsend/send_encrypted_freeobjects.ksh
new file mode 100755
index 000000000..92451bd1a
--- /dev/null
+++ b/tests/zfs-tests/tests/functional/rsend/send_encrypted_freeobjects.ksh
@@ -0,0 +1,87 @@
+#!/bin/ksh
+
+#
+# This file and its contents are supplied under the terms of the
+# Common Development and Distribution License ("CDDL"), version 1.0.
+# You may only use this file in accordance with the terms of version
+# 1.0 of the CDDL.
+#
+# A full copy of the text of the CDDL should have accompanied this
+# source.  A copy of the CDDL is also available via the Internet at
+# http://www.illumos.org/license/CDDL.
+#
+
+#
+# Copyright (c) 2017 by Lawrence Livermore National Security, LLC.
+# Copyright (c) 2023 by Findity AB
+#
+
+. $STF_SUITE/tests/functional/rsend/rsend.kshlib
+
+#
+# Description:
+# Verify that receiving a raw encrypted stream, with a FREEOBJECTS
+# removing all existing objects in a block followed by an OBJECT write
+# to the same block, does not result in a panic.
+#
+# Strategy:
+# 1. Create a new encrypted filesystem
+# 2. Create file f1 as the first object in some block (here object 128)
+# 3. Take snapshot A
+# 4. Create file f2 as the second object in the same block (here object 129)
+# 5. Delete f1
+# 6. Take snapshot B
+# 7. Receive a full raw encrypted send of A
+# 8. Receive an incremental raw send of B
+#
+verify_runnable "both"
+
+function create_object_with_num
+{
+	file=$1
+	num=$2
+
+	tries=100
+	for ((i=0; i<$tries; i++)); do
+		touch $file
+		onum=$(ls -li $file | awk '{print $1}')
+
+		if [[ $onum -ne $num ]] ; then
+			rm -f $file
+		else
+			break
+		fi
+	done
+	if [[ $i -eq $tries ]]; then
+		log_fail "Failed to create object with number $num"
+	fi
+}
+
+log_assert "FREEOBJECTS followed by OBJECT in encrypted stream does not crash"
+
+sendds=sendencfods
+recvds=recvencfods
+keyfile=/$POOL/keyencfods
+f1=/$POOL/$sendds/f1
+f2=/$POOL/$sendds/f2
+
+log_must eval "echo 'password' > $keyfile"
+
+#
+# xattr=sa and dnodesize=legacy for sequential object numbers, see
+# note in send_freeobjects.ksh.
+#
+log_must zfs create -o xattr=sa -o dnodesize=legacy -o encryption=on \
+	-o keyformat=passphrase -o keylocation=file://$keyfile $POOL/$sendds
+
+create_object_with_num $f1 128
+log_must zfs snap $POOL/$sendds@A
+create_object_with_num $f2 129
+log_must rm $f1
+log_must zfs snap $POOL/$sendds@B
+
+log_must eval "zfs send -w $POOL/$sendds@A | zfs recv $POOL/$recvds"
+log_must eval "zfs send -w -i $POOL/$sendds@A $POOL/$sendds@B |" \
+	"zfs recv $POOL/$recvds"
+
+log_pass "FREEOBJECTS followed by OBJECT in encrypted stream did not crash"