diff --git a/cmd/zdb/zdb.c b/cmd/zdb/zdb.c
index 21f8ea87c..1097501e8 100644
--- a/cmd/zdb/zdb.c
+++ b/cmd/zdb/zdb.c
@@ -1933,7 +1933,8 @@ static object_viewer_t *object_viewer[DMU_OT_NUMTYPES + 1] = {
 };
 
 static void
-dump_object(objset_t *os, uint64_t object, int verbosity, int *print_header)
+dump_object(objset_t *os, uint64_t object, int verbosity, int *print_header,
+    uint64_t *dnode_slots_used)
 {
 	dmu_buf_t *db = NULL;
 	dmu_object_info_t doi;
@@ -1965,6 +1966,9 @@ dump_object(objset_t *os, uint64_t object, int verbosity, int *print_header)
 	}
 	dmu_object_info_from_dnode(dn, &doi);
 
+	if (dnode_slots_used)
+		*dnode_slots_used = doi.doi_dnodesize / DNODE_MIN_SIZE;
+
 	zdb_nicenum(doi.doi_metadata_block_size, iblk);
 	zdb_nicenum(doi.doi_data_block_size, dblk);
 	zdb_nicenum(doi.doi_max_offset, lsize);
@@ -2072,6 +2076,9 @@ dump_dir(objset_t *os)
 	int verbosity = dump_opt['d'];
 	int print_header = 1;
 	int i, error;
+	uint64_t total_slots_used = 0;
+	uint64_t max_slot_used = 0;
+	uint64_t dnode_slots;
 
 	dsl_pool_config_enter(dmu_objset_pool(os), FTAG);
 	dmu_objset_fast_stat(os, &dds);
@@ -2112,7 +2119,7 @@ dump_dir(objset_t *os)
 	if (zopt_objects != 0) {
 		for (i = 0; i < zopt_objects; i++)
 			dump_object(os, zopt_object[i], verbosity,
-			    &print_header);
+			    &print_header, NULL);
 		(void) printf("\n");
 		return;
 	}
@@ -2129,24 +2136,39 @@ dump_dir(objset_t *os)
 	if (BP_IS_HOLE(os->os_rootbp))
 		return;
 
-	dump_object(os, 0, verbosity, &print_header);
+	dump_object(os, 0, verbosity, &print_header, NULL);
 	object_count = 0;
 	if (DMU_USERUSED_DNODE(os) != NULL &&
 	    DMU_USERUSED_DNODE(os)->dn_type != 0) {
-		dump_object(os, DMU_USERUSED_OBJECT, verbosity, &print_header);
-		dump_object(os, DMU_GROUPUSED_OBJECT, verbosity, &print_header);
+		dump_object(os, DMU_USERUSED_OBJECT, verbosity, &print_header,
+		    NULL);
+		dump_object(os, DMU_GROUPUSED_OBJECT, verbosity, &print_header,
+		    NULL);
 	}
 
 	object = 0;
 	while ((error = dmu_object_next(os, &object, B_FALSE, 0)) == 0) {
-		dump_object(os, object, verbosity, &print_header);
+		dump_object(os, object, verbosity, &print_header, &dnode_slots);
 		object_count++;
+		total_slots_used += dnode_slots;
+		max_slot_used = object + dnode_slots - 1;
 	}
 
 	ASSERT3U(object_count, ==, usedobjs);
 
 	(void) printf("\n");
 
+	(void) printf("    Dnode slots:\n");
+	(void) printf("\tTotal used:    %10llu\n",
+	    (u_longlong_t)total_slots_used);
+	(void) printf("\tMax used:      %10llu\n",
+	    (u_longlong_t)max_slot_used);
+	(void) printf("\tPercent empty: %10lf\n",
+	    (double)(max_slot_used - total_slots_used)*100 /
+	    (double)max_slot_used);
+
+	(void) printf("\n");
+
 	if (error != ESRCH) {
 		(void) fprintf(stderr, "dmu_object_next() = %d\n", error);
 		abort();
@@ -2610,7 +2632,7 @@ dump_path_impl(objset_t *os, uint64_t obj, char *name)
 			return (dump_path_impl(os, child_obj, s + 1));
 		/*FALLTHROUGH*/
 	case DMU_OT_PLAIN_FILE_CONTENTS:
-		dump_object(os, child_obj, dump_opt['v'], &header);
+		dump_object(os, child_obj, dump_opt['v'], &header, NULL);
 		return (0);
 	default:
 		(void) fprintf(stderr, "object %llu has non-file/directory "
diff --git a/include/sys/dnode.h b/include/sys/dnode.h
index d32855dcd..c7efe5593 100644
--- a/include/sys/dnode.h
+++ b/include/sys/dnode.h
@@ -100,6 +100,13 @@ extern "C" {
 #define	DN_ZERO_BONUSLEN	(DN_BONUS_SIZE(DNODE_MAX_SIZE) + 1)
 #define	DN_KILL_SPILLBLK (1)
 
+#define	DN_SLOT_UNINIT		((void *)NULL)	/* Uninitialized */
+#define	DN_SLOT_FREE		((void *)1UL)	/* Free slot */
+#define	DN_SLOT_ALLOCATED	((void *)2UL)	/* Allocated slot */
+#define	DN_SLOT_INTERIOR	((void *)3UL)	/* Interior allocated slot */
+#define	DN_SLOT_IS_PTR(dn)	((void *)dn > DN_SLOT_INTERIOR)
+#define	DN_SLOT_IS_VALID(dn)	((void *)dn != NULL)
+
 #define	DNODES_PER_BLOCK_SHIFT	(DNODE_BLOCK_SHIFT - DNODE_SHIFT)
 #define	DNODES_PER_BLOCK	(1ULL << DNODES_PER_BLOCK_SHIFT)
 
@@ -363,6 +370,135 @@ void dnode_evict_bonus(dnode_t *dn);
 	((_dn)->dn_objset->os_primary_cache == ZFS_CACHE_ALL ||		\
 	(_dn)->dn_objset->os_primary_cache == ZFS_CACHE_METADATA)
 
+/*
+ * Used for dnodestats kstat.
+ */
+typedef struct dnode_stats {
+	/*
+	 * Number of failed attempts to hold a meta dnode dbuf.
+	 */
+	kstat_named_t dnode_hold_dbuf_hold;
+	/*
+	 * Number of failed attempts to read a meta dnode dbuf.
+	 */
+	kstat_named_t dnode_hold_dbuf_read;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_ALLOCATED) was able
+	 * to hold the requested object number which was allocated.  This is
+	 * the common case when looking up any allocated object number.
+	 */
+	kstat_named_t dnode_hold_alloc_hits;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_ALLOCATED) was not
+	 * able to hold the request object number because it was not allocated.
+	 */
+	kstat_named_t dnode_hold_alloc_misses;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_ALLOCATED) was not
+	 * able to hold the request object number because the object number
+	 * refers to an interior large dnode slot.
+	 */
+	kstat_named_t dnode_hold_alloc_interior;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_ALLOCATED) needed
+	 * to retry acquiring slot zrl locks due to contention.
+	 */
+	kstat_named_t dnode_hold_alloc_lock_retry;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_ALLOCATED) did not
+	 * need to create the dnode because another thread did so after
+	 * dropping the read lock but before acquiring the write lock.
+	 */
+	kstat_named_t dnode_hold_alloc_lock_misses;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_ALLOCATED) found
+	 * a free dnode instantiated by dnode_create() but not yet allocated
+	 * by dnode_allocate().
+	 */
+	kstat_named_t dnode_hold_alloc_type_none;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_FREE) was able
+	 * to hold the requested range of free dnode slots.
+	 */
+	kstat_named_t dnode_hold_free_hits;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_FREE) was not
+	 * able to hold the requested range of free dnode slots because
+	 * at least one slot was allocated.
+	 */
+	kstat_named_t dnode_hold_free_misses;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_FREE) was not
+	 * able to hold the requested range of free dnode slots because
+	 * after acquiring the zrl lock at least one slot was allocated.
+	 */
+	kstat_named_t dnode_hold_free_lock_misses;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_FREE) needed
+	 * to retry acquiring slot zrl locks due to contention.
+	 */
+	kstat_named_t dnode_hold_free_lock_retry;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_FREE) requested
+	 * a range of dnode slots which were held by another thread.
+	 */
+	kstat_named_t dnode_hold_free_refcount;
+	/*
+	 * Number of times dnode_hold(..., DNODE_MUST_BE_FREE) requested
+	 * a range of dnode slots which would overflow the dnode_phys_t.
+	 */
+	kstat_named_t dnode_hold_free_overflow;
+	/*
+	 * Number of times a dnode_hold(...) was attempted on a dnode
+	 * which had already been unlinked in an earlier txg.
+	 */
+	kstat_named_t dnode_hold_free_txg;
+	/*
+	 * Number of new dnodes allocated by dnode_allocate().
+	 */
+	kstat_named_t dnode_allocate;
+	/*
+	 * Number of dnodes re-allocated by dnode_reallocate().
+	 */
+	kstat_named_t dnode_reallocate;
+	/*
+	 * Number of meta dnode dbufs evicted.
+	 */
+	kstat_named_t dnode_buf_evict;
+	/*
+	 * Number of times dmu_object_alloc*() reached the end of the existing
+	 * object ID chunk and advanced to a new one.
+	 */
+	kstat_named_t dnode_alloc_next_chunk;
+	/*
+	 * Number of times multiple threads attempted to allocate a dnode
+	 * from the same block of free dnodes.
+	 */
+	kstat_named_t dnode_alloc_race;
+	/*
+	 * Number of times dmu_object_alloc*() was forced to advance to the
+	 * next meta dnode dbuf due to an error from  dmu_object_next().
+	 */
+	kstat_named_t dnode_alloc_next_block;
+	/*
+	 * Statistics for tracking dnodes which have been moved.
+	 */
+	kstat_named_t dnode_move_invalid;
+	kstat_named_t dnode_move_recheck1;
+	kstat_named_t dnode_move_recheck2;
+	kstat_named_t dnode_move_special;
+	kstat_named_t dnode_move_handle;
+	kstat_named_t dnode_move_rwlock;
+	kstat_named_t dnode_move_active;
+} dnode_stats_t;
+
+extern dnode_stats_t dnode_stats;
+
+#define	DNODE_STAT_INCR(stat, val) \
+    atomic_add_64(&dnode_stats.stat.value.ui64, (val));
+#define	DNODE_STAT_BUMP(stat) \
+    DNODE_STAT_INCR(stat, 1);
+
 #ifdef ZFS_DEBUG
 
 /*
diff --git a/module/zfs/dbuf_stats.c b/module/zfs/dbuf_stats.c
index ae8ba8682..1712c9c10 100644
--- a/module/zfs/dbuf_stats.c
+++ b/module/zfs/dbuf_stats.c
@@ -72,8 +72,7 @@ __dbuf_stats_hash_table_data(char *buf, size_t size, dmu_buf_impl_t *db)
 	if (db->db_buf)
 		arc_buf_info(db->db_buf, &abi, zfs_dbuf_state_index);
 
-	if (dn)
-		__dmu_object_info_from_dnode(dn, &doi);
+	__dmu_object_info_from_dnode(dn, &doi);
 
 	nwritten = snprintf(buf, size,
 	    "%-16s %-8llu %-8lld %-8lld %-8lld %-8llu %-8llu %-5d %-5d %-5lu | "
diff --git a/module/zfs/dmu_object.c b/module/zfs/dmu_object.c
index 14264ec30..e7412b750 100644
--- a/module/zfs/dmu_object.c
+++ b/module/zfs/dmu_object.c
@@ -93,7 +93,10 @@ dmu_object_alloc_dnsize(objset_t *os, dmu_object_type_t ot, int blocksize,
 		 * If we finished a chunk of dnodes, get a new one from
 		 * the global allocator.
 		 */
-		if (P2PHASE(object, dnodes_per_chunk) == 0) {
+		if ((P2PHASE(object, dnodes_per_chunk) == 0) ||
+		    (P2PHASE(object + dn_slots - 1, dnodes_per_chunk) <
+		    dn_slots)) {
+			DNODE_STAT_BUMP(dnode_alloc_next_chunk);
 			mutex_enter(&os->os_obj_lock);
 			ASSERT0(P2PHASE(os->os_obj_next_chunk,
 			    dnodes_per_chunk));
@@ -157,6 +160,13 @@ dmu_object_alloc_dnsize(objset_t *os, dmu_object_type_t ot, int blocksize,
 			mutex_exit(&os->os_obj_lock);
 		}
 
+		/*
+		 * The value of (*cpuobj) before adding dn_slots is the object
+		 * ID assigned to us.  The value afterwards is the object ID
+		 * assigned to whoever wants to do an allocation next.
+		 */
+		object = atomic_add_64_nv(cpuobj, dn_slots) - dn_slots;
+
 		/*
 		 * XXX We should check for an i/o error here and return
 		 * up to our caller.  Actually we should pre-read it in
@@ -177,21 +187,20 @@ dmu_object_alloc_dnsize(objset_t *os, dmu_object_type_t ot, int blocksize,
 				rw_exit(&dn->dn_struct_rwlock);
 				dmu_tx_add_new_object(tx, dn);
 				dnode_rele(dn, FTAG);
-
-				(void) atomic_swap_64(cpuobj,
-				    object + dn_slots);
 				return (object);
 			}
 			rw_exit(&dn->dn_struct_rwlock);
 			dnode_rele(dn, FTAG);
+			DNODE_STAT_BUMP(dnode_alloc_race);
 		}
 
+		/*
+		 * Skip to next known valid starting point on error.  This
+		 * is the start of the next block of dnodes.
+		 */
 		if (dmu_object_next(os, &object, B_TRUE, 0) != 0) {
-			/*
-			 * Skip to next known valid starting point for a
-			 * dnode.
-			 */
 			object = P2ROUNDUP(object + 1, DNODES_PER_BLOCK);
+			DNODE_STAT_BUMP(dnode_alloc_next_block);
 		}
 		(void) atomic_swap_64(cpuobj, object);
 	}
@@ -304,24 +313,37 @@ dmu_object_next(objset_t *os, uint64_t *objectp, boolean_t hole, uint64_t txg)
 	if (*objectp == 0) {
 		start_obj = 1;
 	} else if (ds && ds->ds_feature_inuse[SPA_FEATURE_LARGE_DNODE]) {
+		uint64_t i = *objectp + 1;
+		uint64_t last_obj = *objectp | (DNODES_PER_BLOCK - 1);
+		dmu_object_info_t doi;
+
 		/*
-		 * For large_dnode datasets, scan from the beginning of the
-		 * dnode block to find the starting offset. This is needed
-		 * because objectp could be part of a large dnode so we can't
-		 * assume it's a hole even if dmu_object_info() returns ENOENT.
+		 * Scan through the remaining meta dnode block.  The contents
+		 * of each slot in the block are known so it can be quickly
+		 * checked.  If the block is exhausted without a match then
+		 * hand off to dnode_next_offset() for further scanning.
 		 */
-		int epb = DNODE_BLOCK_SIZE >> DNODE_SHIFT;
-		int skip;
-		uint64_t i;
-
-		for (i = *objectp & ~(epb - 1); i <= *objectp; i += skip) {
-			dmu_object_info_t doi;
-
+		while (i <= last_obj) {
 			error = dmu_object_info(os, i, &doi);
-			if (error)
-				skip = 1;
-			else
-				skip = doi.doi_dnodesize >> DNODE_SHIFT;
+			if (error == ENOENT) {
+				if (hole) {
+					*objectp = i;
+					return (0);
+				} else {
+					i++;
+				}
+			} else if (error == EEXIST) {
+				i++;
+			} else if (error == 0) {
+				if (hole) {
+					i += doi.doi_dnodesize >> DNODE_SHIFT;
+				} else {
+					*objectp = i;
+					return (0);
+				}
+			} else {
+				return (error);
+			}
 		}
 
 		start_obj = i;
diff --git a/module/zfs/dnode.c b/module/zfs/dnode.c
index 614b5785a..e05a4d0a5 100644
--- a/module/zfs/dnode.c
+++ b/module/zfs/dnode.c
@@ -39,20 +39,39 @@
 #include <sys/range_tree.h>
 #include <sys/trace_dnode.h>
 
-static kmem_cache_t *dnode_cache;
-/*
- * Define DNODE_STATS to turn on statistic gathering. By default, it is only
- * turned on when DEBUG is also defined.
- */
-#ifdef	DEBUG
-#define	DNODE_STATS
-#endif	/* DEBUG */
+dnode_stats_t dnode_stats = {
+	{ "dnode_hold_dbuf_hold",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_dbuf_read",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_alloc_hits",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_alloc_misses",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_alloc_interior",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_alloc_lock_retry",	KSTAT_DATA_UINT64 },
+	{ "dnode_hold_alloc_lock_misses",	KSTAT_DATA_UINT64 },
+	{ "dnode_hold_alloc_type_none",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_free_hits",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_free_misses",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_free_lock_misses",	KSTAT_DATA_UINT64 },
+	{ "dnode_hold_free_lock_retry",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_free_overflow",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_free_refcount",		KSTAT_DATA_UINT64 },
+	{ "dnode_hold_free_txg",		KSTAT_DATA_UINT64 },
+	{ "dnode_allocate",			KSTAT_DATA_UINT64 },
+	{ "dnode_reallocate",			KSTAT_DATA_UINT64 },
+	{ "dnode_buf_evict",			KSTAT_DATA_UINT64 },
+	{ "dnode_alloc_next_chunk",		KSTAT_DATA_UINT64 },
+	{ "dnode_alloc_race",			KSTAT_DATA_UINT64 },
+	{ "dnode_alloc_next_block",		KSTAT_DATA_UINT64 },
+	{ "dnode_move_invalid",			KSTAT_DATA_UINT64 },
+	{ "dnode_move_recheck1",		KSTAT_DATA_UINT64 },
+	{ "dnode_move_recheck2",		KSTAT_DATA_UINT64 },
+	{ "dnode_move_special",			KSTAT_DATA_UINT64 },
+	{ "dnode_move_handle",			KSTAT_DATA_UINT64 },
+	{ "dnode_move_rwlock",			KSTAT_DATA_UINT64 },
+	{ "dnode_move_active",			KSTAT_DATA_UINT64 },
+};
 
-#ifdef	DNODE_STATS
-#define	DNODE_STAT_ADD(stat)			((stat)++)
-#else
-#define	DNODE_STAT_ADD(stat)			/* nothing */
-#endif	/* DNODE_STATS */
+static kstat_t *dnode_ksp;
+static kmem_cache_t *dnode_cache;
 
 ASSERTV(static dnode_phys_t dnode_phys_zero);
 
@@ -203,11 +222,24 @@ dnode_init(void)
 	dnode_cache = kmem_cache_create("dnode_t", sizeof (dnode_t),
 	    0, dnode_cons, dnode_dest, NULL, NULL, NULL, 0);
 	kmem_cache_set_move(dnode_cache, dnode_move);
+
+	dnode_ksp = kstat_create("zfs", 0, "dnodestats", "misc",
+	    KSTAT_TYPE_NAMED, sizeof (dnode_stats) / sizeof (kstat_named_t),
+	    KSTAT_FLAG_VIRTUAL);
+	if (dnode_ksp != NULL) {
+		dnode_ksp->ks_data = &dnode_stats;
+		kstat_install(dnode_ksp);
+	}
 }
 
 void
 dnode_fini(void)
 {
+	if (dnode_ksp != NULL) {
+		kstat_delete(dnode_ksp);
+		dnode_ksp = NULL;
+	}
+
 	kmem_cache_destroy(dnode_cache);
 	dnode_cache = NULL;
 }
@@ -391,7 +423,7 @@ dnode_setdblksz(dnode_t *dn, int size)
 }
 
 static dnode_t *
-dnode_create(objset_t *os, dnode_phys_t *dnp, int slots, dmu_buf_impl_t *db,
+dnode_create(objset_t *os, dnode_phys_t *dnp, dmu_buf_impl_t *db,
     uint64_t object, dnode_handle_t *dnh)
 {
 	dnode_t *dn;
@@ -424,26 +456,18 @@ dnode_create(objset_t *os, dnode_phys_t *dnp, int slots, dmu_buf_impl_t *db,
 	dn->dn_compress = dnp->dn_compress;
 	dn->dn_bonustype = dnp->dn_bonustype;
 	dn->dn_bonuslen = dnp->dn_bonuslen;
+	dn->dn_num_slots = dnp->dn_extra_slots + 1;
 	dn->dn_maxblkid = dnp->dn_maxblkid;
 	dn->dn_have_spill = ((dnp->dn_flags & DNODE_FLAG_SPILL_BLKPTR) != 0);
 	dn->dn_id_flags = 0;
 
-	if (slots && dn->dn_type == DMU_OT_NONE)
-		dn->dn_num_slots = slots;
-	else
-		dn->dn_num_slots = dnp->dn_extra_slots + 1;
-
 	dmu_zfetch_init(&dn->dn_zfetch, dn);
 
 	ASSERT(DMU_OT_IS_VALID(dn->dn_phys->dn_type));
+	ASSERT(zrl_is_locked(&dnh->dnh_zrlock));
+	ASSERT(!DN_SLOT_IS_PTR(dnh->dnh_dnode));
 
 	mutex_enter(&os->os_lock);
-	if (dnh->dnh_dnode != NULL) {
-		/* Lost the allocation race. */
-		mutex_exit(&os->os_lock);
-		kmem_cache_free(dnode_cache, dn);
-		return (dnh->dnh_dnode);
-	}
 
 	/*
 	 * Exclude special dnodes from os_dnodes so an empty os_dnodes
@@ -466,6 +490,7 @@ dnode_create(objset_t *os, dnode_phys_t *dnp, int slots, dmu_buf_impl_t *db,
 	mutex_exit(&os->os_lock);
 
 	arc_space_consume(sizeof (dnode_t), ARC_SPACE_DNODE);
+
 	return (dn);
 }
 
@@ -549,6 +574,7 @@ dnode_allocate(dnode_t *dn, dmu_object_type_t ot, int blocksize, int ibs,
 
 	dprintf("os=%p obj=%llu txg=%llu blocksize=%d ibs=%d dn_slots=%d\n",
 	    dn->dn_objset, dn->dn_object, tx->tx_txg, blocksize, ibs, dn_slots);
+	DNODE_STAT_BUMP(dnode_allocate);
 
 	ASSERT(dn->dn_type == DMU_OT_NONE);
 	ASSERT(bcmp(dn->dn_phys, &dnode_phys_zero, sizeof (dnode_phys_t)) == 0);
@@ -636,6 +662,7 @@ dnode_reallocate(dnode_t *dn, dmu_object_type_t ot, int blocksize,
 	    DN_BONUS_SIZE(spa_maxdnodesize(dmu_objset_spa(dn->dn_objset))));
 
 	dn_slots = dn_slots > 0 ? dn_slots : DNODE_MIN_SLOTS;
+	DNODE_STAT_BUMP(dnode_reallocate);
 
 	/* clean up any unreferenced dbufs */
 	dnode_evict_dbufs(dn);
@@ -697,18 +724,6 @@ dnode_reallocate(dnode_t *dn, dmu_object_type_t ot, int blocksize,
 }
 
 #ifdef	_KERNEL
-#ifdef	DNODE_STATS
-static struct {
-	uint64_t dms_dnode_invalid;
-	uint64_t dms_dnode_recheck1;
-	uint64_t dms_dnode_recheck2;
-	uint64_t dms_dnode_special;
-	uint64_t dms_dnode_handle;
-	uint64_t dms_dnode_rwlock;
-	uint64_t dms_dnode_active;
-} dnode_move_stats;
-#endif	/* DNODE_STATS */
-
 static void
 dnode_move_impl(dnode_t *odn, dnode_t *ndn)
 {
@@ -866,7 +881,7 @@ dnode_move(void *buf, void *newbuf, size_t size, void *arg)
 	 */
 	os = odn->dn_objset;
 	if (!POINTER_IS_VALID(os)) {
-		DNODE_STAT_ADD(dnode_move_stats.dms_dnode_invalid);
+		DNODE_STAT_BUMP(dnode_move_invalid);
 		return (KMEM_CBRC_DONT_KNOW);
 	}
 
@@ -876,7 +891,7 @@ dnode_move(void *buf, void *newbuf, size_t size, void *arg)
 	rw_enter(&os_lock, RW_WRITER);
 	if (os != odn->dn_objset) {
 		rw_exit(&os_lock);
-		DNODE_STAT_ADD(dnode_move_stats.dms_dnode_recheck1);
+		DNODE_STAT_BUMP(dnode_move_recheck1);
 		return (KMEM_CBRC_DONT_KNOW);
 	}
 
@@ -894,7 +909,7 @@ dnode_move(void *buf, void *newbuf, size_t size, void *arg)
 	if (os != odn->dn_objset) {
 		mutex_exit(&os->os_lock);
 		rw_exit(&os_lock);
-		DNODE_STAT_ADD(dnode_move_stats.dms_dnode_recheck2);
+		DNODE_STAT_BUMP(dnode_move_recheck2);
 		return (KMEM_CBRC_DONT_KNOW);
 	}
 
@@ -907,7 +922,7 @@ dnode_move(void *buf, void *newbuf, size_t size, void *arg)
 	rw_exit(&os_lock);
 	if (DMU_OBJECT_IS_SPECIAL(odn->dn_object)) {
 		mutex_exit(&os->os_lock);
-		DNODE_STAT_ADD(dnode_move_stats.dms_dnode_special);
+		DNODE_STAT_BUMP(dnode_move_special);
 		return (KMEM_CBRC_NO);
 	}
 	ASSERT(odn->dn_dbuf != NULL); /* only "special" dnodes have no parent */
@@ -922,7 +937,7 @@ dnode_move(void *buf, void *newbuf, size_t size, void *arg)
 	 */
 	if (!zrl_tryenter(&odn->dn_handle->dnh_zrlock)) {
 		mutex_exit(&os->os_lock);
-		DNODE_STAT_ADD(dnode_move_stats.dms_dnode_handle);
+		DNODE_STAT_BUMP(dnode_move_handle);
 		return (KMEM_CBRC_LATER);
 	}
 
@@ -938,7 +953,7 @@ dnode_move(void *buf, void *newbuf, size_t size, void *arg)
 	if (!rw_tryenter(&odn->dn_struct_rwlock, RW_WRITER)) {
 		zrl_exit(&odn->dn_handle->dnh_zrlock);
 		mutex_exit(&os->os_lock);
-		DNODE_STAT_ADD(dnode_move_stats.dms_dnode_rwlock);
+		DNODE_STAT_BUMP(dnode_move_rwlock);
 		return (KMEM_CBRC_LATER);
 	}
 
@@ -964,7 +979,7 @@ dnode_move(void *buf, void *newbuf, size_t size, void *arg)
 		rw_exit(&odn->dn_struct_rwlock);
 		zrl_exit(&odn->dn_handle->dnh_zrlock);
 		mutex_exit(&os->os_lock);
-		DNODE_STAT_ADD(dnode_move_stats.dms_dnode_active);
+		DNODE_STAT_BUMP(dnode_move_active);
 		return (KMEM_CBRC_LATER);
 	}
 
@@ -988,6 +1003,78 @@ dnode_move(void *buf, void *newbuf, size_t size, void *arg)
 }
 #endif	/* _KERNEL */
 
+static void
+dnode_slots_hold(dnode_children_t *children, int idx, int slots)
+{
+	ASSERT3S(idx + slots, <=, DNODES_PER_BLOCK);
+
+	for (int i = idx; i < idx + slots; i++) {
+		dnode_handle_t *dnh = &children->dnc_children[i];
+		zrl_add(&dnh->dnh_zrlock);
+	}
+}
+
+static void
+dnode_slots_rele(dnode_children_t *children, int idx, int slots)
+{
+	ASSERT3S(idx + slots, <=, DNODES_PER_BLOCK);
+
+	for (int i = idx; i < idx + slots; i++) {
+		dnode_handle_t *dnh = &children->dnc_children[i];
+
+		if (zrl_is_locked(&dnh->dnh_zrlock))
+			zrl_exit(&dnh->dnh_zrlock);
+		else
+			zrl_remove(&dnh->dnh_zrlock);
+	}
+}
+
+static int
+dnode_slots_tryenter(dnode_children_t *children, int idx, int slots)
+{
+	ASSERT3S(idx + slots, <=, DNODES_PER_BLOCK);
+
+	for (int i = idx; i < idx + slots; i++) {
+		dnode_handle_t *dnh = &children->dnc_children[i];
+
+		if (!zrl_tryenter(&dnh->dnh_zrlock)) {
+			for (int j = idx; j < i; j++) {
+				dnh = &children->dnc_children[j];
+				zrl_exit(&dnh->dnh_zrlock);
+			}
+
+			return (0);
+		}
+	}
+
+	return (1);
+}
+
+static void
+dnode_set_slots(dnode_children_t *children, int idx, int slots, void *ptr)
+{
+	ASSERT3S(idx + slots, <=, DNODES_PER_BLOCK);
+
+	for (int i = idx; i < idx + slots; i++) {
+		dnode_handle_t *dnh = &children->dnc_children[i];
+		dnh->dnh_dnode = ptr;
+	}
+}
+
+static boolean_t
+dnode_check_slots(dnode_children_t *children, int idx, int slots, void *ptr)
+{
+	ASSERT3S(idx + slots, <=, DNODES_PER_BLOCK);
+
+	for (int i = idx; i < idx + slots; i++) {
+		dnode_handle_t *dnh = &children->dnc_children[i];
+		if (dnh->dnh_dnode != ptr)
+			return (B_FALSE);
+	}
+
+	return (B_TRUE);
+}
+
 void
 dnode_special_close(dnode_handle_t *dnh)
 {
@@ -995,7 +1082,7 @@ dnode_special_close(dnode_handle_t *dnh)
 
 	/*
 	 * Wait for final references to the dnode to clear.  This can
-	 * only happen if the arc is asyncronously evicting state that
+	 * only happen if the arc is asynchronously evicting state that
 	 * has a hold on this dnode while we are trying to evict this
 	 * dnode.
 	 */
@@ -1015,19 +1102,24 @@ dnode_special_open(objset_t *os, dnode_phys_t *dnp, uint64_t object,
 {
 	dnode_t *dn;
 
-	dn = dnode_create(os, dnp, 0, NULL, object, dnh);
 	zrl_init(&dnh->dnh_zrlock);
+	zrl_tryenter(&dnh->dnh_zrlock);
+
+	dn = dnode_create(os, dnp, NULL, object, dnh);
 	DNODE_VERIFY(dn);
+
+	zrl_exit(&dnh->dnh_zrlock);
 }
 
 static void
 dnode_buf_evict_async(void *dbu)
 {
-	dnode_children_t *children_dnodes = dbu;
-	int i;
+	dnode_children_t *dnc = dbu;
 
-	for (i = 0; i < children_dnodes->dnc_count; i++) {
-		dnode_handle_t *dnh = &children_dnodes->dnc_children[i];
+	DNODE_STAT_BUMP(dnode_buf_evict);
+
+	for (int i = 0; i < dnc->dnc_count; i++) {
+		dnode_handle_t *dnh = &dnc->dnc_children[i];
 		dnode_t *dn;
 
 		/*
@@ -1035,8 +1127,9 @@ dnode_buf_evict_async(void *dbu)
 		 * another valid address, so there is no need here to guard
 		 * against changes to or from NULL.
 		 */
-		if (dnh->dnh_dnode == NULL) {
+		if (!DN_SLOT_IS_PTR(dnh->dnh_dnode)) {
 			zrl_destroy(&dnh->dnh_zrlock);
+			dnh->dnh_dnode = DN_SLOT_UNINIT;
 			continue;
 		}
 
@@ -1051,150 +1144,37 @@ dnode_buf_evict_async(void *dbu)
 		ASSERT(refcount_is_zero(&dn->dn_holds));
 		ASSERT(refcount_is_zero(&dn->dn_tx_holds));
 
-		dnode_destroy(dn); /* implicit zrl_remove() */
+		dnode_destroy(dn); /* implicit zrl_remove() for first slot */
 		zrl_destroy(&dnh->dnh_zrlock);
-		dnh->dnh_dnode = NULL;
-	}
-	kmem_free(children_dnodes, sizeof (dnode_children_t) +
-	    children_dnodes->dnc_count * sizeof (dnode_handle_t));
-}
-
-/*
- * Return true if the given index is interior to a dnode already
- * allocated in the block. That is, the index is neither free nor
- * allocated, but is consumed by a large dnode.
- *
- * The dnode_phys_t buffer may not be in sync with the in-core dnode
- * structure, so we try to check the dnode structure first and fall back
- * to the dnode_phys_t buffer it doesn't exist.  When an in-code dnode
- * exists we can always trust dn->dn_num_slots to be accurate, even for
- * a held dnode which has not yet been fully allocated.
- */
-static boolean_t
-dnode_is_consumed(dnode_children_t *children, dnode_phys_t *dn_block, int idx)
-{
-	int skip, i;
-
-	for (i = 0; i < idx; i += skip) {
-		dnode_handle_t *dnh = &children->dnc_children[i];
-
-		if (dnh->dnh_dnode != NULL) {
-			skip = dnh->dnh_dnode->dn_num_slots;
-		} else {
-			if (dn_block[i].dn_type != DMU_OT_NONE)
-				skip = dn_block[i].dn_extra_slots + 1;
-			else
-				skip = 1;
-		}
-	}
-
-	return (i > idx);
-}
-
-/*
- * Return true if the given index in the dnode block is a valid
- * allocated dnode. That is, the index is not consumed by a large
- * dnode and is not free.
- *
- * The dnode_phys_t buffer may not be in sync with the in-core dnode
- * structure, so we try to check the dnode structure first and fall back
- * to the dnode_phys_t buffer it doesn't exist.
- */
-static boolean_t
-dnode_is_allocated(dnode_children_t *children, dnode_phys_t *dn_block, int idx)
-{
-	dnode_handle_t *dnh;
-	dmu_object_type_t ot;
-
-	if (dnode_is_consumed(children, dn_block, idx))
-		return (B_FALSE);
-
-	dnh = &children->dnc_children[idx];
-	if (dnh->dnh_dnode != NULL)
-		ot = dnh->dnh_dnode->dn_type;
-	else
-		ot = dn_block[idx].dn_type;
-
-	return (ot != DMU_OT_NONE);
-}
-
-/*
- * Return true if the given range of indices in the dnode block are
- * free. That is, the starting index is not consumed by a large dnode
- * and none of the indices are allocated.
- *
- * The dnode_phys_t buffer may not be in sync with the in-core dnode
- * structure, so we try to check the dnode structure first and fall back
- * to the dnode_phys_t buffer it doesn't exist.
- */
-static boolean_t
-dnode_is_free(dnode_children_t *children, dnode_phys_t *dn_block, int idx,
-    int slots)
-{
-	if (idx + slots > DNODES_PER_BLOCK)
-		return (B_FALSE);
-
-	if (dnode_is_consumed(children, dn_block, idx))
-		return (B_FALSE);
-
-	for (int i = idx; i < idx + slots; i++) {
-		dnode_handle_t *dnh = &children->dnc_children[i];
-		dmu_object_type_t ot;
-
-		if (dnh->dnh_dnode != NULL) {
-			if (dnh->dnh_dnode->dn_num_slots > 1)
-				return (B_FALSE);
-
-			ot = dnh->dnh_dnode->dn_type;
-		} else {
-			ot = dn_block[i].dn_type;
-		}
-
-		if (ot != DMU_OT_NONE)
-			return (B_FALSE);
-	}
-
-	return (B_TRUE);
-}
-
-static void
-dnode_hold_slots(dnode_children_t *children, int idx, int slots)
-{
-	for (int i = idx; i < MIN(idx + slots, DNODES_PER_BLOCK); i++) {
-		dnode_handle_t *dnh = &children->dnc_children[i];
-		zrl_add(&dnh->dnh_zrlock);
-	}
-}
-
-static void
-dnode_rele_slots(dnode_children_t *children, int idx, int slots)
-{
-	for (int i = idx; i < MIN(idx + slots, DNODES_PER_BLOCK); i++) {
-		dnode_handle_t *dnh = &children->dnc_children[i];
-		zrl_remove(&dnh->dnh_zrlock);
+		dnh->dnh_dnode = DN_SLOT_UNINIT;
 	}
+	kmem_free(dnc, sizeof (dnode_children_t) +
+	    dnc->dnc_count * sizeof (dnode_handle_t));
 }
 
 /*
  * errors:
- * EINVAL - invalid object number.
- * ENOSPC - hole too small to fulfill "slots" request
- * ENOENT - the requested dnode is not allocated
- * EIO - i/o error.
+ * EINVAL - Invalid object number or flags.
+ * ENOSPC - Hole too small to fulfill "slots" request (DNODE_MUST_BE_FREE)
+ * EEXIST - Refers to an allocated dnode (DNODE_MUST_BE_FREE)
+ *        - Refers to an interior dnode slot (DNODE_MUST_BE_ALLOCATED)
+ * ENOENT - The requested dnode is not allocated (DNODE_MUST_BE_ALLOCATED)
+ * EIO    - I/O error when reading the meta dnode dbuf.
+ *
  * succeeds even for free dnodes.
  */
 int
 dnode_hold_impl(objset_t *os, uint64_t object, int flag, int slots,
     void *tag, dnode_t **dnp)
 {
-	int epb, idx, err, i;
+	int epb, idx, err;
 	int drop_struct_lock = FALSE;
 	int type;
 	uint64_t blk;
 	dnode_t *mdn, *dn;
 	dmu_buf_impl_t *db;
-	dnode_children_t *children_dnodes;
-	dnode_phys_t *dn_block_begin;
+	dnode_children_t *dnc;
+	dnode_phys_t *dn_block;
 	dnode_handle_t *dnh;
 
 	ASSERT(!(flag & DNODE_MUST_BE_ALLOCATED) || (slots == 0));
@@ -1244,10 +1224,13 @@ dnode_hold_impl(objset_t *os, uint64_t object, int flag, int slots,
 	db = dbuf_hold(mdn, blk, FTAG);
 	if (drop_struct_lock)
 		rw_exit(&mdn->dn_struct_rwlock);
-	if (db == NULL)
+	if (db == NULL) {
+		DNODE_STAT_BUMP(dnode_hold_dbuf_hold);
 		return (SET_ERROR(EIO));
+	}
 	err = dbuf_read(db, NULL, DB_RF_CANFAIL);
 	if (err) {
+		DNODE_STAT_BUMP(dnode_hold_dbuf_read);
 		dbuf_rele(db, FTAG);
 		return (err);
 	}
@@ -1255,72 +1238,179 @@ dnode_hold_impl(objset_t *os, uint64_t object, int flag, int slots,
 	ASSERT3U(db->db.db_size, >=, 1<<DNODE_SHIFT);
 	epb = db->db.db_size >> DNODE_SHIFT;
 
-	ASSERT(DB_DNODE(db)->dn_type == DMU_OT_DNODE);
-	children_dnodes = dmu_buf_get_user(&db->db);
-	if (children_dnodes == NULL) {
-		dnode_children_t *winner;
-		children_dnodes = kmem_zalloc(sizeof (dnode_children_t) +
-		    epb * sizeof (dnode_handle_t), KM_SLEEP);
-		children_dnodes->dnc_count = epb;
-		dnh = &children_dnodes->dnc_children[0];
-		for (i = 0; i < epb; i++) {
-			zrl_init(&dnh[i].dnh_zrlock);
-		}
-		dmu_buf_init_user(&children_dnodes->dnc_dbu, NULL,
-		    dnode_buf_evict_async, NULL);
-		winner = dmu_buf_set_user(&db->db, &children_dnodes->dnc_dbu);
-		if (winner != NULL) {
+	idx = object & (epb - 1);
+	dn_block = (dnode_phys_t *)db->db.db_data;
 
-			for (i = 0; i < epb; i++) {
-				zrl_destroy(&dnh[i].dnh_zrlock);
+	ASSERT(DB_DNODE(db)->dn_type == DMU_OT_DNODE);
+	dnc = dmu_buf_get_user(&db->db);
+	dnh = NULL;
+	if (dnc == NULL) {
+		dnode_children_t *winner;
+		int skip = 0;
+
+		dnc = kmem_zalloc(sizeof (dnode_children_t) +
+		    epb * sizeof (dnode_handle_t), KM_SLEEP);
+		dnc->dnc_count = epb;
+		dnh = &dnc->dnc_children[0];
+
+		/* Initialize dnode slot status from dnode_phys_t */
+		for (int i = 0; i < epb; i++) {
+			zrl_init(&dnh[i].dnh_zrlock);
+
+			if (skip) {
+				skip--;
+				continue;
 			}
 
-			kmem_free(children_dnodes, sizeof (dnode_children_t) +
+			if (dn_block[i].dn_type != DMU_OT_NONE) {
+				int interior = dn_block[i].dn_extra_slots;
+
+				dnode_set_slots(dnc, i, 1, DN_SLOT_ALLOCATED);
+				dnode_set_slots(dnc, i + 1, interior,
+				    DN_SLOT_INTERIOR);
+				skip = interior;
+			} else {
+				dnh[i].dnh_dnode = DN_SLOT_FREE;
+				skip = 0;
+			}
+		}
+
+		dmu_buf_init_user(&dnc->dnc_dbu, NULL,
+		    dnode_buf_evict_async, NULL);
+		winner = dmu_buf_set_user(&db->db, &dnc->dnc_dbu);
+		if (winner != NULL) {
+
+			for (int i = 0; i < epb; i++)
+				zrl_destroy(&dnh[i].dnh_zrlock);
+
+			kmem_free(dnc, sizeof (dnode_children_t) +
 			    epb * sizeof (dnode_handle_t));
-			children_dnodes = winner;
+			dnc = winner;
 		}
 	}
-	ASSERT(children_dnodes->dnc_count == epb);
 
-	idx = object & (epb - 1);
-	dn_block_begin = (dnode_phys_t *)db->db.db_data;
+	ASSERT(dnc->dnc_count == epb);
+	dn = DN_SLOT_UNINIT;
 
-	dnode_hold_slots(children_dnodes, idx, slots);
+	if (flag & DNODE_MUST_BE_ALLOCATED) {
+		slots = 1;
 
-	if ((flag & DNODE_MUST_BE_FREE) &&
-	    !dnode_is_free(children_dnodes, dn_block_begin, idx, slots)) {
-		dnode_rele_slots(children_dnodes, idx, slots);
+		while (dn == DN_SLOT_UNINIT) {
+			dnode_slots_hold(dnc, idx, slots);
+			dnh = &dnc->dnc_children[idx];
+
+			if (DN_SLOT_IS_PTR(dnh->dnh_dnode)) {
+				dn = dnh->dnh_dnode;
+				break;
+			} else if (dnh->dnh_dnode == DN_SLOT_INTERIOR) {
+				DNODE_STAT_BUMP(dnode_hold_alloc_interior);
+				dnode_slots_rele(dnc, idx, slots);
+				dbuf_rele(db, FTAG);
+				return (SET_ERROR(EEXIST));
+			} else if (dnh->dnh_dnode != DN_SLOT_ALLOCATED) {
+				DNODE_STAT_BUMP(dnode_hold_alloc_misses);
+				dnode_slots_rele(dnc, idx, slots);
+				dbuf_rele(db, FTAG);
+				return (SET_ERROR(ENOENT));
+			}
+
+			dnode_slots_rele(dnc, idx, slots);
+			if (!dnode_slots_tryenter(dnc, idx, slots)) {
+				DNODE_STAT_BUMP(dnode_hold_alloc_lock_retry);
+				continue;
+			}
+
+			/*
+			 * Someone else won the race and called dnode_create()
+			 * after we checked DN_SLOT_IS_PTR() above but before
+			 * we acquired the lock.
+			 */
+			if (DN_SLOT_IS_PTR(dnh->dnh_dnode)) {
+				DNODE_STAT_BUMP(dnode_hold_alloc_lock_misses);
+				dn = dnh->dnh_dnode;
+			} else {
+				dn = dnode_create(os, dn_block + idx, db,
+				    object, dnh);
+			}
+		}
+
+		mutex_enter(&dn->dn_mtx);
+		if (dn->dn_type == DMU_OT_NONE) {
+			DNODE_STAT_BUMP(dnode_hold_alloc_type_none);
+			mutex_exit(&dn->dn_mtx);
+			dnode_slots_rele(dnc, idx, slots);
+			dbuf_rele(db, FTAG);
+			return (SET_ERROR(ENOENT));
+		}
+
+		DNODE_STAT_BUMP(dnode_hold_alloc_hits);
+	} else if (flag & DNODE_MUST_BE_FREE) {
+
+		if (idx + slots - 1 >= DNODES_PER_BLOCK) {
+			DNODE_STAT_BUMP(dnode_hold_free_overflow);
+			dbuf_rele(db, FTAG);
+			return (SET_ERROR(ENOSPC));
+		}
+
+		while (dn == DN_SLOT_UNINIT) {
+			dnode_slots_hold(dnc, idx, slots);
+
+			if (!dnode_check_slots(dnc, idx, slots, DN_SLOT_FREE)) {
+				DNODE_STAT_BUMP(dnode_hold_free_misses);
+				dnode_slots_rele(dnc, idx, slots);
+				dbuf_rele(db, FTAG);
+				return (SET_ERROR(ENOSPC));
+			}
+
+			dnode_slots_rele(dnc, idx, slots);
+			if (!dnode_slots_tryenter(dnc, idx, slots)) {
+				DNODE_STAT_BUMP(dnode_hold_free_lock_retry);
+				continue;
+			}
+
+			if (!dnode_check_slots(dnc, idx, slots, DN_SLOT_FREE)) {
+				DNODE_STAT_BUMP(dnode_hold_free_lock_misses);
+				dnode_slots_rele(dnc, idx, slots);
+				dbuf_rele(db, FTAG);
+				return (SET_ERROR(ENOSPC));
+			}
+
+			dnh = &dnc->dnc_children[idx];
+			dn = dnode_create(os, dn_block + idx, db, object, dnh);
+		}
+
+		mutex_enter(&dn->dn_mtx);
+		if (!refcount_is_zero(&dn->dn_holds)) {
+			DNODE_STAT_BUMP(dnode_hold_free_refcount);
+			mutex_exit(&dn->dn_mtx);
+			dnode_slots_rele(dnc, idx, slots);
+			dbuf_rele(db, FTAG);
+			return (SET_ERROR(EEXIST));
+		}
+
+		dnode_set_slots(dnc, idx + 1, slots - 1, DN_SLOT_INTERIOR);
+		DNODE_STAT_BUMP(dnode_hold_free_hits);
+	} else {
 		dbuf_rele(db, FTAG);
-		return (ENOSPC);
-	} else if ((flag & DNODE_MUST_BE_ALLOCATED) &&
-	    !dnode_is_allocated(children_dnodes, dn_block_begin, idx)) {
-		dnode_rele_slots(children_dnodes, idx, slots);
-		dbuf_rele(db, FTAG);
-		return (ENOENT);
+		return (SET_ERROR(EINVAL));
 	}
 
-	dnh = &children_dnodes->dnc_children[idx];
-	dn = dnh->dnh_dnode;
-	if (dn == NULL)
-		dn = dnode_create(os, dn_block_begin + idx, slots, db,
-		    object, dnh);
-
-	mutex_enter(&dn->dn_mtx);
-	type = dn->dn_type;
-	if (dn->dn_free_txg ||
-	    ((flag & DNODE_MUST_BE_FREE) && !refcount_is_zero(&dn->dn_holds))) {
+	if (dn->dn_free_txg) {
+		DNODE_STAT_BUMP(dnode_hold_free_txg);
+		type = dn->dn_type;
 		mutex_exit(&dn->dn_mtx);
-		dnode_rele_slots(children_dnodes, idx, slots);
+		dnode_slots_rele(dnc, idx, slots);
 		dbuf_rele(db, FTAG);
 		return (type == DMU_OT_NONE ? ENOENT : EEXIST);
 	}
+
 	if (refcount_add(&dn->dn_holds, tag) == 1)
 		dbuf_add_ref(db, dnh);
 
 	mutex_exit(&dn->dn_mtx);
 
 	/* Now we can rely on the hold to prevent the dnode from moving. */
-	dnode_rele_slots(children_dnodes, idx, slots);
+	dnode_slots_rele(dnc, idx, slots);
 
 	DNODE_VERIFY(dn);
 	ASSERT3P(dn->dn_dbuf, ==, db);
diff --git a/tests/runfiles/linux.run b/tests/runfiles/linux.run
index 2b99f22e5..472f85dd4 100644
--- a/tests/runfiles/linux.run
+++ b/tests/runfiles/linux.run
@@ -365,7 +365,7 @@ tests = ['async_destroy_001_pos']
 [tests/functional/features/large_dnode]
 tests = ['large_dnode_001_pos', 'large_dnode_002_pos', 'large_dnode_003_pos',
          'large_dnode_004_neg', 'large_dnode_005_pos', 'large_dnode_006_pos',
-         'large_dnode_007_neg', 'large_dnode_008_pos']
+         'large_dnode_007_neg', 'large_dnode_008_pos', 'large_dnode_009_pos']
 
 [tests/functional/grow_pool]
 tests = ['grow_pool_001_pos']
diff --git a/tests/zfs-tests/tests/functional/features/large_dnode/Makefile.am b/tests/zfs-tests/tests/functional/features/large_dnode/Makefile.am
index 69ec5e18a..13ba3ab33 100644
--- a/tests/zfs-tests/tests/functional/features/large_dnode/Makefile.am
+++ b/tests/zfs-tests/tests/functional/features/large_dnode/Makefile.am
@@ -9,4 +9,5 @@ dist_pkgdata_SCRIPTS = \
 	large_dnode_005_pos.ksh \
 	large_dnode_006_pos.ksh \
 	large_dnode_007_neg.ksh \
-	large_dnode_008_pos.ksh
+	large_dnode_008_pos.ksh \
+	large_dnode_009_pos.ksh
diff --git a/tests/zfs-tests/tests/functional/features/large_dnode/large_dnode_008_pos.ksh b/tests/zfs-tests/tests/functional/features/large_dnode/large_dnode_008_pos.ksh
index 1f900b5ef..eac292cbe 100755
--- a/tests/zfs-tests/tests/functional/features/large_dnode/large_dnode_008_pos.ksh
+++ b/tests/zfs-tests/tests/functional/features/large_dnode/large_dnode_008_pos.ksh
@@ -42,6 +42,21 @@ function cleanup
 	datasetexists $TEST_FS && log_must zfs destroy $TEST_FS
 }
 
+function verify_dnode_packing
+{
+	zdb -dd $TEST_FS | grep -A 3 'Dnode slots' | awk '
+		/Total used:/ {total_used=$NF}
+		/Max used:/ {max_used=$NF}
+		/Percent empty:/ {print total_used, max_used, int($NF)}
+	' | while read total_used max_used pct_empty
+	do
+		log_note "total_used $total_used max_used $max_used pct_empty $pct_empty"
+		if [ $pct_empty -gt 5 ]; then
+			log_fail "Holes in dnode array: pct empty $pct_empty > 5"
+		fi
+	done
+}
+
 log_onexit cleanup
 log_assert "xattrtest runs concurrently on dataset with large dnodes"
 
@@ -52,9 +67,11 @@ log_must zfs set xattr=sa $TEST_FS
 for ((i=0; i < 100; i++)); do
 	dir="/$TEST_FS/dir.$i"
 	log_must mkdir "$dir"
-	log_must eval "xattrtest -R -r -y -x 1 -f 1024 -k -p $dir &"
+	log_must eval "xattrtest -R -r -y -x 1 -f 1024 -k -p $dir >/dev/null 2>&1 &"
 done
 
 log_must wait
 
+verify_dnode_packing
+
 log_pass
diff --git a/tests/zfs-tests/tests/functional/features/large_dnode/large_dnode_009_pos.ksh b/tests/zfs-tests/tests/functional/features/large_dnode/large_dnode_009_pos.ksh
new file mode 100755
index 000000000..fa746c52e
--- /dev/null
+++ b/tests/zfs-tests/tests/functional/features/large_dnode/large_dnode_009_pos.ksh
@@ -0,0 +1,71 @@
+#!/bin/ksh -p
+#
+# CDDL HEADER START
+#
+# The contents of this file are subject to the terms of the
+# Common Development and Distribution License (the "License").
+# You may not use this file except in compliance with the License.
+#
+# You can obtain a copy of the license at usr/src/OPENSOLARIS.LICENSE
+# or http://www.opensolaris.org/os/licensing.
+# See the License for the specific language governing permissions
+# and limitations under the License.
+#
+# When distributing Covered Code, include this CDDL HEADER in each
+# file and include the License file at usr/src/OPENSOLARIS.LICENSE.
+# If applicable, add the following below this CDDL HEADER, with the
+# fields enclosed by brackets "[]" replaced with your own identifying
+# information: Portions Copyright [yyyy] [name of copyright owner]
+#
+# CDDL HEADER END
+#
+
+#
+# Copyright (c) 2017 by Lawrence Livermore National Security, LLC.
+# Use is subject to license terms.
+#
+
+. $STF_SUITE/include/libtest.shlib
+
+#
+# DESCRIPTION:
+# Run many xattrtests on a dataset with large dnodes and xattr=sa to
+# stress concurrent allocation of large dnodes.
+#
+
+TEST_FS=$TESTPOOL/large_dnode
+
+verify_runnable "both"
+
+function cleanup
+{
+	datasetexists $TEST_FS && log_must zfs destroy $TEST_FS
+}
+
+log_onexit cleanup
+log_assert "xattrtest runs concurrently on dataset with large dnodes"
+
+log_must zfs create $TEST_FS
+log_must zfs set dnsize=auto $TEST_FS
+log_must zfs set xattr=sa $TEST_FS
+
+for ((i=0; i < 100; i++)); do
+	dir="/$TEST_FS/dir.$i"
+	log_must mkdir "$dir"
+
+	do_unlink=""
+	if [ $((RANDOM % 2)) -eq 0 ]; then
+		do_unlink="-k -f 1024"
+	else
+		do_unlink="-f $((RANDOM % 1024))"
+	fi
+	log_must eval "xattrtest -R -r -y -x 1 $do_unlink -p $dir >/dev/null 2>&1 &"
+done
+
+log_must wait
+
+log_must zpool export $TESTPOOL
+log_must zpool import $TESTPOOL
+log_must ls -lR "/$TEST_FS/" >/dev/null 2>&1
+log_must zdb -d $TESTPOOL
+log_pass