diff --git a/lib/libzfs/libzfs_iter.c b/lib/libzfs/libzfs_iter.c
index 3d8bc5e14..e527bdcc5 100644
--- a/lib/libzfs/libzfs_iter.c
+++ b/lib/libzfs/libzfs_iter.c
@@ -21,8 +21,8 @@
 
 /*
  * Copyright (c) 2005, 2010, Oracle and/or its affiliates. All rights reserved.
- * Copyright 2010 Nexenta Systems, Inc. All rights reserved.
  * Copyright (c) 2012 by Delphix. All rights reserved.
+ * Copyright 2013 Nexenta Systems, Inc.  All rights reserved.
  */
 
 #include <stdio.h>
@@ -449,8 +449,12 @@ iter_dependents_cb(zfs_handle_t *zhp, void *arg)
 			    iter_dependents_cb, ida);
 		ida->stack = isf.next;
 	}
+
 	if (!first && err == 0)
 		err = ida->func(zhp, ida->data);
+	else
+		zfs_close(zhp);
+
 	return (err);
 }