diff --git a/cmd/zstreamdump/zstreamdump.c b/cmd/zstreamdump/zstreamdump.c
index 4c33e0a5a..6c7150b10 100644
--- a/cmd/zstreamdump/zstreamdump.c
+++ b/cmd/zstreamdump/zstreamdump.c
@@ -614,6 +614,9 @@ main(int argc, char *argv[])
 				    BSWAP_64(drrs->drr_compressed_size);
 				drrs->drr_type = BSWAP_32(drrs->drr_type);
 			}
+
+			payload_size = DRR_SPILL_PAYLOAD_SIZE(drrs);
+
 			if (verbose) {
 				sprintf_bytes(salt, drrs->drr_salt,
 				    ZIO_DATA_SALT_LEN);
@@ -626,19 +629,21 @@ main(int argc, char *argv[])
 				    "length = %llu flags = %u "
 				    "compression type = %u "
 				    "compressed_size = %llu "
+				    "payload_size = %llu "
 				    "salt = %s iv = %s mac = %s\n",
 				    (u_longlong_t)drrs->drr_object,
 				    (u_longlong_t)drrs->drr_length,
 				    drrs->drr_flags,
 				    drrs->drr_compressiontype,
 				    (u_longlong_t)drrs->drr_compressed_size,
+				    (u_longlong_t)payload_size,
 				    salt,
 				    iv,
 				    mac);
 			}
-			(void) ssread(buf, drrs->drr_length, &zc);
+			(void) ssread(buf, payload_size, &zc);
 			if (dump) {
-				print_block(buf, drrs->drr_length);
+				print_block(buf, payload_size);
 			}
 			break;
 		case DRR_WRITE_EMBEDDED:
diff --git a/module/zfs/dmu_send.c b/module/zfs/dmu_send.c
index 6f3f6fde9..9422f3444 100644
--- a/module/zfs/dmu_send.c
+++ b/module/zfs/dmu_send.c
@@ -422,6 +422,7 @@ dump_spill(dmu_sendarg_t *dsp, const blkptr_t *bp, uint64_t object, void *data)
 {
 	struct drr_spill *drrs = &(dsp->dsa_drr->drr_u.drr_spill);
 	uint64_t blksz = BP_GET_LSIZE(bp);
+	uint64_t payload_size = blksz;
 
 	if (dsp->dsa_pending_op != PENDING_NONE) {
 		if (dump_record(dsp, NULL, 0) != 0)
@@ -446,9 +447,10 @@ dump_spill(dmu_sendarg_t *dsp, const blkptr_t *bp, uint64_t object, void *data)
 		drrs->drr_compressed_size = BP_GET_PSIZE(bp);
 		zio_crypt_decode_params_bp(bp, drrs->drr_salt, drrs->drr_iv);
 		zio_crypt_decode_mac_bp(bp, drrs->drr_mac);
+		payload_size = drrs->drr_compressed_size;
 	}
 
-	if (dump_record(dsp, data, blksz) != 0)
+	if (dump_record(dsp, data, payload_size) != 0)
 		return (SET_ERROR(EINTR));
 	return (0);
 }
@@ -3395,7 +3397,7 @@ receive_read_record(struct receive_arg *ra)
 			    ra->byteswap;
 
 			abuf = arc_loan_raw_buf(dmu_objset_spa(ra->os),
-			    drrs->drr_object, byteorder, drrs->drr_salt,
+			    dmu_objset_id(ra->os), byteorder, drrs->drr_salt,
 			    drrs->drr_iv, drrs->drr_mac, drrs->drr_type,
 			    drrs->drr_compressed_size, drrs->drr_length,
 			    drrs->drr_compressiontype);
diff --git a/tests/zfs-tests/tests/functional/rsend/send_encrypted_files.ksh b/tests/zfs-tests/tests/functional/rsend/send_encrypted_files.ksh
index 998c2afc3..5bf25e277 100755
--- a/tests/zfs-tests/tests/functional/rsend/send_encrypted_files.ksh
+++ b/tests/zfs-tests/tests/functional/rsend/send_encrypted_files.ksh
@@ -15,7 +15,7 @@
 #
 
 #
-# Copyright (c) 2017 by Datto Inc. All rights reserved.
+# Copyright (c) 2018 by Datto Inc. All rights reserved.
 #
 
 . $STF_SUITE/tests/functional/rsend/rsend.kshlib
@@ -33,8 +33,9 @@
 # 6. Add a file truncated to 4M to the filesystem
 # 7. Add a sparse file with metadata compression disabled to the filesystem
 # 8. Add and remove 1000 empty files to the filesystem
-# 9. Snapshot the filesystem
-# 10. Send and receive the filesystem, ensuring that it can be mounted
+# 9. Add a file with a large xattr value
+# 10. Snapshot the filesystem
+# 11. Send and receive the filesystem, ensuring that it can be mounted
 #
 
 verify_runnable "both"
@@ -79,6 +80,11 @@ for i in {1..1000}; do
 done
 sync
 
+# ZoL issue #7432
+log_must zfs set compression=on xattr=sa $TESTPOOL/$TESTFS2
+log_must touch /$TESTPOOL/$TESTFS2/attrs
+log_must eval "python -c 'print \"a\" * 4096' | attr -s bigval /$TESTPOOL/$TESTFS2/attrs"
+
 log_must zfs snapshot $TESTPOOL/$TESTFS2@now
 log_must eval "zfs send -wR $TESTPOOL/$TESTFS2@now > $sendfile"