diff --git a/module/zfs/dmu_recv.c b/module/zfs/dmu_recv.c
index 1684d9d92..3763cba02 100644
--- a/module/zfs/dmu_recv.c
+++ b/module/zfs/dmu_recv.c
@@ -1255,7 +1255,6 @@ dmu_recv_begin(char *tofs, char *tosnap, dmu_replay_record_t *drr_begin,
 	    DMU_GET_FEATUREFLAGS(drc->drc_drrb->drr_versioninfo);
 
 	uint32_t payloadlen = drc->drc_drr_begin->drr_payloadlen;
-	void *payload = NULL;
 
 	/*
 	 * Since OpenZFS 2.0.0, we have enforced a 64MB limit in userspace
@@ -1266,16 +1265,23 @@ dmu_recv_begin(char *tofs, char *tosnap, dmu_replay_record_t *drr_begin,
 	if (payloadlen > (MIN((1U << 28), arc_all_memory() / 4)))
 		return (E2BIG);
 
-	if (payloadlen != 0)
-		payload = vmem_alloc(payloadlen, KM_SLEEP);
 
-	err = receive_read_payload_and_next_header(drc, payloadlen,
-	    payload);
-	if (err != 0) {
-		vmem_free(payload, payloadlen);
-		return (err);
-	}
 	if (payloadlen != 0) {
+		void *payload = vmem_alloc(payloadlen, KM_SLEEP);
+		/*
+		 * For compatibility with recursive send streams, we don't do
+		 * this here if the stream could be part of a package. Instead,
+		 * we'll do it in dmu_recv_stream. If we pull the next header
+		 * too early, and it's the END record, we break the `recv_skip`
+		 * logic.
+		 */
+
+		err = receive_read_payload_and_next_header(drc, payloadlen,
+		    payload);
+		if (err != 0) {
+			vmem_free(payload, payloadlen);
+			return (err);
+		}
 		err = nvlist_unpack(payload, payloadlen, &drc->drc_begin_nvl,
 		    KM_SLEEP);
 		vmem_free(payload, payloadlen);
@@ -3315,6 +3321,17 @@ dmu_recv_stream(dmu_recv_cookie_t *drc, offset_t *voffp)
 			goto out;
 	}
 
+	/*
+	 * For compatibility with recursive send streams, we do this here,
+	 * rather than in dmu_recv_begin. If we pull the next header too
+	 * early, and it's the END record, we break the `recv_skip` logic.
+	 */
+	if (drc->drc_drr_begin->drr_payloadlen == 0) {
+		err = receive_read_payload_and_next_header(drc, 0, NULL);
+		if (err != 0)
+			goto out;
+	}
+
 	/*
 	 * If we failed before this point we will clean up any new resume
 	 * state that was created. Now that we've gotten past the initial
diff --git a/tests/runfiles/common.run b/tests/runfiles/common.run
index 132df4925..d30bcd804 100644
--- a/tests/runfiles/common.run
+++ b/tests/runfiles/common.run
@@ -837,19 +837,20 @@ tests = ['recv_dedup', 'recv_dedup_encrypted_zvol', 'rsend_001_pos',
     'rsend_014_pos', 'rsend_016_neg', 'rsend_019_pos', 'rsend_020_pos',
     'rsend_021_pos', 'rsend_022_pos', 'rsend_024_pos', 'rsend_025_pos',
     'rsend_026_neg', 'rsend_027_pos', 'rsend_028_neg', 'rsend_029_neg',
-    'rsend_030_pos', 'send-c_verify_ratio', 'send-c_verify_contents',
-    'send-c_props', 'send-c_incremental', 'send-c_volume',
-    'send-c_zstream_recompress', 'send-c_zstreamdump', 'send-c_lz4_disabled',
-    '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', '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',
-    'send_hole_birth', 'send_mixed_raw', 'send-wR_encrypted_zvol',
-    'send_partial_dataset', 'send_invalid', 'send_doall',
-    'send_raw_spill_block', 'send_raw_ashift', 'send_raw_large_blocks']
+    'rsend_030_pos', 'rsend_031_pos', 'send-c_verify_ratio',
+    'send-c_verify_contents', 'send-c_props', 'send-c_incremental',
+    'send-c_volume', 'send-c_zstream_recompress', 'send-c_zstreamdump',
+    'send-c_lz4_disabled', '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',
+    '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', 'send_hole_birth', 'send_mixed_raw',
+    'send-wR_encrypted_zvol', 'send_partial_dataset', 'send_invalid',
+    'send_doall', 'send_raw_spill_block', 'send_raw_ashift',
+    'send_raw_large_blocks']
 tags = ['functional', 'rsend']
 
 [tests/functional/scrub_mirror]
diff --git a/tests/zfs-tests/cmd/libzfs_input_check.c b/tests/zfs-tests/cmd/libzfs_input_check.c
index 2e1859b1e..a1dfaefd7 100644
--- a/tests/zfs-tests/cmd/libzfs_input_check.c
+++ b/tests/zfs-tests/cmd/libzfs_input_check.c
@@ -563,7 +563,7 @@ test_recv_new(const char *dataset, int fd)
 	fnvlist_add_uint64(optional, "action_handle", *action_handle);
 #endif
 	IOC_INPUT_TEST(ZFS_IOC_RECV_NEW, dataset, required, optional,
-	    ZFS_ERR_STREAM_TRUNCATED);
+	    ENOTSUP);
 
 	nvlist_free(props);
 	nvlist_free(optional);
diff --git a/tests/zfs-tests/tests/Makefile.am b/tests/zfs-tests/tests/Makefile.am
index efce46123..4b0a28a6e 100644
--- a/tests/zfs-tests/tests/Makefile.am
+++ b/tests/zfs-tests/tests/Makefile.am
@@ -1795,6 +1795,7 @@ nobase_dist_datadir_zfs_tests_tests_SCRIPTS += \
 	functional/rsend/rsend_028_neg.ksh \
 	functional/rsend/rsend_029_neg.ksh \
 	functional/rsend/rsend_030_pos.ksh \
+	functional/rsend/rsend_031_pos.ksh \
 	functional/rsend/send-c_embedded_blocks.ksh \
 	functional/rsend/send-c_incremental.ksh \
 	functional/rsend/send-c_lz4_disabled.ksh \
diff --git a/tests/zfs-tests/tests/functional/rsend/rsend_031_pos.ksh b/tests/zfs-tests/tests/functional/rsend/rsend_031_pos.ksh
new file mode 100755
index 000000000..119da7150
--- /dev/null
+++ b/tests/zfs-tests/tests/functional/rsend/rsend_031_pos.ksh
@@ -0,0 +1,63 @@
+#!/bin/ksh -p
+
+#
+# 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) 2023 by Delphix. All rights reserved.
+#
+
+. $STF_SUITE/tests/functional/rsend/rsend.kshlib
+
+#
+# Description:
+# Verify recursive incremental sends missing snapshots behave correctly.
+#
+# Strategy:
+# 1. Create snapshots on source filesystem.
+# 2. Recursively send snapshots.
+# 3. Delete snapshot on source filesystem
+# 4. Perform incremental recursive send.
+# 5. Verify matching snapshot lists.
+#
+
+verify_runnable "both"
+
+sendfs=$POOL/sendfs
+recvfs=$POOL2/recvfs
+
+function cleanup {
+	rm $BACKDIR/stream1
+	rm $BACKDIR/stream2
+	zfs destroy -r $sendfs
+	zfs destroy -r $recvfs
+}
+
+log_assert "Verify recursive incremental sends missing snapshots behave correctly."
+log_onexit cleanup
+
+log_must zfs create $sendfs
+log_must zfs snapshot $sendfs@A
+log_must zfs snapshot $sendfs@B
+log_must zfs snapshot $sendfs@C
+log_must eval "zfs send -Rpv $sendfs@C > $BACKDIR/stream1"
+log_must eval "zfs receive -F $recvfs < $BACKDIR/stream1"
+log_must zfs list $sendfs@C
+
+log_must zfs destroy $sendfs@C
+log_must zfs snapshot $sendfs@D
+log_must zfs snapshot $sendfs@E
+log_must eval "zfs send -Rpv -I $sendfs@A $sendfs@E > $BACKDIR/stream2"
+log_must eval "zfs receive -Fv $recvfs < $BACKDIR/stream2"
+log_must zfs list $sendfs@D
+log_must zfs list $sendfs@E
+log_mustnot zfs list $sendfs@C
+log_pass "Verify recursive incremental sends missing snapshots behave correctly."