diff --git a/module/zfs/dmu_objset.c b/module/zfs/dmu_objset.c
index 5ad3b2f26..ed0e8de38 100644
--- a/module/zfs/dmu_objset.c
+++ b/module/zfs/dmu_objset.c
@@ -2408,13 +2408,6 @@ dmu_objset_id_quota_upgrade_cb(objset_t *os)
 	    dmu_objset_userobjspace_present(os))
 		return (SET_ERROR(ENOTSUP));
 
-	if (dmu_objset_userobjused_enabled(os))
-		dmu_objset_ds(os)->ds_feature_activation[
-		    SPA_FEATURE_USEROBJ_ACCOUNTING] = (void *)B_TRUE;
-	if (dmu_objset_projectquota_enabled(os))
-		dmu_objset_ds(os)->ds_feature_activation[
-		    SPA_FEATURE_PROJECT_QUOTA] = (void *)B_TRUE;
-
 	err = dmu_objset_space_upgrade(os);
 	if (err)
 		return (err);
diff --git a/module/zfs/dsl_dataset.c b/module/zfs/dsl_dataset.c
index 71d876cae..a498b9a80 100644
--- a/module/zfs/dsl_dataset.c
+++ b/module/zfs/dsl_dataset.c
@@ -1749,16 +1749,20 @@ dsl_dataset_snapshot_sync_impl(dsl_dataset_t *ds, const char *snapname,
 
 	/*
 	 * We are not allowed to dirty a filesystem when done receiving
-	 * a snapshot. In this case the flag SPA_FEATURE_LARGE_BLOCKS will
-	 * not be set and a subsequent encrypted raw send will fail. Hence
-	 * activate this feature if needed here.
+	 * a snapshot. In this case some flags such as SPA_FEATURE_LARGE_BLOCKS
+	 * will not be set and a subsequent encrypted raw send will fail. Hence
+	 * activate this feature if needed here. This needs to happen only in
+	 * syncing context.
 	 */
-	for (spa_feature_t f = 0; f < SPA_FEATURES; f++) {
-		if (zfeature_active(f, ds->ds_feature_activation[f]) &&
-		    !(zfeature_active(f, ds->ds_feature[f]))) {
-			dsl_dataset_activate_feature(dsobj, f,
-			    ds->ds_feature_activation[f], tx);
-			ds->ds_feature[f] = ds->ds_feature_activation[f];
+	if (dmu_tx_is_syncing(tx)) {
+		for (spa_feature_t f = 0; f < SPA_FEATURES; f++) {
+			if (zfeature_active(f, ds->ds_feature_activation[f]) &&
+			    !(zfeature_active(f, ds->ds_feature[f]))) {
+				dsl_dataset_activate_feature(dsobj, f,
+				    ds->ds_feature_activation[f], tx);
+				ds->ds_feature[f] =
+				    ds->ds_feature_activation[f];
+			}
 		}
 	}
 
diff --git a/tests/runfiles/common.run b/tests/runfiles/common.run
index bd3d4d58e..554cf96f8 100644
--- a/tests/runfiles/common.run
+++ b/tests/runfiles/common.run
@@ -822,7 +822,8 @@ tests = ['recv_dedup', 'recv_dedup_encrypted_zvol', 'rsend_001_pos',
     '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_hierarchy',
+    'send-c_recv_dedup', 'send-L_toggle',
+    'send_encrypted_incremental.ksh', '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/zfs-tests/tests/functional/rsend/Makefile.am b/tests/zfs-tests/tests/functional/rsend/Makefile.am
index 6bc243f32..d80d2124e 100644
--- a/tests/zfs-tests/tests/functional/rsend/Makefile.am
+++ b/tests/zfs-tests/tests/functional/rsend/Makefile.am
@@ -57,7 +57,8 @@ dist_pkgdata_SCRIPTS = \
 	send_invalid.ksh \
 	send_mixed_raw.ksh \
 	send-wR_encrypted_zvol.ksh \
-	send_doall.ksh
+	send_doall.ksh \
+	send_encrypted_incremental.ksh
 
 dist_pkgdata_DATA = \
 	dedup.zsend.bz2 \
diff --git a/tests/zfs-tests/tests/functional/rsend/send_encrypted_incremental.ksh b/tests/zfs-tests/tests/functional/rsend/send_encrypted_incremental.ksh
new file mode 100755
index 000000000..491ad55db
--- /dev/null
+++ b/tests/zfs-tests/tests/functional/rsend/send_encrypted_incremental.ksh
@@ -0,0 +1,93 @@
+#!/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 https://opensource.org/licenses/CDDL-1.0.
+# 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
+#
+
+. $STF_SUITE/include/libtest.shlib
+. $STF_SUITE/tests/functional/rsend/rsend.kshlib
+
+#
+# Description:
+# Incrementally receiving a snapshot to an encrypted filesystem succeeds.
+#
+# Strategy:
+# 1) Create a pool and an encrypted fs
+# 2) Create some files and snapshots
+# 3) Send the first snapshot to a second encrypted as well as an
+#	unencrypted fs.
+# 4) Incrementally send the second snapshot to the unencrypted fs.
+# 5) Rollback the second encrypted fs to the first snapshot.
+# 6) Incrementally send the second snapshot from the unencrypted to the
+#	second encrypted fs.
+# 7) Incrementally send the third snapshot from the first encrypted to the
+#	unencrypted fs.
+# 8) Incrementally send the third snapshot from the unencrypted to the second
+#	encrypted fs.
+#
+
+verify_runnable "both"
+
+log_assert "Incrementally receiving a snapshot to an encrypted filesystem succeeds"
+
+function cleanup
+{
+	destroy_pool pool_lb
+	log_must rm -f $TESTDIR/vdev_a
+}
+
+log_onexit cleanup
+
+typeset passphrase="password"
+typeset passphrase2="password2"
+
+typeset file="/pool_lb/encryptme/$TESTFILE0"
+typeset file1="/pool_lb/encryptme/$TESTFILE1"
+typeset file2="/pool_lb/encryptme/$TESTFILE2"
+
+# Create pool
+truncate -s $MINVDEVSIZE $TESTDIR/vdev_a
+log_must zpool create -f pool_lb $TESTDIR/vdev_a
+log_must eval "echo $passphrase > /pool_lb/pwd"
+log_must eval "echo $passphrase2 > /pool_lb/pwd2"
+
+log_must zfs create -o encryption=on -o keyformat=passphrase \
+	-o keylocation=file:///pool_lb/pwd pool_lb/encryptme
+log_must dd if=/dev/urandom of=$file bs=1024 count=1024
+log_must zfs snapshot pool_lb/encryptme@snap1
+log_must dd if=/dev/urandom of=$file1 bs=1024 count=1024
+log_must zfs snapshot pool_lb/encryptme@snap2
+log_must dd if=/dev/urandom of=$file2 bs=1024 count=1024
+log_must zfs snapshot pool_lb/encryptme@snap3
+log_must eval "zfs send -Lc pool_lb/encryptme@snap1 | zfs recv \
+	-o encryption=on -o keyformat=passphrase -o keylocation=file:///pool_lb/pwd2 \
+	pool_lb/encrypttwo"
+log_must eval "zfs send -Lc pool_lb/encryptme@snap1 | zfs recv \
+	pool_lb/unencryptme"
+log_must eval "zfs send -Lc -i pool_lb/encryptme@{snap1,snap2} | zfs recv \
+	pool_lb/unencryptme"
+log_must zfs rollback pool_lb/encrypttwo@snap1
+log_must eval "zfs send -Lc -i pool_lb/unencryptme@{snap1,snap2} | zfs recv \
+	pool_lb/encrypttwo"
+log_must eval "zfs send -Lc -i pool_lb/encryptme@{snap2,snap3} | zfs recv \
+	pool_lb/unencryptme"
+log_must eval "zfs send -Lc -i pool_lb/unencryptme@{snap2,snap3} | zfs recv \
+	-F pool_lb/encrypttwo"
+
+log_pass "Incrementally receiving a snapshot to an encrypted filesystem succeeds"
diff --git a/tests/zfs-tests/tests/functional/rsend/send_raw_large_blocks.ksh b/tests/zfs-tests/tests/functional/rsend/send_raw_large_blocks.ksh
index 39e93a7df..48a76fca6 100755
--- a/tests/zfs-tests/tests/functional/rsend/send_raw_large_blocks.ksh
+++ b/tests/zfs-tests/tests/functional/rsend/send_raw_large_blocks.ksh
@@ -49,7 +49,7 @@ raw_backup=$TEST_BASE_DIR/raw_backup
 function cleanup
 {
 	log_must rm -f $backup $raw_backup $ibackup $unc_backup
-	destroy_pool pool_lb/fs
+	destroy_pool pool_lb
 	log_must rm -f $TESTDIR/vdev_a
 }