diff --git a/lib/libzfs/libzfs_sendrecv.c b/lib/libzfs/libzfs_sendrecv.c
index b9780720e5a3..117258c58c9d 100644
--- a/lib/libzfs/libzfs_sendrecv.c
+++ b/lib/libzfs/libzfs_sendrecv.c
@@ -3376,30 +3376,24 @@ created_before(libzfs_handle_t *hdl, avl_tree_t *avl,
  */
 static int
 recv_fix_encryption_hierarchy(libzfs_handle_t *hdl, const char *top_zfs,
-    nvlist_t *stream_nv)
+    nvlist_t *stream_nv, avl_tree_t *stream_avl)
 {
 	int err;
-	nvpair_t *fselem = NULL;
-	nvlist_t *stream_fss;
+	nvpair_t *fselem = NULL, *nextfselem;
+	nvlist_t *local_nv, *stream_fss;
+	avl_tree_t *local_avl;
+	boolean_t recursive;
+	char fsname[ZFS_MAX_DATASET_NAME_LEN], *cp;
 
-	stream_fss = fnvlist_lookup_nvlist(stream_nv, "fss");
+	recursive = (nvlist_lookup_boolean(stream_nv, "not_recursive") ==
+	    ENOENT);
 
+	stream_fss = fnvlist_lookup_nvlist(stream_nv, "fss");
 	while ((fselem = nvlist_next_nvpair(stream_fss, fselem)) != NULL) {
-		zfs_handle_t *zhp = NULL;
-		uint64_t crypt;
-		nvlist_t *snaps, *props, *stream_nvfs = NULL;
+		nvlist_t *snaps, *stream_nvfs;
 		nvpair_t *snapel = NULL;
-		boolean_t is_encroot, is_clone, stream_encroot;
-		char *cp;
-		const char *stream_keylocation = NULL;
-		char keylocation[MAXNAMELEN];
-		char fsname[ZFS_MAX_DATASET_NAME_LEN];
-
-		keylocation[0] = '\0';
 		stream_nvfs = fnvpair_value_nvlist(fselem);
 		snaps = fnvlist_lookup_nvlist(stream_nvfs, "snaps");
-		props = fnvlist_lookup_nvlist(stream_nvfs, "props");
-		stream_encroot = nvlist_exists(stream_nvfs, "is_encroot");
 
 		/* find a snapshot from the stream that exists locally */
 		err = ENOENT;
@@ -3413,14 +3407,40 @@ recv_fix_encryption_hierarchy(libzfs_handle_t *hdl, const char *top_zfs,
 				break;
 		}
 
-		if (err != 0)
-			continue;
+		if (err == 0)
+			break;
+	}
 
-		cp = strchr(fsname, '@');
-		if (cp != NULL)
-			*cp = '\0';
+	if (err != 0)
+		return (0);
 
-		zhp = zfs_open(hdl, fsname, ZFS_TYPE_DATASET);
+	cp = strchr(fsname, '@');
+	if (cp != NULL)
+		*cp = '\0';
+
+	if ((err = gather_nvlist(hdl, fsname, NULL, NULL,
+	    recursive, B_TRUE, B_FALSE, recursive, B_FALSE, B_FALSE, B_FALSE,
+	    B_FALSE, B_TRUE, &local_nv, &local_avl)) != 0)
+		return (err);
+
+	for (fselem = nvlist_next_nvpair(local_nv, NULL); fselem;
+	    fselem = nextfselem) {
+		zfs_handle_t *zhp = NULL;
+		uint64_t crypt;
+		nvlist_t *stream_props, *snaps, *stream_nvfs = NULL,
+		    *nvfs = NULL;
+		boolean_t is_encroot, is_clone, stream_encroot;
+		const char *stream_keylocation = NULL, *fs;
+		char keylocation[MAXNAMELEN];
+		nvpair_t *snapelem;
+
+		nextfselem = nvlist_next_nvpair(local_nv, fselem);
+
+		nvfs = fnvpair_value_nvlist(fselem);
+		snaps = fnvlist_lookup_nvlist(nvfs, "snaps");
+		fs = fnvlist_lookup_string(nvfs, "name");
+		(void) printf("fs: %s\n", fs);
+		zhp = zfs_open(hdl, fs, ZFS_TYPE_DATASET);
 		if (zhp == NULL) {
 			err = ENOENT;
 			goto error;
@@ -3436,6 +3456,28 @@ recv_fix_encryption_hierarchy(libzfs_handle_t *hdl, const char *top_zfs,
 			continue;
 		}
 
+		keylocation[0] = '\0';
+
+		/*
+		 * First find the stream's fs
+		 */
+		for (snapelem = nvlist_next_nvpair(snaps, NULL);
+		    snapelem; snapelem = nvlist_next_nvpair(snaps, snapelem)) {
+			uint64_t thisguid;
+
+			thisguid = fnvpair_value_uint64(snapelem);
+			stream_nvfs = fsavl_find(stream_avl, thisguid, NULL);
+
+			if (stream_nvfs != NULL)
+				break;
+		}
+
+		if (stream_nvfs == NULL)
+			continue;
+
+		stream_props = fnvlist_lookup_nvlist(stream_nvfs, "props");
+		stream_encroot = nvlist_exists(stream_nvfs, "is_encroot");
+
 		/*
 		 * If the dataset is flagged as an encryption root, was not
 		 * received as a clone and is not currently an encryption root,
@@ -3451,7 +3493,7 @@ recv_fix_encryption_hierarchy(libzfs_handle_t *hdl, const char *top_zfs,
 				}
 			}
 
-			stream_keylocation = fnvlist_lookup_string(props,
+			stream_keylocation = fnvlist_lookup_string(stream_props,
 			    zfs_prop_to_name(ZFS_PROP_KEYLOCATION));
 
 			/*
@@ -3518,14 +3560,14 @@ recv_incremental_replication(libzfs_handle_t *hdl, const char *tofs,
 	boolean_t needagain, progress, recursive;
 	const char *s1, *s2;
 
+	if (flags->dryrun)
+		return (0);
+
 	fromsnap = fnvlist_lookup_string(stream_nv, "fromsnap");
 
 	recursive = (nvlist_lookup_boolean(stream_nv, "not_recursive") ==
 	    ENOENT);
 
-	if (flags->dryrun)
-		return (0);
-
 again:
 	needagain = progress = B_FALSE;
 
@@ -3999,9 +4041,9 @@ zfs_receive_package(libzfs_handle_t *hdl, int fd, const char *destname,
 		    stream_nv, stream_avl, NULL);
 	}
 
-	if (raw && softerr == 0 && *top_zfs != NULL) {
+	if (raw && softerr == 0 && *top_zfs != NULL && !flags->dryrun) {
 		softerr = recv_fix_encryption_hierarchy(hdl, *top_zfs,
-		    stream_nv);
+		    stream_nv, stream_avl);
 	}
 
 out: