diff --git a/include/libzfs.h b/include/libzfs.h
index bb0178eea8..7828a27596 100644
--- a/include/libzfs.h
+++ b/include/libzfs.h
@@ -747,6 +747,9 @@ typedef struct recvflags {
 
 	/* skip receive of snapshot holds */
 	boolean_t skipholds;
+
+	/* mount the filesystem unless nomount is specified */
+	boolean_t domount;
 } recvflags_t;
 
 extern int zfs_receive(libzfs_handle_t *, const char *, nvlist_t *,
diff --git a/lib/libzfs/libzfs_sendrecv.c b/lib/libzfs/libzfs_sendrecv.c
index 33d3eb6a53..7026438828 100644
--- a/lib/libzfs/libzfs_sendrecv.c
+++ b/lib/libzfs/libzfs_sendrecv.c
@@ -3369,19 +3369,12 @@ created_before(libzfs_handle_t *hdl, avl_tree_t *avl,
  * sent datasets to their final locations in the dataset hierarchy.
  */
 static int
-recv_fix_encryption_hierarchy(libzfs_handle_t *hdl, const char *destname,
+recv_fix_encryption_hierarchy(libzfs_handle_t *hdl, const char *top_zfs,
     nvlist_t *stream_nv, avl_tree_t *stream_avl)
 {
 	int err;
 	nvpair_t *fselem = NULL;
 	nvlist_t *stream_fss;
-	char *cp;
-	char top_zfs[ZFS_MAX_DATASET_NAME_LEN];
-
-	(void) strcpy(top_zfs, destname);
-	cp = strrchr(top_zfs, '@');
-	if (cp != NULL)
-		*cp = '\0';
 
 	VERIFY(0 == nvlist_lookup_nvlist(stream_nv, "fss", &stream_fss));
 
@@ -3408,7 +3401,7 @@ recv_fix_encryption_hierarchy(libzfs_handle_t *hdl, const char *destname,
 			uint64_t guid;
 
 			VERIFY(0 == nvpair_value_uint64(snapel, &guid));
-			err = guid_to_name(hdl, destname, guid, B_FALSE,
+			err = guid_to_name(hdl, top_zfs, guid, B_FALSE,
 			    fsname);
 			if (err == 0)
 				break;
@@ -4009,8 +4002,8 @@ zfs_receive_package(libzfs_handle_t *hdl, int fd, const char *destname,
 		    stream_nv, stream_avl, NULL);
 	}
 
-	if (raw && softerr == 0) {
-		softerr = recv_fix_encryption_hierarchy(hdl, destname,
+	if (raw && softerr == 0 && *top_zfs != NULL) {
+		softerr = recv_fix_encryption_hierarchy(hdl, *top_zfs,
 		    stream_nv, stream_avl);
 	}
 
@@ -4872,8 +4865,17 @@ zfs_receive_one(libzfs_handle_t *hdl, int infd, const char *tosnap,
 		goto out;
 	}
 
-	if (top_zfs && (*top_zfs == NULL || strcmp(*top_zfs, name) == 0))
+	/*
+	 * If this is the top-level dataset, record it so we can use it
+	 * for recursive operations later.
+	 */
+	if (top_zfs != NULL &&
+	    (*top_zfs == NULL || strcmp(*top_zfs, name) == 0)) {
 		toplevel = B_TRUE;
+		if (*top_zfs == NULL)
+			*top_zfs = zfs_strdup(hdl, name);
+	}
+
 	if (drrb->drr_type == DMU_OST_ZVOL) {
 		type = ZFS_TYPE_VOLUME;
 	} else if (drrb->drr_type == DMU_OST_ZFS) {
@@ -5127,35 +5129,15 @@ zfs_receive_one(libzfs_handle_t *hdl, int infd, const char *tosnap,
 	 * children of the target filesystem if we did a replication
 	 * receive (indicated by stream_avl being non-NULL).
 	 */
-	cp = strchr(destsnap, '@');
-	if (cp && (ioctl_err == 0 || !newfs) && !redacted) {
-		zfs_handle_t *h;
-
-		*cp = '\0';
-		h = zfs_open(hdl, destsnap,
-		    ZFS_TYPE_FILESYSTEM | ZFS_TYPE_VOLUME);
-		if (h != NULL) {
-			if (h->zfs_type == ZFS_TYPE_VOLUME) {
-				*cp = '@';
-			} else if (newfs || stream_avl) {
-				/*
-				 * Track the first/top of hierarchy fs,
-				 * for mounting and sharing later.
-				 */
-				if (top_zfs && *top_zfs == NULL)
-					*top_zfs = zfs_strdup(hdl, destsnap);
-			}
-			zfs_close(h);
-		}
-		*cp = '@';
-	}
-
 	if (clp) {
 		if (!flags->nomount)
 			err |= changelist_postfix(clp);
 		changelist_free(clp);
 	}
 
+	if ((newfs || stream_avl) && type == ZFS_TYPE_FILESYSTEM && !redacted)
+		flags->domount = B_TRUE;
+
 	if (prop_errflags & ZPROP_ERR_NOCLEAR) {
 		(void) fprintf(stderr, dgettext(TEXT_DOMAIN, "Warning: "
 		    "failed to clear unreceived properties on %s"), name);
@@ -5454,24 +5436,38 @@ zfs_receive(libzfs_handle_t *hdl, const char *tosnap, nvlist_t *props,
 
 	VERIFY(0 == close(cleanup_fd));
 
-	if (err == 0 && !flags->nomount && top_zfs) {
+	if (err == 0 && !flags->nomount && flags->domount && top_zfs) {
 		zfs_handle_t *zhp = NULL;
 		prop_changelist_t *clp = NULL;
 
-		zhp = zfs_open(hdl, top_zfs, ZFS_TYPE_FILESYSTEM);
-		if (zhp != NULL) {
+		zhp = zfs_open(hdl, top_zfs,
+		    ZFS_TYPE_FILESYSTEM | ZFS_TYPE_VOLUME);
+		if (zhp == NULL) {
+			err = -1;
+			goto out;
+		} else {
+			if (zhp->zfs_type == ZFS_TYPE_VOLUME) {
+				zfs_close(zhp);
+				goto out;
+			}
+
 			clp = changelist_gather(zhp, ZFS_PROP_MOUNTPOINT,
 			    CL_GATHER_MOUNT_ALWAYS, 0);
 			zfs_close(zhp);
-			if (clp != NULL) {
-				/* mount and share received datasets */
-				err = changelist_postfix(clp);
-				changelist_free(clp);
+			if (clp == NULL) {
+				err = -1;
+				goto out;
 			}
+
+			/* mount and share received datasets */
+			err = changelist_postfix(clp);
+			changelist_free(clp);
+			if (err != 0)
+				err = -1;
 		}
-		if (zhp == NULL || clp == NULL || err)
-			err = -1;
 	}
+
+out:
 	if (top_zfs)
 		free(top_zfs);
 
diff --git a/tests/runfiles/linux.run b/tests/runfiles/linux.run
index 3e39c165ee..5bc810803c 100644
--- a/tests/runfiles/linux.run
+++ b/tests/runfiles/linux.run
@@ -212,7 +212,7 @@ tests = ['zfs_receive_001_pos', 'zfs_receive_002_pos', 'zfs_receive_003_pos',
     'zfs_receive_013_pos', 'zfs_receive_014_pos', 'zfs_receive_015_pos',
     'receive-o-x_props_override', 'zfs_receive_from_encrypted',
     'zfs_receive_to_encrypted', 'zfs_receive_raw',
-    'zfs_receive_raw_incremental', 'zfs_receive_-e']
+    'zfs_receive_raw_incremental', 'zfs_receive_-e', 'zfs_receive_raw_-d']
 tags = ['functional', 'cli_root', 'zfs_receive']
 
 [tests/functional/cli_root/zfs_rename]
diff --git a/tests/zfs-tests/tests/functional/cli_root/zfs_receive/Makefile.am b/tests/zfs-tests/tests/functional/cli_root/zfs_receive/Makefile.am
index bf112a77e6..7b2037b9f2 100644
--- a/tests/zfs-tests/tests/functional/cli_root/zfs_receive/Makefile.am
+++ b/tests/zfs-tests/tests/functional/cli_root/zfs_receive/Makefile.am
@@ -22,4 +22,5 @@ dist_pkgdata_SCRIPTS = \
 	zfs_receive_to_encrypted.ksh \
 	zfs_receive_raw.ksh \
 	zfs_receive_raw_incremental.ksh \
+	zfs_receive_raw_-d.ksh \
 	zfs_receive_-e.ksh
diff --git a/tests/zfs-tests/tests/functional/cli_root/zfs_receive/zfs_receive_raw_-d.ksh b/tests/zfs-tests/tests/functional/cli_root/zfs_receive/zfs_receive_raw_-d.ksh
new file mode 100755
index 0000000000..a909f2788b
--- /dev/null
+++ b/tests/zfs-tests/tests/functional/cli_root/zfs_receive/zfs_receive_raw_-d.ksh
@@ -0,0 +1,62 @@
+#!/bin/ksh -p
+#
+# CDDL HEADER START
+#
+# 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.
+#
+# CDDL HEADER END
+#
+
+#
+# Copyright (c) 2019 Datto, Inc. All rights reserved.
+#
+
+. $STF_SUITE/include/libtest.shlib
+
+#
+# DESCRIPTION:
+# zfs receive -d should create the expected encryption hierarchy.
+#
+# STRATEGY:
+# 1. Create an encrypted dataset and a inheriting child
+# 2. Snapshot the child dataset
+# 2. Create a recursive raw send file from the snapshot
+# 3. Destroy the original child filesystem
+# 4. Receive the snapshot as a child of the second dataset with '-d'
+# 5. Verify the new child can be mounted
+#
+
+verify_runnable "both"
+
+function cleanup
+{
+	datasetexists $TESTPOOL/$TESTFS1 && \
+		log_must zfs destroy -r $TESTPOOL/$TESTFS1
+	rm -f $sendfile
+}
+
+log_onexit cleanup
+
+log_assert "zfs receive -d should create the expected encryption hierarchy"
+
+typeset passphrase="password1"
+
+sendfile=$TEST_BASE_DIR/sendfile.$$
+
+log_must eval "echo $passphrase | zfs create -o encryption=on" \
+	"-o keyformat=passphrase $TESTPOOL/$TESTFS1"
+log_must zfs create $TESTPOOL/$TESTFS1/child
+log_must zfs snapshot $TESTPOOL/$TESTFS1/child@snap
+log_must eval "zfs send -Rw $TESTPOOL/$TESTFS1/child@snap > $sendfile"
+log_must zfs destroy -r $TESTPOOL/$TESTFS1/child
+log_must zfs receive -Fd $TESTPOOL < $sendfile
+log_must eval "echo $passphrase | zfs mount -l $TESTPOOL/$TESTFS1/child"
+
+log_pass "zfs receive -d creates the expected encryption hierarchy"