diff --git a/fs/btrfs/inode.c b/fs/btrfs/inode.c
index e5558d9e396e018bb7ccc9175bdae77354ae21ab..bb62418b80232d0d4381ffea5d8555d06a3b973c 100644
--- a/fs/btrfs/inode.c
+++ b/fs/btrfs/inode.c
@@ -3271,7 +3271,16 @@ int btrfs_orphan_add(struct btrfs_trans_handle *trans, struct inode *inode)
 	/* grab metadata reservation from transaction handle */
 	if (reserve) {
 		ret = btrfs_orphan_reserve_metadata(trans, inode);
-		BUG_ON(ret); /* -ENOSPC in reservation; Logic error? JDM */
+		ASSERT(!ret);
+		if (ret) {
+			atomic_dec(&root->orphan_inodes);
+			clear_bit(BTRFS_INODE_ORPHAN_META_RESERVED,
+				  &BTRFS_I(inode)->runtime_flags);
+			if (insert)
+				clear_bit(BTRFS_INODE_HAS_ORPHAN_ITEM,
+					  &BTRFS_I(inode)->runtime_flags);
+			return ret;
+		}
 	}
 
 	/* insert an orphan item to track this unlinked/truncated file */