diff --git a/fs/xfs/xfs_iomap.c b/fs/xfs/xfs_iomap.c
index 923c044bd26f04efbbcde012c1d89e58cd40b697..783b3b1b0684ae83f4a2a6b5a08749387bebe9a8 100644
--- a/fs/xfs/xfs_iomap.c
+++ b/fs/xfs/xfs_iomap.c
@@ -397,7 +397,8 @@ xfs_quota_calc_throttle(
 	struct xfs_inode *ip,
 	int type,
 	xfs_fsblock_t *qblocks,
-	int *qshift)
+	int *qshift,
+	int64_t	*qfreesp)
 {
 	int64_t freesp;
 	int shift = 0;
@@ -406,6 +407,7 @@ xfs_quota_calc_throttle(
 	/* over hi wmark, squash the prealloc completely */
 	if (dq->q_res_bcount >= dq->q_prealloc_hi_wmark) {
 		*qblocks = 0;
+		*qfreesp = 0;
 		return;
 	}
 
@@ -418,6 +420,9 @@ xfs_quota_calc_throttle(
 			shift += 2;
 	}
 
+	if (freesp < *qfreesp)
+		*qfreesp = freesp;
+
 	/* only overwrite the throttle values if we are more aggressive */
 	if ((freesp >> shift) < (*qblocks >> *qshift)) {
 		*qblocks = freesp;
@@ -476,15 +481,18 @@ xfs_iomap_prealloc_size(
 	}
 
 	/*
-	 * Check each quota to cap the prealloc size and provide a shift
-	 * value to throttle with.
+	 * Check each quota to cap the prealloc size, provide a shift value to
+	 * throttle with and adjust amount of available space.
 	 */
 	if (xfs_quota_need_throttle(ip, XFS_DQ_USER, alloc_blocks))
-		xfs_quota_calc_throttle(ip, XFS_DQ_USER, &qblocks, &qshift);
+		xfs_quota_calc_throttle(ip, XFS_DQ_USER, &qblocks, &qshift,
+					&freesp);
 	if (xfs_quota_need_throttle(ip, XFS_DQ_GROUP, alloc_blocks))
-		xfs_quota_calc_throttle(ip, XFS_DQ_GROUP, &qblocks, &qshift);
+		xfs_quota_calc_throttle(ip, XFS_DQ_GROUP, &qblocks, &qshift,
+					&freesp);
 	if (xfs_quota_need_throttle(ip, XFS_DQ_PROJ, alloc_blocks))
-		xfs_quota_calc_throttle(ip, XFS_DQ_PROJ, &qblocks, &qshift);
+		xfs_quota_calc_throttle(ip, XFS_DQ_PROJ, &qblocks, &qshift,
+					&freesp);
 
 	/*
 	 * The final prealloc size is set to the minimum of free space available