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diff --git a/sys/contrib/openzfs/tests/zfs-tests/tests/functional/reservation/reservation_018_pos.ksh b/sys/contrib/openzfs/tests/zfs-tests/tests/functional/reservation/reservation_018_pos.ksh
new file mode 100755
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+++ b/sys/contrib/openzfs/tests/zfs-tests/tests/functional/reservation/reservation_018_pos.ksh
@@ -0,0 +1,72 @@
+#!/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 http://www.opensolaris.org/os/licensing.
+# 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
+#
+
+#
+# Copyright 2009 Sun Microsystems, Inc.  All rights reserved.
+# Use is subject to license terms.
+#
+
+#
+# Copyright (c) 2013, 2016 by Delphix. All rights reserved.
+#
+
+. $STF_SUITE/include/libtest.shlib
+. $STF_SUITE/tests/functional/reservation/reservation.shlib
+
+#
+# DESCRIPTION:
+#
+# Verify that reservation doesn't inherit its value from parent.
+#
+# STRATEGY:
+# 1) Create a filesystem tree
+# 2) Set reservation for parents
+# 3) Verify that the 'reservation' for descendent doesnot inherit the value.
+#
+
+verify_runnable "both"
+
+function cleanup
+{
+	datasetexists $fs_child && log_must zfs destroy $fs_child
+	log_must zfs set reservation=$reserv_val $fs
+}
+
+log_onexit cleanup
+
+log_assert "Verify that reservation doesnot inherit its value from parent."
+
+fs=$TESTPOOL/$TESTFS
+fs_child=$TESTPOOL/$TESTFS/$TESTFS
+
+space_avail=$(get_prop available $fs)
+reserv_val=$(get_prop reservation $fs)
+typeset reservsize=$space_avail
+((reservsize = reservsize / 2))
+log_must zfs set reservation=$reservsize $fs
+
+log_must zfs create $fs_child
+rsv_space=$(get_prop reservation $fs_child)
+[[ $rsv_space == $reservsize ]] && \
+    log_fail "The reservation of child dataset inherits its value from parent."
+
+log_pass "reservation doesnot inherit its value from parent as expected."