Index: lib/libc/posix1e/acl_support_nfs4.c
===================================================================
--- lib/libc/posix1e/acl_support_nfs4.c
+++ lib/libc/posix1e/acl_support_nfs4.c
@@ -48,6 +48,7 @@
      { ACL_ENTRY_NO_PROPAGATE_INHERIT, "no_propagate", 'n'},
      { ACL_ENTRY_SUCCESSFUL_ACCESS, "successfull_access", 'S'},
      { ACL_ENTRY_FAILED_ACCESS, "failed_access", 'F'},
+     { ACL_ENTRY_INHERITED, "inherited", 'I' },
      /*
       * There is no ACE_IDENTIFIER_GROUP here - SunOS does not show it
       * in the "flags" field.  There is no ACE_OWNER, ACE_GROUP or
Index: sys/cddl/compat/opensolaris/kern/opensolaris_acl.c
===================================================================
--- sys/cddl/compat/opensolaris/kern/opensolaris_acl.c
+++ sys/cddl/compat/opensolaris/kern/opensolaris_acl.c
@@ -64,6 +64,8 @@
 			    ACL_ENTRY_NO_PROPAGATE_INHERIT},
 			{ACE_INHERIT_ONLY_ACE,
 			    ACL_ENTRY_INHERIT_ONLY},
+			{ACE_INHERITED_ACE,
+			    ACL_ENTRY_INHERITED},
 			{ACE_SUCCESSFUL_ACCESS_ACE_FLAG,
 			    ACL_ENTRY_SUCCESSFUL_ACCESS},
 			{ACE_FAILED_ACCESS_ACE_FLAG,
Index: sys/cddl/contrib/opensolaris/uts/common/fs/zfs/zfs_acl.c
===================================================================
--- sys/cddl/contrib/opensolaris/uts/common/fs/zfs/zfs_acl.c
+++ sys/cddl/contrib/opensolaris/uts/common/fs/zfs/zfs_acl.c
@@ -1561,12 +1561,13 @@
 		}
 
 		aclnode = zfs_acl_node_alloc(ace_size);
-		list_insert_tail(&aclp->z_acl, aclnode);
-		acep = aclnode->z_acldata;
-
-		zfs_set_ace(aclp, acep, access_mask, type,
-		    who, iflags|ACE_INHERITED_ACE);
-
+		list_insert_tail(&aclp->z_acl, aclnode);
+		acep = aclnode->z_acldata;
+
+		printf("%s(%d):  here we are\n", __FUNCTION__, __LINE__);
+		zfs_set_ace(aclp, acep, access_mask, type,
+		    who, iflags|ACE_INHERITED_ACE);
+
 		/*
 		 * Copy special opaque data if any
 		 */
@@ -1583,12 +1584,14 @@
 
 		if (vdir)
 			aclp->z_hints |= ZFS_INHERIT_ACE;
-
-		if ((iflags & ACE_NO_PROPAGATE_INHERIT_ACE) || !vdir) {
-			newflags &= ~ALL_INHERIT;
-			aclp->z_ops.ace_flags_set(acep,
-			    newflags|ACE_INHERITED_ACE);
-			zfs_restricted_update(zfsvfs, aclp, acep);
+
+		if ((iflags & ACE_NO_PROPAGATE_INHERIT_ACE) || !vdir) {
+			newflags &= ~ALL_INHERIT;
+		printf("%s(%d):  here we are\n", __FUNCTION__, __LINE__);
+
+			aclp->z_ops.ace_flags_set(acep,
+			    newflags|ACE_INHERITED_ACE);
+			zfs_restricted_update(zfsvfs, aclp, acep);
 			continue;
 		}
 
@@ -1598,16 +1601,18 @@
 		 * If only FILE_INHERIT is set then turn on
 		 * inherit_only
 		 */
-		if ((iflags & (ACE_FILE_INHERIT_ACE |
-		    ACE_DIRECTORY_INHERIT_ACE)) == ACE_FILE_INHERIT_ACE) {
-			newflags |= ACE_INHERIT_ONLY_ACE;
-			aclp->z_ops.ace_flags_set(acep,
-			    newflags|ACE_INHERITED_ACE);
-		} else {
-			newflags &= ~ACE_INHERIT_ONLY_ACE;
-			aclp->z_ops.ace_flags_set(acep,
-			    newflags|ACE_INHERITED_ACE);
-		}
+		if ((iflags & (ACE_FILE_INHERIT_ACE |
+		    ACE_DIRECTORY_INHERIT_ACE)) == ACE_FILE_INHERIT_ACE) {
+			newflags |= ACE_INHERIT_ONLY_ACE;
+		printf("%s(%d):  here we are\n", __FUNCTION__, __LINE__);
+			aclp->z_ops.ace_flags_set(acep,
+			    newflags|ACE_INHERITED_ACE);
+		} else {
+			newflags &= ~ACE_INHERIT_ONLY_ACE;
+		printf("%s(%d):  here we are\n", __FUNCTION__, __LINE__);
+			aclp->z_ops.ace_flags_set(acep,
+			    newflags|ACE_INHERITED_ACE);
+		}
 	}
 	return (aclp);
 }
Index: sys/cddl/contrib/opensolaris/uts/common/sys/acl.h
===================================================================
--- sys/cddl/contrib/opensolaris/uts/common/sys/acl.h
+++ sys/cddl/contrib/opensolaris/uts/common/sys/acl.h
@@ -189,11 +189,12 @@
     ACE_DIRECTORY_INHERIT_ACE | \
     ACE_NO_PROPAGATE_INHERIT_ACE | \
     ACE_INHERIT_ONLY_ACE | \
+    ACE_INHERITED_ACE | \
     ACE_IDENTIFIER_GROUP)
 
 #define	ACE_TYPE_FLAGS		(ACE_OWNER|ACE_GROUP|ACE_EVERYONE| \
     ACE_IDENTIFIER_GROUP)
-#define	ACE_INHERIT_FLAGS	(ACE_FILE_INHERIT_ACE| \
+#define	ACE_INHERIT_FLAGS	(ACE_FILE_INHERIT_ACE| ACL_INHERITED_ACE| \
     ACE_DIRECTORY_INHERIT_ACE|ACE_NO_PROPAGATE_INHERIT_ACE|ACE_INHERIT_ONLY_ACE)
 
 /* cmd args to acl(2) for aclent_t  */
Index: sys/kern/subr_acl_nfs4.c
===================================================================
--- sys/kern/subr_acl_nfs4.c
+++ sys/kern/subr_acl_nfs4.c
@@ -1068,7 +1068,9 @@
 		child_aclp->acl_cnt++;
 
 		entry->ae_flags &= ~ACL_ENTRY_INHERIT_ONLY;
-
+		
+		entry->ae_flags |= ACL_ENTRY_INHERITED;
+		
 		/*
 		 * If the type of the ACE is neither ALLOW nor DENY,
 		 * then leave it as it is and proceed to the next one.
Index: sys/sys/acl.h
===================================================================
--- sys/sys/acl.h
+++ sys/sys/acl.h
@@ -246,17 +246,18 @@
 #define	ACL_ENTRY_FILE_INHERIT		0x0001
 #define	ACL_ENTRY_DIRECTORY_INHERIT	0x0002
 #define	ACL_ENTRY_NO_PROPAGATE_INHERIT	0x0004
-#define	ACL_ENTRY_INHERIT_ONLY		0x0008
-#define	ACL_ENTRY_SUCCESSFUL_ACCESS	0x0010
-#define	ACL_ENTRY_FAILED_ACCESS		0x0020
-
-#define	ACL_FLAGS_BITS			(ACL_ENTRY_FILE_INHERIT | \
-    ACL_ENTRY_DIRECTORY_INHERIT | ACL_ENTRY_NO_PROPAGATE_INHERIT | \
-    ACL_ENTRY_INHERIT_ONLY | ACL_ENTRY_SUCCESSFUL_ACCESS | \
-    ACL_ENTRY_FAILED_ACCESS)
-
-/*
- * Undefined value in ae_id field.  ae_id should be set to this value
+#define	ACL_ENTRY_INHERIT_ONLY		0x0008
+#define	ACL_ENTRY_SUCCESSFUL_ACCESS	0x0010
+#define	ACL_ENTRY_FAILED_ACCESS		0x0020
+#define ACL_ENTRY_INHERITED		0x0080
+
+#define	ACL_FLAGS_BITS			(ACL_ENTRY_FILE_INHERIT | \
+    ACL_ENTRY_DIRECTORY_INHERIT | ACL_ENTRY_NO_PROPAGATE_INHERIT | \
+    ACL_ENTRY_INHERIT_ONLY | ACL_ENTRY_SUCCESSFUL_ACCESS | \
+    ACL_ENTRY_FAILED_ACCESS | ACL_ENTRY_INHERITED)
+
+/*
+ * Undefined value in ae_id field.  ae_id should be set to this value
  * iff ae_tag is ACL_USER_OBJ, ACL_GROUP_OBJ, ACL_OTHER or ACL_EVERYONE.
  */
 #define	ACL_UNDEFINED_ID	((uid_t)-1)