Index: sys/cddl/contrib/opensolaris/uts/common/fs/zfs/arc.c.new
===================================================================
--- sys/cddl/contrib/opensolaris/uts/common/fs/zfs/arc.c.new
+++ sys/cddl/contrib/opensolaris/uts/common/fs/zfs/arc.c.new
@@ -3447,6 +3447,7 @@
 }
 
 static long needfree = 0;
+static int64_t arc_target_size = 0;
 
 typedef enum free_memory_reason_t {
 	FMR_UNKNOWN,
@@ -3485,6 +3486,10 @@
 	free_memory_reason_t r = FMR_UNKNOWN;
 
 #ifdef _KERNEL
+	if (needfree) {
+		if(arc_size <= arc_target_size) needfree = 0;
+		else needfree = btoc(arc_size - arc_target_size);
+	}
 	if (needfree > 0) {
 		n = PAGESIZE * (-needfree);
 		if (n < lowest) {
@@ -3737,8 +3737,10 @@
 			 */
 			free_memory = arc_available_memory();
 
-			int64_t to_free =
-			    (arc_c >> arc_shrink_shift) - free_memory;
+			int64_t to_free;
+			if (free_memory >= 0) to_free = (arc_c >> arc_shrink_shift) - free_memory;
+			else to_free = -free_memory;
+
 			if (to_free > 0) {
 #ifdef _KERNEL
 				to_free = MAX(to_free, ptob(needfree));
@@ -5360,6 +5365,7 @@
 	mutex_enter(&arc_reclaim_lock);
 	/* XXX: Memory deficit should be passed as argument. */
 	needfree = btoc(arc_c >> arc_shrink_shift);
+	arc_target_size = arc_size - needfree * PAGESIZE;
 	DTRACE_PROBE(arc__needfree);
 	cv_signal(&arc_reclaim_thread_cv);