diff --git a/TEST b/TEST
index 4c593a457078..81f76b973172 100644
--- a/TEST
+++ b/TEST
@@ -5,25 +5,25 @@
 #TEST_PREPARE_SHARES="yes"
 
 ### SPLAT
-#TEST_SPLAT_SKIP="yes"
+TEST_SPLAT_SKIP="yes"
 #TEST_SPLAT_OPTIONS="-acvx"
 
 ### ztest
-#TEST_ZTEST_SKIP="yes"
+TEST_ZTEST_SKIP="yes"
 #TEST_ZTEST_TIMEOUT=1800
 #TEST_ZTEST_DIR="/var/tmp/"
 #TEST_ZTEST_OPTIONS="-V"
 #TEST_ZTEST_CORE_DIR="/mnt/zloop"
 
 ### zimport
-#TEST_ZIMPORT_SKIP="yes"
+TEST_ZIMPORT_SKIP="yes"
 #TEST_ZIMPORT_DIR="/var/tmp/zimport"
 #TEST_ZIMPORT_VERSIONS="master installed"
 #TEST_ZIMPORT_POOLS="zol-0.6.1 zol-0.6.2 master installed"
 #TEST_ZIMPORT_OPTIONS="-c"
 
 ### xfstests
-#TEST_XFSTESTS_SKIP="yes"
+TEST_XFSTESTS_SKIP="yes"
 #TEST_XFSTESTS_URL="https://github.com/behlendorf/xfstests/archive/"
 #TEST_XFSTESTS_VER="zfs.tar.gz"
 #TEST_XFSTESTS_POOL="tank"
@@ -32,17 +32,18 @@
 #TEST_XFSTESTS_OPTIONS=""
 
 ### zfs-tests.sh
-#TEST_ZFSTESTS_SKIP="yes"
+TEST_ZFSTESTS_SKIP="yes"
 #TEST_ZFSTESTS_DIR="/mnt/"
 #TEST_ZFSTESTS_DISKS="vdb vdc vdd"
 #TEST_ZFSTESTS_DISKSIZE="8G"
 #TEST_ZFSTESTS_ITERS="1"
 #TEST_ZFSTESTS_OPTIONS="-vx"
 #TEST_ZFSTESTS_RUNFILE="linux.run"
+TEST_ZFSTESTS_RUNFILE="issue-2562.run"
 #TEST_ZFSTESTS_TAGS="functional"
 
 ### zfsstress
-#TEST_ZFSSTRESS_SKIP="yes"
+TEST_ZFSSTRESS_SKIP="yes"
 #TEST_ZFSSTRESS_URL="https://github.com/nedbass/zfsstress/archive/"
 #TEST_ZFSSTRESS_VER="master.tar.gz"
 #TEST_ZFSSTRESS_RUNTIME=300
@@ -83,8 +84,10 @@ SUSE*)
 Ubuntu-16.04*)
     # ZFS enabled xfstests fails to build
     TEST_XFSTESTS_SKIP="yes"
+    TEST_ZFSTESTS_SKIP="no"
     ;;
 Ubuntu*)
+    TEST_ZFSTESTS_SKIP="no"
     ;;
 *)
     ;;
diff --git a/cmd/zed/agents/zfs_retire.c b/cmd/zed/agents/zfs_retire.c
index f69c583f0b1f..c91c55fd433c 100644
--- a/cmd/zed/agents/zfs_retire.c
+++ b/cmd/zed/agents/zfs_retire.c
@@ -176,6 +176,8 @@ replace_with_spare(fmd_hdl_t *hdl, zpool_handle_t *zhp, nvlist_t *vdev)
 	nvlist_t **spares;
 	uint_t s, nspares;
 	char *dev_name;
+	zprop_source_t source;
+	int ashift;
 
 	config = zpool_get_config(zhp, NULL);
 	if (nvlist_lookup_nvlist(config, ZPOOL_CONFIG_VDEV_TREE,
@@ -189,6 +191,11 @@ replace_with_spare(fmd_hdl_t *hdl, zpool_handle_t *zhp, nvlist_t *vdev)
 	    &spares, &nspares) != 0)
 		return;
 
+	/*
+	 * lookup "ashift" pool property, we may need it for the replacement
+	 */
+	ashift = zpool_get_prop_int(zhp, ZPOOL_PROP_ASHIFT, &source);
+
 	replacement = fmd_nvl_alloc(hdl, FMD_SLEEP);
 
 	(void) nvlist_add_string(replacement, ZPOOL_CONFIG_TYPE,
@@ -207,6 +214,11 @@ replace_with_spare(fmd_hdl_t *hdl, zpool_handle_t *zhp, nvlist_t *vdev)
 		    &spare_name) != 0)
 			continue;
 
+		/* if set, add the "ashift" pool property to the spare nvlist */
+		if (source != ZPROP_SRC_DEFAULT)
+			(void) nvlist_add_uint64(spares[s],
+			    ZPOOL_CONFIG_ASHIFT, ashift);
+
 		(void) nvlist_add_nvlist_array(replacement,
 		    ZPOOL_CONFIG_CHILDREN, &spares[s], 1);
 
diff --git a/tests/runfiles/issue-2562.run b/tests/runfiles/issue-2562.run
new file mode 100644
index 000000000000..8ed6f49f20f6
--- /dev/null
+++ b/tests/runfiles/issue-2562.run
@@ -0,0 +1,36 @@
+#
+# This file and its contents are supplied under the terms of the
+# Common Development and Distribution License ("CDDL"), version 1.0.
+# You may only use this file in accordance with the terms of version
+# 1.0 of the CDDL.
+#
+# A full copy of the text of the CDDL should have accompanied this
+# source.  A copy of the CDDL is also available via the Internet at
+# http://www.illumos.org/license/CDDL.
+#
+
+[DEFAULT]
+pre = setup
+quiet = False
+pre_user = root
+user = root
+timeout = 600
+post_user = root
+post = cleanup
+outputdir = /var/tmp/test_results
+
+[tests/functional/fault]
+tests = ['auto_online_001_pos', 'auto_replace_001_pos', 'auto_spare_001_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_002_pos', 'auto_spare_002_pos',
+    'auto_spare_ashift', 'auto_spare_multiple']
+tags = ['functional', 'fault']
+
diff --git a/tests/runfiles/linux.run b/tests/runfiles/linux.run
index 9424c80a02cf..0c8f298c6d49 100644
--- a/tests/runfiles/linux.run
+++ b/tests/runfiles/linux.run
@@ -464,7 +464,7 @@ tags = ['functional', 'exec']
 
 [tests/functional/fault]
 tests = ['auto_online_001_pos', 'auto_replace_001_pos', 'auto_spare_001_pos',
-    'auto_spare_002_pos.ksh']
+    'auto_spare_002_pos', 'auto_spare_ashift', 'auto_spare_multiple']
 tags = ['functional', 'fault']
 
 [tests/functional/features/async_destroy]
diff --git a/tests/zfs-tests/include/blkdev.shlib b/tests/zfs-tests/include/blkdev.shlib
index 876c843561b8..28ac1052c3d0 100644
--- a/tests/zfs-tests/include/blkdev.shlib
+++ b/tests/zfs-tests/include/blkdev.shlib
@@ -353,16 +353,35 @@ function insert_disk #disk scsi_host
 
 #
 # Load scsi_debug module with specified parameters
+# $blksz can be either one of: < 512b | 512e | 4Kn >
 #
-function load_scsi_debug # dev_size_mb add_host num_tgts max_luns
+function load_scsi_debug # dev_size_mb add_host num_tgts max_luns blksz
 {
 	typeset devsize=$1
 	typeset hosts=$2
 	typeset tgts=$3
 	typeset luns=$4
+	typeset blksz=$5
 
 	[[ -z $devsize ]] || [[ -z $hosts ]] || [[ -z $tgts ]] || \
-	    [[ -z $luns ]] && log_fail "Arguments invalid or missing"
+	    [[ -z $luns ]] || [[ -z $blksz ]] && \
+	    log_fail "Arguments invalid or missing"
+
+	case "$5" in
+		'512b')
+			typeset sector=512
+			typeset blkexp=0
+		;;
+		'512e')
+			typeset sector=512
+			typeset blkexp=3
+		;;
+		'4Kn')
+			typeset sector=4096
+			typeset blkexp=0
+		;;
+		*) log_fail "Unsupported blksz value: $5" ;;
+	esac
 
 	if is_linux; then
 		modprobe -n scsi_debug
@@ -375,7 +394,8 @@ function load_scsi_debug # dev_size_mb add_host num_tgts max_luns
 			log_fail "scsi_debug module already installed"
 		else
 			log_must modprobe scsi_debug dev_size_mb=$devsize \
-			    add_host=$hosts num_tgts=$tgts max_luns=$luns
+			    add_host=$hosts num_tgts=$tgts max_luns=$luns \
+			    sector_size=$sector physblk_exp=$blkexp
 			block_device_wait
 			lsscsi | egrep scsi_debug > /dev/null
 			if (($? == 1)); then
@@ -385,6 +405,16 @@ function load_scsi_debug # dev_size_mb add_host num_tgts max_luns
 	fi
 }
 
+#
+# Unload scsi_debug module, if needed.
+#
+function unload_scsi_debug
+{
+	if lsmod | grep scsi_debug >/dev/null; then
+		log_must modprobe -r scsi_debug
+	fi
+}
+
 #
 # Get scsi_debug device name.
 # Returns basename of scsi_debug device (for example "sdb").
diff --git a/tests/zfs-tests/tests/functional/cli_root/zpool_reopen/cleanup.ksh b/tests/zfs-tests/tests/functional/cli_root/zpool_reopen/cleanup.ksh
index 4477e54027fb..99c51351c5c8 100755
--- a/tests/zfs-tests/tests/functional/cli_root/zpool_reopen/cleanup.ksh
+++ b/tests/zfs-tests/tests/functional/cli_root/zpool_reopen/cleanup.ksh
@@ -27,7 +27,7 @@ if is_linux; then
 	for SDDEVICE in $(get_debug_device); do
 		unplug $SDDEVICE
 	done
-	modprobe -r scsi_debug
+	unload_scsi_debug
 fi
 
 log_pass
diff --git a/tests/zfs-tests/tests/functional/cli_root/zpool_reopen/setup.ksh b/tests/zfs-tests/tests/functional/cli_root/zpool_reopen/setup.ksh
index 4dbf8965dc6b..59b8764ced84 100755
--- a/tests/zfs-tests/tests/functional/cli_root/zpool_reopen/setup.ksh
+++ b/tests/zfs-tests/tests/functional/cli_root/zpool_reopen/setup.ksh
@@ -22,7 +22,7 @@ verify_runnable "global"
 
 # Create scsi_debug devices for the reopen tests
 if is_linux; then
-	load_scsi_debug $SDSIZE $SDHOSTS $SDTGTS $SDLUNS
+	load_scsi_debug $SDSIZE $SDHOSTS $SDTGTS $SDLUNS '512b'
 else
 	log_unsupported "scsi debug module unsupported"
 fi
diff --git a/tests/zfs-tests/tests/functional/fault/Makefile.am b/tests/zfs-tests/tests/functional/fault/Makefile.am
index 436f3e8be719..ef4380835c37 100644
--- a/tests/zfs-tests/tests/functional/fault/Makefile.am
+++ b/tests/zfs-tests/tests/functional/fault/Makefile.am
@@ -6,4 +6,6 @@ dist_pkgdata_SCRIPTS = \
 	auto_online_001_pos.ksh \
 	auto_replace_001_pos.ksh \
 	auto_spare_001_pos.ksh \
-	auto_spare_002_pos.ksh
+	auto_spare_002_pos.ksh \
+	auto_spare_ashift.ksh \
+	auto_spare_multiple.ksh
diff --git a/tests/zfs-tests/tests/functional/fault/auto_online_001_pos.ksh b/tests/zfs-tests/tests/functional/fault/auto_online_001_pos.ksh
index 0f6e38ac2271..beff5dc87ce1 100755
--- a/tests/zfs-tests/tests/functional/fault/auto_online_001_pos.ksh
+++ b/tests/zfs-tests/tests/functional/fault/auto_online_001_pos.ksh
@@ -54,9 +54,8 @@ fi
 
 function cleanup
 {
-	#online last disk before fail
-	insert_disk $offline_disk $host
-	poolexists $TESTPOOL && destroy_pool $TESTPOOL
+	destroy_pool $TESTPOOL
+	unload_scsi_debug
 }
 
 log_assert "Testing automated auto-online FMA test"
@@ -65,8 +64,8 @@ log_onexit cleanup
 
 # If using the default loop devices, need a scsi_debug device for auto-online
 if is_loop_device $DISK1; then
-	SD=$(lsscsi | nawk '/scsi_debug/ {print $6; exit}')
-	SDDEVICE=$(echo $SD | nawk -F / '{print $3}')
+	load_scsi_debug $SDSIZE $SDHOSTS $SDTGTS $SDLUNS '512b'
+	SDDEVICE=$(get_debug_device)
 	SDDEVICE_ID=$(get_persistent_disk_name $SDDEVICE)
 	autoonline_disks="$SDDEVICE"
 else
diff --git a/tests/zfs-tests/tests/functional/fault/auto_replace_001_pos.ksh b/tests/zfs-tests/tests/functional/fault/auto_replace_001_pos.ksh
index 40a680a9bb02..8e48b2ab4371 100755
--- a/tests/zfs-tests/tests/functional/fault/auto_replace_001_pos.ksh
+++ b/tests/zfs-tests/tests/functional/fault/auto_replace_001_pos.ksh
@@ -57,27 +57,23 @@ fi
 
 function setup
 {
-	lsmod | egrep scsi_debug > /dev/null
-	if (($? == 1)); then
-		load_scsi_debug $SDSIZE $SDHOSTS $SDTGTS $SDLUNS
-	fi
+	load_scsi_debug $SDSIZE $SDHOSTS $SDTGTS $SDLUNS '512b'
+	SD=$(get_debug_device)
+	SDDEVICE_ID=$(get_persistent_disk_name $SD)
 	# Register vdev_id alias rule for scsi_debug device to create a
 	# persistent path
-	SD=$(lsscsi | nawk '/scsi_debug/ {print $6; exit}' \
-	    | nawk -F / '{print $3}')
-	SDDEVICE_ID=$(get_persistent_disk_name $SD)
 	log_must eval "echo "alias scsidebug /dev/disk/by-id/$SDDEVICE_ID" \
 	    >> $VDEVID_CONF"
 	block_device_wait
-
-	SDDEVICE=$(udevadm info -q all -n $DEV_DSKDIR/$SD | egrep ID_VDEV \
-	    | nawk '{print $2; exit}' | nawk -F = '{print $2; exit}')
+	SDDEVICE=$(udevadm info -q all -n $DEV_DSKDIR/$SD \
+	    | awk -F'=' '/ID_VDEV=/{print $2; exit}')
 	[[ -z $SDDEVICE ]] && log_fail "vdev rule was not registered properly"
 }
 
 function cleanup
 {
-	poolexists $TESTPOOL && destroy_pool $TESTPOOL
+	destroy_pool $TESTPOOL
+	unload_scsi_debug
 }
 
 log_assert "Testing automated auto-replace FMA test"
@@ -112,7 +108,7 @@ log_must zpool export -F $TESTPOOL
 # Offline disk
 remove_disk $SD
 block_device_wait
-log_must modprobe -r scsi_debug
+unload_scsi_debug
 
 # Reimport pool with drive missing
 log_must zpool import $TESTPOOL
diff --git a/tests/zfs-tests/tests/functional/fault/auto_spare_001_pos.ksh b/tests/zfs-tests/tests/functional/fault/auto_spare_001_pos.ksh
index 82f7f4834ce6..278e1c926e77 100755
--- a/tests/zfs-tests/tests/functional/fault/auto_spare_001_pos.ksh
+++ b/tests/zfs-tests/tests/functional/fault/auto_spare_001_pos.ksh
@@ -42,7 +42,7 @@ verify_runnable "both"
 function cleanup
 {
 	log_must zinject -c all
-	poolexists $TESTPOOL && destroy_pool $TESTPOOL
+	destroy_pool $TESTPOOL
 	rm -f $VDEV_FILES $SPARE_FILE
 }
 
diff --git a/tests/zfs-tests/tests/functional/fault/auto_spare_002_pos.ksh b/tests/zfs-tests/tests/functional/fault/auto_spare_002_pos.ksh
index f0ddac35cfed..9ae0fe6a3c63 100755
--- a/tests/zfs-tests/tests/functional/fault/auto_spare_002_pos.ksh
+++ b/tests/zfs-tests/tests/functional/fault/auto_spare_002_pos.ksh
@@ -41,8 +41,14 @@ verify_runnable "both"
 
 function cleanup
 {
+	# XXX: remote this after debugging
+	zpool status -v
+	#zpool events -v
+	#cat $ZED_DEBUG_LOG
+	# is ZED even running?
+	ps fax
 	log_must zinject -c all
-	poolexists $TESTPOOL && destroy_pool $TESTPOOL
+	destroy_pool $TESTPOOL
 	rm -f $VDEV_FILES $SPARE_FILE
 }
 
@@ -70,7 +76,7 @@ for type in "mirror" "raidz" "raidz2"; do
 
 	# 5. Verify the ZED kicks in a hot spare and expected pool/device status
 	log_note "Wait for ZED to auto-spare"
-	log_must wait_vdev_state $TESTPOOL $FAULT_FILE "DEGRADED" 60
+	log_must wait_vdev_state $TESTPOOL $FAULT_FILE "DEGRADED" 120
 	log_must wait_vdev_state $TESTPOOL $SPARE_FILE "ONLINE" 60
 	log_must wait_hotspare_state $TESTPOOL $SPARE_FILE "INUSE"
 	log_must check_state $TESTPOOL "" "DEGRADED"
diff --git a/tests/zfs-tests/tests/functional/fault/auto_spare_ashift.ksh b/tests/zfs-tests/tests/functional/fault/auto_spare_ashift.ksh
new file mode 100755
index 000000000000..fdb07d94cf6d
--- /dev/null
+++ b/tests/zfs-tests/tests/functional/fault/auto_spare_ashift.ksh
@@ -0,0 +1,98 @@
+#!/bin/ksh -p
+
+#
+# CDDL HEADER START
+#
+# This file and its contents are supplied under the terms of the
+# Common Development and Distribution License ("CDDL"), version 1.0.
+# You may only use this file in accordance with the terms of version
+# 1.0 of the CDDL.
+#
+# A full copy of the text of the CDDL should have accompanied this
+# source.  A copy of the CDDL is also available via the Internet at
+# http://www.illumos.org/license/CDDL.
+#
+# CDDL HEADER END
+#
+
+#
+# Copyright (c) 2017 by Intel Corporation. All rights reserved.
+# Copyright 2017, loli10K <ezomori.nozomu@gmail.com>. All rights reserved.
+#
+
+. $STF_SUITE/include/libtest.shlib
+. $STF_SUITE/include/math.shlib
+. $STF_SUITE/tests/functional/fault/fault.cfg
+
+#
+# DESCRIPTION:
+# Testing Fault Management Agent ZED Logic - Automated Auto-Spare Test when
+# drive is faulted and a custom ashift value needs to be provided to replace it.
+#
+# STRATEGY:
+# 1. Create a pool from 512b devices and set "ashift" pool property accordingly
+# 2. Add one 512e spare device (4Kn would generate IO errors on replace)
+# 3. Inject IO errors with a zinject error handler
+# 4. Start a scrub
+# 5. Verify the ZED kicks in the hot spare and expected pool/device status
+# 6. Clear the fault
+# 7. Verify the hot spare is available and expected pool/device status
+#
+
+verify_runnable "both"
+
+function cleanup
+{
+	log_must zinject -c all
+	destroy_pool $TESTPOOL
+	unload_scsi_debug
+	rm -f $SAFE_DEVICE $FAIL_DEVICE
+}
+
+log_assert "ZED should replace a device using the configured ashift property"
+log_onexit cleanup
+
+SAFE_DEVICE="$TEST_BASE_DIR/safe-dev"
+FAIL_DEVICE="$TEST_BASE_DIR/fail-dev"
+
+# 1. Create a pool from 512b devices and set "ashift" pool property accordingly
+for vdev in $SAFE_DEVICE $FAIL_DEVICE; do
+	truncate -s $SPA_MINDEVSIZE $vdev
+done
+log_must zpool create -f $TESTPOOL mirror $SAFE_DEVICE $FAIL_DEVICE
+# NOTE: file VDEVs should be added as 512b devices, verify this "just in case"
+for vdev in $SAFE_DEVICE $FAIL_DEVICE; do
+	verify_eq "9" "$(zdb -e -l $vdev | awk '/ashift: /{print $2}')" "ashift"
+done
+log_must zpool set ashift=9 $TESTPOOL
+
+# 2. Add one 512e spare device (4Kn would generate IO errors on replace)
+# NOTE: must be larger than the existing 512b devices, add 32m of fudge
+load_scsi_debug $(($SPA_MINDEVSIZE/1024/1024+32)) $SDHOSTS $SDTGTS $SDLUNS '512e'
+SPARE_DEVICE=$(get_debug_device)
+log_must_busy zpool add $TESTPOOL spare $SPARE_DEVICE
+
+# 3. Inject IO errors with a zinject error handler
+log_must zinject -d $FAIL_DEVICE -e io -T all -f 100 $TESTPOOL
+
+# 4. Start a scrub
+log_must zpool scrub $TESTPOOL
+
+# 5. Verify the ZED kicks in a hot spare and expected pool/device status
+log_note "Wait for ZED to auto-spare"
+log_must wait_vdev_state $TESTPOOL $FAIL_DEVICE "FAULTED" 60
+log_must wait_vdev_state $TESTPOOL $SPARE_DEVICE "ONLINE" 60
+log_must wait_hotspare_state $TESTPOOL $SPARE_DEVICE "INUSE"
+log_must check_state $TESTPOOL "" "DEGRADED"
+
+# 6. Clear the fault
+log_must zinject -c all
+log_must zpool clear $TESTPOOL $FAIL_DEVICE
+
+# 7. Verify the hot spare is available and expected pool/device status
+log_must wait_vdev_state $TESTPOOL $FAIL_DEVICE "ONLINE" 60
+log_must wait_hotspare_state $TESTPOOL $SPARE_DEVICE "AVAIL"
+log_must is_pool_resilvered $TESTPOOL
+log_must check_state $TESTPOOL "" "ONLINE"
+
+log_pass "ZED successfully replaces a device using the configured ashift property"
diff --git a/tests/zfs-tests/tests/functional/fault/auto_spare_multiple.ksh b/tests/zfs-tests/tests/functional/fault/auto_spare_multiple.ksh
new file mode 100755
index 000000000000..04c9a63a84e9
--- /dev/null
+++ b/tests/zfs-tests/tests/functional/fault/auto_spare_multiple.ksh
@@ -0,0 +1,149 @@
+#!/bin/ksh -p
+
+#
+# CDDL HEADER START
+#
+# This file and its contents are supplied under the terms of the
+# Common Development and Distribution License ("CDDL"), version 1.0.
+# You may only use this file in accordance with the terms of version
+# 1.0 of the CDDL.
+#
+# A full copy of the text of the CDDL should have accompanied this
+# source.  A copy of the CDDL is also available via the Internet at
+# http://www.illumos.org/license/CDDL.
+#
+# CDDL HEADER END
+#
+
+#
+# Copyright (c) 2017 by Intel Corporation. All rights reserved.
+# Copyright 2017, loli10K <ezomori.nozomu@gmail.com>. All rights reserved.
+#
+
+. $STF_SUITE/include/libtest.shlib
+. $STF_SUITE/tests/functional/fault/fault.cfg
+
+#
+# DESCRIPTION:
+# Testing Fault Management Agent ZED Logic - Automated Auto-Spare Test when
+# multiple drives are faulted.
+#
+# STRATEGY:
+# 1. Create a pool with two hot spares
+# 2. Inject IO ERRORS with a zinject error handler on the first device
+# 3. Start a scrub
+# 4. Verify the ZED kicks in a hot spare and expected pool/device status
+# 5. Inject IO ERRORS on a second device
+# 6. Start a scrub
+# 7. Verify the ZED kicks in a second hot spare
+# 8. Clear the fault on both devices
+# 9. Verify the hot spares are available and expected pool/device status
+# 10. Rinse and repeat, this time faulting both devices at the same time
+#
+
+verify_runnable "both"
+
+function cleanup
+{
+	log_must zinject -c all
+	destroy_pool $TESTPOOL
+	rm -f $DATA_DEVS $SPARE_DEVS
+}
+
+log_assert "ZED should be able to handle multiple faulted devices"
+log_onexit cleanup
+
+FAULT_DEV1="$TEST_BASE_DIR/fault-dev1"
+FAULT_DEV2="$TEST_BASE_DIR/fault-dev2"
+SAFE_DEV1="$TEST_BASE_DIR/safe-dev1"
+SAFE_DEV2="$TEST_BASE_DIR/safe-dev2"
+DATA_DEVS="$FAULT_DEV1 $FAULT_DEV2 $SAFE_DEV1 $SAFE_DEV2"
+SPARE_DEV1="$TEST_BASE_DIR/spare-dev1"
+SPARE_DEV2="$TEST_BASE_DIR/spare-dev2"
+SPARE_DEVS="$SPARE_DEV1 $SPARE_DEV2"
+
+for type in "mirror" "raidz" "raidz2" "raidz3"; do
+	# 1. Create a pool with two hot spares
+	truncate -s $SPA_MINDEVSIZE $DATA_DEVS $SPARE_DEVS
+	log_must zpool create -f $TESTPOOL $type $DATA_DEVS spare $SPARE_DEVS
+
+	# 2. Inject IO ERRORS with a zinject error handler on the first device
+	log_must zinject -d $FAULT_DEV1 -e io -T all -f 100 $TESTPOOL
+
+	# 3. Start a scrub
+	log_must zpool scrub $TESTPOOL
+
+	# 4. Verify the ZED kicks in a hot spare and expected pool/device status
+	log_note "Wait for ZED to auto-spare"
+	log_must wait_vdev_state $TESTPOOL $FAULT_DEV1 "FAULTED" 60
+	log_must wait_vdev_state $TESTPOOL $SPARE_DEV1 "ONLINE" 60
+	log_must wait_hotspare_state $TESTPOOL $SPARE_DEV1 "INUSE"
+	log_must check_state $TESTPOOL "" "DEGRADED"
+
+	# 5. Inject IO ERRORS on a second device
+	log_must zinject -d $FAULT_DEV2 -e io -T all -f 100 $TESTPOOL
+
+	# 6. Start a scrub
+	while is_pool_scrubbing $TESTPOOL || is_pool_resilvering $TESTPOOL; do
+		sleep 1
+	done
+	log_must zpool scrub $TESTPOOL
+
+	# 7. Verify the ZED kicks in a second hot spare
+	log_note "Wait for ZED to auto-spare"
+	log_must wait_vdev_state $TESTPOOL $FAULT_DEV2 "FAULTED" 60
+	log_must wait_vdev_state $TESTPOOL $SPARE_DEV2 "ONLINE" 60
+	log_must wait_hotspare_state $TESTPOOL $SPARE_DEV2 "INUSE"
+	log_must check_state $TESTPOOL "" "DEGRADED"
+
+	# 8. Clear the fault on both devices
+	log_must zinject -c all
+	log_must zpool clear $TESTPOOL $FAULT_DEV1
+	log_must zpool clear $TESTPOOL $FAULT_DEV2
+
+	# 9. Verify the hot spares are available and expected pool/device status
+	log_must wait_vdev_state $TESTPOOL $FAULT_DEV1 "ONLINE" 60
+	log_must wait_vdev_state $TESTPOOL $FAULT_DEV2 "ONLINE" 60
+	log_must wait_hotspare_state $TESTPOOL $SPARE_DEV1 "AVAIL"
+	log_must wait_hotspare_state $TESTPOOL $SPARE_DEV2 "AVAIL"
+	log_must check_state $TESTPOOL "" "ONLINE"
+
+	# Cleanup
+	cleanup
+done
+
+# Rinse and repeat, this time faulting both devices at the same time
+# NOTE: "raidz" is exluded since it cannot survive 2 faulted devices
+# NOTE: "mirror" is a 4-way mirror here and should survive this test
+for type in "mirror" "raidz2" "raidz3"; do
+	# 1. Create a pool with two hot spares
+	truncate -s $SPA_MINDEVSIZE $DATA_DEVS $SPARE_DEVS
+	log_must zpool create -f $TESTPOOL $type $DATA_DEVS spare $SPARE_DEVS
+
+	# 2. Inject IO ERRORS with a zinject error handler on two devices
+	log_must eval "zinject -d $FAULT_DEV1 -e io -T all -f 100 $TESTPOOL &"
+	log_must eval "zinject -d $FAULT_DEV2 -e io -T all -f 100 $TESTPOOL &"
+
+	# 3. Start a scrub
+	log_must zpool scrub $TESTPOOL
+
+	# 4. Verify the ZED kicks in two hot spares and expected pool/device status
+	log_note "Wait for ZED to auto-spare"
+	log_must wait_vdev_state $TESTPOOL $FAULT_DEV1 "FAULTED" 60
+	log_must wait_vdev_state $TESTPOOL $FAULT_DEV2 "FAULTED" 60
+	log_must wait_vdev_state $TESTPOOL $SPARE_DEV1 "ONLINE" 60
+	log_must wait_vdev_state $TESTPOOL $SPARE_DEV2 "ONLINE" 60
+	log_must wait_hotspare_state $TESTPOOL $SPARE_DEV1 "INUSE"
+	log_must wait_hotspare_state $TESTPOOL $SPARE_DEV2 "INUSE"
+	log_must check_state $TESTPOOL "" "DEGRADED"
+
+	# 5. Clear the fault on both devices
+	log_must zinject -c all
+	log_must zpool clear $TESTPOOL $FAULT_DEV1
+	log_must zpool clear $TESTPOOL $FAULT_DEV2
+
+	# Cleanup
+	cleanup
+done
+
+log_pass "ZED successfully handles multiple faulted devices"
diff --git a/tests/zfs-tests/tests/functional/fault/cleanup.ksh b/tests/zfs-tests/tests/functional/fault/cleanup.ksh
index 82e379b0d085..9d354f30e709 100755
--- a/tests/zfs-tests/tests/functional/fault/cleanup.ksh
+++ b/tests/zfs-tests/tests/functional/fault/cleanup.ksh
@@ -33,14 +33,4 @@ cleanup_devices $DISKS
 zed_stop
 zed_cleanup
 
-SDDEVICE=$(get_debug_device)
-
-# Offline disk and remove scsi_debug module
-if is_linux; then
-	if [ -n "$SDDEVICE" ]; then
-		remove_disk $SDDEVICE
-	fi
-	modprobe -r scsi_debug
-fi
-
 log_pass
diff --git a/tests/zfs-tests/tests/functional/fault/setup.ksh b/tests/zfs-tests/tests/functional/fault/setup.ksh
index 3d54d4f21754..3d3cbc9e568c 100755
--- a/tests/zfs-tests/tests/functional/fault/setup.ksh
+++ b/tests/zfs-tests/tests/functional/fault/setup.ksh
@@ -31,8 +31,4 @@ verify_runnable "global"
 zed_setup
 zed_start
 
-# Create a scsi_debug device to be used with auto-online (if using loop devices)
-# and auto-replace regardless of other devices
-load_scsi_debug $SDSIZE $SDHOSTS $SDTGTS $SDLUNS
-
 log_pass