diff --git a/fs/xfs/libxfs/xfs_ialloc.c b/fs/xfs/libxfs/xfs_ialloc.c
index d97295eaebe6..c19d6d713780 100644
--- a/fs/xfs/libxfs/xfs_ialloc.c
+++ b/fs/xfs/libxfs/xfs_ialloc.c
@@ -848,15 +848,16 @@ sparse_alloc:
 		 * invalid inode records, such as records that start at agbno 0
 		 * or extend beyond the AG.
 		 *
-		 * Set min agbno to the first aligned, non-zero agbno and max to
-		 * the last aligned agbno that is at least one full chunk from
-		 * the end of the AG.
+		 * Set min agbno to the first chunk aligned, non-zero agbno and
+		 * max to one less than the last chunk aligned agbno from the
+		 * end of the AG. We subtract 1 from max so that the cluster
+		 * allocation alignment takes over and allows allocation within
+		 * the last full inode chunk in the AG.
 		 */
 		args.min_agbno = args.mp->m_sb.sb_inoalignmt;
 		args.max_agbno = round_down(xfs_ag_block_count(args.mp,
 							pag_agno(pag)),
-					    args.mp->m_sb.sb_inoalignmt) -
-				 igeo->ialloc_blks;
+					    args.mp->m_sb.sb_inoalignmt) - 1;
 
 		error = xfs_alloc_vextent_near_bno(&args,
 				xfs_agbno_to_fsb(pag,