diff --git a/cmd/mount_zfs/mount_zfs.c b/cmd/mount_zfs/mount_zfs.c
index ca39d22847..5196c3e5cb 100644
--- a/cmd/mount_zfs/mount_zfs.c
+++ b/cmd/mount_zfs/mount_zfs.c
@@ -50,6 +50,21 @@ libzfs_handle_t *g_zfs;
 static void
 parse_dataset(const char *target, char **dataset)
 {
+	/*
+	 * Prior to util-linux 2.36.2, if a file or directory in the
+	 * current working directory was named 'dataset' then mount(8)
+	 * would prepend the current working directory to the dataset.
+	 * Check for it and strip the prepended path when it is added.
+	 */
+	char cwd[PATH_MAX];
+	if (getcwd(cwd, PATH_MAX) == NULL) {
+		perror("getcwd");
+		return;
+	}
+	int len = strlen(cwd);
+	if (strncmp(cwd, target, len) == 0)
+		target += len;
+
 	/* Assume pool/dataset is more likely */
 	strlcpy(*dataset, target, PATH_MAX);
 
diff --git a/tests/zfs-tests/tests/functional/cli_root/zfs_mount/zfs_mount_013_pos.ksh b/tests/zfs-tests/tests/functional/cli_root/zfs_mount/zfs_mount_013_pos.ksh
index 810a69470d..e6a4be1577 100755
--- a/tests/zfs-tests/tests/functional/cli_root/zfs_mount/zfs_mount_013_pos.ksh
+++ b/tests/zfs-tests/tests/functional/cli_root/zfs_mount/zfs_mount_013_pos.ksh
@@ -32,7 +32,9 @@ typeset -r fs=$TESTPOOL/$TESTFS
 function cleanup
 {
 	cd $STF_SUITE
-	[[ -d $TESTDIR/$$ ]] && (rm -rf $TESTDIR/$$ || log_fail)
+	if [[ -d $TESTDIR/$$ ]]; then
+		log_must rm -rf $TESTDIR/$$
+	fi
 	mounted && zfs $mountcmd $TESTPOOL
 	return 0
 }
@@ -50,13 +52,25 @@ force_unmount $fs
 
 log_note "Verify mount(8) does not canonicalize before calling helper"
 # Canonicalization is confused by files in PWD matching [device|mountpoint]
-mkdir -p $TESTDIR/$$/$TESTPOOL && cd $TESTDIR/$$ || log_fail
+log_must mkdir -p $TESTDIR/$$/$TESTPOOL
+log_must cd $TESTDIR/$$
 # The env flag directs zfs to exec /bin/mount, which then calls helper
 log_must eval ZFS_MOUNT_HELPER=1 zfs $mountcmd -v $TESTPOOL
 # mount (2.35.2) still suffers from a cosmetic PWD prefix bug
 log_must mounted $TESTPOOL
 force_unmount $TESTPOOL
 
+log_note "Verify CWD prefix filter <dataset> <path>"
+log_must cd /
+log_must zfs set mountpoint=legacy $TESTPOOL
+log_must mkdir -p $mntpoint
+log_must mount -t zfs $TESTPOOL $mntpoint
+log_must ismounted $TESTPOOL
+log_must umount $mntpoint
+log_must zfs set mountpoint=$mntpoint $TESTPOOL
+log_must cd -
+force_unmount $TESTPOOL
+
 log_note "Verify '-f <dataset> <path>' fakemount"
 log_must $helper -f $fs $mntpoint
 log_mustnot ismounted $fs
@@ -75,4 +89,4 @@ log_note "Verify '<device> <path>'"
 log_must $helper ${vdevs[0]} $mntpoint
 log_must mounted $mntpoint
 
-log_pass "zfs mount helper correctly handles both device and pool strings"
\ No newline at end of file
+log_pass "zfs mount helper correctly handles both device and pool strings"