diff --git a/cmd/zed/agents/zfs_mod.c b/cmd/zed/agents/zfs_mod.c
index f70e886a64..ca7128c889 100644
--- a/cmd/zed/agents/zfs_mod.c
+++ b/cmd/zed/agents/zfs_mod.c
@@ -427,8 +427,16 @@ zfs_process_add(zpool_handle_t *zhp, nvlist_t *vdev, boolean_t labeled)
 	nvlist_free(newvd);
 
 	/*
-	 * auto replace a leaf disk at same physical location
+	 * Wait for udev to verify the links exist, then auto-replace
+	 * the leaf disk at same physical location.
 	 */
+	if (zpool_label_disk_wait(path, 3000) != 0) {
+		zed_log_msg(LOG_WARNING, "zfs_mod: expected replacement "
+		    "disk %s is missing", path);
+		nvlist_free(nvroot);
+		return;
+	}
+
 	ret = zpool_vdev_attach(zhp, fullpath, path, nvroot, B_TRUE);
 
 	zed_log_msg(LOG_INFO, "  zpool_vdev_replace: %s with %s (%s)",
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 8e48b2ab43..0302c45373 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
@@ -31,17 +31,14 @@
 # Testing Fault Management Agent ZED Logic - Automated Auto-Replace Test.
 #
 # STRATEGY:
-# 1. Update /etc/zfs/vdev_id.conf with scsidebug alias rule for a persistent
-#    path. This creates keys ID_VDEV and ID_VDEV_PATH and sets
-#    phys_path="scsidebug".
-# 2. Create a pool & set autoreplace=on (auto-replace is opt-in)
-# 2. Export a pool
-# 3. Offline disk by removing scsi_debug module
-# 4. Import pool with missing disk
-# 5. Online disk by loading scsi_debug module again and re-registering vdev_id
-#    rule.
-# 6. ZED polls for an event change for new disk to be automatically
-#    added back to the pool
+# 1. Update /etc/zfs/vdev_id.conf with scsidebug alias for a persistent path.
+#    This creates keys ID_VDEV and ID_VDEV_PATH and set phys_path="scsidebug".
+# 2. Create a pool and set autoreplace=on (auto-replace is opt-in)
+# 3. Export a pool
+# 4. Wipe and offline the scsi_debug disk
+# 5. Import pool with missing disk
+# 6. Re-online the wiped scsi_debug disk
+# 7. Verify the ZED detects the new unused disk and adds it back to the pool
 #
 # Creates a raidz1 zpool using persistent disk path names
 # (ie not /dev/sdc)
@@ -55,98 +52,57 @@ if ! is_physical_device $DISKS; then
 	log_unsupported "Unsupported disks for this test."
 fi
 
-function setup
-{
-	load_scsi_debug $SDSIZE $SDHOSTS $SDTGTS $SDLUNS '512b'
-	SD=$(get_debug_device)
-	SDDEVICE_ID=$(get_persistent_disk_name $SD)
-	# Register vdev_id alias rule for scsi_debug device to create a
-	# persistent path
-	log_must eval "echo "alias scsidebug /dev/disk/by-id/$SDDEVICE_ID" \
-	    >> $VDEVID_CONF"
-	block_device_wait
-	SDDEVICE=$(udevadm info -q all -n $DEV_DSKDIR/$SD \
-	    | awk -F'=' '/ID_VDEV=/{print $2; exit}')
-	[[ -z $SDDEVICE ]] && log_fail "vdev rule was not registered properly"
-}
-
 function cleanup
 {
 	destroy_pool $TESTPOOL
+	sed -i '/alias scsidebug/d' $VDEVID_CONF
 	unload_scsi_debug
 }
 
 log_assert "Testing automated auto-replace FMA test"
-
 log_onexit cleanup
 
-# Clear disk labels
-for i in {0..2}
-do
-	zpool labelclear -f /dev/disk/by-id/"${devs_id[i]}"
-done
+load_scsi_debug $SDSIZE $SDHOSTS $SDTGTS $SDLUNS '512b'
+SD=$(get_debug_device)
+SD_DEVICE_ID=$(get_persistent_disk_name $SD)
+SD_HOST=$(get_scsi_host $SD)
 
-setup
-if is_loop_device $DISK1; then
-	log_must zpool create -f $TESTPOOL raidz1 $SDDEVICE $DISK1 $DISK2 \
-	    $DISK3
-elif ( is_real_device $DISK1 || is_mpath_device $DISK1 ); then
-	log_must zpool create -f $TESTPOOL raidz1 $SDDEVICE ${devs_id[0]} \
-	    ${devs_id[1]} ${devs_id[2]}
-else
-	log_fail "Disks are not supported for this test"
-fi
+# Register vdev_id alias for scsi_debug device to create a persistent path
+echo "alias scsidebug /dev/disk/by-id/$SD_DEVICE_ID" >>$VDEVID_CONF
+block_device_wait
+
+SD_DEVICE=$(udevadm info -q all -n $DEV_DSKDIR/$SD | \
+    awk -F'=' '/ID_VDEV=/{print $2; exit}')
+[[ -z $SD_DEVICE ]] && log_fail "vdev rule was not registered properly"
+
+log_must zpool events -c
+log_must zpool create -f $TESTPOOL raidz1 $SD_DEVICE $DISK1 $DISK2 $DISK3
 
 # Auto-replace is opt-in so need to set property
 log_must zpool set autoreplace=on $TESTPOOL
 
 # Add some data to the pool
 log_must mkfile $FSIZE /$TESTPOOL/data
+log_must zpool export $TESTPOOL
 
-log_must zpool export -F $TESTPOOL
-
-# Offline disk
+# Wipe and offline the disk
+log_must dd if=/dev/zero of=/dev/disk/by-id/$SD_DEVICE_ID bs=1M count=$SDSIZE
 remove_disk $SD
 block_device_wait
-unload_scsi_debug
 
-# Reimport pool with drive missing
+# Re-import pool with drive missing
 log_must zpool import $TESTPOOL
-check_state $TESTPOOL "" "degraded"
-if (($? != 0)); then
-	log_fail "$TESTPOOL is not degraded"
-fi
+log_must check_state $TESTPOOL "" "DEGRADED"
+block_device_wait
 
-# Clear zpool events
-log_must zpool events -c
+# Online an empty disk in the same physical location
+insert_disk $SD $SD_HOST
 
-# Create another scsi_debug device
-setup
-
-log_note "Delay for ZED auto-replace"
-typeset -i timeout=0
-while true; do
-	if ((timeout == $MAXTIMEOUT)); then
-		log_fail "Timeout occured"
-	fi
-	((timeout++))
-	sleep 1
-	zpool events $TESTPOOL | egrep sysevent.fs.zfs.resilver_finish \
-	    > /dev/null
-	if (($? == 0)); then
-		log_note "Auto-replace should be complete"
-		sleep 1
-		break
-	fi
-done
+# Wait for the new disk to be online and replaced
+log_must wait_vdev_state $TESTPOOL "scsidebug" "ONLINE" $MAXTIMEOUT
+log_must wait_replacing $TESTPOOL
 
 # Validate auto-replace was successful
-check_state $TESTPOOL "" "online"
-if (($? != 0)); then
-	log_fail "$TESTPOOL is not back online"
-fi
-sleep 2
-
-log_must zpool destroy $TESTPOOL
+log_must check_state $TESTPOOL "" "ONLINE"
 
 log_pass "Auto-replace test successful"
diff --git a/tests/zfs-tests/tests/functional/fault/fault.cfg b/tests/zfs-tests/tests/functional/fault/fault.cfg
index c7798f2659..25601a71a3 100644
--- a/tests/zfs-tests/tests/functional/fault/fault.cfg
+++ b/tests/zfs-tests/tests/functional/fault/fault.cfg
@@ -29,7 +29,7 @@ verify_runnable "global"
 export DISK_ARRAY_NUM=$(echo ${DISKS} | nawk '{print NF}')
 export DISKSARRAY=$DISKS
 export FSIZE=10M
-export MAXTIMEOUT=20
+export MAXTIMEOUT=30
 
 export SDSIZE=256
 export SDHOSTS=1