diff --git a/fs/btrfs/ctree.h b/fs/btrfs/ctree.h
index d3562dd43c66..b3dd55f52f71 100644
--- a/fs/btrfs/ctree.h
+++ b/fs/btrfs/ctree.h
@@ -198,6 +198,8 @@ static int btrfs_csum_sizes[] = { 4, 0 };
 
 #define BTRFS_DIRTY_METADATA_THRESH	(32 * 1024 * 1024)
 
+#define BTRFS_MAX_EXTENT_SIZE (128 * 1024 * 1024)
+
 /*
  * The key defines the order in the tree, and so it also defines (optimal)
  * block layout.
diff --git a/fs/btrfs/extent-tree.c b/fs/btrfs/extent-tree.c
index 50de1fa6fc9e..0f6737063142 100644
--- a/fs/btrfs/extent-tree.c
+++ b/fs/btrfs/extent-tree.c
@@ -4963,19 +4963,25 @@ void btrfs_subvolume_release_metadata(struct btrfs_root *root,
 /**
  * drop_outstanding_extent - drop an outstanding extent
  * @inode: the inode we're dropping the extent for
+ * @num_bytes: the number of bytes we're relaseing.
  *
  * This is called when we are freeing up an outstanding extent, either called
  * after an error or after an extent is written.  This will return the number of
  * reserved extents that need to be freed.  This must be called with
  * BTRFS_I(inode)->lock held.
  */
-static unsigned drop_outstanding_extent(struct inode *inode)
+static unsigned drop_outstanding_extent(struct inode *inode, u64 num_bytes)
 {
 	unsigned drop_inode_space = 0;
 	unsigned dropped_extents = 0;
+	unsigned num_extents = 0;
 
-	BUG_ON(!BTRFS_I(inode)->outstanding_extents);
-	BTRFS_I(inode)->outstanding_extents--;
+	num_extents = (unsigned)div64_u64(num_bytes +
+					  BTRFS_MAX_EXTENT_SIZE - 1,
+					  BTRFS_MAX_EXTENT_SIZE);
+	ASSERT(num_extents);
+	ASSERT(BTRFS_I(inode)->outstanding_extents >= num_extents);
+	BTRFS_I(inode)->outstanding_extents -= num_extents;
 
 	if (BTRFS_I(inode)->outstanding_extents == 0 &&
 	    test_and_clear_bit(BTRFS_INODE_DELALLOC_META_RESERVED,
@@ -5146,7 +5152,7 @@ int btrfs_delalloc_reserve_metadata(struct inode *inode, u64 num_bytes)
 
 out_fail:
 	spin_lock(&BTRFS_I(inode)->lock);
-	dropped = drop_outstanding_extent(inode);
+	dropped = drop_outstanding_extent(inode, num_bytes);
 	/*
 	 * If the inodes csum_bytes is the same as the original
 	 * csum_bytes then we know we haven't raced with any free()ers
@@ -5225,7 +5231,7 @@ void btrfs_delalloc_release_metadata(struct inode *inode, u64 num_bytes)
 
 	num_bytes = ALIGN(num_bytes, root->sectorsize);
 	spin_lock(&BTRFS_I(inode)->lock);
-	dropped = drop_outstanding_extent(inode);
+	dropped = drop_outstanding_extent(inode, num_bytes);
 
 	if (num_bytes)
 		to_free = calc_csum_metadata_size(inode, num_bytes, 0);
diff --git a/fs/btrfs/extent_io.c b/fs/btrfs/extent_io.c
index a7f66009519a..29850d4a3827 100644
--- a/fs/btrfs/extent_io.c
+++ b/fs/btrfs/extent_io.c
@@ -3242,7 +3242,7 @@ static noinline_for_stack int writepage_delalloc(struct inode *inode,
 					       page,
 					       &delalloc_start,
 					       &delalloc_end,
-					       128 * 1024 * 1024);
+					       BTRFS_MAX_EXTENT_SIZE);
 		if (nr_delalloc == 0) {
 			delalloc_start = delalloc_end + 1;
 			continue;
diff --git a/fs/btrfs/inode.c b/fs/btrfs/inode.c
index 3b957921ba59..8564d8ce03de 100644
--- a/fs/btrfs/inode.c
+++ b/fs/btrfs/inode.c
@@ -1530,10 +1530,45 @@ static int run_delalloc_range(struct inode *inode, struct page *locked_page,
 static void btrfs_split_extent_hook(struct inode *inode,
 				    struct extent_state *orig, u64 split)
 {
+	u64 size;
+
 	/* not delalloc, ignore it */
 	if (!(orig->state & EXTENT_DELALLOC))
 		return;
 
+	size = orig->end - orig->start + 1;
+	if (size > BTRFS_MAX_EXTENT_SIZE) {
+		u64 num_extents;
+		u64 new_size;
+
+		/*
+		 * We need the largest size of the remaining extent to see if we
+		 * need to add a new outstanding extent.  Think of the following
+		 * case
+		 *
+		 * [MEAX_EXTENT_SIZEx2 - 4k][4k]
+		 *
+		 * The new_size would just be 4k and we'd think we had enough
+		 * outstanding extents for this if we only took one side of the
+		 * split, same goes for the other direction.  We need to see if
+		 * the larger size still is the same amount of extents as the
+		 * original size, because if it is we need to add a new
+		 * outstanding extent.  But if we split up and the larger size
+		 * is less than the original then we are good to go since we've
+		 * already accounted for the extra extent in our original
+		 * accounting.
+		 */
+		new_size = orig->end - split + 1;
+		if ((split - orig->start) > new_size)
+			new_size = split - orig->start;
+
+		num_extents = div64_u64(size + BTRFS_MAX_EXTENT_SIZE - 1,
+					BTRFS_MAX_EXTENT_SIZE);
+		if (div64_u64(new_size + BTRFS_MAX_EXTENT_SIZE - 1,
+			      BTRFS_MAX_EXTENT_SIZE) < num_extents)
+			return;
+	}
+
 	spin_lock(&BTRFS_I(inode)->lock);
 	BTRFS_I(inode)->outstanding_extents++;
 	spin_unlock(&BTRFS_I(inode)->lock);
@@ -1549,10 +1584,34 @@ static void btrfs_merge_extent_hook(struct inode *inode,
 				    struct extent_state *new,
 				    struct extent_state *other)
 {
+	u64 new_size, old_size;
+	u64 num_extents;
+
 	/* not delalloc, ignore it */
 	if (!(other->state & EXTENT_DELALLOC))
 		return;
 
+	old_size = other->end - other->start + 1;
+	new_size = old_size + (new->end - new->start + 1);
+
+	/* we're not bigger than the max, unreserve the space and go */
+	if (new_size <= BTRFS_MAX_EXTENT_SIZE) {
+		spin_lock(&BTRFS_I(inode)->lock);
+		BTRFS_I(inode)->outstanding_extents--;
+		spin_unlock(&BTRFS_I(inode)->lock);
+		return;
+	}
+
+	/*
+	 * If we grew by another max_extent, just return, we want to keep that
+	 * reserved amount.
+	 */
+	num_extents = div64_u64(old_size + BTRFS_MAX_EXTENT_SIZE - 1,
+				BTRFS_MAX_EXTENT_SIZE);
+	if (div64_u64(new_size + BTRFS_MAX_EXTENT_SIZE - 1,
+		      BTRFS_MAX_EXTENT_SIZE) > num_extents)
+		return;
+
 	spin_lock(&BTRFS_I(inode)->lock);
 	BTRFS_I(inode)->outstanding_extents--;
 	spin_unlock(&BTRFS_I(inode)->lock);
@@ -1648,6 +1707,8 @@ static void btrfs_clear_bit_hook(struct inode *inode,
 				 unsigned *bits)
 {
 	u64 len = state->end + 1 - state->start;
+	u64 num_extents = div64_u64(len + BTRFS_MAX_EXTENT_SIZE -1,
+				    BTRFS_MAX_EXTENT_SIZE);
 
 	spin_lock(&BTRFS_I(inode)->lock);
 	if ((state->state & EXTENT_DEFRAG) && (*bits & EXTENT_DEFRAG))
@@ -1667,7 +1728,7 @@ static void btrfs_clear_bit_hook(struct inode *inode,
 			*bits &= ~EXTENT_FIRST_DELALLOC;
 		} else if (!(*bits & EXTENT_DO_ACCOUNTING)) {
 			spin_lock(&BTRFS_I(inode)->lock);
-			BTRFS_I(inode)->outstanding_extents--;
+			BTRFS_I(inode)->outstanding_extents -= num_extents;
 			spin_unlock(&BTRFS_I(inode)->lock);
 		}