diff --git a/src/middlewared/middlewared/plugins/pool_/dataset.py b/src/middlewared/middlewared/plugins/pool_/dataset.py
index 0ce5120c103fd..2d2b67bc95e59 100644
--- a/src/middlewared/middlewared/plugins/pool_/dataset.py
+++ b/src/middlewared/middlewared/plugins/pool_/dataset.py
@@ -591,10 +591,6 @@ async def do_create(self, app, data):
             parent_st['acltype'] = await self.middleware.call('filesystem.path_get_acltype', parent_mp)
 
         mountpoint = os.path.join('/mnt', data['name'])
-        if data['type'] == 'FILESYSTEM' and data.get('acltype', 'INHERIT') == 'INHERIT' and len(
-                data['name'].split('/')
-        ) == 2:
-            data['acltype'] = 'POSIX'
 
         try:
             await self.middleware.call('filesystem.stat', mountpoint)
diff --git a/tests/api2/test_nfsv4_top_level_dataset.py b/tests/api2/test_nfsv4_top_level_dataset.py
new file mode 100644
index 0000000000000..5bc500872ed53
--- /dev/null
+++ b/tests/api2/test_nfsv4_top_level_dataset.py
@@ -0,0 +1,22 @@
+import pytest
+
+from middlewared.test.integration.assets.pool import dataset
+from middlewared.test.integration.utils import call, pool
+
+
+@pytest.fixture(scope='module')
+def set_nfsv4_top_level():
+    call('pool.dataset.update', pool, {'acltype': 'NFSV4', 'aclmode': 'PASSTHROUGH'})
+
+    try:
+        yield
+    finally:
+        call('pool.dataset.update', pool, {'acltype': 'POSIX', 'aclmode': 'DISCARD'})
+
+
+def test__acltype_inherit(set_nfsv4_top_level):
+    with dataset('v4inherit') as ds:
+        entry = call('pool.dataset.query', [['name', '=', ds]], {'get': True})
+
+        assert entry['acltype']['value'] == 'NFSV4'
+        assert entry['aclmode']['value'] == 'PASSTHROUGH'