diff --git a/tests/runfiles/linux.run b/tests/runfiles/linux.run
index f3d56acffde0..ba367fad402b 100644
--- a/tests/runfiles/linux.run
+++ b/tests/runfiles/linux.run
@@ -161,7 +161,7 @@ tests = ['mmp_on_thread', 'mmp_on_uberblocks', 'mmp_on_off', 'mmp_interval',
 tags = ['functional', 'mmp']
 
 [tests/functional/mount:Linux]
-tests = ['umount_unlinked_drain']
+tests = ['umount_unlinked_drain', 'mount_loopback']
 tags = ['functional', 'mount']
 
 [tests/functional/pam:Linux]
diff --git a/tests/zfs-tests/include/commands.cfg b/tests/zfs-tests/include/commands.cfg
index 884a99d785bc..580281b30d7e 100644
--- a/tests/zfs-tests/include/commands.cfg
+++ b/tests/zfs-tests/include/commands.cfg
@@ -100,6 +100,7 @@ export SYSTEM_FILES_COMMON='awk
     uniq
     vmstat
     wc
+    which
     xargs
     xxh128sum'
 
@@ -146,6 +147,7 @@ export SYSTEM_FILES_LINUX='attr
     lscpu
     lsmod
     lsscsi
+    mkfs.xfs
     mkswap
     modprobe
     mountpoint
diff --git a/tests/zfs-tests/tests/Makefile.am b/tests/zfs-tests/tests/Makefile.am
index 41e7b45ef4ec..94db292c9518 100644
--- a/tests/zfs-tests/tests/Makefile.am
+++ b/tests/zfs-tests/tests/Makefile.am
@@ -1706,6 +1706,7 @@ nobase_dist_datadir_zfs_tests_tests_SCRIPTS += \
 	functional/mmp/setup.ksh \
 	functional/mount/cleanup.ksh \
 	functional/mount/setup.ksh \
+	functional/mount/mount_loopback.ksh \
 	functional/mount/umount_001.ksh \
 	functional/mount/umountall_001.ksh \
 	functional/mount/umount_unlinked_drain.ksh \
diff --git a/tests/zfs-tests/tests/functional/mount/mount_loopback.ksh b/tests/zfs-tests/tests/functional/mount/mount_loopback.ksh
new file mode 100755
index 000000000000..86adef7ea032
--- /dev/null
+++ b/tests/zfs-tests/tests/functional/mount/mount_loopback.ksh
@@ -0,0 +1,111 @@
+#!/bin/ksh -p
+# SPDX-License-Identifier: CDDL-1.0
+#
+# CDDL HEADER START
+#
+# The contents of this file are subject to the terms of the
+# Common Development and Distribution License (the "License").
+# You may not use this file except in compliance with the License.
+#
+# You can obtain a copy of the license at usr/src/OPENSOLARIS.LICENSE
+# or https://opensource.org/licenses/CDDL-1.0.
+# See the License for the specific language governing permissions
+# and limitations under the License.
+#
+# When distributing Covered Code, include this CDDL HEADER in each
+# file and include the License file at usr/src/OPENSOLARIS.LICENSE.
+# If applicable, add the following below this CDDL HEADER, with the
+# fields enclosed by brackets "[]" replaced with your own identifying
+# information: Portions Copyright [yyyy] [name of copyright owner]
+#
+# CDDL HEADER END
+#
+
+# Copyright (c) 2025 by Lawrence Livermore National Security, LLC.
+
+. $STF_SUITE/include/libtest.shlib
+
+#
+# DESCRIPTION:
+# Verify that we can make an xfs filesystem on a ZFS-backed loopback device.
+#
+# See:
+# https://github.com/openzfs/zfs/pull/17298
+# https://github.com/openzfs/zfs/issues/17277
+#
+# STRATEGY:
+# 1. Make a pool
+# 2. Make a file on the pool or create zvol
+# 3. Mount the file/zvol behind a loopback device
+# 4. Create & mount an xfs filesystem on the loopback device
+
+function cleanup
+{
+	if [ -d $TEST_BASE_DIR/mnt ] ; then
+		umount $TEST_BASE_DIR/mnt
+		log_must rmdir $TEST_BASE_DIR/mnt
+	fi
+	if [ -n "$DEV" ] ; then
+		log_must losetup -d $DEV
+	fi
+	destroy_pool $TESTPOOL2
+	log_must rm -f $TEST_BASE_DIR/file1
+}
+
+if [ ! -x "$(which mkfs.xfs)" ] ; then
+	log_unsupported "No mkfs.xfs binary"
+fi
+
+if [ ! -d /lib/modules/$(uname -r)/kernel/fs/xfs ] && \
+     ! grep -qE '\sxfs$' /proc/filesystems ; then
+	log_unsupported "No XFS kernel support"
+fi
+
+log_assert "Make an xfs filesystem on a ZFS-backed loopback device"
+log_onexit cleanup
+
+# fio options
+export NUMJOBS=2
+export RUNTIME=3
+export PERF_RANDSEED=1234
+export PERF_COMPPERCENT=66
+export PERF_COMPCHUNK=0
+export BLOCKSIZE=128K
+export SYNC_TYPE=0
+export FILE_SIZE=$(( 1024 * 1024 ))
+
+function do_test
+{
+	imgfile=$1
+	log_note "Running test on $imgfile"
+	log_must losetup -f $imgfile
+	DEV=$(losetup --associated $imgfile | grep -Eo '^/dev/loop[0-9]+')
+	log_must mkfs.xfs $DEV
+	mkdir $TEST_BASE_DIR/mnt
+	log_must mount $DEV $TEST_BASE_DIR/mnt
+	export DIRECTORY=$TEST_BASE_DIR/mnt
+
+	for d in 0 1 ; do
+		# fio options
+		export DIRECT=$d
+		log_must fio $FIO_SCRIPTS/mkfiles.fio
+		log_must fio $FIO_SCRIPTS/random_reads.fio
+	done
+	log_must umount $TEST_BASE_DIR/mnt
+	log_must rmdir $TEST_BASE_DIR/mnt
+	log_must losetup -d $DEV
+	DEV=""
+}
+
+log_must truncate -s 1G $TEST_BASE_DIR/file1
+log_must zpool create $TESTPOOL2 $TEST_BASE_DIR/file1
+log_must truncate -s 512M /$TESTPOOL2/img
+do_test /$TESTPOOL2/img
+log_must rm /$TESTPOOL2/img
+log_must zfs create -V 512M $TESTPOOL2/vol
+
+blkdev="$ZVOL_DEVDIR/$TESTPOOL2/vol"
+block_device_wait $blkdev
+do_test $blkdev
+
+log_pass "Verified xfs filesystem on a ZFS-backed loopback device"