!test_bit(Faulty, &rdev->flags)) {
                        if (raid5_add_disk(mddev, rdev) == 0) {
                                char nm[20];
-                               if (rdev->raid_disk >= conf->previous_raid_disks)
+                               if (rdev->raid_disk >= conf->previous_raid_disks) {
                                        set_bit(In_sync, &rdev->flags);
-                               else
+                                       added_devices++;
+                               } else
                                        rdev->recovery_offset = 0;
-                               added_devices++;
                                sprintf(nm, "rd%d", rdev->raid_disk);
                                if (sysfs_create_link(&mddev->kobj,
                                                      &rdev->kobj, nm))
                                break;
                }
 
+       /* When a reshape changes the number of devices, ->degraded
+        * is measured against the large of the pre and post number of
+        * devices.*/
        if (mddev->delta_disks > 0) {
                spin_lock_irqsave(&conf->device_lock, flags);
-               mddev->degraded = (conf->raid_disks - conf->previous_raid_disks)
+               mddev->degraded += (conf->raid_disks - conf->previous_raid_disks)
                        - added_devices;
                spin_unlock_irqrestore(&conf->device_lock, flags);
        }