if (inode)
                list_add(&entry->d_alias, &inode->i_dentry);
        entry->d_inode = inode;
+       fsnotify_d_instantiate(entry, inode);
        spin_unlock(&dcache_lock);
        security_d_instantiate(entry, inode);
 }
        list_add(&entry->d_alias, &inode->i_dentry);
 do_negative:
        entry->d_inode = inode;
+       fsnotify_d_instantiate(entry, inode);
        spin_unlock(&dcache_lock);
        security_d_instantiate(entry, inode);
        return NULL;
                new = __d_find_alias(inode, 1);
                if (new) {
                        BUG_ON(!(new->d_flags & DCACHE_DISCONNECTED));
+                       fsnotify_d_instantiate(new, inode);
                        spin_unlock(&dcache_lock);
                        security_d_instantiate(new, inode);
                        d_rehash(dentry);
                        /* d_instantiate takes dcache_lock, so we do it by hand */
                        list_add(&dentry->d_alias, &inode->i_dentry);
                        dentry->d_inode = inode;
+                       fsnotify_d_instantiate(dentry, inode);
                        spin_unlock(&dcache_lock);
                        security_d_instantiate(dentry, inode);
                        d_rehash(dentry);
        spin_lock(&dentry->d_lock);
        isdir = S_ISDIR(dentry->d_inode->i_mode);
        if (atomic_read(&dentry->d_count) == 1) {
+               /* remove this and other inotify debug checks after 2.6.18 */
+               dentry->d_flags &= ~DCACHE_INOTIFY_PARENT_WATCHED;
+
                dentry_iput(dentry);
                fsnotify_nameremove(dentry, isdir);
                return;
 
        list_add(&dentry->d_u.d_child, &dentry->d_parent->d_subdirs);
        spin_unlock(&target->d_lock);
+       fsnotify_d_move(dentry);
        spin_unlock(&dentry->d_lock);
        write_sequnlock(&rename_lock);
        spin_unlock(&dcache_lock);
 
 #include <asm/ioctls.h>
 
 static atomic_t inotify_cookie;
-static atomic_t inotify_watches;
 
 static kmem_cache_t *watch_cachep;
 static kmem_cache_t *event_cachep;
        return error;
 }
 
+/*
+ * inotify_inode_watched - returns nonzero if there are watches on this inode
+ * and zero otherwise.  We call this lockless, we do not care if we race.
+ */
+static inline int inotify_inode_watched(struct inode *inode)
+{
+       return !list_empty(&inode->inotify_watches);
+}
+
+/*
+ * Get child dentry flag into synch with parent inode.
+ * Flag should always be clear for negative dentrys.
+ */
+static void set_dentry_child_flags(struct inode *inode, int watched)
+{
+       struct dentry *alias;
+
+       spin_lock(&dcache_lock);
+       list_for_each_entry(alias, &inode->i_dentry, d_alias) {
+               struct dentry *child;
+
+               list_for_each_entry(child, &alias->d_subdirs, d_u.d_child) {
+                       if (!child->d_inode) {
+                               WARN_ON(child->d_flags & DCACHE_INOTIFY_PARENT_WATCHED);
+                               continue;
+                       }
+                       spin_lock(&child->d_lock);
+                       if (watched) {
+                               WARN_ON(child->d_flags &
+                                               DCACHE_INOTIFY_PARENT_WATCHED);
+                               child->d_flags |= DCACHE_INOTIFY_PARENT_WATCHED;
+                       } else {
+                               WARN_ON(!(child->d_flags &
+                                       DCACHE_INOTIFY_PARENT_WATCHED));
+                               child->d_flags&=~DCACHE_INOTIFY_PARENT_WATCHED;
+                       }
+                       spin_unlock(&child->d_lock);
+               }
+       }
+       spin_unlock(&dcache_lock);
+}
+
 /*
  * create_watch - creates a watch on the given device.
  *
        get_inotify_watch(watch);
 
        atomic_inc(&dev->user->inotify_watches);
-       atomic_inc(&inotify_watches);
 
        return watch;
 }
        list_del(&watch->i_list);
        list_del(&watch->d_list);
 
+       if (!inotify_inode_watched(watch->inode))
+               set_dentry_child_flags(watch->inode, 0);
+
        atomic_dec(&dev->user->inotify_watches);
-       atomic_dec(&inotify_watches);
        idr_remove(&dev->idr, watch->wd);
        put_inotify_watch(watch);
 }
        remove_watch_no_event(watch, dev);
 }
 
+/* Kernel API */
+
 /*
- * inotify_inode_watched - returns nonzero if there are watches on this inode
- * and zero otherwise.  We call this lockless, we do not care if we race.
+ * inotify_d_instantiate - instantiate dcache entry for inode
  */
-static inline int inotify_inode_watched(struct inode *inode)
+void inotify_d_instantiate(struct dentry *entry, struct inode *inode)
 {
-       return !list_empty(&inode->inotify_watches);
+       struct dentry *parent;
+
+       if (!inode)
+               return;
+
+       WARN_ON(entry->d_flags & DCACHE_INOTIFY_PARENT_WATCHED);
+       spin_lock(&entry->d_lock);
+       parent = entry->d_parent;
+       if (inotify_inode_watched(parent->d_inode))
+               entry->d_flags |= DCACHE_INOTIFY_PARENT_WATCHED;
+       spin_unlock(&entry->d_lock);
 }
 
-/* Kernel API */
+/*
+ * inotify_d_move - dcache entry has been moved
+ */
+void inotify_d_move(struct dentry *entry)
+{
+       struct dentry *parent;
+
+       parent = entry->d_parent;
+       if (inotify_inode_watched(parent->d_inode))
+               entry->d_flags |= DCACHE_INOTIFY_PARENT_WATCHED;
+       else
+               entry->d_flags &= ~DCACHE_INOTIFY_PARENT_WATCHED;
+}
 
 /**
  * inotify_inode_queue_event - queue an event to all watches on this inode
        struct dentry *parent;
        struct inode *inode;
 
-       if (!atomic_read (&inotify_watches))
+       if (!(dentry->d_flags & DCACHE_INOTIFY_PARENT_WATCHED))
                return;
 
        spin_lock(&dentry->d_lock);
                goto out;
        }
 
+       if (!inotify_inode_watched(inode))
+               set_dentry_child_flags(inode, 1);
+
        /* Add the watch to the device's and the inode's list */
        list_add(&watch->d_list, &dev->watches);
        list_add(&watch->i_list, &inode->inotify_watches);
        inotify_max_user_watches = 8192;
 
        atomic_set(&inotify_cookie, 0);
-       atomic_set(&inotify_watches, 0);
 
        watch_cachep = kmem_cache_create("inotify_watch_cache",
                                         sizeof(struct inotify_watch),