diff --git a/fs/xfs/xfs_filestream.c b/fs/xfs/xfs_filestream.c
index 6a3ce0f6dc9e..be9bcf8a1f99 100644
--- a/fs/xfs/xfs_filestream.c
+++ b/fs/xfs/xfs_filestream.c
@@ -128,11 +128,12 @@ xfs_filestream_pick_ag(
 		if (!pag->pagf_init) {
 			err = xfs_alloc_pagf_init(mp, NULL, ag, trylock);
 			if (err) {
-				xfs_perag_put(pag);
-				if (err != -EAGAIN)
+				if (err != -EAGAIN) {
+					xfs_perag_put(pag);
 					return err;
+				}
 				/* Couldn't lock the AGF, skip this AG. */
-				continue;
+				goto next_ag;
 			}
 		}