diff --git a/WHATS_NEW b/WHATS_NEW
index 11d3e6fd8..513210cbb 100644
--- a/WHATS_NEW
+++ b/WHATS_NEW
@@ -1,5 +1,6 @@
 Version 2.02.99 - 
 ===================================
+  Fix alignment of PV data area if detected alignment less than 1 MB (2.02.74).
   Fix memory resource leak in memlocking error path.
   Fix premature DM version checking which caused useless mapper/control access.
   Add "active" LV reporting field to show activation state.
diff --git a/lib/metadata/metadata.c b/lib/metadata/metadata.c
index bde1cb07a..357e84919 100644
--- a/lib/metadata/metadata.c
+++ b/lib/metadata/metadata.c
@@ -86,7 +86,7 @@ unsigned long set_pe_align(struct physical_volume *pv, unsigned long data_alignm
 	if (find_config_tree_bool(pv->fmt->cmd, devices_md_chunk_alignment_CFG)) {
 		temp_pe_align = dev_md_stripe_width(pv->fmt->cmd->sysfs_dir, pv->dev);
 		if (_alignment_overrides_default(temp_pe_align, default_pe_align))
-			pv->pe_align = MAX(pv->pe_align, temp_pe_align);
+			pv->pe_align = temp_pe_align;
 	}
 
 	/*
@@ -99,11 +99,11 @@ unsigned long set_pe_align(struct physical_volume *pv, unsigned long data_alignm
 	if (find_config_tree_bool(pv->fmt->cmd, devices_data_alignment_detection_CFG)) {
 		temp_pe_align = dev_minimum_io_size(pv->fmt->cmd->sysfs_dir, pv->dev);
 		if (_alignment_overrides_default(temp_pe_align, default_pe_align))
-			pv->pe_align = MAX(pv->pe_align, temp_pe_align);
+			pv->pe_align = temp_pe_align;
 
 		temp_pe_align = dev_optimal_io_size(pv->fmt->cmd->sysfs_dir, pv->dev);
 		if (_alignment_overrides_default(temp_pe_align, default_pe_align))
-			pv->pe_align = MAX(pv->pe_align, temp_pe_align);
+			pv->pe_align = temp_pe_align;
 	}
 
 out:
diff --git a/test/shell/topology-support.sh b/test/shell/topology-support.sh
index e952dc0cf..df73c6a0d 100644
--- a/test/shell/topology-support.sh
+++ b/test/shell/topology-support.sh
@@ -23,6 +23,16 @@ check_logical_block_size() {
     fi
 }
 
+check_optimal_io_size() {
+    local DEV_=$(cat SCSI_DEBUG_DEV)
+    # Verify optimal_io_size
+    SYSFS_OPTIMAL_IO_SIZE=$(echo /sys/block/$(basename $DEV_)/queue/optimal_io_size)
+    if [ -f "$SYSFS_OPTIMAL_IO_SIZE" ] ; then
+	ACTUAL_OPTIMAL_IO_SIZE=$(cat $SYSFS_OPTIMAL_IO_SIZE)
+	test $ACTUAL_OPTIMAL_IO_SIZE = $1
+    fi
+}
+
 lvdev_() {
     echo "$DM_DEV_DIR/$1/$2"
 }
@@ -103,3 +113,20 @@ aux prepare_pvs $NUM_DEVS $PER_DEV_SIZE
 vgcreate -c n $vg $(cat DEVICES)
 test_snapshot_mount
 vgremove $vg
+
+aux cleanup_scsi_debug_dev
+
+# ---------------------------------------------
+# Create "enterprise-class" 512 drive w/ HW raid stripe_size = 768K
+# (logical_block_size=512, physical_block_size=512, alignment_offset=0):
+# - tests case where optimal_io_size=768k < default PE alignment=1MB
+LOGICAL_BLOCK_SIZE=512
+aux prepare_scsi_debug_dev $DEV_SIZE \
+    sector_size=$LOGICAL_BLOCK_SIZE opt_blks=1536
+check_logical_block_size $LOGICAL_BLOCK_SIZE
+check_optimal_io_size 786432
+
+aux prepare_pvs 1 $PER_DEV_SIZE
+check pv_field $(cat DEVICES) pe_start 768.00k
+
+aux cleanup_scsi_debug_dev