diff --git a/ChangeLog b/ChangeLog
index 095d7750a..cc3766218 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -3,6 +3,7 @@ XXX
 	* Version X.X.X
 
 	- Fix "The pool was not closed" message (no ADR failure) (daos-stack/pmdk#1, DAOS-18692)
+	- Recalculate curr_allocated on underflow WA (daos-stack/pmdk#37, DAOS-18882)
 
 Fri Jan 16 2026 Oksana Sałyk <oksana.salyk@hpe.com>
 
diff --git a/src/libpmemobj/heap.c b/src/libpmemobj/heap.c
index 64cc19f42..8c07987f2 100644
--- a/src/libpmemobj/heap.c
+++ b/src/libpmemobj/heap.c
@@ -1,5 +1,6 @@
 // SPDX-License-Identifier: BSD-3-Clause
 /* Copyright 2015-2024, Intel Corporation */
+/* Copyright 2026, Hewlett Packard Enterprise Development LP */
 
 /*
  * heap.c -- heap implementation
@@ -812,6 +813,65 @@ heap_reclaim_zone_garbage(struct palloc_heap *heap, struct bucket *bucket,
 	}
 }
 
+/*
+ * heap_zone_get_allocated -- (internal) sums up the real size of all allocated
+ * (non-free) memory blocks in the zone.
+ *
+ * Note: It is not meant to calculate the sum of all allocations.
+ * It follows the algorithm used to calculate the heap_curr_allocated statistic.
+ * e.g. It does not take into account free space in runs.
+ */
+static uint64_t
+heap_zone_get_allocated(struct palloc_heap *heap, uint32_t zone_id)
+{
+	struct zone *z = ZID_TO_ZONE(heap->layout, zone_id);
+	uint64_t used = 0;
+
+	if (z->header.magic != ZONE_HEADER_MAGIC)
+		return 0;
+
+	for (uint32_t i = 0; i < z->header.size_idx; ) {
+		struct chunk_header *hdr = &z->chunk_headers[i];
+		ASSERT(hdr->size_idx != 0);
+
+		struct memory_block m = MEMORY_BLOCK_NONE;
+		m.zone_id = zone_id;
+		m.chunk_id = i;
+		m.size_idx = hdr->size_idx;
+		memblock_rebuild_state(heap, &m);
+
+		switch (hdr->type) {
+		case CHUNK_TYPE_USED:
+		case CHUNK_TYPE_RUN:
+			used += m.m_ops->get_real_size(&m);
+			break;
+		case CHUNK_TYPE_FREE:
+			break;
+		default:
+			ASSERT(0);
+		}
+
+		i = m.chunk_id + m.size_idx;
+	}
+
+	return used;
+}
+
+/*
+ * heap_curr_allocated_sum -- calculate the curr_allocated statistic
+ */
+uint64_t
+heap_curr_allocated_sum(struct palloc_heap *heap)
+{
+	uint64_t value = 0;
+
+	for (uint32_t z = 0; z < heap->rt->nzones; ++z) {
+		value += heap_zone_get_allocated(heap, z);
+	}
+
+	return value;
+}
+
 /*
  * heap_ensure_zone_reclaimed -- make sure that the specified zone has been
  * already reclaimed.
diff --git a/src/libpmemobj/heap.h b/src/libpmemobj/heap.h
index 09278bad6..779364548 100644
--- a/src/libpmemobj/heap.h
+++ b/src/libpmemobj/heap.h
@@ -1,5 +1,6 @@
 /* SPDX-License-Identifier: BSD-3-Clause */
 /* Copyright 2015-2024, Intel Corporation */
+/* Copyright 2026, Hewlett Packard Enterprise Development LP */
 
 /*
  * heap.h -- internal definitions for heap
@@ -74,6 +75,9 @@ heap_memblock_on_free(struct palloc_heap *heap, const struct memory_block *m);
 void
 heap_ensure_zone_reclaimed(struct palloc_heap *heap, uint32_t zone_id);
 
+uint64_t
+heap_curr_allocated_sum(struct palloc_heap *heap);
+
 int
 heap_free_chunk_reuse(struct palloc_heap *heap,
 	struct bucket *bucket, struct memory_block *m);
diff --git a/src/libpmemobj/stats.c b/src/libpmemobj/stats.c
index 2f3e23e30..6174022d9 100644
--- a/src/libpmemobj/stats.c
+++ b/src/libpmemobj/stats.c
@@ -5,11 +5,16 @@
  * stats.c -- implementation of statistics
  */
 
+#include <inttypes.h>
+
+#include "heap.h"
 #include "obj.h"
 #include "stats.h"
 #include "core_assert.h"
 
-STATS_CTL_HANDLER(persistent, curr_allocated, heap_curr_allocated);
+static int
+CTL_READ_HANDLER(persistent_curr_allocated)(void *ctx,
+	enum ctl_query_source source, void *arg, struct ctl_indexes *indexes);
 
 STATS_CTL_HANDLER(transient, run_allocated, heap_run_allocated);
 STATS_CTL_HANDLER(transient, run_active, heap_run_active);
@@ -22,6 +27,59 @@ static const struct ctl_node CTL_NODE(heap)[] = {
 	CTL_NODE_END
 };
 
+#define CURR_ALLOCATED_UNDERFLOW_FMT \
+	"heap_curr_allocated underflowed: %" PRIu64 " > heap.size: %" PRIu64 \
+	"; recalculating"
+
+/*
+ * CTL_READ_HANDLER(persistent_curr_allocated) -- returns curr_allocated field
+ */
+static int
+CTL_READ_HANDLER(persistent_curr_allocated)(void *ctx,
+	enum ctl_query_source source, void *arg, struct ctl_indexes *indexes)
+{
+	/* suppress unused-parameter errors */
+	SUPPRESS_UNUSED(source, indexes);
+
+	PMEMobjpool *pop = ctx;
+	uint64_t *curr_allocated = &pop->stats->persistent->heap_curr_allocated;
+
+	uint64_t *argv = arg;
+	util_atomic_load_explicit64(curr_allocated, argv, memory_order_acquire);
+
+	/*
+	 * heap_curr_allocated although is stored persistently it is not updated
+	 * transactionally nor reliably persisted. This means e.g. that in case
+	 * a transaction succeeds but the process will get terminated before
+	 * the update of heap_curr_allocated, the value of heap_curr_allocated
+	 * will get out of sync with the actual heap state.
+	 *
+	 * The most obvious case of this happening is when heap_curr_allocated
+	 * is actually smaller than the sum of the sizes of all allocations in
+	 * the heap, so in case all of the allocations are freed,
+	 * heap_curr_allocated will underflow and get a very big value, bigger
+	 * than heap size.
+	 *
+	 * Ref: https://daosio.atlassian.net/browse/DAOS-18882
+	 *
+	 * This workaround detects this most obvious case and recalculates.
+	 *
+	 * Note: Not thread-safe.
+	 */
+	if (*argv > *pop->heap.sizep) { /* covers the == UINT64_MAX case */
+		CORE_LOG_WARNING(CURR_ALLOCATED_UNDERFLOW_FMT,
+			*argv, *pop->heap.sizep);
+
+		/* if the value is broken, recalculate it */
+		*argv = heap_curr_allocated_sum(&pop->heap);
+
+		util_atomic_store_explicit64(curr_allocated, *argv,
+			memory_order_release);
+	}
+
+	return 0;
+}
+
 /*
  * CTL_READ_HANDLER(enabled) -- returns whether or not statistics are enabled
  */
diff --git a/src/libpmemobj/stats.h b/src/libpmemobj/stats.h
index 72eeceb89..213e727d3 100644
--- a/src/libpmemobj/stats.h
+++ b/src/libpmemobj/stats.h
@@ -42,8 +42,15 @@ struct stats {
 
 #define STATS_INC_persistent(stats, name, value) do {\
 	if ((stats)->enabled == POBJ_STATS_ENABLED_PERSISTENT ||\
-	(stats)->enabled == POBJ_STATS_ENABLED_BOTH)\
-		util_fetch_and_add64((&(stats)->persistent->name), (value));\
+	(stats)->enabled == POBJ_STATS_ENABLED_BOTH) {\
+		uint64_t curr_value;\
+		util_atomic_load_explicit64((&(stats)->persistent->name),\
+			&curr_value, memory_order_acquire);\
+		if (curr_value != UINT64_MAX) {\
+			util_fetch_and_add64(\
+				(&(stats)->persistent->name), (value));\
+		}\
+	}\
 } while (0)
 
 #define STATS_SUB(stats, type, name, value) do {\
@@ -56,10 +63,29 @@ struct stats {
 		util_fetch_and_sub64((&(stats)->transient->name), (value));\
 } while (0)
 
+/*
+ * This macro handles only the curr_allocated statistic. Sadly, it's current
+ * design makes it possible for it to underflow, which would lead to very large
+ * values due to the unsigned type. To mitigate this, if the value is already at
+ * UINT64_MAX or the subtraction would cause an underflow, the value is set to
+ * UINT64_MAX to indicate that it's broken and needs to be recalculated.
+ */
 #define STATS_SUB_persistent(stats, name, value) do {\
 	if ((stats)->enabled == POBJ_STATS_ENABLED_PERSISTENT ||\
-	(stats)->enabled == POBJ_STATS_ENABLED_BOTH)\
-		util_fetch_and_sub64((&(stats)->persistent->name), (value));\
+	(stats)->enabled == POBJ_STATS_ENABLED_BOTH) {\
+		uint64_t curr_value;\
+		util_atomic_load_explicit64((&(stats)->persistent->name),\
+			&curr_value, memory_order_acquire);\
+		if (curr_value != UINT64_MAX) {\
+			curr_value = util_fetch_and_sub64(\
+				(&(stats)->persistent->name), (value));\
+			if (curr_value < value || curr_value == UINT64_MAX) {\
+				util_atomic_store_explicit64(\
+					(&(stats)->persistent->name),\
+					UINT64_MAX, memory_order_release);\
+			}\
+		}\
+	}\
 } while (0)
 
 #define STATS_SET(stats, type, name, value) do {\
diff --git a/src/test/Makefile b/src/test/Makefile
index c223ccae6..dab26479f 100644
--- a/src/test/Makefile
+++ b/src/test/Makefile
@@ -1,5 +1,6 @@
 # SPDX-License-Identifier: BSD-3-Clause
 # Copyright 2014-2024, Intel Corporation
+# Copyright 2026, Hewlett Packard Enterprise Development LP
 #
 
 #
@@ -39,6 +40,7 @@ OBJ_TESTS = \
 	obj_ctl_debug\
 	obj_ctl_heap_size\
 	obj_ctl_stats\
+	obj_ctl_stats_curr_allocated_wa\
 	obj_debug\
 	obj_defrag\
 	obj_defrag_advanced\
diff --git a/src/test/obj_ctl_stats_curr_allocated_wa/.gitignore b/src/test/obj_ctl_stats_curr_allocated_wa/.gitignore
new file mode 100644
index 000000000..0de75f5ab
--- /dev/null
+++ b/src/test/obj_ctl_stats_curr_allocated_wa/.gitignore
@@ -0,0 +1 @@
+obj_ctl_stats_curr_allocated_wa
diff --git a/src/test/obj_ctl_stats_curr_allocated_wa/Makefile b/src/test/obj_ctl_stats_curr_allocated_wa/Makefile
new file mode 100644
index 000000000..cd8fdcea5
--- /dev/null
+++ b/src/test/obj_ctl_stats_curr_allocated_wa/Makefile
@@ -0,0 +1,15 @@
+# SPDX-License-Identifier: BSD-3-Clause
+# Copyright 2026, Hewlett Packard Enterprise Development LP
+
+#
+# src/test/obj_ctl_stats_curr_allocated_wa/Makefile --
+#
+TARGET = obj_ctl_stats_curr_allocated_wa
+OBJS = obj_ctl_stats_curr_allocated_wa.o
+
+BUILD_STATIC_DEBUG=n
+BUILD_STATIC_NONDEBUG=n
+
+LIBPMEMOBJ=y
+
+include ../Makefile.inc
diff --git a/src/test/obj_ctl_stats_curr_allocated_wa/TEST0 b/src/test/obj_ctl_stats_curr_allocated_wa/TEST0
new file mode 100755
index 000000000..786402641
--- /dev/null
+++ b/src/test/obj_ctl_stats_curr_allocated_wa/TEST0
@@ -0,0 +1,21 @@
+#!/usr/bin/env bash
+# SPDX-License-Identifier: BSD-3-Clause
+# Copyright 2026, Hewlett Packard Enterprise Development LP
+
+. ../unittest/unittest.sh
+
+require_test_type short
+require_fs_type any
+require_build_type debug
+
+setup
+
+OUT_CHECK=pmemobj_grep${UNITTEST_NUM}.log
+
+expect_normal_exit ./obj_ctl_stats_curr_allocated_wa$EXESUFFIX $DIR/testfile1
+
+cat $PMEMOBJ_LOG_FILE | grep "ctl__persistent_curr_allocated_read" > $OUT_CHECK
+
+check
+
+pass
diff --git a/src/test/obj_ctl_stats_curr_allocated_wa/obj_ctl_stats_curr_allocated_wa.c b/src/test/obj_ctl_stats_curr_allocated_wa/obj_ctl_stats_curr_allocated_wa.c
new file mode 100644
index 000000000..8a78a43c5
--- /dev/null
+++ b/src/test/obj_ctl_stats_curr_allocated_wa/obj_ctl_stats_curr_allocated_wa.c
@@ -0,0 +1,118 @@
+// SPDX-License-Identifier: BSD-3-Clause
+/* Copyright 2026, Hewlett Packard Enterprise Development LP */
+
+/*
+ * obj_ctl_stats_curr_allocated_wa.c -- tests for curr_allocated WA
+ */
+
+#include "unittest.h"
+
+#include <../../libpmemobj/obj.h>
+
+#define LAYOUT "ctl"
+
+#define MB (1 << 20)
+
+/*
+ * set_curr_allocated -- set curr_allocated to a specific value
+ */
+static void
+set_curr_allocated(PMEMobjpool *pop, uint64_t value)
+{
+	struct pmemobjpool *ppop = (struct pmemobjpool *)pop;
+	uint64_t *curr_allocated = &ppop->stats_persistent.heap_curr_allocated;
+	*curr_allocated = value;
+	pmem_persist(curr_allocated, sizeof(*curr_allocated));
+}
+
+/*
+ * get_curr_allocated -- get the curr_allocated value
+ */
+static uint64_t
+get_curr_allocated(PMEMobjpool *pop)
+{
+	int ret;
+	uint64_t allocated;
+
+	ret = pmemobj_ctl_get(pop, "stats.heap.curr_allocated", &allocated);
+	UT_ASSERTeq(ret, 0);
+
+	return allocated;
+}
+
+/*
+ * huge_alloc -- make a huge allocation
+ */
+static void
+huge_alloc(PMEMobjpool *pop, PMEMoid *oid)
+{
+	int ret = pmemobj_alloc(pop, oid, 4 * MB, 0, NULL, NULL);
+	UT_ASSERTeq(ret, 0);
+}
+
+static void
+underflow(PMEMobjpool *pop, uint64_t *exp_allocated)
+{
+	UT_ASSERTne(exp_allocated, NULL);
+
+	/* Create a huge allocation and query the statistic */
+	PMEMoid oid;
+	huge_alloc(pop, &oid);
+
+	*exp_allocated = get_curr_allocated(pop);
+
+	/* Inject a smaller than expected value. */
+	set_curr_allocated(pop, *exp_allocated - 1);
+
+	/* Trigger underflow. */
+	pmemobj_free(&oid);
+}
+
+static void
+test(PMEMobjpool *pop)
+{
+	PMEMoid oid;
+	uint64_t exp_allocated;
+
+	/* 1. trigger underflow */
+	underflow(pop, &exp_allocated);
+
+	/* Check the statistic is updated correctly. */
+	UT_ASSERTeq(get_curr_allocated(pop), 0);
+
+	/* 2. trigger underflow and attempt crossing zero again */
+	underflow(pop, &exp_allocated);
+	huge_alloc(pop, &oid);
+
+	/* Check the statistic is updated correctly. */
+	UT_ASSERTeq(get_curr_allocated(pop), exp_allocated);
+}
+
+int
+main(int argc, char *argv[])
+{
+	START(argc, argv, "obj_ctl_stats_curr_allocated_wa");
+
+	if (argc != 2) {
+		UT_FATAL("usage: %s file-name", argv[0]);
+	}
+
+	const char *path = argv[1];
+
+	PMEMobjpool *pop;
+	pop = pmemobj_create(path, LAYOUT, PMEMOBJ_MIN_POOL, S_IWUSR | S_IRUSR);
+	UT_ASSERTne(pop, NULL);
+
+	int enabled = 1;
+	int ret;
+
+	/* Enable stats. */
+	ret = pmemobj_ctl_set(pop, "stats.enabled", &enabled);
+	UT_ASSERTeq(ret, 0);
+
+	test(pop);
+
+	pmemobj_close(pop);
+
+	DONE(NULL);
+}
diff --git a/src/test/obj_ctl_stats_curr_allocated_wa/pmemobj_grep0.log.match b/src/test/obj_ctl_stats_curr_allocated_wa/pmemobj_grep0.log.match
new file mode 100644
index 000000000..dd72bd43e
--- /dev/null
+++ b/src/test/obj_ctl_stats_curr_allocated_wa/pmemobj_grep0.log.match
@@ -0,0 +1,2 @@
+$(S) heap_curr_allocated underflowed: $(N) > heap.size: $(N); recalculating
+$(S) heap_curr_allocated underflowed: $(N) > heap.size: $(N); recalculating