diff --git a/cmd/test-utils_test.go b/cmd/test-utils_test.go
index b77bf9e36..3eee1596f 100644
--- a/cmd/test-utils_test.go
+++ b/cmd/test-utils_test.go
@@ -174,7 +174,7 @@ func prepareFS() (ObjectLayer, string, error) {
 	return obj, fsDirs[0], nil
 }
 
-func prepareXL32() (ObjectLayer, []string, error) {
+func prepareXLSets32() (ObjectLayer, []string, error) {
 	fsDirs1, err := getRandomDisks(16)
 	if err != nil {
 		return nil, nil, err
@@ -1704,7 +1704,7 @@ func prepareTestBackend(instanceType string) (ObjectLayer, []string, error) {
 	switch instanceType {
 	// Total number of disks for XL sets backend is set to 32.
 	case XLSetsTestStr:
-		return prepareXL32()
+		return prepareXLSets32()
 	// Total number of disks for XL backend is set to 16.
 	case XLTestStr:
 		return prepareXL16()
@@ -1986,7 +1986,7 @@ func ExecObjectLayerTest(t TestErrHandler, objTest objTestType) {
 	// Executing the object layer tests for single node setup.
 	objTest(objLayer, FSTestStr, t)
 
-	objLayer, fsDirs, err := prepareXL16()
+	objLayer, fsDirs, err := prepareXLSets32()
 	if err != nil {
 		t.Fatalf("Initialization of object layer failed for XL setup: %s", err)
 	}
diff --git a/cmd/xl-sets.go b/cmd/xl-sets.go
index c79e453c6..e3b7ed203 100644
--- a/cmd/xl-sets.go
+++ b/cmd/xl-sets.go
@@ -858,10 +858,21 @@ func leastEntry(entriesCh []FileInfoCh, readQuorum int) (FileInfo, bool) {
 
 // mergeEntriesCh - merges FileInfo channel to entries upto maxKeys.
 func mergeEntriesCh(entriesCh []FileInfoCh, maxKeys int, readQuorum int) (entries FilesInfo) {
-	for i := 0; i < maxKeys; {
-		var fi FileInfo
-		fi, entries.IsTruncated = leastEntry(entriesCh, readQuorum)
-		if !entries.IsTruncated {
+	var i = 0
+	for {
+		fi, valid := leastEntry(entriesCh, readQuorum)
+		if !valid {
+			break
+		}
+		if i == maxKeys {
+			entries.IsTruncated = true
+			// Re-insert the last entry so it can be
+			// listed in the next listing iteration.
+			for j := range entriesCh {
+				if !entriesCh[j].Valid {
+					entriesCh[j].Push(fi)
+				}
+			}
 			break
 		}
 		entries.Files = append(entries.Files, fi)