diff --git a/weed/topology/volume_layout.go b/weed/topology/volume_layout.go
index 6a7ca2c89b..97a3f95584 100644
--- a/weed/topology/volume_layout.go
+++ b/weed/topology/volume_layout.go
@@ -357,12 +357,23 @@ func (vl *VolumeLayout) ShouldGrowVolumes() bool {
 }
 
 func (vl *VolumeLayout) ShouldGrowVolumesByDcAndRack(writables *[]needle.VolumeId, dcId NodeId, rackId NodeId) bool {
+	// When replication spans multiple racks (DiffRackCount > 0), a writable
+	// volume's replicas only cover some racks in a DC. It is wrong to
+	// require every rack to host a replica — that would create volumes
+	// endlessly in any DC with more racks than the copy count.
+	// Instead, check at the DC level: if the DC already has a non-crowded
+	// writable volume, no growth is needed for uncovered racks.
+	checkDcOnly := vl.rp.DiffRackCount > 0
 	for _, v := range *writables {
 		for _, dn := range vl.Lookup(v) {
-			if dn.GetDataCenter().Id() == dcId && dn.GetRack().Id() == rackId {
-				if info, err := dn.GetVolumesById(v); err == nil && !vl.isCrowdedVolume(&info) {
-					return false
-				}
+			if dn.GetDataCenter().Id() != dcId {
+				continue
+			}
+			if !checkDcOnly && dn.GetRack().Id() != rackId {
+				continue
+			}
+			if info, err := dn.GetVolumesById(v); err == nil && !vl.isCrowdedVolume(&info) {
+				return false
 			}
 		}
 	}
diff --git a/weed/topology/volume_layout_grow_test.go b/weed/topology/volume_layout_grow_test.go
new file mode 100644
index 0000000000..999faeebcf
--- /dev/null
+++ b/weed/topology/volume_layout_grow_test.go
@@ -0,0 +1,79 @@
+package topology
+
+import (
+	"testing"
+
+	"github.com/seaweedfs/seaweedfs/weed/storage/needle"
+	"github.com/seaweedfs/seaweedfs/weed/storage/super_block"
+	"github.com/seaweedfs/seaweedfs/weed/storage/types"
+)
+
+// Reproduces https://github.com/seaweedfs/seaweedfs/issues/8986
+//
+// Topology: 1 DC with 3 racks, replication "010" (different-rack).
+// Each volume has replicas on 2 of the 3 racks.
+// The third rack has no replica, so ShouldGrowVolumesByDcAndRack
+// incorrectly returns true for that rack, causing endless volume creation
+// even though the DC already has plenty of non-crowded writable volumes.
+var topologyLayout3Racks = `
+{
+  "dc_edge":{
+    "rack1":{
+      "server1":{
+        "ip":"10.0.0.1",
+        "volumes":[
+          {"id":1, "size":12312, "replication":"010"},
+          {"id":2, "size":12312, "replication":"010"}
+        ],
+        "limit":30
+      }
+    },
+    "rack2":{
+      "server2":{
+        "ip":"10.0.0.2",
+        "volumes":[
+          {"id":1, "size":12312, "replication":"010"},
+          {"id":2, "size":12312, "replication":"010"}
+        ],
+        "limit":30
+      }
+    },
+    "rack3":{
+      "server3":{
+        "ip":"10.0.0.3",
+        "volumes":[],
+        "limit":30
+      }
+    }
+  }
+}
+`
+
+func TestShouldGrowVolumesByDcAndRack_Issue8986(t *testing.T) {
+	topo := setup(topologyLayout3Racks)
+
+	rp, _ := super_block.NewReplicaPlacementFromString("010")
+	vl := topo.GetVolumeLayout("", rp, needle.EMPTY_TTL, types.HardDriveType)
+
+	writables := vl.CloneWritableVolumes()
+	if len(writables) != 2 {
+		t.Fatalf("expected 2 writable volumes, got %d", len(writables))
+	}
+
+	// rack1 and rack2 each have replicas of the writable volumes.
+	// ShouldGrowVolumesByDcAndRack should return false for them.
+	if vl.ShouldGrowVolumesByDcAndRack(&writables, "dc_edge", "rack1") {
+		t.Error("rack1 should NOT need growth — it has writable volumes")
+	}
+	if vl.ShouldGrowVolumesByDcAndRack(&writables, "dc_edge", "rack2") {
+		t.Error("rack2 should NOT need growth — it has writable volumes")
+	}
+
+	// rack3 has no replicas. With the old logic, this returns true (should grow),
+	// but since the DC already has non-crowded writable volumes with "010"
+	// replication, growing a new volume is unnecessary — the existing volumes
+	// can serve any write request that doesn't pin to a specific rack.
+	if vl.ShouldGrowVolumesByDcAndRack(&writables, "dc_edge", "rack3") {
+		t.Error("rack3 should NOT need growth — the DC already has non-crowded writable volumes that can serve writes")
+	}
+}