diff --git a/ocaml/tests/test_storage_migrate_state.ml b/ocaml/tests/test_storage_migrate_state.ml
index c6940c8daf..4208788799 100644
--- a/ocaml/tests/test_storage_migrate_state.ml
+++ b/ocaml/tests/test_storage_migrate_state.ml
@@ -53,6 +53,7 @@ let sample_receive_state =
     ; leaf_dp= "leaf_dp"
     ; parent_vdi= Vdi.of_string "parent_vdi"
     ; remote_vdi= Vdi.of_string "remote_vdi"
+    ; mirror_vm= Vm.of_string "mirror_vm"
     }
 
 let sample_copy_state =
diff --git a/ocaml/xapi-idl/storage/storage_interface.ml b/ocaml/xapi-idl/storage/storage_interface.ml
index 736a2006d6..f381b03c84 100644
--- a/ocaml/xapi-idl/storage/storage_interface.ml
+++ b/ocaml/xapi-idl/storage/storage_interface.ml
@@ -1054,10 +1054,23 @@ module StorageAPI (R : RPC) = struct
           @-> returning result err
           )
 
+      (** Called on the receiving end 
+        @deprecated This function is deprecated, and is only here to keep backward 
+        compatibility with old xapis that call Remote.DATA.MIRROR.receive_finalize
+        during SXM.  Use the receive_finalize2 function instead. 
+      *)
       let receive_finalize =
         declare "DATA.MIRROR.receive_finalize" []
           (dbg_p @-> id_p @-> returning unit_p err)
 
+      (** [receive_finalize2 dbg id] will stop the mirroring process and compose 
+      the snapshot VDI with the mirror VDI. It also cleans up the storage resources 
+      used by mirroring. It is called after the the source VM is paused. This fucntion
+      should be used in conjunction with [receive_start2] *)
+      let receive_finalize2 =
+        declare "DATA.MIRROR.receive_finalize2" []
+          (dbg_p @-> id_p @-> returning unit_p err)
+
       let receive_cancel =
         declare "DATA.MIRROR.receive_cancel" []
           (dbg_p @-> id_p @-> returning unit_p err)
@@ -1420,6 +1433,8 @@ module type Server_impl = sig
 
       val receive_finalize : context -> dbg:debug_info -> id:Mirror.id -> unit
 
+      val receive_finalize2 : context -> dbg:debug_info -> id:Mirror.id -> unit
+
       val receive_cancel : context -> dbg:debug_info -> id:Mirror.id -> unit
 
       val list : context -> dbg:debug_info -> (Mirror.id * Mirror.t) list
@@ -1608,6 +1623,9 @@ module Server (Impl : Server_impl) () = struct
     S.DATA.MIRROR.receive_finalize (fun dbg id ->
         Impl.DATA.MIRROR.receive_finalize () ~dbg ~id
     ) ;
+    S.DATA.MIRROR.receive_finalize2 (fun dbg id ->
+        Impl.DATA.MIRROR.receive_finalize2 () ~dbg ~id
+    ) ;
     S.DATA.MIRROR.list (fun dbg -> Impl.DATA.MIRROR.list () ~dbg) ;
     S.DATA.MIRROR.import_activate (fun dbg dp sr vdi vm ->
         Impl.DATA.MIRROR.import_activate () ~dbg ~dp ~sr ~vdi ~vm
diff --git a/ocaml/xapi-idl/storage/storage_skeleton.ml b/ocaml/xapi-idl/storage/storage_skeleton.ml
index c37abe5cb4..c87ca4eba0 100644
--- a/ocaml/xapi-idl/storage/storage_skeleton.ml
+++ b/ocaml/xapi-idl/storage/storage_skeleton.ml
@@ -172,6 +172,8 @@ module DATA = struct
 
     let receive_finalize ctx ~dbg ~id = u "DATA.MIRROR.receive_finalize"
 
+    let receive_finalize2 ctx ~dbg ~id = u "DATA.MIRROR.receive_finalize2"
+
     let receive_cancel ctx ~dbg ~id = u "DATA.MIRROR.receive_cancel"
 
     let list ctx ~dbg = u "DATA.MIRROR.list"
diff --git a/ocaml/xapi-storage-script/main.ml b/ocaml/xapi-storage-script/main.ml
index 8139e18301..ab5964e380 100644
--- a/ocaml/xapi-storage-script/main.ml
+++ b/ocaml/xapi-storage-script/main.ml
@@ -1836,6 +1836,7 @@ let bind ~volume_script_dir =
   S.DATA.copy (u "DATA.copy") ;
   S.DP.stat_vdi (u "DP.stat_vdi") ;
   S.DATA.MIRROR.receive_finalize (u "DATA.MIRROR.receive_finalize") ;
+  S.DATA.MIRROR.receive_finalize2 (u "DATA.MIRROR.receive_finalize2") ;
   S.DP.create (u "DP.create") ;
   S.TASK.cancel (u "TASK.cancel") ;
   S.VDI.attach (u "VDI.attach") ;
diff --git a/ocaml/xapi/storage_migrate.ml b/ocaml/xapi/storage_migrate.ml
index b34904b21c..791fdce7db 100644
--- a/ocaml/xapi/storage_migrate.ml
+++ b/ocaml/xapi/storage_migrate.ml
@@ -38,6 +38,7 @@ module State = struct
       ; leaf_dp: dp
       ; parent_vdi: Vdi.t
       ; remote_vdi: Vdi.t
+      ; mirror_vm: Vm.t
     }
     [@@deriving rpcty]
 
@@ -761,7 +762,7 @@ module MigrateLocal = struct
         ; watchdog= None
         }
     in
-
+ 
     State.add mirror_id (State.Send_op alm) ;
     debug "%s Added mirror %s to active local mirrors" __FUNCTION__ mirror_id ;
     (* A list of cleanup actions to perform if the operation should fail. *)
@@ -920,15 +921,9 @@ module MigrateLocal = struct
       debug "Local VDI %s = remote VDI %s"
         (Storage_interface.Vdi.string_of snapshot.vdi)
         (Storage_interface.Vdi.string_of new_parent.vdi) ;
-      Remote.VDI.compose dbg dest result.Mirror.copy_diffs_to
-        result.Mirror.mirror_vdi.vdi ;
-      Remote.VDI.remove_from_sm_config dbg dest result.Mirror.mirror_vdi.vdi
-        "base_mirror" ;
       debug "Local VDI %s now mirrored to remote VDI: %s"
         (Storage_interface.Vdi.string_of local_vdi.vdi)
         (Storage_interface.Vdi.string_of result.Mirror.mirror_vdi.vdi) ;
-      debug "Destroying dummy VDI on remote" ;
-      Remote.VDI.destroy dbg dest result.Mirror.dummy_vdi ;
       debug "Destroying snapshot on src" ;
       Local.VDI.destroy dbg sr snapshot.vdi ;
       Some (Mirror_id mirror_id)
@@ -1127,7 +1122,7 @@ end
 (** module [MigrateRemote] is similar to [MigrateLocal], but most of these functions
 tend to be executed on the receiver side. *)
 module MigrateRemote = struct
-  let receive_start2 ~dbg ~sr ~vdi_info ~id ~similar ~vm =
+  let receive_start_common ~dbg ~sr ~vdi_info ~id ~similar ~vm =
     let on_fail : (unit -> unit) list ref = ref [] in
     let vdis = Local.SR.scan dbg sr in
     (* We drop cbt_metadata VDIs that do not have any actual data *)
@@ -1138,9 +1133,11 @@ module MigrateRemote = struct
       let leaf = Local.VDI.create dbg sr vdi_info in
       info "Created leaf VDI for mirror receive: %s" (string_of_vdi_info leaf) ;
       on_fail := (fun () -> Local.VDI.destroy dbg sr leaf.vdi) :: !on_fail ;
+      (* dummy VDI is created so that the leaf VDI becomes a differencing disk,
+         useful for calling VDI.compose later on*)
       let dummy = Local.VDI.snapshot dbg sr leaf in
       on_fail := (fun () -> Local.VDI.destroy dbg sr dummy.vdi) :: !on_fail ;
-      debug "Created dummy snapshot for mirror receive: %s"
+      debug "%s Created dummy snapshot for mirror receive: %s" __FUNCTION__
         (string_of_vdi_info dummy) ;
       let _ : backend = Local.VDI.attach3 dbg leaf_dp sr leaf.vdi vm true in
       Local.VDI.activate3 dbg leaf_dp sr leaf.vdi vm ;
@@ -1202,6 +1199,7 @@ module MigrateRemote = struct
               ; leaf_dp
               ; parent_vdi= parent.vdi
               ; remote_vdi= vdi_info.vdi
+              ; mirror_vm= vm
               }
         ) ;
       let nearest_content_id = Option.map (fun x -> x.content_id) nearest in
@@ -1224,7 +1222,10 @@ module MigrateRemote = struct
       raise e
 
   let receive_start ~dbg ~sr ~vdi_info ~id ~similar =
-    receive_start2 ~dbg ~sr ~vdi_info ~id ~similar ~vm:(Vm.of_string "0")
+    receive_start_common ~dbg ~sr ~vdi_info ~id ~similar ~vm:(Vm.of_string "0")
+
+  let receive_start2 ~dbg ~sr ~vdi_info ~id ~similar ~vm =
+    receive_start_common ~dbg ~sr ~vdi_info ~id ~similar ~vm
 
   let receive_finalize ~dbg ~id =
     let recv_state = State.find_active_receive_mirror id in
@@ -1232,6 +1233,26 @@ module MigrateRemote = struct
     Option.iter (fun r -> Local.DP.destroy dbg r.leaf_dp false) recv_state ;
     State.remove_receive_mirror id
 
+  let receive_finalize2 ~dbg ~id =
+    let recv_state = State.find_active_receive_mirror id in
+    let open State.Receive_state in
+    Option.iter
+      (fun r ->
+        SXM.info
+          "%s Mirror done. Compose on the dest sr %s parent %s and leaf %s"
+          __FUNCTION__ (Sr.string_of r.sr)
+          (Vdi.string_of r.parent_vdi)
+          (Vdi.string_of r.leaf_vdi) ;
+        Local.DP.destroy2 dbg r.leaf_dp r.sr r.leaf_vdi r.mirror_vm false ;
+        Local.VDI.compose dbg r.sr r.parent_vdi r.leaf_vdi ;
+        (* On SMAPIv3, compose would have removed the now invalid dummy vdi, so
+           there is no need to destroy it anymore, while this is necessary on SMAPIv1 SRs. *)
+        log_and_ignore_exn (fun () -> Local.VDI.destroy dbg r.sr r.dummy_vdi) ;
+        Local.VDI.remove_from_sm_config dbg r.sr r.leaf_vdi "base_mirror"
+      )
+      recv_state ;
+    State.remove_receive_mirror id
+
   let receive_cancel ~dbg ~id =
     let receive_state = State.find_active_receive_mirror id in
     let open State.Receive_state in
@@ -1320,11 +1341,11 @@ let post_detach_hook ~sr ~vdi ~dp:_ =
          let t =
            Thread.create
              (fun () ->
-               debug "Calling receive_finalize" ;
+               debug "Calling receive_finalize2" ;
                log_and_ignore_exn (fun () ->
-                   Remote.DATA.MIRROR.receive_finalize "Mirror-cleanup" id
+                   Remote.DATA.MIRROR.receive_finalize2 "Mirror-cleanup" id
                ) ;
-               debug "Finished calling receive_finalize" ;
+               debug "Finished calling receive_finalize2" ;
                State.remove_local_mirror id ;
                debug "Removed active local mirror: %s" id
              )
@@ -1424,6 +1445,8 @@ let receive_start2 = MigrateRemote.receive_start2
 
 let receive_finalize = MigrateRemote.receive_finalize
 
+let receive_finalize2 = MigrateRemote.receive_finalize2
+
 let receive_cancel = MigrateRemote.receive_cancel
 
 (* The remote end of this call, SR.update_snapshot_info_dest, is implemented in
diff --git a/ocaml/xapi/storage_mux.ml b/ocaml/xapi/storage_mux.ml
index f973c9d108..b46a3008a7 100644
--- a/ocaml/xapi/storage_mux.ml
+++ b/ocaml/xapi/storage_mux.ml
@@ -863,6 +863,10 @@ module Mux = struct
         with_dbg ~name:"DATA.MIRROR.receive_finalize" ~dbg
         @@ fun {log= dbg; _} -> Storage_migrate.receive_finalize ~dbg
 
+      let receive_finalize2 () ~dbg =
+        with_dbg ~name:"DATA.MIRROR.receive_finalize2" ~dbg
+        @@ fun {log= dbg; _} -> Storage_migrate.receive_finalize2 ~dbg
+
       let receive_cancel () ~dbg =
         with_dbg ~name:"DATA.MIRROR.receive_cancel" ~dbg @@ fun {log= dbg; _} ->
         Storage_migrate.receive_cancel ~dbg
diff --git a/ocaml/xapi/storage_smapiv1.ml b/ocaml/xapi/storage_smapiv1.ml
index c1b68d5100..244cbe3456 100644
--- a/ocaml/xapi/storage_smapiv1.ml
+++ b/ocaml/xapi/storage_smapiv1.ml
@@ -1231,6 +1231,8 @@ module SMAPIv1 : Server_impl = struct
 
       let receive_finalize _context ~dbg:_ ~id:_ = assert false
 
+      let receive_finalize2 _context ~dbg:_ ~id:_ = assert false
+
       let receive_cancel _context ~dbg:_ ~id:_ = assert false
 
       let import_activate _context ~dbg:_ ~dp:_ ~sr:_ ~vdi:_ ~vm:_ =
diff --git a/ocaml/xapi/storage_smapiv1_wrapper.ml b/ocaml/xapi/storage_smapiv1_wrapper.ml
index d66f6aa925..a2fe8e32c7 100644
--- a/ocaml/xapi/storage_smapiv1_wrapper.ml
+++ b/ocaml/xapi/storage_smapiv1_wrapper.ml
@@ -1167,6 +1167,10 @@ functor
           info "DATA.MIRROR.receive_finalize dbg:%s id:%s" dbg id ;
           Impl.DATA.MIRROR.receive_finalize context ~dbg ~id
 
+        let receive_finalize2 context ~dbg ~id =
+          info "DATA.MIRROR.receive_finalize2 dbg:%s id:%s" dbg id ;
+          Impl.DATA.MIRROR.receive_finalize2 context ~dbg ~id
+
         let receive_cancel context ~dbg ~id =
           info "DATA.MIRROR.receive_cancel dbg:%s id:%s" dbg id ;
           Impl.DATA.MIRROR.receive_cancel context ~dbg ~id