diff --git a/e2e/cephfs.go b/e2e/cephfs.go
index 474a6d335..878a54038 100644
--- a/e2e/cephfs.go
+++ b/e2e/cephfs.go
@@ -44,6 +44,7 @@ var (
 	cephFSExamplePath     = examplePath + "cephfs/"
 	subvolumegroup        = "e2e"
 	fileSystemName        = "myfs"
+	fileSystemPoolName    = "myfs-replicated"
 )
 
 func deployCephfsPlugin() {
@@ -1613,6 +1614,7 @@ var _ = Describe(cephfsType, func() {
 						scOpts := map[string]string{
 							"encrypted":       "true",
 							"encryptionKMSID": kmsID,
+							"pool":            fileSystemPoolName,
 						}
 
 						err = createCephfsStorageClass(f.ClientSet, f, true, scOpts)
diff --git a/internal/cephfs/store/volumeoptions.go b/internal/cephfs/store/volumeoptions.go
index 1f97b7329..349e9db6c 100644
--- a/internal/cephfs/store/volumeoptions.go
+++ b/internal/cephfs/store/volumeoptions.go
@@ -542,9 +542,10 @@ func (vo *VolumeOptions) populateVolumeOptionsFromBackingSnapshot(
 		return fmtBackingSnapshotOptionMismatch("clusterID", vo.ClusterID, parentBackingSnapVolOpts.ClusterID)
 	}
 
-	if vo.Pool != "" {
-		return errors.New("cannot set pool for snapshot-backed volume")
-	}
+	// Pool parameter is optional and only used to set 'pool_layout' argument for
+	// subvolume and subvolume clone create commands.
+	// Setting this to empty since it is not used with Snapshot-backed volume.
+	vo.Pool = ""
 
 	if vo.MetadataPool != parentBackingSnapVolOpts.MetadataPool {
 		return fmtBackingSnapshotOptionMismatch("MetadataPool", vo.MetadataPool, parentBackingSnapVolOpts.MetadataPool)