diff --git a/scale_build/main.py b/scale_build/main.py
index 97a196d6..aad63fcf 100644
--- a/scale_build/main.py
+++ b/scale_build/main.py
@@ -69,7 +69,7 @@ def main():
     )
 
     validate_parser = subparsers.add_parser('validate', help='Validate TrueNAS Scale build manifest and system state')
-    for action in ('manifest', 'system_state'):
+    for action in ('datasets', 'manifest', 'system_state'):
         validate_parser.add_argument(f'--validate-{action}', dest=action, action='store_true')
         validate_parser.add_argument(f'--no-validate-{action}', dest=action, action='store_false')
         validate_parser.set_defaults(**{action: True})
@@ -93,7 +93,7 @@ def main():
     elif args.action == 'clean':
         complete_cleanup()
     elif args.action == 'validate':
-        validate(args.system_state, args.manifest)
+        validate(args.system_state, args.manifest, args.datasets)
     elif args.action == 'branchout':
         validate_branch_out_config(not args.skip_push)
         branch_out_repos(not args.skip_push)
diff --git a/scale_build/validate.py b/scale_build/validate.py
index dc212a09..6cf8f509 100644
--- a/scale_build/validate.py
+++ b/scale_build/validate.py
@@ -1,9 +1,11 @@
 import os
+import jsonschema
 import logging
 import shutil
 
 from .exceptions import CallError, MissingPackagesException
 from .utils.manifest import validate_manifest
+from truenas_install import fhs
 
 
 logger = logging.getLogger(__name__)
@@ -31,10 +33,18 @@ def validate_system_state():
         raise MissingPackagesException(missing_packages)
 
 
-def validate(system_state_flag=True, manifest_flag=True):
+def validate_datasets():
+    jsonschema.validate(fhs.TRUENAS_DATASETS, fhs.TRUENAS_DATASET_SCHEMA)
+
+
+def validate(system_state_flag=True, manifest_flag=True, datasets_flag=True):
     if system_state_flag:
         validate_system_state()
         logger.debug('System state Validated')
     if manifest_flag:
         validate_manifest()
         logger.debug('Manifest Validated')
+
+    if datasets_flag:
+        validate_datasets()
+        logger.debug('Dataset schema Validated')
diff --git a/truenas_install/fhs.py b/truenas_install/fhs.py
index 7f714a5b..f2dd4355 100644
--- a/truenas_install/fhs.py
+++ b/truenas_install/fhs.py
@@ -13,12 +13,16 @@
 KEYS
 --------------
 The following keys are supported:
-`name` - the name of the dataset (will be appended to other dataset
-         name related components
-`options` - Dataset configuration options (explained below)
+`name` - the name of the dataset (will be appended to other dataset name
+    related components
+`options` - Dataset configuration options (explained below). There is no
+    default.
 `mode` - permissions to set on the dataset's mountpoint during installation
-`mountpoint` - dataset mountpoint.
+    default is 0o755
+`mountpoint` - dataset mountpoint. If no mountpoint is specified then it
+    /`name` will be assumed.
 `snap` - Take a snapshot named "pristine" after creating the dataset.
+    default is False
 
 OPTIONS
 --------------
@@ -47,6 +51,41 @@
     from /usr/local/share/ca-certificates.
 """
 
+
+# Following schema is used for validation (e.g. "make validate") in scale-build
+# If any changes are made to OPTIONS or KEYS above then schema must be updated
+# accordingly.
+TRUENAS_DATASET_SCHEMA = {
+    'type': 'array',
+    'items': {
+    'type': 'object',
+        'properties': {
+            'name': {'type': 'string'},
+            'options': {
+                'type': 'array',
+                'items': {
+                    'type': 'string',
+                    'enum': [
+                        'NOSUID',
+                        'NOEXEC',
+                        'NOACL',
+                        'NOATIME',
+                        'RO',
+                        'NODEV',
+                    ]
+                },
+                'uniqueItems': True,
+            },
+            'mode': {'type': 'integer'},
+            'mountpoint': {'type': 'string'},
+            'snap': {'type': 'boolean'},
+        },
+        'required': ['name', 'options'],
+        'additionalProperties': False,
+    }
+}
+
+
 TRUENAS_DATASETS = [
     {
         'name':  'audit',