This invention is a system and a method for recovering and repairing a logical volume in a data storage environment using a new architecture. The method of recovering a logical volume enables mounting of a file system by instantiating only a single slice under the sparse volume and instantiating rest of the slices provisioned under the sparse volume in background by a asynchronous recovery process or on-demand by the clients of the file system issuing an I/O on the slice volume. The method of repairing a logical volume provides the ability to regenerate the metadata required to reconstruct the corrupted volume.