diff --git a/erpnext/selling/doctype/quotation/test_quotation.py b/erpnext/selling/doctype/quotation/test_quotation.py
index eaaa2eb9748..49f921d9865 100644
--- a/erpnext/selling/doctype/quotation/test_quotation.py
+++ b/erpnext/selling/doctype/quotation/test_quotation.py
@@ -1001,6 +1001,31 @@ class TestQuotation(IntegrationTestCase):
 		so1.submit()
 		self.assertRaises(frappe.ValidationError, so2.submit)
 
+	def test_quotation_status(self):
+		quotation = make_quotation()
+
+		so1 = make_sales_order(quotation.name)
+		so1.delivery_date = nowdate()
+		so1.submit()
+		quotation.reload()
+		self.assertEqual(quotation.status, "Ordered")
+		so1.cancel()
+
+		quotation.reload()
+		self.assertEqual(quotation.status, "Open")
+
+		so2 = make_sales_order(quotation.name)
+		so2.delivery_date = nowdate()
+		so2.items[0].qty = 1
+		so2.submit()
+		quotation.reload()
+		self.assertEqual(quotation.status, "Partially Ordered")
+
+		so2.cancel()
+
+		quotation.reload()
+		self.assertEqual(quotation.status, "Open")
+
 
 def enable_calculate_bundle_price(enable=1):
 	selling_settings = frappe.get_doc("Selling Settings")
diff --git a/erpnext/selling/doctype/sales_order/sales_order.py b/erpnext/selling/doctype/sales_order/sales_order.py
index 876b11459b4..9d39c38505d 100755
--- a/erpnext/selling/doctype/sales_order/sales_order.py
+++ b/erpnext/selling/doctype/sales_order/sales_order.py
@@ -530,7 +530,7 @@ class SalesOrder(SellingController):
 			"Unreconcile Payment Entries",
 		)
 		super().on_cancel()
-
+		super().update_prevdoc_status()
 		# Cannot cancel closed SO
 		if self.status == "Closed":
 			frappe.throw(_("Closed order cannot be cancelled. Unclose to cancel."))