diff --git a/erpnext/selling/doctype/sales_order/test_sales_order.py b/erpnext/selling/doctype/sales_order/test_sales_order.py
index 99a9e547573..b57b41d771a 100644
--- a/erpnext/selling/doctype/sales_order/test_sales_order.py
+++ b/erpnext/selling/doctype/sales_order/test_sales_order.py
@@ -2647,6 +2647,49 @@ class TestSalesOrder(AccountsTestMixin, IntegrationTestCase):
 		si2 = make_sales_invoice(so.name)
 		self.assertEqual(si2.items[0].qty, 20)
 
+	@change_settings("Selling Settings", {"validate_selling_price": 1})
+	def test_selling_price_validation_for_manufactured_item(self):
+		"""
+		Unit test to check the selling price validation for manufactured item, without last purchae rate in Item master.
+		"""
+
+		from erpnext.manufacturing.doctype.production_plan.test_production_plan import make_bom
+		from erpnext.stock.doctype.warehouse.test_warehouse import create_warehouse
+
+		# create a FG Item and RM Item
+		rm_item = make_item(
+			"_Test RM Item for SO selling validation",
+			{"is_stock_item": 1, "valuation_rate": 100, "stock_uom": "Nos"},
+		).name
+		rm_warehouse = create_warehouse("_Test RM SPV Warehouse")
+		fg_item = make_item("_Test FG Item for SO selling validation", {"is_stock_item": 1}).name
+		fg_warehouse = create_warehouse("_Test FG SPV Warehouse")
+
+		# create BOM and inward entry for RM Item
+		bom_no = make_bom(item=fg_item, raw_materials=[rm_item]).name
+		make_stock_entry(item_code=rm_item, target=rm_warehouse, qty=10, rate=100)
+
+		# create a manufacture entry, so system won't update the last purchase rate in Item master.
+		se = make_stock_entry(item_code=fg_item, qty=10, purpose="Manufacture", do_not_save=True)
+
+		se.from_bom = 1
+		se.use_multi_level_bom = 1
+		se.bom_no = bom_no
+		se.fg_completed_qty = 1
+		se.from_warehouse = rm_warehouse
+		se.to_warehouse = fg_warehouse
+
+		se.get_items()
+		se.save()
+		se.submit()
+
+		# check valuation of FG Item
+		self.assertEqual(se.items[1].valuation_rate, 100)
+
+		# create a SO for FG Item with selling rate than valuation rate.
+		so = make_sales_order(item_code=fg_item, qty=10, rate=50, warehouse=fg_warehouse, do_not_save=1)
+		self.assertRaises(frappe.ValidationError, so.save)
+
 
 def compare_payment_schedules(doc, doc1, doc2):
 	for index, schedule in enumerate(doc1.get("payment_schedule")):