diff --git a/erpnext/portal/product_configurator/utils.py b/erpnext/portal/product_configurator/utils.py
index 327a128068f..220bae888a7 100644
--- a/erpnext/portal/product_configurator/utils.py
+++ b/erpnext/portal/product_configurator/utils.py
@@ -1,5 +1,6 @@
 import frappe
 import numpy as np
+from frappe.utils import cint
 from erpnext.portal.product_configurator.item_variants_cache import ItemVariantsCacheManager
 
 def get_field_filter_data():
@@ -265,6 +266,8 @@ def get_next_attribute_and_values(item_code, selected_attributes):
 	else:
 		product_info = None
 
+	product_info["allow_items_not_in_stock"] = cint(frappe.db.get_singles_value("Shopping Cart Settings", "allow_items_not_in_stock"))
+
 	return {
 		'next_attribute': next_attribute,
 		'valid_options_for_attributes': valid_options_for_attributes,
diff --git a/erpnext/shopping_cart/cart.py b/erpnext/shopping_cart/cart.py
index e5b0abb1ed8..0fded2ec6f7 100644
--- a/erpnext/shopping_cart/cart.py
+++ b/erpnext/shopping_cart/cart.py
@@ -78,8 +78,10 @@ def place_order():
 
 			if is_stock_item:
 				item_stock = get_qty_in_stock(item.item_code, "website_warehouse")
+				if not cint(item_stock.in_stock):
+					throw(_("{1} Not in Stock").format(item.item_code))
 				if item.qty > item_stock.stock_qty[0][0]:
-					throw(_("Only {0} in stock for item {1}").format(item_stock.stock_qty[0][0], item.item_code))
+					throw(_("Only {0} in Stock for item {1}").format(item_stock.stock_qty[0][0], item.item_code))
 
 	sales_order.flags.ignore_permissions = True
 	sales_order.insert()
diff --git a/erpnext/templates/generators/item/item_configure.js b/erpnext/templates/generators/item/item_configure.js
index 5fd901169f0..163c955c566 100644
--- a/erpnext/templates/generators/item/item_configure.js
+++ b/erpnext/templates/generators/item/item_configure.js
@@ -193,14 +193,17 @@ class ItemConfigure {
 			filtered_items_count === 1 ?
 				filtered_items[0] : '';
 
+		// Allow Add to Cart if adding out of stock items enabled in Shopping Cart else check stock.
+		const in_stock = product_info.allow_items_not_in_stock ? 1 : product_info.in_stock;
+		const add_to_cart = `<a href data-action="btn_add_to_cart" data-item-code="${one_item}">${__('Add to cart')}</a>`;
+		const product_action =  in_stock ? add_to_cart : `<a style="color:#74808b;">${__('Not in Stock')}</a>`;
+
 		const item_add_to_cart = one_item ? `
 			<div class="alert alert-success d-flex justify-content-between align-items-center" role="alert">
 				<div>
 					<div>${one_item} ${product_info && product_info.price ? '(' + product_info.price.formatted_price_sales_uom + ')' : ''}</div>
 				</div>
-				<a href data-action="btn_add_to_cart" data-item-code="${one_item}">
-					${__('Add to cart')}
-				</a>
+				${product_action}
 			</div>
 		`: '';