diff --git a/erpnext/controllers/status_updater.py b/erpnext/controllers/status_updater.py
index 538887977d3..84a11270040 100644
--- a/erpnext/controllers/status_updater.py
+++ b/erpnext/controllers/status_updater.py
@@ -101,6 +101,7 @@ status_map = {
 		["Draft", None],
 		["To Bill", "eval:self.per_billed == 0 and self.docstatus == 1"],
 		["Partly Billed", "eval:self.per_billed > 0 and self.per_billed < 100 and self.docstatus == 1"],
+		["Return", "eval:self.is_return == 1 and self.per_billed == 0 and self.docstatus == 1"],
 		["Return Issued", "eval:self.per_returned == 100 and self.docstatus == 1"],
 		[
 			"Completed",
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.json b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.json
index ba761fb54ac..1c8fccf4849 100755
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.json
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.json
@@ -894,7 +894,7 @@
    "no_copy": 1,
    "oldfieldname": "status",
    "oldfieldtype": "Select",
-   "options": "\nDraft\nPartly Billed\nTo Bill\nCompleted\nReturn Issued\nCancelled\nClosed",
+   "options": "\nDraft\nPartly Billed\nTo Bill\nCompleted\nReturn\nReturn Issued\nCancelled\nClosed",
    "print_hide": 1,
    "print_width": "150px",
    "read_only": 1,
@@ -1309,7 +1309,7 @@
  "idx": 261,
  "is_submittable": 1,
  "links": [],
- "modified": "2025-08-06 16:41:02.690658",
+ "modified": "2025-11-12 19:53:48.173096",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Purchase Receipt",
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
index 535b1f57c63..9708f3dfa1a 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
@@ -120,7 +120,15 @@ class PurchaseReceipt(BuyingController):
 		shipping_address_display: DF.TextEditor | None
 		shipping_rule: DF.Link | None
 		status: DF.Literal[
-			"", "Draft", "Partly Billed", "To Bill", "Completed", "Return Issued", "Cancelled", "Closed"
+			"",
+			"Draft",
+			"Partly Billed",
+			"To Bill",
+			"Completed",
+			"Return",
+			"Return Issued",
+			"Cancelled",
+			"Closed",
 		]
 		subcontracting_receipt: DF.Link | None
 		supplied_items: DF.Table[PurchaseReceiptItemSupplied]
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt_list.js b/erpnext/stock/doctype/purchase_receipt/purchase_receipt_list.js
index d70b357d731..30562e23de8 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt_list.js
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt_list.js
@@ -11,7 +11,7 @@ frappe.listview_settings["Purchase Receipt"] = {
 		"currency",
 	],
 	get_indicator: function (doc) {
-		if (cint(doc.is_return) == 1) {
+		if (cint(doc.is_return) == 1 && doc.status == "Return") {
 			return [__("Return"), "gray", "is_return,=,Yes"];
 		} else if (doc.status === "Closed") {
 			return [__("Closed"), "green", "status,=,Closed"];
diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index c94f8b712bc..946997ecfe3 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -454,6 +454,7 @@ class TestPurchaseReceipt(IntegrationTestCase):
 		# Check if Original PR updated
 		self.assertEqual(pr.items[0].returned_qty, 2)
 		self.assertEqual(pr.per_returned, 40)
+		self.assertEqual(returned.status, "Return")
 
 		from erpnext.controllers.sales_and_purchase_return import make_return_doc
 
@@ -2149,7 +2150,7 @@ class TestPurchaseReceipt(IntegrationTestCase):
 		return_pr.items[0].stock_qty = 0.0
 		return_pr.submit()
 
-		self.assertEqual(return_pr.status, "To Bill")
+		self.assertEqual(return_pr.status, "Return")
 
 		pi = make_purchase_invoice(return_pr.name)
 		pi.submit()