diff --git a/src/backend/InvenTree/build/models.py b/src/backend/InvenTree/build/models.py
index 24b3914209..9bd92609eb 100644
--- a/src/backend/InvenTree/build/models.py
+++ b/src/backend/InvenTree/build/models.py
@@ -1033,7 +1033,9 @@ class Build(
         self.deallocate_stock(output=output)
 
         # Remove the build output from the database
-        output.delete()
+        # This is a special case where serialized stock can be deleted,
+        # independedent of the global setting which normally prevents deletion of serialized stock items
+        output.delete(ignore_serial_check=True)
 
     @transaction.atomic
     def trim_allocated_stock(self):
diff --git a/src/backend/InvenTree/build/test_api.py b/src/backend/InvenTree/build/test_api.py
index b7aa4a9cbd..706332e3fd 100644
--- a/src/backend/InvenTree/build/test_api.py
+++ b/src/backend/InvenTree/build/test_api.py
@@ -9,6 +9,7 @@ from rest_framework import status
 
 from build.models import Build, BuildItem, BuildLine
 from build.status_codes import BuildStatus
+from common.settings import set_global_setting
 from InvenTree.unit_test import InvenTreeAPITestCase
 from part.models import BomItem, Part
 from stock.models import StockItem
@@ -1548,6 +1549,44 @@ class BuildOutputScrapTest(BuildAPITest):
         self.assertFalse(completed_output.is_building)
 
 
+class BuildOutputCancelTest(BuildAPITest):
+    """Test cancellation of build outputs."""
+
+    def test_cancel_output(self):
+        """Test cancellation of a build output."""
+        build = Build.objects.get(pk=1)
+        build.part.trackable = True
+        build.part.save()
+
+        N = build.build_outputs.count()
+
+        # Create outputs
+        outputs = build.create_build_output(2, serials=['101', '202'])
+        self.assertEqual(outputs.count(), 2)
+        self.assertEqual(build.build_outputs.count(), N + 2)
+
+        output_ids = list(outputs.values_list('pk', flat=True))
+
+        # Let's cancel one of the outputs
+        set_global_setting('STOCK_ALLOW_DELETE_SERIALIZED', True)
+        url = reverse('api-build-output-delete', kwargs={'pk': build.pk})
+
+        self.post(url, data={'outputs': [{'output': output_ids[0]}]}, expected_code=201)
+
+        # Prevent deletion of serialized stock items, and try again
+        # Note that this should still succeed, independent of the global setting
+        set_global_setting('STOCK_ALLOW_DELETE_SERIALIZED', False)
+
+        self.post(url, data={'outputs': [{'output': output_ids[1]}]}, expected_code=201)
+
+        # The outputs should have been scrapped
+        self.assertEqual(build.build_outputs.count(), N)
+
+        for pk in output_ids:
+            self.assertFalse(StockItem.objects.filter(pk=pk).exists())
+            self.get(reverse('api-stock-detail', kwargs={'pk': pk}), expected_code=404)
+
+
 class BuildLineTests(BuildAPITest):
     """Unit tests for the BuildLine API endpoints."""
 
diff --git a/src/backend/InvenTree/stock/models.py b/src/backend/InvenTree/stock/models.py
index e841cf554e..2c8e4d48bb 100644
--- a/src/backend/InvenTree/stock/models.py
+++ b/src/backend/InvenTree/stock/models.py
@@ -449,9 +449,15 @@ class StockItem(
 
         order_insertion_by = ['part']
 
-    def delete(self, **kwargs):
-        """Custom delete method for StockItem model."""
-        if not get_global_setting('STOCK_ALLOW_DELETE_SERIALIZED', cache=False):
+    def delete(self, ignore_serial_check: bool = False, **kwargs):
+        """Custom delete method for StockItem model.
+
+        Arguments:
+            ignore_serial_check: If True, allow deletion of serialized stock items regardless of global setting
+        """
+        if not ignore_serial_check and not get_global_setting(
+            'STOCK_ALLOW_DELETE_SERIALIZED', cache=False
+        ):
             if self.serialized:
                 raise ValidationError(_('Serialized stock items cannot be deleted'))