diff --git a/InvenTree/order/models.py b/InvenTree/order/models.py
index d061d49520..20f7432fab 100644
--- a/InvenTree/order/models.py
+++ b/InvenTree/order/models.py
@@ -1926,6 +1926,7 @@ class ReturnOrder(TotalPriceMixin, Order):
         stock_item.customer = None
         stock_item.sales_order = None
         stock_item.save(add_note=False)
+        stock_item.clearAllocations()
 
         # Add a tracking entry to the StockItem
         stock_item.add_tracking_entry(