diff --git a/erpnext/accounts/doctype/budget/budget.js b/erpnext/accounts/doctype/budget/budget.js
index d3931dec3db..1186b60ab11 100644
--- a/erpnext/accounts/doctype/budget/budget.js
+++ b/erpnext/accounts/doctype/budget/budget.js
@@ -32,6 +32,16 @@ frappe.ui.form.on("Budget", {
 
 	refresh: function (frm) {
 		frm.trigger("toggle_reqd_fields");
+
+		if (!frm.doc.__islocal && frm.doc.docstatus == 1) {
+			frm.add_custom_button(
+				__("Revise Budget"),
+				function () {
+					frm.events.revise_budget_action(frm);
+				},
+				__("Actions")
+			);
+		}
 	},
 
 	budget_against: function (frm) {
@@ -51,4 +61,27 @@ frappe.ui.form.on("Budget", {
 		frm.toggle_reqd("cost_center", frm.doc.budget_against == "Cost Center");
 		frm.toggle_reqd("project", frm.doc.budget_against == "Project");
 	},
+
+	revise_budget_action: function (frm) {
+		frappe.confirm(
+			__(
+				"Are you sure you want to revise this budget? The current budget will be cancelled and a new draft will be created."
+			),
+			function () {
+				frappe.call({
+					method: "erpnext.accounts.doctype.budget.budget.revise_budget",
+					args: { budget_name: frm.doc.name },
+					callback: function (r) {
+						if (r.message) {
+							frappe.msgprint(__("New revised budget created successfully"));
+							frappe.set_route("Form", "Budget", r.message);
+						}
+					},
+				});
+			},
+			function () {
+				frappe.msgprint(__("Revision cancelled"));
+			}
+		);
+	},
 });
diff --git a/erpnext/accounts/doctype/budget/budget.json b/erpnext/accounts/doctype/budget/budget.json
index 01953359c37..fdf5b74c477 100644
--- a/erpnext/accounts/doctype/budget/budget.json
+++ b/erpnext/accounts/doctype/budget/budget.json
@@ -45,7 +45,9 @@
   "column_break_ybiq",
   "total_budget_amount",
   "section_break_fpdt",
-  "budget_distribution"
+  "budget_distribution",
+  "section_break_kkan",
+  "revision_of"
  ],
  "fields": [
   {
@@ -313,13 +315,23 @@
    "fieldname": "budget_amount",
    "fieldtype": "Currency",
    "label": "Budget Amount"
+  },
+  {
+   "fieldname": "section_break_kkan",
+   "fieldtype": "Section Break"
+  },
+  {
+   "fieldname": "revision_of",
+   "fieldtype": "Data",
+   "label": "Revision Of",
+   "read_only": 1
   }
  ],
  "grid_page_length": 50,
  "index_web_pages_for_search": 1,
  "is_submittable": 1,
  "links": [],
- "modified": "2025-10-15 02:29:23.201493",
+ "modified": "2025-10-15 16:55:25.157976",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Budget",
diff --git a/erpnext/accounts/doctype/budget/budget.py b/erpnext/accounts/doctype/budget/budget.py
index df9ec661423..ed0348c7480 100644
--- a/erpnext/accounts/doctype/budget/budget.py
+++ b/erpnext/accounts/doctype/budget/budget.py
@@ -64,6 +64,7 @@ class Budget(Document):
 		monthly_distribution: DF.Link | None
 		naming_series: DF.Literal["BUDGET-.YYYY.-"]
 		project: DF.Link | None
+		revision_of: DF.Data | None
 		total_budget_amount: DF.Currency
 	# end: auto-generated types
 
@@ -159,6 +160,9 @@ class Budget(Document):
 		self.allocate_budget()
 
 	def allocate_budget(self):
+		if self.revision_of:
+			return
+
 		self.set("budget_distribution", [])
 		if not (self.budget_start_date and self.budget_end_date and self.allocation_frequency):
 			return
@@ -167,7 +171,7 @@ class Budget(Document):
 		end = getdate(self.budget_end_date)
 		freq = self.allocation_frequency
 
-		months = month_diff(end, start) + 1
+		months = month_diff(end, start)
 		if freq == "Monthly":
 			total_periods = months
 		elif freq == "Quarterly":
@@ -652,3 +656,20 @@ def get_expense_cost_center(doctype, args):
 		return frappe.db.get_value(
 			doctype, args.get(frappe.scrub(doctype)), ["cost_center", "default_expense_account"]
 		)
+
+
+@frappe.whitelist()
+def revise_budget(budget_name):
+	old_budget = frappe.get_doc("Budget", budget_name)
+
+	if old_budget.docstatus == 1:
+		old_budget.cancel()
+		frappe.db.commit()
+
+	new_budget = frappe.copy_doc(old_budget)
+	new_budget.docstatus = 0
+	new_budget.revision_of = old_budget.name
+	new_budget.posting_date = frappe.utils.nowdate()
+	new_budget.insert()
+
+	return new_budget.name
diff --git a/erpnext/accounts/doctype/budget_distribution/budget_distribution.json b/erpnext/accounts/doctype/budget_distribution/budget_distribution.json
index 5c633fa392b..7602956e0c6 100644
--- a/erpnext/accounts/doctype/budget_distribution/budget_distribution.json
+++ b/erpnext/accounts/doctype/budget_distribution/budget_distribution.json
@@ -29,20 +29,22 @@
    "fieldname": "amount",
    "fieldtype": "Currency",
    "in_list_view": 1,
-   "label": "Amount"
+   "label": "Amount",
+   "read_only_depends_on": "eval:doc.end_date < frappe.datetime.get_today()"
   },
   {
    "fieldname": "percent",
    "fieldtype": "Percent",
    "in_list_view": 1,
-   "label": "Percent"
+   "label": "Percent",
+   "read_only_depends_on": "eval:doc.end_date < frappe.datetime.get_today()"
   }
  ],
  "grid_page_length": 50,
  "index_web_pages_for_search": 1,
  "istable": 1,
  "links": [],
- "modified": "2025-10-12 23:47:30.393908",
+ "modified": "2025-10-15 16:53:23.462653",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Budget Distribution",