diff --git a/erpnext/stock/doctype/material_request/test_material_request.py b/erpnext/stock/doctype/material_request/test_material_request.py
index 2da1861ba21..ac11b2fb7d9 100644
--- a/erpnext/stock/doctype/material_request/test_material_request.py
+++ b/erpnext/stock/doctype/material_request/test_material_request.py
@@ -995,6 +995,52 @@ class TestMaterialRequest(FrappeTestCase):
 		se.save()
 		se.submit()
 
+	def test_mr_status_for_mixed_direct_and_transit_transfer(self):
+		material_request = make_material_request(
+			material_request_type="Material Transfer",
+			item_code="_Test Item Home Desktop 100",
+			qty=5,
+		)
+
+		in_transit_wh = get_in_transit_warehouse(material_request.company)
+
+		# Make stock available
+		self._insert_stock_entry(20.0, 20.0)
+
+		# Direct Transfer for 3 Qty
+		direct_transfer = make_stock_entry(material_request.name)
+		direct_transfer.items[0].update(
+			{
+				"qty": 3,
+				"transfer_qty": 3,
+				"s_warehouse": "_Test Warehouse 1 - _TC",
+			}
+		)
+		direct_transfer.save()
+		direct_transfer.submit()
+
+		# In Transit Transfer for remaining 2 Qty
+		transit_transfer = make_in_transit_stock_entry(material_request.name, in_transit_wh)
+		transit_transfer.items[0].update(
+			{
+				"qty": 2,
+				"s_warehouse": "_Test Warehouse 1 - _TC",
+			}
+		)
+		transit_transfer.save()
+		transit_transfer.submit()
+
+		# Complete End Transit
+		end_transit = make_stock_in_entry(transit_transfer.name)
+		end_transit.save()
+		end_transit.submit()
+
+		material_request.reload()
+
+		self.assertEqual(material_request.per_ordered, 100)
+		self.assertEqual(material_request.status, "Transferred")
+		self.assertEqual(material_request.transfer_status, "Completed")
+
 
 def get_in_transit_warehouse(company):
 	if not frappe.db.exists("Warehouse Type", "Transit"):
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index aebcc6dffb2..5ee35dbe3e0 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -4116,13 +4116,19 @@ def get_batchwise_serial_nos(item_code, row):
 
 
 def get_transferred_qty(material_request):
-	sed = DocType("Stock Entry Detail")
+	from pypika import Case
+
+	se = frappe.qb.DocType("Stock Entry")
+	sed = frappe.qb.DocType("Stock Entry Detail")
+	completed_qty = Case().when(se.add_to_transit == 1, sed.transferred_qty).else_(sed.transfer_qty)
 
 	query = (
 		frappe.qb.from_(sed)
+		.inner_join(se)
+		.on(se.name == sed.parent)
 		.select(
 			Sum(sed.transfer_qty).as_("transfer_qty"),
-			Sum(sed.transferred_qty).as_("transferred_qty"),
+			Sum(completed_qty).as_("transferred_qty"),
 		)
 		.where((sed.material_request == material_request) & (sed.docstatus == 1))
 	).run(as_dict=True)