diff --git a/erpnext/hr/doctype/leave_application/leave_application.py b/erpnext/hr/doctype/leave_application/leave_application.py
index 44fb6fd2968..7cbc59687a0 100755
--- a/erpnext/hr/doctype/leave_application/leave_application.py
+++ b/erpnext/hr/doctype/leave_application/leave_application.py
@@ -238,10 +238,15 @@ def get_total_leave_days(leave_app):
 	ret = {'total_leave_days' : 0.5}
 	if not leave_app.half_day:
 		tot_days = date_diff(leave_app.to_date, leave_app.from_date) + 1
-		holidays = leave_app.get_holidays()
-		ret = {
-			'total_leave_days' : flt(tot_days)-flt(holidays)
-		}
+		if frappe.db.get_value("Leave Type", self.leave_type, "include_holiday"):
+			holidays = leave_app.get_holidays()
+			ret = {
+				'total_leave_days' : flt(tot_days)-flt(holidays)
+			}
+		else:
+			ret = {
+				'total_leave_days' : flt(tot_days)
+			}
 	return ret
 
 @frappe.whitelist()
diff --git a/erpnext/hr/doctype/leave_application/test_leave_application.py b/erpnext/hr/doctype/leave_application/test_leave_application.py
index 8cf0c806614..9e2170855a7 100644
--- a/erpnext/hr/doctype/leave_application/test_leave_application.py
+++ b/erpnext/hr/doctype/leave_application/test_leave_application.py
@@ -246,4 +246,4 @@ class TestLeaveApplication(unittest.TestCase):
 		frappe.db.sql("""delete from `tabEmployee Leave Approver` where parent=%s""",
 			"_T-Employee-0001")
 
-		frappe.db.set_value("Employee", "_T-Employee-0001", "department", original_department)
+		frappe.db.set_value("Employee", "_T-Employee-0001", "department", original_department)
\ No newline at end of file
diff --git a/erpnext/hr/doctype/leave_type/leave_type.json b/erpnext/hr/doctype/leave_type/leave_type.json
index f644c696d18..4493af504cf 100644
--- a/erpnext/hr/doctype/leave_type/leave_type.json
+++ b/erpnext/hr/doctype/leave_type/leave_type.json
@@ -59,6 +59,12 @@
    "fieldtype": "Check", 
    "label": "Allow Negative Balance", 
    "permlevel": 0
+  },
+  {
+   "fieldname": "include_holiday", 
+   "fieldtype": "Check", 
+   "label": "Include holidays within leaves as leaves", 
+   "permlevel": 0
   }
  ], 
  "icon": "icon-flag", 
diff --git a/erpnext/hr/doctype/leave_type/test_records.json b/erpnext/hr/doctype/leave_type/test_records.json
index 8042e30f528..2ac46cf626e 100644
--- a/erpnext/hr/doctype/leave_type/test_records.json
+++ b/erpnext/hr/doctype/leave_type/test_records.json
@@ -1,11 +1,13 @@
 [
  {
   "doctype": "Leave Type", 
-  "leave_type_name": "_Test Leave Type"
+  "leave_type_name": "_Test Leave Type",
+  "include_holiday": 1
  }, 
  {
   "doctype": "Leave Type", 
   "is_lwp": 1, 
-  "leave_type_name": "_Test Leave Type LWP"
+  "leave_type_name": "_Test Leave Type LWP",
+  "include_holiday": 1
  }
 ]
\ No newline at end of file
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index ef08098c32d..b029d55f5f8 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -181,3 +181,4 @@ erpnext.patches.v5_1.rename_roles
 erpnext.patches.v5_1.default_bom
 execute:frappe.delete_doc("DocType", "Party Type")
 erpnext.patches.v5_4.fix_reserved_qty_and_sle_for_packed_items
+execute:frappe.db.sql("update `tabLeave Type` set include_holiday=1")
\ No newline at end of file
diff --git a/erpnext/setup/page/setup_wizard/install_fixtures.py b/erpnext/setup/page/setup_wizard/install_fixtures.py
index 6265e4a36ce..dd3ec3a2e6b 100644
--- a/erpnext/setup/page/setup_wizard/install_fixtures.py
+++ b/erpnext/setup/page/setup_wizard/install_fixtures.py
@@ -41,11 +41,16 @@ def install(country=None):
 		{'doctype': 'Expense Claim Type', 'name': _('Travel'), 'expense_type': _('Travel')},
 
 		# leave type
-		{'doctype': 'Leave Type', 'leave_type_name': _('Casual Leave'), 'name': _('Casual Leave'), 'is_encash': 1, 'is_carry_forward': 1, 'max_days_allowed': '3', },
-		{'doctype': 'Leave Type', 'leave_type_name': _('Compensatory Off'), 'name': _('Compensatory Off'), 'is_encash': 0, 'is_carry_forward': 0, },
-		{'doctype': 'Leave Type', 'leave_type_name': _('Sick Leave'), 'name': _('Sick Leave'), 'is_encash': 0, 'is_carry_forward': 0, },
-		{'doctype': 'Leave Type', 'leave_type_name': _('Privilege Leave'), 'name': _('Privilege Leave'), 'is_encash': 0, 'is_carry_forward': 0, },
-		{'doctype': 'Leave Type', 'leave_type_name': _('Leave Without Pay'), 'name': _('Leave Without Pay'), 'is_encash': 0, 'is_carry_forward': 0, 'is_lwp':1},
+		{'doctype': 'Leave Type', 'leave_type_name': _('Casual Leave'), 'name': _('Casual Leave'), 
+			'is_encash': 1, 'is_carry_forward': 1, 'max_days_allowed': '3', 'include_holiday': 1},
+		{'doctype': 'Leave Type', 'leave_type_name': _('Compensatory Off'), 'name': _('Compensatory Off'), 
+			'is_encash': 0, 'is_carry_forward': 0, 'include_holiday': 1},
+		{'doctype': 'Leave Type', 'leave_type_name': _('Sick Leave'), 'name': _('Sick Leave'), 
+			'is_encash': 0, 'is_carry_forward': 0, 'include_holiday': 1},
+		{'doctype': 'Leave Type', 'leave_type_name': _('Privilege Leave'), 'name': _('Privilege Leave'), 
+			'is_encash': 0, 'is_carry_forward': 0, 'include_holiday': 1},
+		{'doctype': 'Leave Type', 'leave_type_name': _('Leave Without Pay'), 'name': _('Leave Without Pay'), 
+			'is_encash': 0, 'is_carry_forward': 0, 'is_lwp':1, 'include_holiday': 1},
 
 		# Employment Type
 		{'doctype': 'Employment Type', 'employee_type_name': _('Full-time')},