diff --git a/erpnext/manufacturing/doctype/work_order/work_order.js b/erpnext/manufacturing/doctype/work_order/work_order.js
index b5b69a1018a..b540bb7aaa7 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.js
+++ b/erpnext/manufacturing/doctype/work_order/work_order.js
@@ -290,7 +290,8 @@ frappe.ui.form.on("Work Order", {
 	},
 
 	set_fg_warehouse_mandatory(frm) {
-		frm.toggle_reqd("fg_warehouse", frm.doc.skip_transfer !== 1);
+		let mandatory = frm.doc.skip_transfer === 1 || frm.doc.track_semi_finished_goods === 1 ? false : true;
+		frm.toggle_reqd("fg_warehouse", mandatory);
 	},
 
 	add_custom_button_to_return_components: function (frm) {
diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index 3e980b716bf..39fc7d16171 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -603,7 +603,7 @@ class WorkOrder(Document):
 	def validate_warehouse(self):
 		if not self.wip_warehouse and not self.skip_transfer:
 			frappe.throw(_("Work-in-Progress Warehouse is required before Submit"))
-		if not self.fg_warehouse:
+		if not self.fg_warehouse and not self.track_semi_finished_goods:
 			frappe.throw(_("Target Warehouse is required before Submit"))
 
 	def before_submit(self):