diff --git a/erpnext/controllers/status_updater.py b/erpnext/controllers/status_updater.py
index 0e94cfd95de..a7924288058 100644
--- a/erpnext/controllers/status_updater.py
+++ b/erpnext/controllers/status_updater.py
@@ -86,6 +86,7 @@ status_map = {
 		["To Bill", "eval:self.per_billed < 100 and self.docstatus == 1"],
 		["Completed", "eval:self.per_billed == 100 and self.docstatus == 1"],
 		["Return Issued", "eval:self.per_returned == 100 and self.docstatus == 1"],
+		["Return", "eval:self.is_return == 1 and self.per_billed == 0 and self.docstatus == 1"],
 		["Cancelled", "eval:self.docstatus==2"],
 		["Closed", "eval:self.status=='Closed' and self.docstatus != 2"],
 	],
diff --git a/erpnext/stock/doctype/delivery_note/delivery_note.json b/erpnext/stock/doctype/delivery_note/delivery_note.json
index bdfbbb93916..97873234dcf 100644
--- a/erpnext/stock/doctype/delivery_note/delivery_note.json
+++ b/erpnext/stock/doctype/delivery_note/delivery_note.json
@@ -1091,7 +1091,7 @@
    "no_copy": 1,
    "oldfieldname": "status",
    "oldfieldtype": "Select",
-   "options": "\nDraft\nTo Bill\nCompleted\nReturn Issued\nCancelled\nClosed",
+   "options": "\nDraft\nTo Bill\nCompleted\nReturn\nReturn Issued\nCancelled\nClosed",
    "print_hide": 1,
    "print_width": "150px",
    "read_only": 1,
@@ -1404,7 +1404,7 @@
  "idx": 146,
  "is_submittable": 1,
  "links": [],
- "modified": "2025-08-04 19:20:47.724218",
+ "modified": "2025-12-02 23:55:25.415443",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Delivery Note",
diff --git a/erpnext/stock/doctype/delivery_note/delivery_note.py b/erpnext/stock/doctype/delivery_note/delivery_note.py
index 4a0d4048b78..9bfef8a81a4 100644
--- a/erpnext/stock/doctype/delivery_note/delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/delivery_note.py
@@ -125,8 +125,14 @@ class DeliveryNote(SellingController):
 		shipping_address: DF.SmallText | None
 		shipping_address_name: DF.Link | None
 		shipping_rule: DF.Link | None
+<<<<<<< HEAD
 		source: DF.Link | None
 		status: DF.Literal["", "Draft", "To Bill", "Completed", "Return Issued", "Cancelled", "Closed"]
+=======
+		status: DF.Literal[
+			"", "Draft", "To Bill", "Completed", "Return", "Return Issued", "Cancelled", "Closed"
+		]
+>>>>>>> dec67eecad (fix: add return status for delivery note)
 		tax_category: DF.Link | None
 		tax_id: DF.Data | None
 		taxes: DF.Table[SalesTaxesandCharges]
diff --git a/erpnext/stock/doctype/delivery_note/delivery_note_list.js b/erpnext/stock/doctype/delivery_note/delivery_note_list.js
index af40fd6a8a2..ebbeb971422 100644
--- a/erpnext/stock/doctype/delivery_note/delivery_note_list.js
+++ b/erpnext/stock/doctype/delivery_note/delivery_note_list.js
@@ -12,7 +12,7 @@ frappe.listview_settings["Delivery Note"] = {
 		"currency",
 	],
 	get_indicator: function (doc) {
-		if (cint(doc.is_return) == 1) {
+		if (cint(doc.is_return) == 1 && doc.status == "Return") {
 			return [__("Return"), "gray", "is_return,=,Yes"];
 		} else if (doc.status === "Closed") {
 			return [__("Closed"), "green", "status,=,Closed"];