diff --git a/erpnext/selling/doctype/sales_order/sales_order.js b/erpnext/selling/doctype/sales_order/sales_order.js
index fb4d7b4ddea826c5af40b0e3e05a4d6a8de39ae7..e98699824401ddd027df2be4c7269211fcdddbf3 100644
--- a/erpnext/selling/doctype/sales_order/sales_order.js
+++ b/erpnext/selling/doctype/sales_order/sales_order.js
@@ -105,6 +105,9 @@ frappe.ui.form.on("Sales Order", {
 						frm.set_value("reserve_stock", 0);
 						frm.set_df_property("reserve_stock", "read_only", 1);
 						frm.set_df_property("reserve_stock", "hidden", 1);
+						frm.fields_dict.items.grid.update_docfield_property('reserve_stock', 'hidden', 1);
+						frm.fields_dict.items.grid.update_docfield_property('reserve_stock', 'default', 0);
+						frm.fields_dict.items.grid.update_docfield_property('reserve_stock', 'read_only', 1);
 					}
 				})
 			}
diff --git a/erpnext/selling/doctype/sales_order/sales_order.py b/erpnext/selling/doctype/sales_order/sales_order.py
index 8ce2b38bcb670178845837198b96d196f49f967c..9d3a77bb5a7b060c0d2a250669dc66b917c1790b 100755
--- a/erpnext/selling/doctype/sales_order/sales_order.py
+++ b/erpnext/selling/doctype/sales_order/sales_order.py
@@ -70,6 +70,7 @@ class SalesOrder(SellingController):
 		self.validate_for_items()
 		self.validate_warehouse()
 		self.validate_drop_ship()
+		self.validate_reserved_stock()
 		self.validate_serial_no_based_delivery()
 		self.validate_recurring_items()
 		self.validate_subscription_dates()
@@ -581,6 +582,17 @@ class SalesOrder(SellingController):
 		if self.order_type == "Shopping Cart" and not self.skip_delivery_note:
 			self.skip_delivery_note = 1
 
+	def validate_reserved_stock(self):
+		"""Clean reserved stock flag for non-stock Item"""
+
+		enable_stock_reservation = frappe.db.get_single_value(
+			"Stock Settings", "enable_stock_reservation"
+		)
+
+		for item in self.items:
+			if item.reserve_stock and (not enable_stock_reservation or not cint(item.is_stock_item)):
+				item.reserve_stock = 0
+
 	def has_unreserved_stock(self) -> bool:
 		"""Returns True if there is any unreserved item in the Sales Order."""
 
diff --git a/erpnext/selling/doctype/sales_order_item/sales_order_item.json b/erpnext/selling/doctype/sales_order_item/sales_order_item.json
index 1c95d3f81444a58dfe3d16937475e3a0593a4418..7f4ce0b02660b845f0a7d5d216281bc9be3bae07 100644
--- a/erpnext/selling/doctype/sales_order_item/sales_order_item.json
+++ b/erpnext/selling/doctype/sales_order_item/sales_order_item.json
@@ -10,6 +10,7 @@
   "item_code",
   "customer_item_code",
   "ensure_delivery_based_on_produced_serial_no",
+  "is_stock_item",
   "reserve_stock",
   "is_recurring_item",
   "col_break1",
@@ -883,6 +884,7 @@
   {
    "allow_on_submit": 1,
    "default": "1",
+   "depends_on": "eval:doc.is_stock_item",
    "fieldname": "reserve_stock",
    "fieldtype": "Check",
    "label": "Reserve Stock",
@@ -910,19 +912,29 @@
   },
   {
    "default": "0",
-   "depends_on": "eval:doc.is_recurring_item",
-   "fetch_from": "item_code.is_recurring_item",
-   "fieldname": "is_recurring_item",
+   "fetch_from": "item_code.is_stock_item",
+   "fieldname": "is_stock_item",
    "fieldtype": "Check",
-   "label": "Is Recurring Item",
-   "read_only": 1
+   "hidden": 1,
+   "label": "Is Stock Item",
+   "print_hide": 1,
+   "report_hide": 1
   },
   {
-   "collapsible": 1,
-   "fieldname": "accounting_dimensions_section",
-   "fieldtype": "Section Break",
-   "label": "Accounting Dimensions"
-  }
+    "default": "0",
+    "depends_on": "eval:doc.is_recurring_item",
+    "fetch_from": "item_code.is_recurring_item",
+    "fieldname": "is_recurring_item",
+    "fieldtype": "Check",
+    "label": "Is Recurring Item",
+    "read_only": 1
+   },
+   {
+    "collapsible": 1,
+    "fieldname": "accounting_dimensions_section",
+    "fieldtype": "Section Break",
+    "label": "Accounting Dimensions"
+   }
  ],
  "idx": 1,
  "istable": 1,