diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index 3abd1d9e5ed1..dae42895edbf 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -1518,6 +1518,25 @@ def test_batch_with_non_stock_uom(self):
 			"Stock Settings", "auto_create_serial_and_batch_bundle_for_outward", 0
 		)
 
+	def test_internal_transfer_for_non_stock_item(self):
+		from erpnext.selling.doctype.customer.test_customer import create_internal_customer
+		from erpnext.selling.doctype.sales_order.sales_order import make_delivery_note
+
+		item = make_item(properties={"is_stock_item": 0}).name
+		warehouse = "_Test Warehouse - _TC"
+		target = "Stores - _TC"
+		company = "_Test Company"
+		customer = create_internal_customer(represents_company=company)
+		rate = 100
+
+		so = make_sales_order(item_code=item, qty=1, rate=rate, customer=customer, warehouse=warehouse)
+		dn = make_delivery_note(so.name)
+		dn.items[0].target_warehouse = target
+		dn.save().submit()
+
+		self.assertEqual(so.items[0].rate, rate)
+		self.assertEqual(dn.items[0].rate, so.items[0].rate)
+
 
 def create_delivery_note(**args):
 	dn = frappe.new_doc("Delivery Note")