diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
index 1dabf678f..c78483d50 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
@@ -3076,6 +3076,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
             final boolean isScheduleRegenerateRequired = loan.isActualDisbursedOnDateEarlierOrLaterThanExpected(actualDisbursementDate);
             loan.setActualDisbursementDate(null);
             loan.setDisbursedBy(null);
+            loan.setLastClosedBusinessDate(null);
             final boolean isDisbursedAmountChanged = !MathUtil.isEqualTo(loan.getApprovedPrincipal(),
                     loan.getLoanRepaymentScheduleDetail().getPrincipal().getAmount());
             loan.getLoanRepaymentScheduleDetail().setPrincipal(loan.getApprovedPrincipal());
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanCOBCreateAccrualsTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanCOBCreateAccrualsTest.java
index fc81ebf76..c22516c13 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanCOBCreateAccrualsTest.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/LoanCOBCreateAccrualsTest.java
@@ -18,6 +18,9 @@
  */
 package org.apache.fineract.integrationtests;
 
+import static org.junit.jupiter.api.Assertions.assertEquals;
+import static org.junit.jupiter.api.Assertions.assertNull;
+
 import java.math.BigDecimal;
 import java.time.LocalDate;
 import java.util.ArrayList;
@@ -682,6 +685,46 @@ public class LoanCOBCreateAccrualsTest extends BaseLoanIntegrationTest {
         });
     }
 
+    @Test
+    public void testRunCOBJobAfterUndoDisbursement() {
+        AtomicReference<Long> loanIdRef = new AtomicReference<>();
+        setup();
+        final PostLoanProductsResponse loanProductsResponse = loanProductHelper
+                .createLoanProduct(create4IProgressive().enableAccrualActivityPosting(true));
+
+        runAt("1 April 2025", () -> {
+            Long loanId = applyAndApproveProgressiveLoan(client.getClientId(), loanProductsResponse.getResourceId(), "1 March 2025", 430.0,
+                    26.0, 6, null);
+
+            loanIdRef.set(loanId);
+
+            disburseLoan(loanId, BigDecimal.valueOf(430), "1 March 2025");
+
+            executeInlineCOB(loanId);
+
+            GetLoansLoanIdResponse loanDetails = loanTransactionHelper.getLoanDetails(loanId);
+            validateTransactionsExist(loanDetails, //
+                    transaction(9.02, "Accrual", "31 March 2025", 0.0, 0.0, 9.02, 0.0, 0.0, 0.0, 0.0));
+            assertEquals(LocalDate.of(2025, 3, 31), loanDetails.getLastClosedBusinessDate());
+
+            undoDisbursement(loanId.intValue());
+            loanDetails = loanTransactionHelper.getLoanDetails(loanId);
+            assertNull(loanDetails.getLastClosedBusinessDate());
+
+            disburseLoan(loanIdRef.get(), BigDecimal.valueOf(430), "2 March 2025");
+            loanDetails = loanTransactionHelper.getLoanDetails(loanId);
+            assertNull(loanDetails.getLastClosedBusinessDate());
+        });
+
+        runAt("2 April 2025", () -> {
+            executeInlineCOB(loanIdRef.get());
+            GetLoansLoanIdResponse loanDetails = loanTransactionHelper.getLoanDetails(loanIdRef.get());
+            validateTransactionsExist(loanDetails, //
+                    transaction(9.02, "Accrual", "01 April 2025", 0.0, 0.0, 9.02, 0.0, 0.0, 0.0, 0.0));
+            assertEquals(LocalDate.of(2025, 4, 1), loanDetails.getLastClosedBusinessDate());
+        });
+    }
+
     private List<CreditAllocationData> chargebackCreditAllocationOrders(List<String> allocationIds) {
         List<CreditAllocationOrder> creditAllocationOrders = new ArrayList<>(allocationIds.size());
         for (int i = 0; i < allocationIds.size(); i++) {