diff --git a/src/app/loans/loans-view/loan-account-actions/loan-account-actions.component.html b/src/app/loans/loans-view/loan-account-actions/loan-account-actions.component.html
index 7a9645149..f5be7af08 100644
--- a/src/app/loans/loans-view/loan-account-actions/loan-account-actions.component.html
+++ b/src/app/loans/loans-view/loan-account-actions/loan-account-actions.component.html
@@ -18,5 +18,6 @@
     <mifosx-disburse [dataObject]="actionButtonData" *ngIf="actions.disburse"></mifosx-disburse>
     <mifosx-withdrawn-by-client *ngIf="actions.withdrawn_by_client"></mifosx-withdrawn-by-client>
     <mifosx-add-collateral [dataObject]="actionButtonData" *ngIf="actions.add_collateral"></mifosx-add-collateral>
+    <mifosx-undo-disbursal *ngIf="actions.undo_disbursal"></mifosx-undo-disbursal>
   </mat-card>
 </div>
diff --git a/src/app/loans/loans-view/loan-account-actions/loan-account-actions.component.ts b/src/app/loans/loans-view/loan-account-actions/loan-account-actions.component.ts
index adc6df88e..66df0deeb 100644
--- a/src/app/loans/loans-view/loan-account-actions/loan-account-actions.component.ts
+++ b/src/app/loans/loans-view/loan-account-actions/loan-account-actions.component.ts
@@ -30,7 +30,8 @@ export class LoanAccountActionsComponent {
             view_guarantors: boolean,
             create_guarantor: boolean,
             disburse: boolean,
-            withdrawn_by_client: boolean } = {
+            withdrawn_by_client: boolean,
+            undo_disbursal: boolean } = {
               close: false,
               undo_approval: false,
               write_off: false,
@@ -48,8 +49,8 @@ export class LoanAccountActionsComponent {
               view_guarantors: false,
               create_guarantor: false,
               disburse: false,
-              withdrawn_by_client: false };
-
+              withdrawn_by_client: false,
+              undo_disbursal: false };
   actionButtonData: any;
   actionName: any;
 
diff --git a/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.html b/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.html
new file mode 100644
index 000000000..7a66639d4
--- /dev/null
+++ b/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.html
@@ -0,0 +1,17 @@
+<div class="container">
+
+  <mat-card-content>
+
+    <mat-form-field fxLayoutAlign="center">
+      <mat-label>Note</mat-label>
+      <textarea matInput [formControl]="note"></textarea>
+    </mat-form-field>
+
+    <mat-card-actions fxLayout="row" fxLayout.xs="column" fxLayoutAlign="center" fxLayoutGap="5px">
+      <button type="button" mat-raised-button [routerLink]="['../general']">Cancel</button>
+      <button mat-raised-button color="primary" (click)="submit()" *mifosxHasPermission="'DISBURSALUNDO_LOAN'">Submit</button>
+    </mat-card-actions>
+
+  </mat-card-content>
+
+</div>
diff --git a/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.scss b/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.scss
new file mode 100644
index 000000000..e69de29bb
diff --git a/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.spec.ts b/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.spec.ts
new file mode 100644
index 000000000..6a7777c5b
--- /dev/null
+++ b/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.spec.ts
@@ -0,0 +1,25 @@
+import { async, ComponentFixture, TestBed } from '@angular/core/testing';
+
+import { UndoDisbursalComponent } from './undo-disbursal.component';
+
+describe('UndoDisbursalComponent', () => {
+  let component: UndoDisbursalComponent;
+  let fixture: ComponentFixture<UndoDisbursalComponent>;
+
+  beforeEach(async(() => {
+    TestBed.configureTestingModule({
+      declarations: [ UndoDisbursalComponent ]
+    })
+    .compileComponents();
+  }));
+
+  beforeEach(() => {
+    fixture = TestBed.createComponent(UndoDisbursalComponent);
+    component = fixture.componentInstance;
+    fixture.detectChanges();
+  });
+
+  it('should create', () => {
+    expect(component).toBeTruthy();
+  });
+});
diff --git a/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.ts b/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.ts
new file mode 100644
index 000000000..ee67a8597
--- /dev/null
+++ b/src/app/loans/loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component.ts
@@ -0,0 +1,53 @@
+/** Angular Imports */
+import { Component, OnInit } from '@angular/core';
+import { FormControl, FormBuilder } from '@angular/forms';
+import { Router, ActivatedRoute } from '@angular/router';
+
+/** Custom Services */
+import { LoansService } from '../../../loans.service';
+
+/**
+ * Undo Disbursal component.
+ */
+@Component({
+  selector: 'mifosx-undo-disbursal',
+  templateUrl: './undo-disbursal.component.html',
+  styleUrls: ['./undo-disbursal.component.scss']
+})
+export class UndoDisbursalComponent implements OnInit {
+
+  /** Loan ID. */
+  loanId: any;
+  /** Undo disbursal form. */
+  note: FormControl;
+
+  /**
+   * @param {FormBuilder} formBuilder Form Builder.
+   * @param {LoansService} loansService Loans Service.
+   * @param {ActivatedRoute} route Activated Route.
+   * @param {Router} router Router for navigation.
+   */
+  constructor(private formBuilder: FormBuilder,
+              private loansService: LoansService,
+              private router: Router,
+              private route: ActivatedRoute) {
+    this.loanId = this.route.parent.snapshot.params['loanId'];
+  }
+
+  /**
+   * Creates the undo disbursal form.
+   */
+  ngOnInit() {
+    this.note = this.formBuilder.control('');
+  }
+
+  /**
+   * Submits the undo disbursal form.
+   */
+  submit() {
+    this.loansService.loanActionButtons(this.loanId, 'undoDisbursal', {'note': this.note.value}).subscribe((response: any) => {
+      this.router.navigate(['../general'], { relativeTo: this.route });
+    });
+  }
+
+}
diff --git a/src/app/loans/loans.module.ts b/src/app/loans/loans.module.ts
index e01c21c7c..b906e17ea 100644
--- a/src/app/loans/loans.module.ts
+++ b/src/app/loans/loans.module.ts
@@ -48,6 +48,7 @@ import { DisburseLoanAccountComponent } from './loans-view/loan-account-actions/
 import { DisburseComponent } from './loans-view/loan-account-actions/disburse/disburse.component';
 import { RejectLoanComponent } from './loans-view/loan-account-actions/reject-loan/reject-loan.component';
 import { WithdrawnByClientComponent } from './loans-view/loan-account-actions/withdrawn-by-client/withdrawn-by-client.component';
+import { UndoDisbursalComponent } from './loans-view/loan-account-actions/undo-disbursal/undo-disbursal.component';
 
 /** Dialog Components */
 import { LoansAccountViewGuarantorDetailsDialogComponent } from './custom-dialog/loans-account-view-guarantor-details-dialog/loans-account-view-guarantor-details-dialog.component';
@@ -105,7 +106,8 @@ import { AddCollateralComponent } from './loans-view/loan-account-actions/add-co
     RejectLoanComponent,
     DisburseComponent,
     WithdrawnByClientComponent,
-    AddCollateralComponent
+    AddCollateralComponent,
+    UndoDisbursalComponent,
   ],
   entryComponents: [
     LoansAccountAddCollateralDialogComponent,