diff --git a/erpnext/stock/doctype/delivery_note/delivery_note.js b/erpnext/stock/doctype/delivery_note/delivery_note.js
index 4d719b2..0ac53c5 100644
--- a/erpnext/stock/doctype/delivery_note/delivery_note.js
+++ b/erpnext/stock/doctype/delivery_note/delivery_note.js
@@ -140,7 +140,7 @@
 							},
 							get_query_filters: {
 								docstatus: 1,
-								status: ["!=", "Closed"],
+								status: ["not in", ["Closed", "On Hold"]],
 								per_delivered: ["<", 99.99],
 								company: me.frm.doc.company,
 								project: me.frm.doc.project || undefined,
diff --git a/erpnext/stock/doctype/delivery_note/delivery_note.py b/erpnext/stock/doctype/delivery_note/delivery_note.py
index 869b614..b39abdb 100644
--- a/erpnext/stock/doctype/delivery_note/delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/delivery_note.py
@@ -103,7 +103,7 @@
 		self.set_status()
 		self.so_required()
 		self.validate_proj_cust()
-		self.check_close_sales_order("against_sales_order")
+		self.check_sales_order_on_hold_or_close("against_sales_order")
 		self.validate_for_items()
 		self.validate_warehouse()
 		self.validate_uom_is_integer("stock_uom", "stock_qty")
@@ -223,7 +223,7 @@
 		self.make_gl_entries()
 
 	def on_cancel(self):
-		self.check_close_sales_order("against_sales_order")
+		self.check_sales_order_on_hold_or_close("against_sales_order")
 		self.check_next_docstatus()
 
 		self.update_prevdoc_status()