diff --git a/erpnext/selling/doctype/selling_settings/selling_settings.py b/erpnext/selling/doctype/selling_settings/selling_settings.py
index b219e7e..b54559a 100644
--- a/erpnext/selling/doctype/selling_settings/selling_settings.py
+++ b/erpnext/selling/doctype/selling_settings/selling_settings.py
@@ -15,6 +15,7 @@
 class SellingSettings(Document):
 	def on_update(self):
 		self.toggle_hide_tax_id()
+		self.toggle_editable_rate_for_bundle_items()
 
 	def validate(self):
 		for key in ["cust_master_name", "campaign_naming_by", "customer_group", "territory",
@@ -33,6 +34,11 @@
 			make_property_setter(doctype, "tax_id", "hidden", self.hide_tax_id, "Check", validate_fields_for_doctype=False)
 			make_property_setter(doctype, "tax_id", "print_hide", self.hide_tax_id, "Check", validate_fields_for_doctype=False)
 
+	def toggle_editable_rate_for_bundle_items(self):
+		editable_bundle_item_rates = cint(self.editable_bundle_item_rates)
+		
+		make_property_setter("Packed Item", "rate", "read_only", not(editable_bundle_item_rates), "Check", validate_fields_for_doctype=False)
+
 	def set_default_customer_group_and_territory(self):
 		if not self.customer_group:
 			self.customer_group = get_root_of('Customer Group')