diff --git a/.changeset/hungry-papayas-raise.md b/.changeset/hungry-papayas-raise.md
new file mode 100644
index 0000000000..fbd0c74652
--- /dev/null
+++ b/.changeset/hungry-papayas-raise.md
@@ -0,0 +1,5 @@
+---
+"@medusajs/medusa": patch
+---
+
+fix(medusa): fix rank order changing on category update
diff --git a/integration-tests/api/__tests__/admin/product-category.ts b/integration-tests/api/__tests__/admin/product-category.ts
index 321f3175ca..8717a33fba 100644
--- a/integration-tests/api/__tests__/admin/product-category.ts
+++ b/integration-tests/api/__tests__/admin/product-category.ts
@@ -626,6 +626,35 @@ describe("/admin/product-categories", () => {
 
       expect(errorFetchingDeleted.response.status).toEqual(404)
     })
+
+    it("deleting a product category reorders siblings accurately", async () => {
+      const api = useApi()
+
+      const deleteResponse = await api.delete(
+        `/admin/product-categories/${productCategory.id}`,
+        adminHeaders
+      ).catch(e => e)
+
+      expect(deleteResponse.status).toEqual(200)
+
+      const siblingsResponse = await api.get(
+        `/admin/product-categories?parent_category_id=${productCategoryParent.id}`,
+        adminHeaders
+      ).catch(e => e)
+
+      expect(siblingsResponse.data.product_categories).toEqual(
+        [
+          expect.objectContaining({
+            id: productCategory1.id,
+            rank: 0
+          }),
+          expect.objectContaining({
+            id: productCategory2.id,
+            rank: 1
+          }),
+        ]
+      )
+    })
   })
 
   describe("POST /admin/product-categories/:id", () => {
@@ -779,6 +808,22 @@ describe("/admin/product-categories", () => {
       )
     })
 
+    it("updating properties other than rank should not change its rank", async () => {
+      const api = useApi()
+
+      expect(productCategory.rank).toEqual(0)
+
+      const response = await api.post(
+        `/admin/product-categories/${productCategory.id}`,
+        {
+          name: "different-name",
+        },
+        adminHeaders
+      )
+      expect(response.status).toEqual(200)
+      expect(response.data.product_category.rank).toEqual(productCategory.rank)
+    })
+
     it("root parent returns children correctly on updating new category", async () => {
       const api = useApi()
 
diff --git a/packages/medusa/src/services/product-category.ts b/packages/medusa/src/services/product-category.ts
index 297fcbb3f3..a17234bc9c 100644
--- a/packages/medusa/src/services/product-category.ts
+++ b/packages/medusa/src/services/product-category.ts
@@ -310,7 +310,9 @@ class ProductCategoryService extends TransactionBaseService {
     const targetRank = input.rank
     const shouldChangeParent =
       targetParentId !== undefined && targetParentId !== originalParentId
-    const shouldChangeRank = shouldChangeParent || originalRank !== targetRank
+    const shouldChangeRank =
+      shouldChangeParent ||
+      (isDefined(targetRank) && originalRank !== targetRank)
 
     return {
       targetCategoryId: productCategory.id,