diff --git a/.changeset/sixty-peaches-hug.md b/.changeset/sixty-peaches-hug.md
new file mode 100644
index 0000000000..7ee7546002
--- /dev/null
+++ b/.changeset/sixty-peaches-hug.md
@@ -0,0 +1,5 @@
+---
+"@medusajs/core-flows": patch
+---
+
+fix(core-flows): return refunded when all captured payments have been refunded
diff --git a/packages/core/core-flows/src/order/utils/aggregate-status.ts b/packages/core/core-flows/src/order/utils/aggregate-status.ts
index 3b5585dfa5..94abf727ae 100644
--- a/packages/core/core-flows/src/order/utils/aggregate-status.ts
+++ b/packages/core/core-flows/src/order/utils/aggregate-status.ts
@@ -55,7 +55,10 @@ export const getLastPaymentStatus = (order: OrderDetailDTO) => {
   }
 
   if (paymentStatus[PaymentStatus.REFUNDED] > 0) {
-    if (paymentStatus[PaymentStatus.REFUNDED] === totalPaymentExceptCanceled) {
+    if (
+      paymentStatus[PaymentStatus.REFUNDED] ===
+      paymentStatus[PaymentStatus.CAPTURED]
+    ) {
       return PaymentStatus.REFUNDED
     }