diff --git a/.changeset/swift-cycles-judge.md b/.changeset/swift-cycles-judge.md
new file mode 100644
index 0000000000..e9d7ec6967
--- /dev/null
+++ b/.changeset/swift-cycles-judge.md
@@ -0,0 +1,5 @@
+---
+"@medusajs/core-flows": patch
+---
+
+fix(core-flows): recreate fulfilment reservations on cancelation, handle inventory kits in fulfillment flows
diff --git a/integration-tests/http/__tests__/order/admin/order.spec.ts b/integration-tests/http/__tests__/order/admin/order.spec.ts
index bb8b26bc83..a28af07867 100644
--- a/integration-tests/http/__tests__/order/admin/order.spec.ts
+++ b/integration-tests/http/__tests__/order/admin/order.spec.ts
@@ -3,6 +3,8 @@ import { ModuleRegistrationName } from "@medusajs/utils"
 import {
   adminHeaders,
   createAdminUser,
+  generatePublishableKey,
+  generateStoreHeaders,
 } from "../../../../helpers/create-admin-user"
 import { setupTaxStructure } from "../../../../modules/__tests__/fixtures"
 import { createOrderSeeder } from "../../fixtures/order"
@@ -1008,6 +1010,464 @@ medusaIntegrationTestRunner({
       })
     })
 
+    describe("POST /orders/:id/fulfillments/:id/cancel", () => {
+      let inventoryItemDesk
+      let inventoryItemLeg
+
+      beforeEach(async () => {
+        const container = getContainer()
+
+        const publishableKey = await generatePublishableKey(container)
+
+        const storeHeaders = generateStoreHeaders({
+          publishableKey,
+        })
+
+        const region = (
+          await api.post(
+            "/admin/regions",
+            { name: "Test region", currency_code: "usd" },
+            adminHeaders
+          )
+        ).data.region
+
+        const salesChannel = (
+          await api.post(
+            "/admin/sales-channels",
+            { name: "first channel", description: "channel" },
+            adminHeaders
+          )
+        ).data.sales_channel
+
+        const stockLocation = (
+          await api.post(
+            `/admin/stock-locations`,
+            { name: "test location" },
+            adminHeaders
+          )
+        ).data.stock_location
+
+        inventoryItemDesk = (
+          await api.post(
+            `/admin/inventory-items`,
+            { sku: "table-desk" },
+            adminHeaders
+          )
+        ).data.inventory_item
+
+        inventoryItemLeg = (
+          await api.post(
+            `/admin/inventory-items`,
+            { sku: "table-leg" },
+            adminHeaders
+          )
+        ).data.inventory_item
+
+        await api.post(
+          `/admin/inventory-items/${inventoryItemDesk.id}/location-levels`,
+          {
+            location_id: stockLocation.id,
+            stocked_quantity: 10,
+          },
+          adminHeaders
+        )
+
+        await api.post(
+          `/admin/inventory-items/${inventoryItemLeg.id}/location-levels`,
+          {
+            location_id: stockLocation.id,
+            stocked_quantity: 40,
+          },
+          adminHeaders
+        )
+
+        await api.post(
+          `/admin/stock-locations/${stockLocation.id}/sales-channels`,
+          { add: [salesChannel.id] },
+          adminHeaders
+        )
+
+        const shippingProfile = (
+          await api.post(
+            `/admin/shipping-profiles`,
+            { name: `test-${stockLocation.id}`, type: "default" },
+            adminHeaders
+          )
+        ).data.shipping_profile
+
+        const product = (
+          await api.post(
+            "/admin/products",
+            {
+              title: `Wooden table`,
+              shipping_profile_id: shippingProfile.id,
+              options: [{ title: "color", values: ["green"] }],
+              variants: [
+                {
+                  title: "Green table",
+                  sku: "green-table",
+                  inventory_items: [
+                    {
+                      inventory_item_id: inventoryItemDesk.id,
+                      required_quantity: 1,
+                    },
+                    {
+                      inventory_item_id: inventoryItemLeg.id,
+                      required_quantity: 4,
+                    },
+                  ],
+                  prices: [
+                    {
+                      currency_code: "usd",
+                      amount: 100,
+                    },
+                  ],
+                  options: {
+                    color: "green",
+                  },
+                },
+              ],
+            },
+            adminHeaders
+          )
+        ).data.product
+
+        const fulfillmentSets = (
+          await api.post(
+            `/admin/stock-locations/${stockLocation.id}/fulfillment-sets?fields=*fulfillment_sets`,
+            {
+              name: `Test-${shippingProfile.id}`,
+              type: "test-type",
+            },
+            adminHeaders
+          )
+        ).data.stock_location.fulfillment_sets
+
+        const fulfillmentSet = (
+          await api.post(
+            `/admin/fulfillment-sets/${fulfillmentSets[0].id}/service-zones`,
+            {
+              name: `Test-${shippingProfile.id}`,
+              geo_zones: [{ type: "country", country_code: "us" }],
+            },
+            adminHeaders
+          )
+        ).data.fulfillment_set
+
+        await api.post(
+          `/admin/stock-locations/${stockLocation.id}/fulfillment-providers`,
+          { add: ["manual_test-provider"] },
+          adminHeaders
+        )
+
+        const shippingOption = (
+          await api.post(
+            `/admin/shipping-options`,
+            {
+              name: `Test shipping option ${fulfillmentSet.id}`,
+              service_zone_id: fulfillmentSet.service_zones[0].id,
+              shipping_profile_id: shippingProfile.id,
+              provider_id: "manual_test-provider",
+              price_type: "flat",
+              type: {
+                label: "Test type",
+                description: "Test description",
+                code: "test-code",
+              },
+              prices: [
+                { currency_code: "usd", amount: 1000 },
+                { region_id: region.id, amount: 1100 },
+              ],
+              rules: [],
+            },
+            adminHeaders
+          )
+        ).data.shipping_option
+
+        const cart = (
+          await api.post(
+            `/store/carts`,
+            {
+              currency_code: "usd",
+              email: "tony@stark-industries.com",
+              region_id: region.id,
+              shipping_address: {
+                address_1: "test address 1",
+                address_2: "test address 2",
+                city: "ny",
+                country_code: "us",
+                province: "ny",
+                postal_code: "94016",
+              },
+              billing_address: {
+                address_1: "test billing address 1",
+                address_2: "test billing address 2",
+                city: "ny",
+                country_code: "us",
+                province: "ny",
+                postal_code: "94016",
+              },
+              sales_channel_id: salesChannel.id,
+              items: [{ quantity: 2, variant_id: product.variants[0].id }],
+            },
+            storeHeaders
+          )
+        ).data.cart
+
+        await api.post(
+          `/store/carts/${cart.id}/shipping-methods`,
+          { option_id: shippingOption.id },
+          storeHeaders
+        )
+
+        const paymentCollection = (
+          await api.post(
+            `/store/payment-collections`,
+            {
+              cart_id: cart.id,
+            },
+            storeHeaders
+          )
+        ).data.payment_collection
+
+        await api.post(
+          `/store/payment-collections/${paymentCollection.id}/payment-sessions`,
+          { provider_id: "pp_system_default" },
+          storeHeaders
+        )
+
+        order = (
+          await api.post(`/store/carts/${cart.id}/complete`, {}, storeHeaders)
+        ).data.order
+      })
+
+      it("should correctly manage reservations when canceling a fulfillment (with inventory kit)", async () => {
+        let reservations = (await api.get(`/admin/reservations`, adminHeaders))
+          .data.reservations
+
+        expect(reservations).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 2,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 8,
+            }),
+          ])
+        )
+
+        // 1. create a partial fulfillment
+        const fulOrder = (
+          await api.post(
+            `/admin/orders/${order.id}/fulfillments?fields=*fulfillments,*fulfillments.items`,
+            {
+              items: [{ id: order.items[0].id, quantity: 1 }],
+            },
+            adminHeaders
+          )
+        ).data.order
+
+        // 2. two fulfillment items are created for a single (inventory kit) line item
+        expect(fulOrder.fulfillments[0].items).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 1,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 4,
+            }),
+          ])
+        )
+
+        expect(fulOrder.items[0].detail.fulfilled_quantity).toEqual(1)
+
+        reservations = (await api.get(`/admin/reservations`, adminHeaders)).data
+          .reservations
+
+        // 3. reservations need to be reduced by half since we fulfilled 1 item out of 2 in the order
+        expect(reservations).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 1,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 4,
+            }),
+          ])
+        )
+
+        const { data } = await api.post(
+          `/admin/orders/${fulOrder.id}/fulfillments/${fulOrder.fulfillments[0].id}/cancel?fields=*fulfillments,*fulfillments.items`,
+          {},
+          adminHeaders
+        )
+
+        expect(data.order.fulfillments[0].canceled_at).toBeDefined()
+        expect(data.order.items[0].detail.fulfilled_quantity).toEqual(0)
+
+        reservations = (await api.get(`/admin/reservations`, adminHeaders)).data
+          .reservations
+
+        // 4. reservation qunatities are restored after partial fulfillment is canceled
+        expect(reservations).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 2,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 8,
+            }),
+          ])
+        )
+
+        // 5. create a fullfillment for the entier quantity
+        const fulOrderFull = (
+          await api.post(
+            `/admin/orders/${order.id}/fulfillments?fields=*fulfillments,*fulfillments.items`,
+            {
+              items: [{ id: order.items[0].id, quantity: 2 }],
+            },
+            adminHeaders
+          )
+        ).data.order
+
+        reservations = (await api.get(`/admin/reservations`, adminHeaders)).data
+          .reservations
+
+        // 6. no more reservations since the entier quantity is fulfilled
+        expect(reservations).toEqual([])
+
+        expect(
+          fulOrderFull.fulfillments.find((f) => !f.canceled_at)!.items
+        ).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 2,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 8,
+            }),
+          ])
+        )
+
+        expect(fulOrderFull.items[0].detail.fulfilled_quantity).toEqual(2)
+
+        // 7. cancel the entire fulfillment once again
+        await api.post(
+          `/admin/orders/${fulOrderFull.id}/fulfillments/${
+            fulOrderFull.fulfillments.find((f) => !f.canceled_at)!.id
+          }/cancel?fields=*fulfillments,*fulfillments.items`,
+          {},
+          adminHeaders
+        )
+
+        reservations = (await api.get(`/admin/reservations`, adminHeaders)).data
+          .reservations
+
+        // 8. reservation need to be restored to the initiall quantities
+        expect(reservations).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 2,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 8,
+            }),
+          ])
+        )
+      })
+
+      it("should throw an error if the quantity to fulfill exceeds the reserved quantity (inventory kit case)", async () => {
+        let reservations = (await api.get(`/admin/reservations`, adminHeaders))
+          .data.reservations
+
+        expect(reservations).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 2,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 8,
+            }),
+          ])
+        )
+
+        // 1. create a partial fulfillment
+        const fulOrder = (
+          await api.post(
+            `/admin/orders/${order.id}/fulfillments?fields=*fulfillments,*fulfillments.items`,
+            {
+              items: [{ id: order.items[0].id, quantity: 1 }],
+            },
+            adminHeaders
+          )
+        ).data.order
+
+        // 2. two fulfillment items are created for a single (inventory kit) line item
+        expect(fulOrder.fulfillments[0].items).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 1,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 4,
+            }),
+          ])
+        )
+
+        expect(fulOrder.items[0].detail.fulfilled_quantity).toEqual(1)
+
+        reservations = (await api.get(`/admin/reservations`, adminHeaders)).data
+          .reservations
+
+        // 3. reservations need to be reduced by half since we fulfilled 1 item out of 2 in the order
+        expect(reservations).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              inventory_item_id: inventoryItemDesk.id,
+              quantity: 1,
+            }),
+            expect.objectContaining({
+              inventory_item_id: inventoryItemLeg.id,
+              quantity: 4,
+            }),
+          ])
+        )
+
+        const res = await api
+          .post(
+            `/admin/orders/${order.id}/fulfillments?fields=*fulfillments,*fulfillments.items`,
+            {
+              items: [{ id: order.items[0].id, quantity: 2 }],
+            },
+            adminHeaders
+          )
+          .catch((e) => e)
+
+        expect(res.response.status).toBe(400)
+        expect(res.response.data).toEqual({
+          type: "invalid_data",
+          message: `Quantity to fulfill exceeds the reserved quantity for the item: ${order.items[0].id}`,
+        })
+      })
+    })
+
     describe("POST /orders/:id/fulfillments/:id/mark-as-delivered", () => {
       beforeEach(async () => {
         seeder = await createOrderSeeder({ api, container: getContainer() })
diff --git a/packages/core/core-flows/src/order/utils/build-reservations-map.ts b/packages/core/core-flows/src/order/utils/build-reservations-map.ts
new file mode 100644
index 0000000000..46b702a589
--- /dev/null
+++ b/packages/core/core-flows/src/order/utils/build-reservations-map.ts
@@ -0,0 +1,21 @@
+import { ReservationItemDTO } from "@medusajs/types"
+
+/**
+ * Builds a map of reservations by line item id.
+ *
+ * @param reservations - The reservations to build the map from.
+ * @returns A map of reservations by line item id.
+ */
+export function buildReservationsMap(reservations: ReservationItemDTO[]) {
+  const map = new Map<string, ReservationItemDTO[]>()
+
+  for (const reservation of reservations) {
+    if (map.has(reservation.line_item_id as string)) {
+      map.get(reservation.line_item_id as string)!.push(reservation)
+    } else {
+      map.set(reservation.line_item_id as string, [reservation])
+    }
+  }
+
+  return map
+}
diff --git a/packages/core/core-flows/src/order/workflows/cancel-order-fulfillment.ts b/packages/core/core-flows/src/order/workflows/cancel-order-fulfillment.ts
index b2f9ad34e8..81bb80a965 100644
--- a/packages/core/core-flows/src/order/workflows/cancel-order-fulfillment.ts
+++ b/packages/core/core-flows/src/order/workflows/cancel-order-fulfillment.ts
@@ -2,10 +2,15 @@ import {
   AdditionalData,
   BigNumberInput,
   FulfillmentDTO,
+  InventoryItemDTO,
   OrderDTO,
+  OrderLineItemDTO,
   OrderWorkflow,
+  ProductVariantDTO,
+  ReservationItemDTO,
 } from "@medusajs/framework/types"
 import {
+  MathBN,
   MedusaError,
   Modules,
   OrderWorkflowEvents,
@@ -27,6 +32,19 @@ import {
   throwIfItemsDoesNotExistsInOrder,
   throwIfOrderIsCancelled,
 } from "../utils/order-validation"
+import { createReservationsStep } from "../../reservation"
+import { updateReservationsStep } from "../../reservation"
+
+type OrderItemWithVariantDTO = OrderLineItemDTO & {
+  variant?: ProductVariantDTO & {
+    inventory_items: {
+      inventory: InventoryItemDTO
+      variant_id: string
+      inventory_item_id: string
+      required_quantity: number
+    }[]
+  }
+}
 
 /**
  * The data to validate the order fulfillment cancelation.
@@ -90,6 +108,13 @@ export const cancelOrderFulfillmentValidateOrder = createStep(
       )
     }
 
+    if (fulfillment.canceled_at) {
+      throw new MedusaError(
+        MedusaError.Types.NOT_ALLOWED,
+        "The fulfillment is already canceled"
+      )
+    }
+
     if (fulfillment.shipped_at) {
       throw new MedusaError(
         MedusaError.Types.NOT_ALLOWED,
@@ -114,14 +139,47 @@ function prepareCancelOrderFulfillmentData({
   order: OrderDTO
   fulfillment: FulfillmentDTO
 }) {
+  const lineItemIds = new Array(
+    ...new Set(fulfillment.items.map((i) => i.line_item_id))
+  )
+
   return {
     order_id: order.id,
     reference: Modules.FULFILLMENT,
     reference_id: fulfillment.id,
-    items: fulfillment.items!.map((i) => {
+    items: lineItemIds.map((lineItemId) => {
+      // find order item
+      const orderItem = order.items!.find(
+        (i) => i.id === lineItemId
+      ) as OrderItemWithVariantDTO
+      // find inventory items
+      const iitems = orderItem!.variant?.inventory_items
+      // find fulfillment item
+      const fitem = fulfillment.items.find(
+        (i) => i.line_item_id === lineItemId
+      )!
+
+      let quantity: BigNumberInput = fitem.quantity
+
+      // NOTE: if the order item has an inventory kit or `required_qunatity` > 1, fulfillment items wont't match 1:1 with order items.
+      // - for each inventory item in the kit, a fulfillment item will be created i.e. one line item could have multiple fulfillment items
+      // - the quantity of the fulfillment item will be the quantity of the order item multiplied by the required quantity of the inventory item
+      //
+      //   We need to take this into account when canceling the fulfillment to compute quantity of line items not being fulfilled based on fulfillment items and qunatities.
+      //   NOTE: for now we only need to find one inventory item of a line item to compute this since when a fulfillment is created all inventory items are fulfilled together.
+      //   If we allow to cancel partial fulfillments for an order item, we need to change this.
+      //
+      if (iitems?.length) {
+        const iitem = iitems.find(
+          (i) => i.inventory.id === fitem.inventory_item_id
+        )
+
+        quantity = MathBN.div(quantity, iitem!.required_quantity)
+      }
+
       return {
-        id: i.line_item_id as string,
-        quantity: i.quantity,
+        id: lineItemId as string,
+        quantity,
       }
     }),
   }
@@ -129,29 +187,74 @@ function prepareCancelOrderFulfillmentData({
 
 function prepareInventoryUpdate({
   fulfillment,
+  reservations,
+  order,
 }: {
-  order: OrderDTO
   fulfillment: FulfillmentDTO
+  reservations: ReservationItemDTO[]
+  order: any
 }) {
   const inventoryAdjustment: {
     inventory_item_id: string
     location_id: string
     adjustment: BigNumberInput
   }[] = []
-  for (const item of fulfillment.items) {
+  const toCreate: {
+    inventory_item_id: string
+    location_id: string
+    quantity: BigNumberInput
+  }[] = []
+  const toUpdate: {
+    id: string
+    quantity: BigNumberInput
+  }[] = []
+
+  const orderItemsMap = order.items!.reduce((acc, item) => {
+    acc[item.id] = item
+    return acc
+  }, {})
+
+  const reservationMap = reservations.reduce((acc, reservation) => {
+    acc[reservation.inventory_item_id as string] = reservation
+    return acc
+  }, {})
+
+  for (const fulfillmentItem of fulfillment.items) {
     // if this is `null` this means that item is from variant that has `manage_inventory` false
-    if (!item.inventory_item_id) {
+    if (!fulfillmentItem.inventory_item_id) {
       continue
     }
 
+    const orderItem = orderItemsMap[fulfillmentItem.line_item_id as string]
+
+    orderItem?.variant?.inventory_items.forEach((iitem) => {
+      const reservation =
+        reservationMap[fulfillmentItem.inventory_item_id as string]
+
+      if (!reservation) {
+        toCreate.push({
+          inventory_item_id: iitem.inventory.id,
+          location_id: fulfillment.location_id,
+          quantity: fulfillmentItem.quantity, // <- this is the inventory quantity that is being fulfilled so it menas it does include the required quantity
+        })
+      } else {
+        toUpdate.push({
+          id: reservation.id,
+          quantity: reservation.quantity + fulfillmentItem.quantity,
+        })
+      }
+    })
+
     inventoryAdjustment.push({
-      inventory_item_id: item.inventory_item_id as string,
+      inventory_item_id: fulfillmentItem.inventory_item_id as string,
       location_id: fulfillment.location_id,
-      adjustment: item.quantity,
+      adjustment: fulfillmentItem.quantity,
     })
   }
 
   return {
+    toCreate,
+    toUpdate,
     inventoryAdjustment,
   }
 }
@@ -198,9 +301,17 @@ export const cancelOrderFulfillmentWorkflow = createWorkflow(
         fields: [
           "id",
           "status",
-          "items.*",
-          "fulfillments.*",
-          "fulfillments.items.*",
+          "items.id",
+          "items.quantity",
+          "items.variant.manage_inventory",
+          "items.variant.inventory_items.inventory.id",
+          "items.variant.inventory_items.required_quantity",
+          "fulfillments.id",
+          "fulfillments.location_id",
+          "fulfillments.items.id",
+          "fulfillments.items.quantity",
+          "fulfillments.items.line_item_id",
+          "fulfillments.items.inventory_item_id",
         ],
         variables: { id: input.order_id },
         list: false,
@@ -213,16 +324,38 @@ export const cancelOrderFulfillmentWorkflow = createWorkflow(
       return order.fulfillments.find((f) => f.id === input.fulfillment_id)!
     })
 
+    const lineItemIds = transform({ fulfillment }, ({ fulfillment }) => {
+      return fulfillment.items.map((i) => i.line_item_id)
+    })
+
+    const reservations = useRemoteQueryStep({
+      entry_point: "reservations",
+      fields: [
+        "id",
+        "line_item_id",
+        "quantity",
+        "inventory_item_id",
+        "location_id",
+      ],
+      variables: {
+        filter: {
+          line_item_id: lineItemIds,
+        },
+      },
+    }).config({ name: "get-reservations" })
+
     const cancelOrderFulfillmentData = transform(
       { order, fulfillment },
       prepareCancelOrderFulfillmentData
     )
 
-    const { inventoryAdjustment } = transform(
-      { order, fulfillment },
+    const { toCreate, toUpdate, inventoryAdjustment } = transform(
+      { order, fulfillment, reservations },
       prepareInventoryUpdate
     )
 
+    adjustInventoryLevelsStep(inventoryAdjustment)
+
     const eventData = transform({ order, fulfillment, input }, (data) => {
       return {
         order_id: data.order.id,
@@ -233,7 +366,8 @@ export const cancelOrderFulfillmentWorkflow = createWorkflow(
 
     parallelize(
       cancelOrderFulfillmentStep(cancelOrderFulfillmentData),
-      adjustInventoryLevelsStep(inventoryAdjustment),
+      createReservationsStep(toCreate),
+      updateReservationsStep(toUpdate),
       emitEventStep({
         eventName: OrderWorkflowEvents.FULFILLMENT_CANCELED,
         data: eventData,
diff --git a/packages/core/core-flows/src/order/workflows/create-fulfillment.ts b/packages/core/core-flows/src/order/workflows/create-fulfillment.ts
index bb71875344..47370d2376 100644
--- a/packages/core/core-flows/src/order/workflows/create-fulfillment.ts
+++ b/packages/core/core-flows/src/order/workflows/create-fulfillment.ts
@@ -2,10 +2,14 @@ import {
   AdditionalData,
   BigNumberInput,
   FulfillmentWorkflow,
+  InventoryItemDTO,
   OrderDTO,
   OrderLineItemDTO,
   OrderWorkflow,
+  ProductDTO,
+  ProductVariantDTO,
   ReservationItemDTO,
+  ShippingProfileDTO,
 } from "@medusajs/framework/types"
 import {
   MathBN,
@@ -39,6 +43,21 @@ import {
   throwIfItemsDoesNotExistsInOrder,
   throwIfOrderIsCancelled,
 } from "../utils/order-validation"
+import { buildReservationsMap } from "../utils/build-reservations-map"
+
+type OrderItemWithVariantDTO = OrderLineItemDTO & {
+  variant?: ProductVariantDTO & {
+    product?: ProductDTO & {
+      shipping_profile?: ShippingProfileDTO
+    }
+    inventory_items: {
+      inventory: InventoryItemDTO
+      variant_id: string
+      inventory_item_id: string
+      required_quantity: number
+    }[]
+  }
+}
 
 /**
  * The data to validate the order fulfillment creation.
@@ -143,9 +162,7 @@ function prepareFulfillmentData({
     (itemsList ?? order.items)!.map((i) => [i.id, i])
   )
 
-  const reservationItemMap = new Map<string, ReservationItemDTO>(
-    reservations.map((r) => [r.line_item_id as string, r])
-  )
+  const reservationItemMap = buildReservationsMap(reservations)
 
   // Note: If any of the items require shipping, we enable fulfillment
   // unless explicitly set to not require shipping by the item in the request
@@ -157,31 +174,59 @@ function prepareFulfillmentData({
       })
     : true
 
-  const fulfillmentItems = fulfillableItems.map((i) => {
-    const orderItem = orderItemsMap.get(i.id)!
-    const reservation = reservationItemMap.get(i.id)!
+  const fulfillmentItems = fulfillableItems
+    .map((i) => {
+      const orderItem = orderItemsMap.get(i.id)! as OrderItemWithVariantDTO
+      const reservations = reservationItemMap.get(i.id)
 
-    if (
-      orderItem.requires_shipping &&
-      (orderItem as any).variant?.product &&
-      (orderItem as any).variant?.product.shipping_profile?.id !==
-        shippingOption.shipping_profile_id
-    ) {
-      throw new MedusaError(
-        MedusaError.Types.INVALID_DATA,
-        `Shipping profile ${shippingOption.shipping_profile_id} does not match the shipping profile of the order item ${orderItem.id}`
-      )
-    }
+      if (
+        orderItem.requires_shipping &&
+        orderItem.variant?.product &&
+        orderItem.variant?.product.shipping_profile?.id !==
+          shippingOption.shipping_profile_id
+      ) {
+        throw new MedusaError(
+          MedusaError.Types.INVALID_DATA,
+          `Shipping profile ${shippingOption.shipping_profile_id} does not match the shipping profile of the order item ${orderItem.id}`
+        )
+      }
 
-    return {
-      line_item_id: i.id,
-      inventory_item_id: reservation?.inventory_item_id,
-      quantity: i.quantity,
-      title: orderItem.variant_title ?? orderItem.title,
-      sku: orderItem.variant_sku || "",
-      barcode: orderItem.variant_barcode || "",
-    } as FulfillmentWorkflow.CreateFulfillmentItemWorkflowDTO
-  })
+      if (!reservations?.length) {
+        return [
+          {
+            line_item_id: i.id,
+            inventory_item_id: undefined,
+            quantity: i.quantity,
+            title: orderItem.variant_title ?? orderItem.title,
+            sku: orderItem.variant_sku || "",
+            barcode: orderItem.variant_barcode || "",
+          },
+        ] as FulfillmentWorkflow.CreateFulfillmentItemWorkflowDTO[]
+      }
+
+      // if line item is from a managed variant, create a fulfillment item for each reservation item
+      return reservations.map((r) => {
+        const iItem = orderItem?.variant?.inventory_items.find(
+          (ii) => ii.inventory.id === r.inventory_item_id
+        )
+
+        return {
+          line_item_id: i.id,
+          inventory_item_id: r.inventory_item_id,
+          quantity: MathBN.mult(
+            iItem?.required_quantity ?? 1,
+            i.quantity
+          ) as BigNumberInput,
+          title:
+            iItem?.inventory.title ||
+            orderItem.variant_title ||
+            orderItem.title,
+          sku: iItem?.inventory.sku || orderItem.variant_sku || "",
+          barcode: orderItem.variant_barcode || "",
+        } as FulfillmentWorkflow.CreateFulfillmentItemWorkflowDTO
+      })
+    })
+    .flat()
 
   let locationId: string | undefined | null = input.location_id
 
@@ -223,11 +268,6 @@ function prepareInventoryUpdate({
   inputItemsMap,
   itemsList,
 }) {
-  const reservationMap = reservations.reduce((acc, reservation) => {
-    acc[reservation.line_item_id as string] = reservation
-    return acc
-  }, {})
-
   const toDelete: string[] = []
   const toUpdate: {
     id: string
@@ -240,14 +280,21 @@ function prepareInventoryUpdate({
     adjustment: BigNumberInput
   }[] = []
 
+  const orderItemsMap = new Map<string, Required<OrderDTO>["items"][0]>(
+    (itemsList ?? order.items)!.map((i) => [i.id, i])
+  )
+
+  const reservationMap = buildReservationsMap(reservations)
+
   const allItems = itemsList ?? order.items
   const itemsToFulfill = allItems.filter((i) => i.id in inputItemsMap)
 
   // iterate over items that are being fulfilled
   for (const item of itemsToFulfill) {
-    const reservation = reservationMap[item.id]
+    const reservations = reservationMap.get(item.id)
+    const orderItem = orderItemsMap.get(item.id)! as OrderItemWithVariantDTO
 
-    if (!reservation) {
+    if (!reservations?.length) {
       if (item.variant?.manage_inventory) {
         throw new Error(
           `No stock reservation found for item ${item.id} - ${item.title} (${item.variant_title})`
@@ -258,32 +305,45 @@ function prepareInventoryUpdate({
 
     const inputQuantity = inputItemsMap[item.id]?.quantity ?? item.quantity
 
-    if (MathBN.gt(inputQuantity, reservation.quantity)) {
-      throw new MedusaError(
-        MedusaError.Types.INVALID_DATA,
-        `Quantity to fulfill exceeds the reserved quantity for the item: ${item.id}`
+    reservations.forEach((reservation) => {
+      if (MathBN.gt(inputQuantity, reservation.quantity)) {
+        throw new MedusaError(
+          MedusaError.Types.INVALID_DATA,
+          `Quantity to fulfill exceeds the reserved quantity for the item: ${item.id}`
+        )
+      }
+
+      const iItem = orderItem?.variant?.inventory_items.find(
+        (ii) => ii.inventory.id === reservation.inventory_item_id
       )
-    }
 
-    const remainingReservationQuantity = reservation.quantity - inputQuantity
+      const adjustemntQuantity = MathBN.mult(
+        inputQuantity,
+        iItem?.required_quantity ?? 1
+      )
 
-    inventoryAdjustment.push({
-      inventory_item_id: reservation.inventory_item_id,
-      location_id: input.location_id ?? reservation.location_id,
-      adjustment: MathBN.mult(inputQuantity, -1),
-    })
+      const remainingReservationQuantity = MathBN.sub(
+        reservation.quantity,
+        adjustemntQuantity
+      )
 
-    if (remainingReservationQuantity === 0) {
-      toDelete.push(reservation.id)
-    } else {
-      toUpdate.push({
-        id: reservation.id,
-        quantity: remainingReservationQuantity,
+      inventoryAdjustment.push({
+        inventory_item_id: reservation.inventory_item_id,
         location_id: input.location_id ?? reservation.location_id,
+        adjustment: MathBN.mult(adjustemntQuantity, -1),
       })
-    }
-  }
 
+      if (MathBN.eq(remainingReservationQuantity, 0)) {
+        toDelete.push(reservation.id)
+      } else {
+        toUpdate.push({
+          id: reservation.id,
+          quantity: remainingReservationQuantity,
+          location_id: input.location_id ?? reservation.location_id,
+        })
+      }
+    })
+  }
   return {
     toDelete,
     toUpdate,
@@ -350,6 +410,10 @@ export const createOrderFulfillmentWorkflow = createWorkflow(
         "items.variant.width",
         "items.variant.material",
         "items.variant_title",
+        "items.variant.inventory_items.required_quantity",
+        "items.variant.inventory_items.inventory.id",
+        "items.variant.inventory_items.inventory.title",
+        "items.variant.inventory_items.inventory.sku",
         "shipping_address.*",
         "shipping_methods.id",
         "shipping_methods.shipping_option_id",
@@ -406,6 +470,7 @@ export const createOrderFulfillmentWorkflow = createWorkflow(
           .filter((i) => i in inputItemsMap)
       }
     )
+
     const reservations = useRemoteQueryStep({
       entry_point: "reservations",
       fields: [