diff --git a/packages/vendure-plugin-picqer/CHANGELOG.md b/packages/vendure-plugin-picqer/CHANGELOG.md
index 375704b7..2f977b89 100644
--- a/packages/vendure-plugin-picqer/CHANGELOG.md
+++ b/packages/vendure-plugin-picqer/CHANGELOG.md
@@ -1,3 +1,7 @@
+# 3.6.0 (2025-01-08)
+
+- Allow configuring the plugin to not cancel Vendure orders when a Picqer order is cancelled
+
 # 3.5.0 (2024-12-19)
 
 - Update Vendure to 3.1.1
diff --git a/packages/vendure-plugin-picqer/package.json b/packages/vendure-plugin-picqer/package.json
index b9049aac..a82613f9 100644
--- a/packages/vendure-plugin-picqer/package.json
+++ b/packages/vendure-plugin-picqer/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@pinelab/vendure-plugin-picqer",
-  "version": "3.5.0",
+  "version": "3.6.1",
   "description": "Vendure plugin syncing to orders and stock with Picqer",
   "author": "Martijn van de Brug <martijn@pinelab.studio>",
   "homepage": "https://pinelab-plugins.com/",
diff --git a/packages/vendure-plugin-picqer/src/api/picqer.service.ts b/packages/vendure-plugin-picqer/src/api/picqer.service.ts
index 2ff1e785..78983014 100644
--- a/packages/vendure-plugin-picqer/src/api/picqer.service.ts
+++ b/packages/vendure-plugin-picqer/src/api/picqer.service.ts
@@ -373,7 +373,11 @@ export class PicqerService implements OnApplicationBootstrap {
       );
       return;
     }
-    if (data.status === 'cancelled' && order.state !== 'Cancelled') {
+    if (
+      data.status === 'cancelled' &&
+      order.state !== 'Cancelled' &&
+      this.options.cancelOrdersOnPicqerCancellation
+    ) {
       const result = await this.orderService.cancelOrder(ctx, {
         orderId: order.id,
         reason: 'Cancelled in Picqer',
diff --git a/packages/vendure-plugin-picqer/src/picqer.plugin.ts b/packages/vendure-plugin-picqer/src/picqer.plugin.ts
index 641f6bbd..1a359987 100644
--- a/packages/vendure-plugin-picqer/src/picqer.plugin.ts
+++ b/packages/vendure-plugin-picqer/src/picqer.plugin.ts
@@ -76,6 +76,13 @@ export interface PicqerOptions {
    * Default is `true`
    */
   fallBackToProductFeaturedAsset?: boolean;
+  /**
+   * Define wether to cancel orders in Vendure when they are cancelled in Picqer.
+   * Default is `true`
+   *
+   * When, for example, orders in Picqer are cancelled solely because they need to be edited, you might want to disable this feature.
+   */
+  cancelOrdersOnPicqerCancellation?: boolean;
 }
 
 @VendurePlugin({
@@ -111,6 +118,7 @@ export class PicqerPlugin {
   static init(options: PicqerOptions) {
     this.options = {
       fallBackToProductFeaturedAsset: true,
+      cancelOrdersOnPicqerCancellation: true,
       ...options,
     };
     return PicqerPlugin;
diff --git a/packages/vendure-plugin-picqer/test/picqer.spec.ts b/packages/vendure-plugin-picqer/test/picqer.spec.ts
index 884ded3b..34e96c40 100644
--- a/packages/vendure-plugin-picqer/test/picqer.spec.ts
+++ b/packages/vendure-plugin-picqer/test/picqer.spec.ts
@@ -332,7 +332,34 @@ describe('Order placement', function () {
     expect(order!.state).toBe('Delivered');
   });
 
-  it('Should update to "Canceled" on incoming order status "cancelled"', async () => {
+  it('Should not update to "Canceled" when "cancelOrdersOnPicqerCancellation = false"', async () => {
+    PicqerPlugin.options.cancelOrdersOnPicqerCancellation = false;
+    const mockIncomingWebhook = {
+      event: 'orders.status_changed',
+      data: {
+        reference: createdOrder?.code,
+        status: 'cancelled',
+      },
+    } as Partial<IncomingOrderStatusWebhook>;
+    await adminClient.fetch(
+      `http://localhost:3050/picqer/hooks/${E2E_DEFAULT_CHANNEL_TOKEN}`,
+      {
+        method: 'POST',
+        body: JSON.stringify(mockIncomingWebhook),
+        headers: {
+          'X-Picqer-Signature': createSignature(
+            mockIncomingWebhook,
+            'test-api-key'
+          ),
+        },
+      }
+    );
+    const order = await getOrder(adminClient, createdOrder?.id as string);
+    expect(order!.state).toBe('Delivered');
+  });
+
+  it('Should update to "Canceled" on incoming order status "cancelled" and "cancelOrdersOnPicqerCancellation = true"', async () => {
+    PicqerPlugin.options.cancelOrdersOnPicqerCancellation = true;
     const mockIncomingWebhook = {
       event: 'orders.status_changed',
       data: {