diff --git a/C4/Circulation.pm b/C4/Circulation.pm
index 562cad7267..b98c267f4b 100644
--- a/C4/Circulation.pm
+++ b/C4/Circulation.pm
@@ -2514,6 +2514,10 @@ sub AddReturn {
         }
     }
 
+    if ( $messages->{WasLost} and C4::Context->preference('BlockReturnOfLostItems') ) {
+        $validTransfer = 0;
+    }
+
     # Transfer to returnbranch if Automatic transfer set or append message NeedsTransfer
     if ( $validTransfer && !C4::RotatingCollections::isItemInAnyCollection( $item->itemnumber )
         && ( $doreturn or $messages->{'NotIssued'} )
diff --git a/t/db_dependent/Circulation/Returns.t b/t/db_dependent/Circulation/Returns.t
index db25fda549..6d3069df45 100755
--- a/t/db_dependent/Circulation/Returns.t
+++ b/t/db_dependent/Circulation/Returns.t
@@ -286,7 +286,7 @@ subtest 'Handle ids duplication' => sub {
 };
 
 subtest 'BlockReturnOfLostItems' => sub {
-    plan tests => 4;
+    plan tests => 5;
     my $item = $builder->build_sample_item;
     my $patron = $builder->build_object({ class => 'Koha::Patrons' });
     my $checkout = AddIssue( $patron, $item->barcode );
@@ -298,6 +298,7 @@ subtest 'BlockReturnOfLostItems' => sub {
     my ( $doreturn, $messages, $issue ) = AddReturn($item->barcode);
     is( $doreturn, 0, "With BlockReturnOfLostItems, a checkin of a lost item should be blocked");
     is( $messages->{WasLost}, 1, "... and the WasLost flag should be set");
+    is( $messages->{NeedsTransfer}, undef, "... and no transfer should be triggered");
 
     $item->discard_changes;
     is( $item->itemlost, 1, "Item remains lost" );