diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/account/service/AccountTransfersWritePlatformServiceImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/account/service/AccountTransfersWritePlatformServiceImpl.java
index 8fce2c4ecec..8c5e24c17ca 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/account/service/AccountTransfersWritePlatformServiceImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/account/service/AccountTransfersWritePlatformServiceImpl.java
@@ -500,15 +500,21 @@ public AccountTransferDetails repayLoanWithTopup(AccountTransferDTO accountTrans
 
     @Override
     public CommandProcessingResult undo(JsonCommand command) {
-        AccountTransferDetails accountTransferDetails = accountTransferDetailRepository.findById(command.entityId())
-                .orElseThrow(() -> new AccountTransferNotFoundException(command.entityId()));
-
-        if (accountTransferDetails.getAccountTransferTransactions().stream().anyMatch(AccountTransferTransaction::isReversed)) {
+        final Long accountTransferId = command.entityId();
+        // accountTransferId is the id exposed by the transfer read/list APIs, i.e. m_account_transfer_transaction.id.
+        // Resolving against that table (rather than m_account_transfer_details) means the lookup always matches
+        // what a caller can actually see, and reversal is scoped to this single transaction only - not every
+        // transaction sharing the same details record (e.g. a recurring standing instruction).
+        final AccountTransferTransaction transaction = accountTransferRepository.findById(accountTransferId)
+                .orElseThrow(() -> new AccountTransferNotFoundException(accountTransferId));
+
+        if (transaction.isReversed()) {
             throw new GeneralPlatformDomainRuleException("error.msg.account.transfer.already.reversed",
-                    "Account transfer is already reverted", command.entityId());
+                    "Account transfer is already reverted", accountTransferId);
         }
 
         final PaymentDetail paymentDetail = null;
+        final AccountTransferDetails accountTransferDetails = transaction.getAccountTransferDetails();
 
         PortfolioAccountType fromAccountType = accountTransferDetails.fromLoanAccount() != null ? PortfolioAccountType.LOAN
                 : accountTransferDetails.fromSavingsAccount() != null ? PortfolioAccountType.SAVINGS : throwUnsupported();
@@ -517,32 +523,28 @@ public CommandProcessingResult undo(JsonCommand command) {
                 : accountTransferDetails.toSavingsAccount() != null ? PortfolioAccountType.SAVINGS : throwUnsupported();
 
         if (isSavingsToSavingsAccountTransfer(fromAccountType, toAccountType)) {
-            accountTransferDetails.getAccountTransferTransactions().forEach(transaction -> {
-                this.savingsAccountWritePlatformService.undoTransaction(transaction.getFromSavingsTransaction().getSavingsAccount().getId(),
-                        transaction.getFromSavingsTransaction().getId(), true);
-                this.savingsAccountWritePlatformService.undoTransaction(transaction.getToSavingsTransaction().getSavingsAccount().getId(),
-                        transaction.getToSavingsTransaction().getId(), true);
-                transaction.reverse();
-            });
+            this.savingsAccountWritePlatformService.undoTransaction(transaction.getFromSavingsTransaction().getSavingsAccount().getId(),
+                    transaction.getFromSavingsTransaction().getId(), true);
+            this.savingsAccountWritePlatformService.undoTransaction(transaction.getToSavingsTransaction().getSavingsAccount().getId(),
+                    transaction.getToSavingsTransaction().getId(), true);
+            transaction.reverse();
         } else if (isSavingsToLoanAccountTransfer(fromAccountType, toAccountType)) {
-            accountTransferDetails.getAccountTransferTransactions().forEach(transaction -> {
-                this.savingsAccountWritePlatformService.undoTransaction(transaction.getFromSavingsTransaction().getSavingsAccount().getId(),
-                        transaction.getFromSavingsTransaction().getId(), true);
-                final ExternalId reversalTxnExternalId = externalIdFactory.create();
-                LoanAdjustmentParameter parameter = LoanAdjustmentParameter.builder().transactionAmount(BigDecimal.ZERO)
-                        .paymentDetail(paymentDetail).transactionDate(transaction.getToLoanTransaction().getTransactionDate())
-                        .txnExternalId(transaction.getToLoanTransaction().getExternalId()).reversalTxnExternalId(reversalTxnExternalId)
-                        .noteText(null).build();
-                this.loanAdjustmentService.adjustLoanTransaction(transaction.getToLoanTransaction().getLoan(),
-                        transaction.getToLoanTransaction(), parameter, null, new HashMap<>());
-                transaction.reverse();
-            });
+            this.savingsAccountWritePlatformService.undoTransaction(transaction.getFromSavingsTransaction().getSavingsAccount().getId(),
+                    transaction.getFromSavingsTransaction().getId(), true);
+            final ExternalId reversalTxnExternalId = externalIdFactory.create();
+            LoanAdjustmentParameter parameter = LoanAdjustmentParameter.builder().transactionAmount(BigDecimal.ZERO)
+                    .paymentDetail(paymentDetail).transactionDate(transaction.getToLoanTransaction().getTransactionDate())
+                    .txnExternalId(transaction.getToLoanTransaction().getExternalId()).reversalTxnExternalId(reversalTxnExternalId)
+                    .noteText(null).build();
+            this.loanAdjustmentService.adjustLoanTransaction(transaction.getToLoanTransaction().getLoan(),
+                    transaction.getToLoanTransaction(), parameter, null, new HashMap<>());
+            transaction.reverse();
         } else if (isLoanToSavingsAccountTransfer(fromAccountType, toAccountType)) {
             throw new UnsupportedOperationException("Undo Loan to Savings Account Transfer is not implemented");
         }
 
         final CommandProcessingResultBuilder builder = new CommandProcessingResultBuilder() //
-                .withEntityId(accountTransferDetails.getId());
+                .withEntityId(transaction.getId());
 
         return builder.build();
     }
diff --git a/fineract-provider/src/main/resources/db/changelog/tenant/changelog-tenant.xml b/fineract-provider/src/main/resources/db/changelog/tenant/changelog-tenant.xml
index c603611fb2e..e158709f8a3 100644
--- a/fineract-provider/src/main/resources/db/changelog/tenant/changelog-tenant.xml
+++ b/fineract-provider/src/main/resources/db/changelog/tenant/changelog-tenant.xml
@@ -259,4 +259,5 @@
     <include file="parts/0238_transaction_summary_report_update_originator_inline_join.xml" relativeToChangelogFile="true" />
     <include file="parts/0239_add_retained_earning_job.xml" relativeToChangelogFile="true"/>
     <include file="parts/0240_add_retained_earning_global_configuration.xml" relativeToChangelogFile="true"/>
+    <include file="parts/0242_add_undo_accounttransfer_permission.xml" relativeToChangelogFile="true"/>
 </databaseChangeLog>
diff --git a/fineract-provider/src/main/resources/db/changelog/tenant/parts/0242_add_undo_accounttransfer_permission.xml b/fineract-provider/src/main/resources/db/changelog/tenant/parts/0242_add_undo_accounttransfer_permission.xml
new file mode 100644
index 00000000000..9c32592e9ec
--- /dev/null
+++ b/fineract-provider/src/main/resources/db/changelog/tenant/parts/0242_add_undo_accounttransfer_permission.xml
@@ -0,0 +1,40 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<!--
+
+    Licensed to the Apache Software Foundation (ASF) under one
+    or more contributor license agreements. See the NOTICE file
+    distributed with this work for additional information
+    regarding copyright ownership. The ASF licenses this file
+    to you under the Apache License, Version 2.0 (the
+    "License"); you may not use this file except in compliance
+    with the License. You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+    Unless required by applicable law or agreed to in writing,
+    software distributed under the License is distributed on an
+    "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+    KIND, either express or implied. See the License for the
+    specific language governing permissions and limitations
+    under the License.
+
+-->
+<databaseChangeLog xmlns="http://www.liquibase.org/xml/ns/dbchangelog"
+                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+                   xsi:schemaLocation="http://www.liquibase.org/xml/ns/dbchangelog http://www.liquibase.org/xml/ns/dbchangelog/dbchangelog-4.3.xsd">
+    <changeSet id="1" author="fineract">
+        <preConditions onFail="MARK_RAN">
+            <sqlCheck expectedResult="0">
+                SELECT COUNT(1) FROM m_permission WHERE code = 'UNDO_ACCOUNTTRANSFER'
+            </sqlCheck>
+        </preConditions>
+        <insert tableName="m_permission">
+            <column name="grouping" value="transaction_savings"/>
+            <column name="code" value="UNDO_ACCOUNTTRANSFER"/>
+            <column name="entity_name" value="ACCOUNTTRANSFER"/>
+            <column name="action_name" value="UNDO"/>
+            <column name="can_maker_checker" valueBoolean="false"/>
+        </insert>
+    </changeSet>
+
+</databaseChangeLog>