diff --git a/erpnext/hr/doctype/leave_allocation/leave_allocation.py b/erpnext/hr/doctype/leave_allocation/leave_allocation.py
index 27479a5e81..8fae2a9a88 100755
--- a/erpnext/hr/doctype/leave_allocation/leave_allocation.py
+++ b/erpnext/hr/doctype/leave_allocation/leave_allocation.py
@@ -254,7 +254,18 @@ class LeaveAllocation(Document):
 		# Adding a day to include To Date in the difference
 		date_difference = date_diff(self.to_date, self.from_date) + 1
 		if date_difference < self.total_leaves_allocated:
-			frappe.throw(_("Total allocated leaves are more than days in the period"), OverAllocationError)
+			if frappe.db.get_value("Leave Type", self.leave_type, "allow_over_allocation"):
+				frappe.msgprint(
+					_("<b>Total Leaves Allocated</b> are more than the number of days in the allocation period"),
+					indicator="orange",
+					alert=True,
+				)
+			else:
+				frappe.throw(
+					_("<b>Total Leaves Allocated</b> are more than the number of days in the allocation period"),
+					exc=OverAllocationError,
+					title=_("Over Allocation"),
+				)
 
 	def create_leave_ledger_entry(self, submit=True):
 		if self.unused_leaves:
diff --git a/erpnext/hr/doctype/leave_allocation/test_leave_allocation.py b/erpnext/hr/doctype/leave_allocation/test_leave_allocation.py
index a1d39d4423..b4a42d375c 100644
--- a/erpnext/hr/doctype/leave_allocation/test_leave_allocation.py
+++ b/erpnext/hr/doctype/leave_allocation/test_leave_allocation.py
@@ -69,22 +69,44 @@ class TestLeaveAllocation(FrappeTestCase):
 		self.assertRaises(frappe.ValidationError, doc.save)
 
 	def test_validation_for_over_allocation(self):
+		leave_type = create_leave_type(leave_type_name="Test Over Allocation", is_carry_forward=1)
+		leave_type.save()
+
 		doc = frappe.get_doc(
 			{
 				"doctype": "Leave Allocation",
 				"__islocal": 1,
 				"employee": self.employee.name,
 				"employee_name": self.employee.employee_name,
-				"leave_type": "_Test Leave Type",
+				"leave_type": leave_type.name,
 				"from_date": getdate("2015-09-1"),
 				"to_date": getdate("2015-09-30"),
 				"new_leaves_allocated": 35,
+				"carry_forward": 1,
 			}
 		)
 
 		# allocated leave more than period
 		self.assertRaises(OverAllocationError, doc.save)
 
+		leave_type.allow_over_allocation = 1
+		leave_type.save()
+
+		# allows creating a leave allocation with more leave days than period days
+		doc = frappe.get_doc(
+			{
+				"doctype": "Leave Allocation",
+				"__islocal": 1,
+				"employee": self.employee.name,
+				"employee_name": self.employee.employee_name,
+				"leave_type": leave_type.name,
+				"from_date": getdate("2015-09-1"),
+				"to_date": getdate("2015-09-30"),
+				"new_leaves_allocated": 35,
+				"carry_forward": 1,
+			}
+		).insert()
+
 	def test_validation_for_over_allocation_post_submission(self):
 		allocation = frappe.get_doc(
 			{
diff --git a/erpnext/hr/doctype/leave_type/leave_type.json b/erpnext/hr/doctype/leave_type/leave_type.json
index 06ca4cdedb..d40ff09619 100644
--- a/erpnext/hr/doctype/leave_type/leave_type.json
+++ b/erpnext/hr/doctype/leave_type/leave_type.json
@@ -19,6 +19,7 @@
   "fraction_of_daily_salary_per_leave",
   "is_optional_leave",
   "allow_negative",
+  "allow_over_allocation",
   "include_holiday",
   "is_compensatory",
   "carry_forward_section",
@@ -211,15 +212,23 @@
    "fieldtype": "Float",
    "label": "Fraction of Daily Salary per Leave",
    "mandatory_depends_on": "eval:doc.is_ppl == 1"
+  },
+  {
+   "default": "0",
+   "description": "Allows allocating more leaves than the number of days in the allocation period.",
+   "fieldname": "allow_over_allocation",
+   "fieldtype": "Check",
+   "label": "Allow Over Allocation"
   }
  ],
  "icon": "fa fa-flag",
  "idx": 1,
  "links": [],
- "modified": "2021-10-02 11:59:40.503359",
+ "modified": "2022-05-09 05:01:38.957545",
  "modified_by": "Administrator",
  "module": "HR",
  "name": "Leave Type",
+ "naming_rule": "By fieldname",
  "owner": "Administrator",
  "permissions": [
   {
@@ -251,5 +260,6 @@
  ],
  "sort_field": "modified",
  "sort_order": "DESC",
+ "states": [],
  "track_changes": 1
 }
\ No newline at end of file