diff --git a/erpnext/support/doctype/issue/test_issue.py b/erpnext/support/doctype/issue/test_issue.py
index ab9a444bc3..0559b15649 100644
--- a/erpnext/support/doctype/issue/test_issue.py
+++ b/erpnext/support/doctype/issue/test_issue.py
@@ -142,6 +142,32 @@ class TestIssue(TestSetUp):
 		issue.reload()
 		self.assertEqual(flt(issue.total_hold_time, 2), 2700)
 
+	def test_issue_close_after_on_hold(self):
+		creation = get_datetime("2021-11-01 19:00")
+
+		issue = make_issue(creation, index=1)
+		create_communication(issue.name, "test@example.com", "Received", creation)
+
+		# send a reply within SLA
+		creation = get_datetime("2021-11-02 11:00")
+		create_communication(issue.name, "test@admin.com", "Sent", creation)
+
+		frappe.flags.current_time = creation
+		issue.reload()
+		issue.status = 'Replied'
+		issue.save()
+
+		self.assertEqual(issue.on_hold_since, frappe.flags.current_time)
+
+		# close the issue after being on hold for 20 days
+		frappe.flags.current_time = get_datetime("2021-11-22 01:00")
+		issue.status = 'Closed'
+		issue.save()
+
+		self.assertEqual(issue.resolution_by, get_datetime('2021-11-22 06:00:00'))
+		self.assertEqual(issue.resolution_date, get_datetime('2021-11-22 01:00:00'))
+		self.assertEqual(issue.agreement_status, 'Fulfilled')
+
 class TestFirstResponseTime(TestSetUp):
 	# working hours used in all cases: Mon-Fri, 10am to 6pm
 	# all dates are in the mm-dd-yyyy format
diff --git a/erpnext/support/doctype/service_level_agreement/service_level_agreement.py b/erpnext/support/doctype/service_level_agreement/service_level_agreement.py
index 565f05083b..9c1e536078 100644
--- a/erpnext/support/doctype/service_level_agreement/service_level_agreement.py
+++ b/erpnext/support/doctype/service_level_agreement/service_level_agreement.py
@@ -642,7 +642,7 @@ def reset_expected_response_and_resolution(doc):
 def set_response_by_and_variance(doc, start_date_time, priority):
 	if doc.meta.has_field("response_by"):
 		doc.response_by = get_expected_time_for(parameter="response", service_level=priority, start_date_time=start_date_time)
-		if doc.meta.has_field("total_hold_time") and doc.get('total_hold_time'):
+		if doc.meta.has_field("total_hold_time") and doc.get('total_hold_time') and not doc.get('first_responded_on'):
 			doc.response_by = add_to_date(doc.response_by, seconds=round(doc.get('total_hold_time')))
 
 	if doc.meta.has_field("response_by_variance") and not doc.get('first_responded_on'):