diff --git a/erpnext/e_commerce/variant_selector/utils.py b/erpnext/e_commerce/variant_selector/utils.py
index 1a3e737928..4466c45743 100644
--- a/erpnext/e_commerce/variant_selector/utils.py
+++ b/erpnext/e_commerce/variant_selector/utils.py
@@ -162,6 +162,7 @@ def get_next_attribute_and_values(item_code, selected_attributes):
 		product_info = get_item_variant_price_dict(exact_match[0], cart_settings)
 
 		if product_info:
+			product_info["is_stock_item"] = frappe.get_cached_value("Item", exact_match[0], "is_stock_item")
 			product_info["allow_items_not_in_stock"] = cint(cart_settings.allow_items_not_in_stock)
 	else:
 		product_info = None
diff --git a/erpnext/templates/generators/item/item_configure.js b/erpnext/templates/generators/item/item_configure.js
index 613c967e3d..9beba3fd01 100644
--- a/erpnext/templates/generators/item/item_configure.js
+++ b/erpnext/templates/generators/item/item_configure.js
@@ -219,7 +219,8 @@ class ItemConfigure {
 						: ''
 					}
 
-					${available_qty === 0 ? '<span class="text-danger">(' + __('Out of Stock') + ')</span>' : ''}
+					${available_qty === 0 && product_info && product_info?.is_stock_item
+						? '<span class="text-danger">(' + __('Out of Stock') + ')</span>' : ''}
 
 				</div></div>
 				<a href data-action="btn_clear_values" data-item-code="${one_item}">
@@ -236,7 +237,8 @@ class ItemConfigure {
 			</div>`;
 		/* eslint-disable indent */
 
-		if (!product_info?.allow_items_not_in_stock && available_qty === 0) {
+		if (!product_info?.allow_items_not_in_stock && available_qty === 0
+			&& product_info && product_info?.is_stock_item) {
 			item_add_to_cart = '';
 		}