diff --git a/addons/sale_stock/tests/test_sale_stock.py b/addons/sale_stock/tests/test_sale_stock.py
index 482fcd1074c..e056c6d7d03 100644
--- a/addons/sale_stock/tests/test_sale_stock.py
+++ b/addons/sale_stock/tests/test_sale_stock.py
@@ -1205,3 +1205,55 @@ class TestSaleStock(TestSaleCommon, ValuationReconciliationTestCommon):
         self.assertEqual(so.order_line[1].product_id, self.product_b)
         self.assertEqual(so.order_line[1].qty_delivered, 1)
         self.assertEqual(so.order_line[1].product_uom.id, uom_km_id)
+
+    def test_return_with_mto_and_multisteps(self):
+        """
+        Suppose a product P and a 3-steps delivery.
+        Sell 5 x P, process pick & pack pickings and then decrease the qty on
+        the SO line:
+        - the ship picking should be updated
+        - there should be a return R1 for the pack picking
+        - there should be a return R2 for the pick picking
+        - it should be possible to reserve R1
+        """
+        warehouse = self.env['stock.warehouse'].search([('company_id', '=', self.env.company.id)], limit=1)
+        warehouse.delivery_steps = 'pick_pack_ship'
+        stock_location = warehouse.lot_stock_id
+        pack_location, out_location, custo_location = warehouse.delivery_route_id.rule_ids.location_dest_id
+
+        product = self.env['product.product'].create({
+            'name': 'SuperProduct',
+            'type': 'product',
+        })
+
+        self.env['stock.quant']._update_available_quantity(product, stock_location, 5)
+
+        so_form = Form(self.env['sale.order'])
+        so_form.partner_id = self.partner_a
+        with so_form.order_line.new() as line:
+            line.product_id = product
+            line.product_uom_qty = 5
+        so = so_form.save()
+        so.action_confirm()
+
+        pick_picking, pack_picking, _ = so.picking_ids
+        (pick_picking + pack_picking).move_ids.quantity_done = 5
+        (pick_picking + pack_picking).button_validate()
+
+        with Form(so) as so_form:
+            with so_form.order_line.edit(0) as line:
+                line.product_uom_qty = 3
+
+        move_lines = so.picking_ids.move_ids.sorted('id')
+        ship_sm, pack_sm, pick_sm, ret_pack_sm, ret_pick_sm = move_lines
+        self.assertRecordValues(move_lines, [
+            {'location_id': out_location.id, 'location_dest_id': custo_location.id, 'move_orig_ids': pack_sm.ids, 'move_dest_ids': []},
+            {'location_id': pack_location.id, 'location_dest_id': out_location.id, 'move_orig_ids': pick_sm.ids, 'move_dest_ids': ship_sm.ids},
+            {'location_id': stock_location.id, 'location_dest_id': pack_location.id, 'move_orig_ids': [], 'move_dest_ids': pack_sm.ids},
+            {'location_id': out_location.id, 'location_dest_id': pack_location.id, 'move_orig_ids': [], 'move_dest_ids': ret_pick_sm.ids},
+            {'location_id': pack_location.id, 'location_dest_id': stock_location.id, 'move_orig_ids': ret_pack_sm.ids, 'move_dest_ids': []},
+        ])
+
+        ret_pack_sm.picking_id.action_assign()
+        self.assertEqual(ret_pack_sm.state, 'assigned')
+        self.assertEqual(ret_pack_sm.move_line_ids.reserved_uom_qty, 2)
diff --git a/addons/stock/models/stock_move.py b/addons/stock/models/stock_move.py
index 841d629d933..01923d1d824 100644
--- a/addons/stock/models/stock_move.py
+++ b/addons/stock/models/stock_move.py
@@ -894,8 +894,8 @@ class StockMove(models.Model):
                 if float_compare(pos_move.product_uom_qty, abs(neg_move.product_uom_qty), precision_rounding=pos_move.product_uom.rounding) >= 0:
                     pos_move.product_uom_qty += neg_move.product_uom_qty
                     pos_move.write({
-                        'move_dest_ids': [Command.link(m.id) for m in neg_move.mapped('move_dest_ids')],
-                        'move_orig_ids': [Command.link(m.id) for m in neg_move.mapped('move_orig_ids')],
+                        'move_dest_ids': [Command.link(m.id) for m in neg_move.mapped('move_dest_ids') if m.location_id == pos_move.location_dest_id],
+                        'move_orig_ids': [Command.link(m.id) for m in neg_move.mapped('move_orig_ids') if m.location_dest_id == pos_move.location_id],
                     })
                     merged_moves |= pos_move
                     moves_to_unlink |= neg_move
@@ -1256,9 +1256,21 @@ class StockMove(models.Model):
             move.product_uom_qty, 0, precision_rounding=move.product_uom.rounding) < 0)
         for move in neg_r_moves:
             move.location_id, move.location_dest_id = move.location_dest_id, move.location_id
+            orig_move_ids, dest_move_ids = [], []
+            for m in move.move_orig_ids | move.move_dest_ids:
+                from_loc, to_loc = m.location_id, m.location_dest_id
+                if float_compare(m.product_uom_qty, 0, precision_rounding=m.product_uom.rounding) < 0:
+                    from_loc, to_loc = to_loc, from_loc
+                if to_loc == move.location_id:
+                    orig_move_ids += m.ids
+                elif move.location_dest_id == from_loc:
+                    dest_move_ids += m.ids
+            move.move_orig_ids, move.move_dest_ids = [(6, 0, orig_move_ids)], [(6, 0, dest_move_ids)]
             move.product_uom_qty *= -1
             if move.picking_type_id.return_picking_type_id:
                 move.picking_type_id = move.picking_type_id.return_picking_type_id
+            # We are returning some products, we must take them in the source location
+            move.procure_method = 'make_to_stock'
         neg_r_moves._assign_picking()
 
         # call `_action_assign` on every confirmed move which location_id bypasses the reservation + those expected to be auto-assigned