diff --git a/dev/MagentoTests/Integration/Cancel/CancelOrderWithDeletedProductTest.php b/dev/MagentoTests/Integration/Cancel/CancelOrderWithDeletedProductTest.php
new file mode 100644
index 0000000..b64dfc5
--- /dev/null
+++ b/dev/MagentoTests/Integration/Cancel/CancelOrderWithDeletedProductTest.php
@@ -0,0 +1,240 @@
+<?php
+declare(strict_types=1);
+namespace Ampersand\DisableStockReservation\Test\Integration\Cancel;
+
+use Magento\Framework\MessageQueue\QueueRepository;
+use Magento\Framework\MessageQueue\Consumer\ConfigInterface as ConsumerConfig;
+use Magento\Framework\MessageQueue\Consumer\Config\ConsumerConfigItemInterface;
+use Magento\Framework\Registry;
+use Magento\Catalog\Api\ProductRepositoryInterface;
+use Magento\Framework\ObjectManagerInterface;
+use Magento\InventoryApi\Api\GetSourceItemsBySkuInterface;
+use Magento\Framework\MessageQueue\ConsumerFactory;
+use Magento\InventorySales\Model\GetStockBySalesChannelCache;
+use Magento\TestFramework\Helper\Bootstrap;
+use TddWizard\Fixtures\Catalog\ProductBuilder;
+use TddWizard\Fixtures\Catalog\ProductFixture;
+use TddWizard\Fixtures\Sales\ShipmentBuilder;
+use TddWizard\Fixtures\Sales\InvoiceBuilder;
+use TddWizard\Fixtures\Checkout\CustomerCheckout;
+use TddWizard\Fixtures\Checkout\CartBuilder;
+use TddWizard\Fixtures\Customer\CustomerFixture;
+use TddWizard\Fixtures\Customer\CustomerBuilder;
+use TddWizard\Fixtures\Customer\AddressBuilder;
+use PHPUnit\Framework\TestCase;
+
+class CancelOrderWithDeletedProduct extends TestCase
+{
+    /** @var ObjectManagerInterface */
+    private $objectManager;
+
+    /** @var GetSourceItemsBySkuInterface */
+    private $getSourceItemsBySku;
+
+    /** @var ConsumerFactory */
+    private $consumerFactory;
+    
+    /** @var ProductRepositoryInterface */
+    private $productRepository;
+
+    /** @var ConsumerConfig*/
+    private $consumerConfig;
+
+    /** @var QueueRepository */
+    private $queueRepository;
+
+    /** @var Registry */
+    private $registry;
+    
+    /** @var ProductFixture */
+    private $productFixture;
+
+    /** @var CustomerFixture */
+    private $customerFixture;
+    
+    public function setUp(): void
+    {
+        parent::setUp();
+
+        $this->objectManager = Bootstrap::getObjectManager();
+        $this->productRepository = $this->objectManager->get(ProductRepositoryInterface::class);
+        $this->productRepository->cleanCache();
+        $this->getSourceItemsBySku = $this->objectManager->get(GetSourceItemsBySkuInterface::class);
+        $this->consumerFactory = $this->objectManager->get(ConsumerFactory::class);
+        $this->registry = $this->objectManager->get(Registry::class);
+        $this->consumerConfig = $this->objectManager->get(ConsumerConfig::class);
+        $this->queueRepository = $this->objectManager->get(QueueRepository::class);
+    }
+
+    /**
+     * @magentoConfigFixture default/cataloginventory/options/synchronize_with_catalog 0
+     */
+    public function testCancelOrderWithDeletedProductAndNotSyncWithCatalog()
+    {
+        $sku = uniqid('product_will_be_deleted');
+
+        /**
+         * Create a product with 5 qty
+         */
+        $this->productFixture = new ProductFixture(
+            ProductBuilder::aSimpleProduct()
+                ->withSku($sku)
+                ->withPrice(10)
+                ->withStockQty(5)
+                ->withIsInStock(true)
+                ->build()
+        );
+
+        /**
+         * Create a customer and login
+         */
+        $this->customerFixture = new CustomerFixture(CustomerBuilder::aCustomer()->withAddresses(
+            AddressBuilder::anAddress()->asDefaultBilling(),
+            AddressBuilder::anAddress()->asDefaultShipping()
+        )->build());
+        $this->customerFixture->login();
+
+        /**
+         * Order 1 qty
+         */
+        $checkout = CustomerCheckout::fromCart(
+            CartBuilder::forCurrentSession()
+                ->withSimpleProduct(
+                    $this->productFixture->getSku(),
+                    1
+                )
+                ->build()
+        );
+
+        $order = $checkout
+            ->withPaymentMethodCode('checkmo')
+            ->placeOrder();
+        $this->assertGreaterThan(0, strlen($order->getIncrementId()), 'the order does not have a valid increment_id');
+        $this->assertIsNumeric($order->getId(), 'the order does not have an entity_id');
+
+        /**
+         * Delete the product
+         */
+        $origVal = $this->registry->registry('isSecureArea');
+        $this->registry->unregister('isSecureArea');
+        $this->registry->register('isSecureArea', true);
+        $product = $this->productRepository->deleteById($sku);
+        $this->registry->unregister('isSecureArea');
+        $this->registry->register('isSecureArea', $origVal);
+
+        try {
+            $this->productRepository->getById($sku);
+            $this->fail('This product should not be loadable: ' . $sku);
+        } catch (\Magento\Framework\Exception\NoSuchEntityException $e) {
+            // This exception is expected to happen
+        }
+
+        /**
+         * cataloginventory/options/synchronize_with_catalog=0
+         *
+         * Verify the source items still exist after the delete
+         */
+        $sourceItems = $this->getSourceItemsBySku->execute($sku);
+        self::assertNotEmpty($sourceItems);
+
+        /**
+         * Cancel the order
+         */
+        $this->assertTrue($order->canCancel(), 'Cannot cancel the order');
+        $order->cancel();
+        $this->assertEquals('canceled', $order->getStatus(), 'The order was not cancelled');
+    }
+
+    /**
+     * @magentoConfigFixture default/cataloginventory/options/synchronize_with_catalog 1
+     */
+    public function testCancelOrderWithDeletedProductAndSyncWithCatalog()
+    {
+        $sku = uniqid('product_will_be_deleted');
+
+        /**
+         * Create a product with 5 qty
+         */
+        $this->productFixture = new ProductFixture(
+            ProductBuilder::aSimpleProduct()
+                ->withSku($sku)
+                ->withPrice(10)
+                ->withStockQty(5)
+                ->withIsInStock(true)
+                ->build()
+        );
+
+        /**
+         * Create a customer and login
+         */
+        $this->customerFixture = new CustomerFixture(CustomerBuilder::aCustomer()->withAddresses(
+            AddressBuilder::anAddress()->asDefaultBilling(),
+            AddressBuilder::anAddress()->asDefaultShipping()
+        )->build());
+        $this->customerFixture->login();
+
+        /**
+         * Order 1 qty
+         */
+        $checkout = CustomerCheckout::fromCart(
+            CartBuilder::forCurrentSession()
+                ->withSimpleProduct(
+                    $this->productFixture->getSku(),
+                    1
+                )
+                ->build()
+        );
+
+        $order = $checkout
+            ->withPaymentMethodCode('checkmo')
+            ->placeOrder();
+        $this->assertGreaterThan(0, strlen($order->getIncrementId()), 'the order does not have a valid increment_id');
+        $this->assertIsNumeric($order->getId(), 'the order does not have an entity_id');
+        
+        /**
+         * Ensure consumers are cleared before next steps
+         *
+         * Backported logic from \Magento\TestFramework\MessageQueue\ClearQueueProcessor
+         */
+        /** @var ConsumerConfigItemInterface $consumerConfig */
+        $consumerConfig = $this->consumerConfig->getConsumer('inventory.source.items.cleanup');
+        $queue = $this->queueRepository->get($consumerConfig->getConnection(), $consumerConfig->getQueue());
+        while ($message = $queue->dequeue()) {
+            $queue->acknowledge($message);
+        }
+
+        /**
+         * Delete the product
+         */
+        $origVal = $this->registry->registry('isSecureArea');
+        $this->registry->unregister('isSecureArea');
+        $this->registry->register('isSecureArea', true);
+        $product = $this->productRepository->deleteById($sku);
+        $this->registry->unregister('isSecureArea');
+        $this->registry->register('isSecureArea', $origVal);
+
+        try {
+            $this->productRepository->getById($sku);
+            $this->fail('This product should not be loadable: ' . $sku);
+        } catch (\Magento\Framework\Exception\NoSuchEntityException $e) {
+            // This exception is expected to happen
+        }
+        
+        /**
+         * Process the source items cleanup consumers and verify the deletions worked, because
+         * cataloginventory/options/synchronize_with_catalog=1
+         */
+        $consumer = $this->consumerFactory->get('inventory.source.items.cleanup');
+        $consumer->process(1);
+
+        $sourceItems = $this->getSourceItemsBySku->execute($sku);
+        self::assertEmpty($sourceItems);
+
+        /**
+         * Cancel the order
+         */
+        $this->assertTrue($order->canCancel(), 'Cannot cancel the order');
+        $order->cancel();
+        $this->assertEquals('canceled', $order->getStatus(), 'The order was not cancelled');
+    }
+}
diff --git a/src/Observer/CancelOrderItemObserver.php b/src/Observer/CancelOrderItemObserver.php
index 7e96f1d..77f4c14 100644
--- a/src/Observer/CancelOrderItemObserver.php
+++ b/src/Observer/CancelOrderItemObserver.php
@@ -52,6 +52,6 @@ public function execute(EventObserver $observer): void
             return;
         }
 
-        $this->executeSourceDeductionForItems->executeSourceDeductionForItems($orderItem, $itemsToCancel);
+        $this->executeSourceDeductionForItems->executeSourceDeductionForItems($orderItem, $itemsToCancel, true);
     }
 }
diff --git a/src/Service/ExecuteSourceDeductionForItems.php b/src/Service/ExecuteSourceDeductionForItems.php
index dec4d8f..071202c 100644
--- a/src/Service/ExecuteSourceDeductionForItems.php
+++ b/src/Service/ExecuteSourceDeductionForItems.php
@@ -113,9 +113,10 @@ public function __construct(
     /**
      * @param OrderItem $orderItem
      * @param array $itemsToCancel
+     * @param bool $graceful
      * @throws NoSuchEntityException
      */
-    public function executeSourceDeductionForItems(OrderItem $orderItem, array $itemsToCancel)
+    public function executeSourceDeductionForItems(OrderItem $orderItem, array $itemsToCancel, bool $graceful = false)
     {
         $order = $orderItem->getOrder();
 
@@ -163,12 +164,20 @@ public function executeSourceDeductionForItems(OrderItem $orderItem, array $item
                     'salesEvent' => $salesEvent
                 ]);
 
-                $this->sourceDeductionService->execute($sourceDeductionRequest);
+                try {
+                    $this->sourceDeductionService->execute($sourceDeductionRequest);
+                } catch (NoSuchEntityException $noSuchEntityException) {
+                    if (!$graceful) {
+                        throw $noSuchEntityException;
+                    }
+                }
             }
         }
 
         $itemsIds = $this->product->getProductsIdsBySkus($itemsSkus);
         $itemsIds = array_values(array_map('intval', $itemsIds));
-        $this->priceIndexer->reindexList($itemsIds);
+        if (!empty($itemsIds)) {
+            $this->priceIndexer->reindexList($itemsIds);
+        }
     }
 }