diff --git a/erpnext/healthcare/doctype/patient_appointment/test_patient_appointment.py b/erpnext/healthcare/doctype/patient_appointment/test_patient_appointment.py
index 3df7ba15314..b681ed1a226 100644
--- a/erpnext/healthcare/doctype/patient_appointment/test_patient_appointment.py
+++ b/erpnext/healthcare/doctype/patient_appointment/test_patient_appointment.py
@@ -23,8 +23,10 @@ class TestPatientAppointment(unittest.TestCase):
 		self.assertEquals(appointment.status, 'Open')
 		appointment = create_appointment(patient, practitioner, add_days(nowdate(), 2))
 		self.assertEquals(appointment.status, 'Scheduled')
-		create_encounter(appointment)
+		encounter = create_encounter(appointment)
 		self.assertEquals(frappe.db.get_value('Patient Appointment', appointment.name, 'status'), 'Closed')
+		encounter.cancel()
+		self.assertEquals(frappe.db.get_value('Patient Appointment', appointment.name, 'status'), 'Open')
 
 	def test_start_encounter(self):
 		patient, medical_department, practitioner = create_healthcare_docs()
diff --git a/erpnext/healthcare/doctype/therapy_plan/test_therapy_plan.py b/erpnext/healthcare/doctype/therapy_plan/test_therapy_plan.py
index a061c66a54d..7fb159d6b50 100644
--- a/erpnext/healthcare/doctype/therapy_plan/test_therapy_plan.py
+++ b/erpnext/healthcare/doctype/therapy_plan/test_therapy_plan.py
@@ -5,10 +5,10 @@ from __future__ import unicode_literals
 
 import frappe
 import unittest
-from frappe.utils import getdate, flt
+from frappe.utils import getdate, flt, nowdate
 from erpnext.healthcare.doctype.therapy_type.test_therapy_type import create_therapy_type
 from erpnext.healthcare.doctype.therapy_plan.therapy_plan import make_therapy_session, make_sales_invoice
-from erpnext.healthcare.doctype.patient_appointment.test_patient_appointment import create_healthcare_docs, create_patient
+from erpnext.healthcare.doctype.patient_appointment.test_patient_appointment import create_healthcare_docs, create_patient, create_appointment
 
 class TestTherapyPlan(unittest.TestCase):
 	def test_creation_on_encounter_submission(self):
@@ -28,6 +28,15 @@ class TestTherapyPlan(unittest.TestCase):
 		frappe.get_doc(session).submit()
 		self.assertEquals(frappe.db.get_value('Therapy Plan', plan.name, 'status'), 'Completed')
 
+		patient, medical_department, practitioner = create_healthcare_docs()
+		appointment = create_appointment(patient, practitioner, nowdate())		
+		session = make_therapy_session(plan.name, plan.patient, 'Basic Rehab', '_Test Company', appointment.name)
+		session = frappe.get_doc(session)
+		session.submit()
+		self.assertEquals(frappe.db.get_value('Patient Appointment', appointment.name, 'status'), 'Closed')
+		session.cancel()
+		self.assertEquals(frappe.db.get_value('Patient Appointment', appointment.name, 'status'), 'Open')
+
 	def test_therapy_plan_from_template(self):
 		patient = create_patient()
 		template = create_therapy_plan_template()
diff --git a/erpnext/healthcare/doctype/therapy_plan/therapy_plan.py b/erpnext/healthcare/doctype/therapy_plan/therapy_plan.py
index bc0ff1a5057..ac01c604dda 100644
--- a/erpnext/healthcare/doctype/therapy_plan/therapy_plan.py
+++ b/erpnext/healthcare/doctype/therapy_plan/therapy_plan.py
@@ -47,7 +47,7 @@ class TherapyPlan(Document):
 
 
 @frappe.whitelist()
-def make_therapy_session(therapy_plan, patient, therapy_type, company):
+def make_therapy_session(therapy_plan, patient, therapy_type, company, appointment=None):
 	therapy_type = frappe.get_doc('Therapy Type', therapy_type)
 
 	therapy_session = frappe.new_doc('Therapy Session')
@@ -58,6 +58,7 @@ def make_therapy_session(therapy_plan, patient, therapy_type, company):
 	therapy_session.duration = therapy_type.default_duration
 	therapy_session.rate = therapy_type.rate
 	therapy_session.exercises = therapy_type.exercises
+	therapy_session.appointment = appointment
 
 	if frappe.flags.in_test:
 		therapy_session.start_date = today()
diff --git a/erpnext/healthcare/doctype/therapy_session/therapy_session.js b/erpnext/healthcare/doctype/therapy_session/therapy_session.js
index a2b01c9c181..fd200036935 100644
--- a/erpnext/healthcare/doctype/therapy_session/therapy_session.js
+++ b/erpnext/healthcare/doctype/therapy_session/therapy_session.js
@@ -19,6 +19,15 @@ frappe.ui.form.on('Therapy Session', {
 				}
 			};
 		});
+
+		frm.set_query('appointment', function() {
+
+			return {
+				filters: {
+					'status': ['in', ['Open', 'Scheduled']]
+				}
+			};
+		});
 	},
 
 	refresh: function(frm) {
diff --git a/erpnext/healthcare/doctype/therapy_session/therapy_session.py b/erpnext/healthcare/doctype/therapy_session/therapy_session.py
index 85d09701774..c00054421dc 100644
--- a/erpnext/healthcare/doctype/therapy_session/therapy_session.py
+++ b/erpnext/healthcare/doctype/therapy_session/therapy_session.py
@@ -43,7 +43,14 @@ class TherapySession(Document):
 		self.update_sessions_count_in_therapy_plan()
 		insert_session_medical_record(self)
 
+	def on_update(self):
+		if self.appointment:
+			frappe.db.set_value('Patient Appointment', self.appointment, 'status', 'Closed')
+
 	def on_cancel(self):
+		if self.appointment:
+			frappe.db.set_value('Patient Appointment', self.appointment, 'status', 'Open')
+
 		self.update_sessions_count_in_therapy_plan(on_cancel=True)
 
 	def update_sessions_count_in_therapy_plan(self, on_cancel=False):