diff --git a/backend/app/api/routes/events/gifts.py b/backend/app/api/routes/events/gifts.py
index b3f1d1a..586dc08 100644
--- a/backend/app/api/routes/events/gifts.py
+++ b/backend/app/api/routes/events/gifts.py
@@ -916,7 +916,7 @@ def cancel_gift_reservation(
         raise HTTPException(status_code=404, detail="Gift item not found")
 
     # Check if gift is reserved
-    if gift.status != GiftStatus.RESERVED:
+    if gift.status not in [GiftStatus.RESERVED, GiftStatus.RECEIVED]:
         raise HTTPException(status_code=400, detail="Gift is not currently reserved")
 
     # Check if guest exists
@@ -931,7 +931,7 @@ def cancel_gift_reservation(
         except ValueError as e:
             raise HTTPException(status_code=400, detail=str(e))
 
-    # Missing the return statement here, which is also a problem
+
     return gift_item_crud.cancel_reservation(db, gift_id=item_id, guest_id=guest_id)
 
 # ===== GIFT PURCHASES ===== #
diff --git a/backend/app/crud/gift.py b/backend/app/crud/gift.py
index 9d590ae..01ab043 100644
--- a/backend/app/crud/gift.py
+++ b/backend/app/crud/gift.py
@@ -136,7 +136,7 @@ class CRUDGiftItem(CRUDBase[GiftItem, GiftItemCreate, GiftItemUpdate]):
             raise ValueError(f"Guest with ID {guest_id} not found")
 
         # Only perform the operation if the gift is reserved
-        if gift.status == GiftStatus.RESERVED:
+        if gift.status in [GiftStatus.RESERVED, GiftStatus.RECEIVED]:
             # Check if this guest has actually reserved this gift
             if guest in gift.reserved_by:
                 gift.reserved_by.remove(guest)