diff --git a/InventoryAdminUi/Test/Mftf/Test/StorefrontPriceOfConfigurableProductAssignedToTestStockAndTestWebsiteWhenOptionOfDisplayingOutOfStockProductsEnabledTest.xml b/InventoryAdminUi/Test/Mftf/Test/StorefrontPriceOfConfigurableProductAssignedToTestStockAndTestWebsiteWhenOptionOfDisplayingOutOfStockProductsEnabledTest.xml
index c9dd470ef25a..df768c1dd2ac 100644
--- a/InventoryAdminUi/Test/Mftf/Test/StorefrontPriceOfConfigurableProductAssignedToTestStockAndTestWebsiteWhenOptionOfDisplayingOutOfStockProductsEnabledTest.xml
+++ b/InventoryAdminUi/Test/Mftf/Test/StorefrontPriceOfConfigurableProductAssignedToTestStockAndTestWebsiteWhenOptionOfDisplayingOutOfStockProductsEnabledTest.xml
@@ -114,6 +114,8 @@
             <argument name="secondAttributeCode" value="$$createSecondConfigProductAttribute.attribute_code$$"/>
             <argument name="sourceName" value="$$customSource.source[name]$$"/>
         </actionGroup>
+        <selectOption selector="{{AdminProductFormSection.productStockStatus}}" userInput="{{SourceStatusInStock.value}}" stepKey="selectStockStatus"/>
+        <actionGroup ref="SaveProductFormActionGroup" stepKey="saveProduct"/>
 
         <amOnPage url="{{customStore.code}}" stepKey="amOnsecondStoreFront"/>
         <actionGroup ref="StorefrontCheckQuickSearchStringActionGroup" stepKey="quickSearchByProductName2">
diff --git a/InventoryConfigurableProduct/Plugin/CatalogInventory/Helper/Stock/AdaptAssignStatusToProductPlugin.php b/InventoryConfigurableProduct/Plugin/CatalogInventory/Helper/Stock/AdaptAssignStatusToProductPlugin.php
index bf7d279336db..e9e341ba30d4 100644
--- a/InventoryConfigurableProduct/Plugin/CatalogInventory/Helper/Stock/AdaptAssignStatusToProductPlugin.php
+++ b/InventoryConfigurableProduct/Plugin/CatalogInventory/Helper/Stock/AdaptAssignStatusToProductPlugin.php
@@ -8,6 +8,7 @@
 namespace Magento\InventoryConfigurableProduct\Plugin\CatalogInventory\Helper\Stock;
 
 use Magento\Catalog\Model\Product;
+use Magento\Catalog\Model\Product\Attribute\Source\Status;
 use Magento\CatalogInventory\Helper\Stock;
 use Magento\ConfigurableProduct\Model\Product\Type\Configurable;
 use Magento\InventorySalesApi\Api\Data\SalesChannelInterface;
@@ -74,6 +75,12 @@ public function beforeAssignStatusToProduct(
         $status = null
     ): array {
         if ($product->getTypeId() === Configurable::TYPE_CODE) {
+            $salable = (int)$product->getStatus() === Status::STATUS_ENABLED
+                && $product->getQuantityAndStockStatus()['is_in_stock'];
+            if (!$salable) {
+                return [$product, (int)$salable];
+            }
+
             $website = $this->storeManager->getWebsite();
             $stock = $this->stockResolver->execute(SalesChannelInterface::TYPE_WEBSITE, $website->getCode());
             $options = $this->configurable->getConfigurableOptions($product);
diff --git a/InventoryConfigurableProductIndexer/Indexer/SelectBuilder.php b/InventoryConfigurableProductIndexer/Indexer/SelectBuilder.php
index 481056b5eb18..c9fdcc77da0d 100644
--- a/InventoryConfigurableProductIndexer/Indexer/SelectBuilder.php
+++ b/InventoryConfigurableProductIndexer/Indexer/SelectBuilder.php
@@ -8,6 +8,8 @@
 namespace Magento\InventoryConfigurableProductIndexer\Indexer;
 
 use Exception;
+use Magento\Framework\App\Config\ScopeConfigInterface;
+use Magento\Framework\App\ObjectManager;
 use Magento\Framework\App\ResourceConnection;
 use Magento\Framework\DB\Select;
 use Magento\InventoryMultiDimensionalIndexerApi\Model\Alias;
@@ -40,22 +42,30 @@ class SelectBuilder
      */
     private $metadataPool;
 
+    /**
+     * @var ScopeConfigInterface|null
+     */
+    private $config;
+
     /**
      * @param ResourceConnection $resourceConnection
      * @param IndexNameBuilder $indexNameBuilder
      * @param IndexNameResolverInterface $indexNameResolver
      * @param MetadataPool $metadataPool
+     * @param ScopeConfigInterface|null $config
      */
     public function __construct(
         ResourceConnection $resourceConnection,
         IndexNameBuilder $indexNameBuilder,
         IndexNameResolverInterface $indexNameResolver,
-        MetadataPool $metadataPool
+        MetadataPool $metadataPool,
+        ScopeConfigInterface $config = null
     ) {
         $this->resourceConnection = $resourceConnection;
         $this->indexNameBuilder = $indexNameBuilder;
         $this->indexNameResolver = $indexNameResolver;
         $this->metadataPool = $metadataPool;
+        $this->config = $config ?: ObjectManager::getInstance()->get(ScopeConfigInterface::class);
     }
 
     /**
@@ -79,14 +89,19 @@ public function execute(int $stockId): Select
 
         $metadata = $this->metadataPool->getMetadata(ProductInterface::class);
         $linkField = $metadata->getLinkField();
-
+        $manageStock = (int)$this->config->getValue('cataloginventory/item_options/manage_stock');
+        $isSalableExpr = $manageStock
+            ? 'IF(MAX(parent_stock.manage_stock = 0), MAX(stock.is_salable), IF(MAX(parent_stock.is_in_stock) = 1, '
+            . 'MAX(stock.is_salable), 0))'
+            : 'IF(MAX(parent_stock.use_config_manage_stock) = 0, IF(MAX(parent_stock.manage_stock) = 1 AND '
+            . 'MAX(parent_stock.is_in_stock = 0), 0, MAX(stock.is_salable)), MAX(stock.is_salable))';
         $select = $connection->select()
             ->from(
                 ['stock' => $indexTableName],
                 [
                     IndexStructure::SKU => 'parent_product_entity.sku',
                     IndexStructure::QUANTITY => 'SUM(stock.quantity)',
-                    IndexStructure::IS_SALABLE => 'MAX(stock.is_salable)',
+                    IndexStructure::IS_SALABLE => $isSalableExpr,
                 ]
             )->joinInner(
                 ['product_entity' => $this->resourceConnection->getTableName('catalog_product_entity')],
@@ -100,6 +115,10 @@ public function execute(int $stockId): Select
                 ['parent_product_entity' => $this->resourceConnection->getTableName('catalog_product_entity')],
                 'parent_product_entity.' . $linkField . ' = parent_link.parent_id',
                 []
+            )->joinInner(
+                ['parent_stock' => $this->resourceConnection->getTableName('cataloginventory_stock_item')],
+                'parent_product_entity.entity_id = parent_stock.product_id',
+                []
             )
             ->group(['parent_product_entity.sku']);
 
diff --git a/InventoryGroupedProductAdminUi/Plugin/Catalog/Model/Product/Link/ProcessSourceItemsAfterSaveAssociatedLinks.php b/InventoryGroupedProductAdminUi/Plugin/Catalog/Model/Product/ProcessSourceItemsPlugin.php
similarity index 76%
rename from InventoryGroupedProductAdminUi/Plugin/Catalog/Model/Product/Link/ProcessSourceItemsAfterSaveAssociatedLinks.php
rename to InventoryGroupedProductAdminUi/Plugin/Catalog/Model/Product/ProcessSourceItemsPlugin.php
index 24ac54936804..de903734816c 100644
--- a/InventoryGroupedProductAdminUi/Plugin/Catalog/Model/Product/Link/ProcessSourceItemsAfterSaveAssociatedLinks.php
+++ b/InventoryGroupedProductAdminUi/Plugin/Catalog/Model/Product/ProcessSourceItemsPlugin.php
@@ -5,19 +5,18 @@
  */
 declare(strict_types=1);
 
-namespace Magento\InventoryGroupedProductAdminUi\Plugin\Catalog\Model\Product\Link;
+namespace Magento\InventoryGroupedProductAdminUi\Plugin\Catalog\Model\Product;
 
-use Magento\Catalog\Api\Data\ProductInterface;
-use Magento\Catalog\Model\Product\Link;
+use Magento\Catalog\Model\Product;
 use Magento\GroupedProduct\Model\Product\Type\Grouped as GroupedProductType;
 use Magento\InventoryApi\Api\Data\SourceItemInterface;
 use Magento\InventoryApi\Api\GetSourceItemsBySkuInterface;
 use Magento\InventoryCatalogAdminUi\Observer\SourceItemsProcessor;
 
 /**
- * After save source links process child source items for reindex grouped product inventory.
+ * After save grouped product process child source items for reindex grouped product inventory.
  */
-class ProcessSourceItemsAfterSaveAssociatedLinks
+class ProcessSourceItemsPlugin
 {
     /**
      * @var GetSourceItemsBySkuInterface
@@ -42,22 +41,22 @@ public function __construct(
     }
 
     /**
-     * @param Link $subject
-     * @param Link $result
-     * @param ProductInterface $product
-     * @return Link
+     * Process source items after grouped product has been saved.
+     *
+     * @param Product $subject
+     * @param Product $result
+     * @return Product
      * @SuppressWarnings(PHPMD.UnusedFormalParameter)
      */
-    public function afterSaveProductRelations(
-        Link $subject,
-        Link $result,
-        ProductInterface $product
-    ): Link {
-        if ($product->getTypeId() !== GroupedProductType::TYPE_CODE) {
+    public function afterAfterSave(
+        Product $subject,
+        Product $result
+    ): Product {
+        if ($result->getTypeId() !== GroupedProductType::TYPE_CODE) {
             return $result;
         }
 
-        foreach ($product->getProductLinks() as $productLink) {
+        foreach ($result->getProductLinks() as $productLink) {
             if ($productLink->getLinkType() === 'associated') {
                 $this->processSourceItemsForSku($productLink->getLinkedProductSku());
             }
@@ -80,7 +79,7 @@ private function processSourceItemsForSku(string $sku): void
             $processData[] = [
                 SourceItemInterface::SOURCE_CODE => $sourceItem->getSourceCode(),
                 SourceItemInterface::QUANTITY => $sourceItem->getQuantity(),
-                SourceItemInterface::STATUS => $sourceItem->getStatus()
+                SourceItemInterface::STATUS => $sourceItem->getStatus(),
             ];
         }
 
diff --git a/InventoryGroupedProductAdminUi/etc/di.xml b/InventoryGroupedProductAdminUi/etc/di.xml
index 47d6c6e308f2..8c79c708d678 100644
--- a/InventoryGroupedProductAdminUi/etc/di.xml
+++ b/InventoryGroupedProductAdminUi/etc/di.xml
@@ -6,7 +6,7 @@
  */
 -->
 <config xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="urn:magento:framework:ObjectManager/etc/config.xsd">
-    <type name="Magento\Catalog\Model\Product\Link">
-        <plugin name="process_source_items_after_save_links" type="Magento\InventoryGroupedProductAdminUi\Plugin\Catalog\Model\Product\Link\ProcessSourceItemsAfterSaveAssociatedLinks"/>
+    <type name="Magento\Catalog\Model\Product">
+        <plugin name="process_source_items_after_save" type="Magento\InventoryGroupedProductAdminUi\Plugin\Catalog\Model\Product\ProcessSourceItemsPlugin"/>
     </type>
 </config>
diff --git a/InventoryGroupedProductIndexer/Indexer/SelectBuilder.php b/InventoryGroupedProductIndexer/Indexer/SelectBuilder.php
index 262e4951b661..412654c93f1e 100644
--- a/InventoryGroupedProductIndexer/Indexer/SelectBuilder.php
+++ b/InventoryGroupedProductIndexer/Indexer/SelectBuilder.php
@@ -9,6 +9,8 @@
 
 use Exception;
 use Magento\Catalog\Api\Data\ProductInterface;
+use Magento\Framework\App\Config\ScopeConfigInterface;
+use Magento\Framework\App\ObjectManager;
 use Magento\Framework\App\ResourceConnection;
 use Magento\Framework\DB\Select;
 use Magento\Framework\EntityManager\MetadataPool;
@@ -41,22 +43,30 @@ class SelectBuilder
      */
     private $metadataPool;
 
+    /**
+     * @var ScopeConfigInterface|null
+     */
+    private $config;
+
     /**
      * @param ResourceConnection $resourceConnection
      * @param IndexNameBuilder $indexNameBuilder
      * @param IndexNameResolverInterface $indexNameResolver
      * @param MetadataPool $metadataPool
+     * @param ScopeConfigInterface|null $config
      */
     public function __construct(
         ResourceConnection $resourceConnection,
         IndexNameBuilder $indexNameBuilder,
         IndexNameResolverInterface $indexNameResolver,
-        MetadataPool $metadataPool
+        MetadataPool $metadataPool,
+        ScopeConfigInterface $config = null
     ) {
         $this->resourceConnection = $resourceConnection;
         $this->indexNameBuilder = $indexNameBuilder;
         $this->indexNameResolver = $indexNameResolver;
         $this->metadataPool = $metadataPool;
+        $this->config = $config ?: ObjectManager::getInstance()->get(ScopeConfigInterface::class);
     }
 
     /**
@@ -80,14 +90,19 @@ public function execute(int $stockId): Select
 
         $metadata = $this->metadataPool->getMetadata(ProductInterface::class);
         $linkField = $metadata->getLinkField();
-
+        $manageStock = (int)$this->config->getValue('cataloginventory/item_options/manage_stock');
+        $isSalableExpr = $manageStock
+            ? 'IF(MAX(parent_stock.manage_stock = 0), MAX(stock.is_salable), IF(MAX(parent_stock.is_in_stock) = 1, '
+            . 'MAX(stock.is_salable), 0))'
+            : 'IF(MAX(parent_stock.use_config_manage_stock) = 0, IF(MAX(parent_stock.manage_stock) = 1 AND '
+            . 'MAX(parent_stock.is_in_stock = 0), 0, MAX(stock.is_salable)), MAX(stock.is_salable))';
         $select = $connection->select()
             ->from(
                 ['stock' => $indexTableName],
                 [
                     IndexStructure::SKU => 'parent_product_entity.sku',
                     IndexStructure::QUANTITY => 'SUM(stock.quantity)',
-                    IndexStructure::IS_SALABLE => 'MAX(stock.is_salable)',
+                    IndexStructure::IS_SALABLE => $isSalableExpr,
                 ]
             )->joinInner(
                 ['product_entity' => $this->resourceConnection->getTableName('catalog_product_entity')],
@@ -95,13 +110,17 @@ public function execute(int $stockId): Select
                 []
             )->joinInner(
                 ['parent_link' => $this->resourceConnection->getTableName('catalog_product_link')],
-                'parent_link.linked_product_id = product_entity.entity_id 
+                'parent_link.linked_product_id = product_entity.entity_id
                 AND parent_link.link_type_id = ' . Link::LINK_TYPE_GROUPED,
                 []
             )->joinInner(
                 ['parent_product_entity' => $this->resourceConnection->getTableName('catalog_product_entity')],
                 'parent_product_entity.' . $linkField . ' = parent_link.product_id',
                 []
+            )->joinInner(
+                ['parent_stock' => $this->resourceConnection->getTableName('cataloginventory_stock_item')],
+                'parent_product_entity.entity_id = parent_stock.product_id',
+                []
             )
             ->group(['parent_product_entity.sku']);