diff --git a/apps/edr-freight-api/src/modules/last-mile/last-mile.service.ts b/apps/edr-freight-api/src/modules/last-mile/last-mile.service.ts
index 811ddd36b..ade7402a9 100644
--- a/apps/edr-freight-api/src/modules/last-mile/last-mile.service.ts
+++ b/apps/edr-freight-api/src/modules/last-mile/last-mile.service.ts
@@ -5,6 +5,7 @@ import { BookingsRepository } from '../bookings/bookings.repository';
 import { DriversService } from '../drivers/drivers.service';
 import { SmsClientService } from '../notifications/sms-client.service';
 import { VehiclesService } from '../vehicles/vehicles.service';
+import { VehicleAvailability } from '../vehicles/entities/vehicle.entity';
 import { CreateLastMileDto } from './dto/create-last-mile.dto';
 import { UpdateLastMileDto } from './dto/update-last-mile.dto';
 import { LastMile, LastMileStatus } from './entities/last-mile.entity';
@@ -182,6 +183,7 @@ export class LastMileService {
     });
 
     if (dto.vehicleId) {
+      await this.vehiclesService.setAvailability(dto.vehicleId, VehicleAvailability.BUSY);
       const info = await this.vehicleInfo(dto.vehicleId);
       await this.history.record({
         eventType: FleetEventType.MILE_VEHICLE_ASSIGNED,
@@ -240,6 +242,14 @@ export class LastMileService {
     // Audit the mile↔vehicle (re)assignment on both vehicle and driver lines.
     const bookingRef = await this.resolveBookingRef(existing);
     if (dto.vehicleId !== undefined && dto.vehicleId !== existing.vehicleId) {
+      // Keep vehicle availability in sync: new vehicle goes BUSY, replaced one
+      // is freed if no other active trip still holds it.
+      if (dto.vehicleId) {
+        await this.vehiclesService.setAvailability(dto.vehicleId, VehicleAvailability.BUSY);
+      }
+      if (existing.vehicleId) {
+        await this.vehiclesService.releaseIfUnused([existing.vehicleId]);
+      }
       if (existing.vehicleId) {
         const info = await this.vehicleInfo(existing.vehicleId);
         await this.history.record({
@@ -292,9 +302,32 @@ export class LastMileService {
       });
     }
 
+    // Delivery finished — free the vehicles this trip was holding.
+    if (dto.status === 'DELIVERED' && existing.status !== 'DELIVERED') {
+      await this.releaseVehicles(updated);
+    }
+
     return updated;
   }
 
+  /**
+   * Free every vehicle held by this record (direct assignment + container
+   * allocations), unless still in use by another active trip.
+   */
+  private async releaseVehicles(record: LastMile): Promise<void> {
+    const recordAllocations = await this.dataSource.manager.find(
+      LastMileContainerAllocation,
+      { where: { lastMileId: record.id } },
+    );
+    const vehicleIds = recordAllocations
+      .map((a) => a.vehicleId)
+      .filter((id): id is string => Boolean(id));
+    if (record.vehicleId) {
+      vehicleIds.push(record.vehicleId);
+    }
+    await this.vehiclesService.releaseIfUnused(vehicleIds);
+  }
+
   private async notifyDriverAssignment(vehicleId: string, record: LastMile): Promise<void> {
     try {
       const vehicle = await this.vehiclesService.findById(vehicleId);
@@ -379,9 +412,20 @@ export class LastMileService {
       }
     });
 
+    // Keep vehicle availability in sync: newly-allocated cars go BUSY, cars no
+    // longer on any of these containers are freed if unused elsewhere.
+    const vehicleIds = new Set(allocations.map((a) => a.vehicleId));
+    await Promise.all(
+      [...vehicleIds].map((id) =>
+        this.vehiclesService.setAvailability(id, VehicleAvailability.BUSY),
+      ),
+    );
+    await this.vehiclesService.releaseIfUnused(
+      previousVehicleIds.filter((id) => !vehicleIds.has(id)),
+    );
+
     // History: one event per vehicle actually added or removed by this
     // multi-car (re)allocation, so reassignments show on every timeline.
-    const vehicleIds = new Set(allocations.map((a) => a.vehicleId));
     const prevSet = new Set(previousVehicleIds);
     const bookingRef = await this.resolveBookingRef(lastMile);
     for (const vehicleId of vehicleIds) {