diff --git a/erpnext/support/doctype/issue/test_issue.py b/erpnext/support/doctype/issue/test_issue.py
index 14cec46ad4..7a0a5e506f 100644
--- a/erpnext/support/doctype/issue/test_issue.py
+++ b/erpnext/support/doctype/issue/test_issue.py
@@ -98,6 +98,7 @@ class TestIssue(TestSetUp):
 		issue.save()
 
 		self.assertEqual(issue.on_hold_since, frappe.flags.current_time)
+		self.assertFalse(issue.resolution_by)
 
 		creation = get_datetime("2020-03-04 5:00")
 		frappe.flags.current_time = get_datetime("2020-03-04 5:00")
diff --git a/erpnext/support/doctype/service_level_agreement/service_level_agreement.py b/erpnext/support/doctype/service_level_agreement/service_level_agreement.py
index c94700bdc5..b3348f1e1e 100644
--- a/erpnext/support/doctype/service_level_agreement/service_level_agreement.py
+++ b/erpnext/support/doctype/service_level_agreement/service_level_agreement.py
@@ -476,7 +476,7 @@ def update_response_and_resolution_metrics(doc, apply_sla_for_resolution):
 	priority = get_response_and_resolution_duration(doc)
 	start_date_time = get_datetime(doc.get("service_level_agreement_creation") or doc.creation)
 	set_response_by(doc, start_date_time, priority)
-	if apply_sla_for_resolution:
+	if apply_sla_for_resolution and not doc.get('on_hold_since'): # resolution_by is reset if on hold
 		set_resolution_by(doc, start_date_time, priority)
 
 
@@ -624,9 +624,6 @@ def reset_resolution_metrics(doc):
 	if doc.meta.has_field("user_resolution_time"):
 		doc.user_resolution_time = None
 
-	if doc.meta.has_field("agreement_status"):
-		doc.agreement_status = "First Response Due"
-
 
 # called via hooks on communication update
 def on_communication_update(doc, status):