diff --git a/counterparty-core/counterpartycore/pytest/units/messages/cancel_test.py b/counterparty-core/counterpartycore/pytest/units/messages/cancel_test.py
index e8a6267c5..443ccc818 100644
--- a/counterparty-core/counterpartycore/pytest/units/messages/cancel_test.py
+++ b/counterparty-core/counterpartycore/pytest/units/messages/cancel_test.py
@@ -3,8 +3,8 @@
 from counterpartycore.lib.messages import cancel
 
 
-def test_compose(ledger_db, defaults):
-    open_order = ledger_db.execute(
+def get_open_order(ledger_db):
+    return ledger_db.execute(
         """
             SELECT * FROM 
                 (SELECT tx_hash, status, source, MAX(rowid) FROM orders GROUP BY tx_hash) 
@@ -12,6 +12,10 @@ def test_compose(ledger_db, defaults):
         """
     ).fetchone()
 
+
+def test_compose(ledger_db, defaults):
+    open_order = get_open_order(ledger_db)
+
     assert cancel.compose(ledger_db, open_order["source"], open_order["tx_hash"]) == (
         open_order["source"],
         [],
@@ -31,3 +35,35 @@ def test_compose(ledger_db, defaults):
 
     with pytest.raises(exceptions.ComposeError, match="offer not open"):
         cancel.compose(ledger_db, closed_bet["source"], closed_bet["tx_hash"])
+
+
+def test_parse_cancel_order(ledger_db, blockchain_mock, test_helpers, current_block_index):
+    open_order = get_open_order(ledger_db)
+    tx = blockchain_mock.dummy_tx(ledger_db, open_order["source"])
+    message = b"\xe1\xba\xf7\xedl\x87\xc1\x99\xd3\xff\x8e\xb9\x00@\x03\xf0\xf6H\x1a\x1ePV+\x16<P\x08\xa4\xd7]7}"
+
+    cancel.parse(ledger_db, tx, message)
+    test_helpers.check_records(
+        ledger_db,
+        [
+            {
+                "table": "cancels",
+                "values": {
+                    "block_index": tx["block_index"],
+                    "offer_hash": open_order["tx_hash"],
+                    "source": open_order["source"],
+                    "status": "valid",
+                    "tx_hash": tx["tx_hash"],
+                    "tx_index": tx["tx_index"],
+                },
+            },
+            {
+                "table": "orders",
+                "values": {
+                    "status": "cancelled",
+                    "tx_hash": open_order["tx_hash"],
+                    "block_index": current_block_index,
+                },
+            },
+        ],
+    )