diff --git a/C4/SIP/Sip/MsgType.pm b/C4/SIP/Sip/MsgType.pm
index 6cfabeb9b6..6e1e284976 100644
--- a/C4/SIP/Sip/MsgType.pm
+++ b/C4/SIP/Sip/MsgType.pm
@@ -17,6 +17,7 @@ use C4::SIP::Sip::Checksum qw(verify_cksum);
 use Data::Dumper;
 use CGI qw ( -utf8 );
 use C4::Auth qw(&check_api_auth);
+use C4::Items qw(ModDateLastSeen);
 
 use Koha::Patrons;
 use Koha::Patron::Attributes;
@@ -1232,6 +1233,8 @@ sub handle_item_information {
         # title id is required, but we don't have one
         $resp .= add_field( FID_TITLE_ID, '', $server );
     } else {
+        my $seen = $account->{seen_on_item_information};
+        ModDateLastSeen( $item->itemnumber, $seen eq 'keep_lost' ) if $seen;
 
         # Valid Item ID, send the good stuff
         my $circulation_status = $item->sip_circulation_status;
diff --git a/debian/templates/SIPconfig.xml b/debian/templates/SIPconfig.xml
index 4244d8fbe1..c9a1717794 100644
--- a/debian/templates/SIPconfig.xml
+++ b/debian/templates/SIPconfig.xml
@@ -57,7 +57,8 @@
              overdues_block_checkout="1"
              format_due_date="0"
              inhouse_item_types=""
-             inhouse_patron_categories="">
+             inhouse_patron_categories=""
+             seen_on_item_information="mark_found"> <!-- could be "keep_lost", empty to disable -->
           <screen_msg_regex find="Greetings from Koha." replace="Welcome to your library!" />
           <screen_msg_regex find="Invalid patron barcode." replace="Barcode not found, are you sure this is your library card?" />
       </login>
diff --git a/etc/SIPconfig.xml b/etc/SIPconfig.xml
index 908c87c6d6..d17e2ff94b 100644
--- a/etc/SIPconfig.xml
+++ b/etc/SIPconfig.xml
@@ -77,7 +77,8 @@
              show_outstanding_amount="1"
              format_due_date="0"
              inhouse_item_types=""
-             inhouse_patron_categories="">
+             inhouse_patron_categories=""
+             seen_on_item_information="mark_found"> <!-- could be "keep_lost", empty to disable -->
              <!-- lost_block_checkout sets flag if patron has more than the given current checkouts that are lost ( itemlost > 0 by default ) -->
              <!-- lost_block_checkout_value determines the minimum lost item value to count ( that is, the value in items.itemlost ) -->
           <!-- Refer to syspref SIP2SortBinMapping for full explanation of sort bin mapping -->
diff --git a/t/db_dependent/SIP/Message.t b/t/db_dependent/SIP/Message.t
index 4c6fe1326c..878680c277 100755
--- a/t/db_dependent/SIP/Message.t
+++ b/t/db_dependent/SIP/Message.t
@@ -380,7 +380,7 @@ subtest "Test build_custom_field_string" => sub {
 };
 
 subtest "Test cr_item_field" => sub {
-    plan tests => 3;
+    plan tests => 8;
 
     my $builder = t::lib::TestBuilder->new();
     my $branchcode  = $builder->build({ source => 'Branch' })->{branchcode};
@@ -405,6 +405,7 @@ subtest "Test cr_item_field" => sub {
         restricted => 0,
         homebranch => $branchcode,
         holdingbranch => $branchcode,
+        datelastseen => '1900-01-01',
     });
 
     my $mockILS = $mocks->{ils};
@@ -448,7 +449,24 @@ subtest "Test cr_item_field" => sub {
 
     $server->{account}->{cr_item_field} = 'itype';
 
+    $server->{account}->{seen_on_item_information} = '';
     $msg->handle_item_information( $server );
+    $item_object->get_from_storage;
+    is( $item_object->datelastseen, "1900-01-01", "datelastseen remains unchanged" );
+
+    $item_object->update({ itemlost => 1, datelastseen => '1900-01-01' });
+    $server->{account}->{seen_on_item_information} = 'keep_lost';
+    $msg->handle_item_information( $server );
+    $item_object = Koha::Items->find( $item_object->id );
+    isnt( $item_object->datelastseen, "1900-01-01", "datelastseen updated" );
+    is( $item_object->itemlost, 1, "item remains lost" );
+
+    $item_object->update({ itemlost => 1, datelastseen => '1900-01-01' });
+    $server->{account}->{seen_on_item_information} = 'mark_found';
+    $msg->handle_item_information( $server );
+    $item_object = Koha::Items->find( $item_object->id );
+    isnt( $item_object->datelastseen, "1900-01-01", "datelastseen updated" );
+    is( $item_object->itemlost, 0, "item is no longer lost" );
 
     my $itype = $item_object->itype;
     ok( $response =~ m/CR$itype/, "Found correct CR field in response");