diff --git a/common/djangoapps/entitlements/api/v1/views.py b/common/djangoapps/entitlements/api/v1/views.py
index 8914365c9e..d55bae93b0 100644
--- a/common/djangoapps/entitlements/api/v1/views.py
+++ b/common/djangoapps/entitlements/api/v1/views.py
@@ -57,13 +57,12 @@ def _process_revoke_and_unenroll_entitlement(course_entitlement, is_refund=False
         IntegrityError if there is an issue that should reverse the database changes
     """
     if course_entitlement.expired_at is None:
-        course_entitlement.expired_at = timezone.now()
+        course_entitlement.expire_entitlement()
         log.info(
             'Set expired_at to [%s] for course entitlement [%s]',
             course_entitlement.expired_at,
             course_entitlement.uuid
         )
-        course_entitlement.save()
 
     if course_entitlement.enrollment_course_run is not None:
         course_id = course_entitlement.enrollment_course_run.course_id
diff --git a/common/djangoapps/entitlements/models.py b/common/djangoapps/entitlements/models.py
index a56d3a00f7..f9b532ea40 100644
--- a/common/djangoapps/entitlements/models.py
+++ b/common/djangoapps/entitlements/models.py
@@ -210,8 +210,7 @@ class CourseEntitlement(TimeStampedModel):
         if not self.expired_at:
             if (self.policy.get_days_until_expiration(self) < 0 or
                     (self.enrollment_course_run and not self.is_entitlement_regainable())):
-                self.expired_at = now()
-                self.save()
+                self.expire_entitlement()
 
     def get_days_until_expiration(self):
         """
@@ -269,6 +268,13 @@ class CourseEntitlement(TimeStampedModel):
         self.enrollment_course_run = enrollment
         self.save()
 
+    def expire_entitlement(self):
+        """
+        Expire the entitlement.
+        """
+        self.expired_at = now()
+        self.save()
+
     @classmethod
     def unexpired_entitlements_for_user(cls, user):
         return cls.objects.filter(user=user, expired_at=None).select_related('user')
@@ -412,11 +418,13 @@ class CourseEntitlement(TimeStampedModel):
         """
         course_uuid = get_course_uuid_for_course(course_enrollment.course_id)
         course_entitlement = cls.get_entitlement_if_active(course_enrollment.user, course_uuid)
-        if course_entitlement:
+        if course_entitlement and course_entitlement.enrollment_course_run == course_enrollment:
             course_entitlement.set_enrollment(None)
             if not skip_refund and course_entitlement.is_entitlement_refundable():
                 course_entitlement.refund()
 
+            course_entitlement.expire_entitlement()
+
     def refund(self):
         """
         Initiate refund process for the entitlement.
diff --git a/common/djangoapps/entitlements/tests/test_models.py b/common/djangoapps/entitlements/tests/test_models.py
index e6fefa9028..7b09a535ce 100644
--- a/common/djangoapps/entitlements/tests/test_models.py
+++ b/common/djangoapps/entitlements/tests/test_models.py
@@ -300,3 +300,31 @@ class TestModels(TestCase):
         expired_at_datetime = entitlement.expired_at_datetime
         assert expired_at_datetime
         assert entitlement.expired_at
+
+    @patch("entitlements.models.get_course_uuid_for_course")
+    @patch("entitlements.models.CourseEntitlement.refund")
+    def test_unenroll_entitlement_with_audit_course_enrollment(self, mock_refund, mock_get_course_uuid):
+        """
+        Test that entitlement is not refunded if un-enroll is called on audit course un-enroll.
+        """
+        self.enrollment.mode = CourseMode.AUDIT
+        self.enrollment.user = self.user
+        self.enrollment.save()
+        entitlement = CourseEntitlementFactory.create(user=self.user)
+        mock_get_course_uuid.return_value = entitlement.course_uuid
+        CourseEnrollment.unenroll(self.user, self.course.id)
+
+        assert not mock_refund.called
+        entitlement.refresh_from_db()
+        assert entitlement.expired_at is None
+
+        self.enrollment.mode = CourseMode.VERIFIED
+        self.enrollment.is_active = True
+        self.enrollment.save()
+        entitlement.enrollment_course_run = self.enrollment
+        entitlement.save()
+        CourseEnrollment.unenroll(self.user, self.course.id)
+
+        assert mock_refund.called
+        entitlement.refresh_from_db()
+        assert entitlement.expired_at < now()