diff --git a/awx/main/models/inventory.py b/awx/main/models/inventory.py
index 3cd94c3446..00d873e658 100644
--- a/awx/main/models/inventory.py
+++ b/awx/main/models/inventory.py
@@ -1393,6 +1393,8 @@ class InventoryUpdate(UnifiedJob, InventorySourceOptions, JobNotificationMixin):
         res = super(InventoryUpdate, self).cancel(job_explanation=job_explanation)
         if res:
             map(lambda x: x.cancel(job_explanation=self._build_job_explanation()), self.get_dependent_jobs())
+            if self.launch_type != 'scm' and self.source_project_update:
+                self.source_project_update.cancel(job_explanation=job_explanation)
         return res
 
 
diff --git a/awx/main/models/projects.py b/awx/main/models/projects.py
index 05125a8f8e..899141dca2 100644
--- a/awx/main/models/projects.py
+++ b/awx/main/models/projects.py
@@ -501,6 +501,13 @@ class ProjectUpdate(UnifiedJob, ProjectOptions, JobNotificationMixin):
                         update_fields.append('scm_delete_on_next_update')
             parent_instance.save(update_fields=update_fields)
 
+    def cancel(self, job_explanation=None):
+        res = super(ProjectUpdate, self).cancel(job_explanation=job_explanation)
+        if res and self.launch_type != 'sync':
+            for inv_src in self.scm_inventory_updates.filter(status='running'):
+                inv_src.cancel(job_explanation='Source project update `{}` was canceled.'.format(self.name))
+        return res
+
     '''
     JobNotificationMixin
     '''
diff --git a/awx/main/tasks.py b/awx/main/tasks.py
index 08a0b46bdc..14bfade27b 100644
--- a/awx/main/tasks.py
+++ b/awx/main/tasks.py
@@ -1391,6 +1391,15 @@ class RunProjectUpdate(BaseTask):
             except Exception as e:
                 # A failed file update does not block other actions
                 logger.error('Encountered error updating project dependent inventory: {}'.format(e))
+
+            # Stop all dependent inventory updates if project update was canceled
+            project_update.refresh_from_db()
+            if project_update.cancel_flag:
+                break
+            # Don't update inventory scm_revision if update was canceled
+            local_inv_update.refresh_from_db()
+            if local_inv_update.cancel_flag:
+                continue
             inv_src.scm_last_revision = scm_revision
             inv_src.save(update_fields=['scm_last_revision'])
 
diff --git a/awx/main/tests/functional/test_tasks.py b/awx/main/tests/functional/test_tasks.py
index ee80e85a7a..c0441536b1 100644
--- a/awx/main/tests/functional/test_tasks.py
+++ b/awx/main/tests/functional/test_tasks.py
@@ -3,7 +3,7 @@ import mock
 import os
 
 from awx.main.tasks import RunProjectUpdate, RunInventoryUpdate
-from awx.main.models import ProjectUpdate, InventoryUpdate
+from awx.main.models import ProjectUpdate, InventoryUpdate, InventorySource
 
 
 @pytest.fixture
@@ -43,3 +43,32 @@ class TestDependentInventoryUpdate:
             inv_update = InventoryUpdate.objects.first()
             iu_run_mock.assert_called_once_with(inv_update.id)
             assert inv_update.source_project_update_id == proj_update.pk
+
+    def test_dependent_inventory_project_cancel(self, project, inventory):
+        '''
+        Test that dependent inventory updates exhibit good behavior on cancel
+        of the source project update
+        '''
+        task = RunProjectUpdate()
+        proj_update = ProjectUpdate.objects.create(project=project)
+
+        kwargs = dict(
+            source_project=project,
+            source='scm',
+            source_path='inventory_file',
+            update_on_project_update=True,
+            inventory=inventory
+        )
+
+        is1 = InventorySource.objects.create(name="test-scm-inv", **kwargs)
+        is2 = InventorySource.objects.create(name="test-scm-inv2", **kwargs)
+
+        def user_cancels_project(pk):
+            ProjectUpdate.objects.all().update(cancel_flag=True)
+
+        with mock.patch.object(RunInventoryUpdate, 'run') as iu_run_mock:
+            iu_run_mock.side_effect = user_cancels_project
+            task._update_dependent_inventories(proj_update, [is1, is2])
+            # Verify that it bails after 1st update, detecting a cancel
+            assert is2.inventory_updates.count() == 0
+            iu_run_mock.assert_called_once()