diff --git a/packages/admin/dashboard/src/routes/locations/location-detail/components/location-general-section/location-general-section.tsx b/packages/admin/dashboard/src/routes/locations/location-detail/components/location-general-section/location-general-section.tsx
index 8ce5d7d13f7e3..a138571b243a2 100644
--- a/packages/admin/dashboard/src/routes/locations/location-detail/components/location-general-section/location-general-section.tsx
+++ b/packages/admin/dashboard/src/routes/locations/location-detail/components/location-general-section/location-general-section.tsx
@@ -47,7 +47,10 @@ import {
   isOptionEnabledInStore,
   isReturnOption,
 } from "../../../../../lib/shipping-options"
-import { FulfillmentSetType } from "../../../common/constants"
+import {
+  FulfillmentSetType,
+  ShippingOptionPriceType,
+} from "../../../common/constants"
 
 type LocationGeneralSectionProps = {
   location: HttpTypes.AdminStockLocation
@@ -167,6 +170,8 @@ function ShippingOption({
               {
                 label: t("stockLocations.shippingOptions.pricing.action"),
                 icon: <CurrencyDollar />,
+                disabled:
+                  option.price_type === ShippingOptionPriceType.Calculated,
                 to: `/settings/locations/${locationId}/fulfillment-set/${fulfillmentSetId}/service-zone/${option.service_zone_id}/shipping-option/${option.id}/pricing`,
               },
             ],
diff --git a/packages/core/core-flows/src/fulfillment/steps/set-shipping-options-prices.ts b/packages/core/core-flows/src/fulfillment/steps/set-shipping-options-prices.ts
index 9aad02092577f..f58b3babba0f9 100644
--- a/packages/core/core-flows/src/fulfillment/steps/set-shipping-options-prices.ts
+++ b/packages/core/core-flows/src/fulfillment/steps/set-shipping-options-prices.ts
@@ -25,7 +25,7 @@ interface PriceRegionId {
 
 export type SetShippingOptionsPricesStepInput = {
   id: string
-  prices?: FulfillmentWorkflow.UpdateShippingOptionsWorkflowInput["prices"]
+  prices?: FulfillmentWorkflow.UpdateShippingOptionPriceRecord[]
 }[]
 
 async function getCurrentShippingOptionPrices(
diff --git a/packages/core/core-flows/src/fulfillment/steps/validate-shipping-option-prices.ts b/packages/core/core-flows/src/fulfillment/steps/validate-shipping-option-prices.ts
index ab07f9280693c..e6dc50d55d126 100644
--- a/packages/core/core-flows/src/fulfillment/steps/validate-shipping-option-prices.ts
+++ b/packages/core/core-flows/src/fulfillment/steps/validate-shipping-option-prices.ts
@@ -1,26 +1,85 @@
 import { FulfillmentWorkflow } from "@medusajs/framework/types"
-import { MedusaError, Modules } from "@medusajs/framework/utils"
+import {
+  MedusaError,
+  Modules,
+  ShippingOptionPriceType,
+} from "@medusajs/framework/utils"
 import { StepResponse, createStep } from "@medusajs/framework/workflows-sdk"
 
+type OptionsInput = (
+  | FulfillmentWorkflow.CreateShippingOptionsWorkflowInput
+  | FulfillmentWorkflow.UpdateShippingOptionsWorkflowInput
+)[]
+
 export const validateShippingOptionPricesStepId =
   "validate-shipping-option-prices"
 
 /**
- * Validate that regions exist for the shipping option prices.
+ * Validate that shipping options can be crated based on provided price configuration.
+ *
+ * For flat rate prices, it validates that regions exist for the shipping option prices.
+ * For calculated prices, it validates with the fulfillment provider if the price can be calculated.
  */
 export const validateShippingOptionPricesStep = createStep(
   validateShippingOptionPricesStepId,
-  async (
-    options: {
-      prices?: FulfillmentWorkflow.UpdateShippingOptionsWorkflowInput["prices"]
-    }[],
-    { container }
-  ) => {
-    const allPrices = options.flatMap((option) => option.prices ?? [])
+  async (options: OptionsInput, { container }) => {
+    const fulfillmentModuleService = container.resolve(Modules.FULFILLMENT)
+
+    const optionIds = options.map(
+      (option) =>
+        (option as FulfillmentWorkflow.UpdateShippingOptionsWorkflowInput).id
+    )
+
+    if (optionIds.length) {
+      /**
+       * This means we are validating an update of shipping options.
+       * We need to ensure that all shipping options have price_type set
+       * to correctly determine price updates.
+       *
+       * (On create, price_type must be defined already.)
+       */
+      const shippingOptions =
+        await fulfillmentModuleService.listShippingOptions(
+          {
+            id: optionIds,
+          },
+          { select: ["id", "price_type", "provider_id"] }
+        )
+
+      const optionsMap = new Map(
+        shippingOptions.map((option) => [option.id, option])
+      )
+
+      ;(
+        options as FulfillmentWorkflow.UpdateShippingOptionsWorkflowInput[]
+      ).forEach((option) => {
+        option.price_type =
+          option.price_type ?? optionsMap.get(option.id)?.price_type
+        option.provider_id =
+          option.provider_id ?? optionsMap.get(option.id)?.provider_id
+      })
+    }
+
+    const flatRatePrices: FulfillmentWorkflow.UpdateShippingOptionPriceRecord[] =
+      []
+    const calculatedOptions: OptionsInput = []
+
+    options.forEach((option) => {
+      if (option.price_type === ShippingOptionPriceType.FLAT) {
+        flatRatePrices.push(...(option.prices ?? []))
+      }
+      if (option.price_type === ShippingOptionPriceType.CALCULATED) {
+        calculatedOptions.push(option)
+      }
+    })
+
+    await fulfillmentModuleService.validateShippingOptionsForPriceCalculation(
+      calculatedOptions as FulfillmentWorkflow.CreateShippingOptionsWorkflowInput[]
+    )
 
     const regionIdSet = new Set<string>()
 
-    allPrices.forEach((price) => {
+    flatRatePrices.forEach((price) => {
       if ("region_id" in price && price.region_id) {
         regionIdSet.add(price.region_id)
       }
diff --git a/packages/core/core-flows/src/fulfillment/workflows/create-shipping-options.ts b/packages/core/core-flows/src/fulfillment/workflows/create-shipping-options.ts
index dda9dbef0d213..e8a6de0caa38e 100644
--- a/packages/core/core-flows/src/fulfillment/workflows/create-shipping-options.ts
+++ b/packages/core/core-flows/src/fulfillment/workflows/create-shipping-options.ts
@@ -33,7 +33,13 @@ export const createShippingOptionsWorkflow = createWorkflow(
 
     const data = transform(input, (data) => {
       const shippingOptionsIndexToPrices = data.map((option, index) => {
-        const prices = option.prices
+        /**
+         * Flat rate ShippingOptions always needs to provide a price array.
+         *
+         * For calculated pricing we create an "empty" price set
+         * so we can have simpler update flow for both cases and allow updating price_type.
+         */
+        const prices = (option as any).prices ?? []
         return {
           shipping_option_index: index,
           prices,
diff --git a/packages/core/core-flows/src/fulfillment/workflows/update-shipping-options.ts b/packages/core/core-flows/src/fulfillment/workflows/update-shipping-options.ts
index 0c2a624b0645e..9f85d9eec93b9 100644
--- a/packages/core/core-flows/src/fulfillment/workflows/update-shipping-options.ts
+++ b/packages/core/core-flows/src/fulfillment/workflows/update-shipping-options.ts
@@ -12,6 +12,7 @@ import {
 } from "../steps"
 import { validateFulfillmentProvidersStep } from "../steps/validate-fulfillment-providers"
 import { validateShippingOptionPricesStep } from "../steps/validate-shipping-option-prices"
+import { ShippingOptionPriceType } from "@medusajs/framework/utils"
 
 export const updateShippingOptionsWorkflowId =
   "update-shipping-options-workflow"
@@ -32,11 +33,22 @@ export const updateShippingOptionsWorkflow = createWorkflow(
 
     const data = transform(input, (data) => {
       const shippingOptionsIndexToPrices = data.map((option, index) => {
-        const prices = option.prices
-        delete option.prices
+        const prices = (
+          option as FulfillmentWorkflow.UpdateFlatRateShippingOptionInput
+        ).prices
+
+        delete (option as FulfillmentWorkflow.UpdateFlatRateShippingOptionInput)
+          .prices
+
+        /**
+         * When we are updating an option to be calculated, remove the prices.
+         */
+        const isCalculatedOption =
+          option.price_type === ShippingOptionPriceType.CALCULATED
+
         return {
           shipping_option_index: index,
-          prices,
+          prices: isCalculatedOption ? [] : prices,
         }
       })
 
@@ -58,8 +70,10 @@ export const updateShippingOptionsWorkflow = createWorkflow(
       (data) => {
         const shippingOptionsPrices = data.shippingOptionsIndexToPrices.map(
           ({ shipping_option_index, prices }) => {
+            const option = data.shippingOptions[shipping_option_index]
+
             return {
-              id: data.shippingOptions[shipping_option_index].id,
+              id: option.id,
               prices,
             }
           }
diff --git a/packages/core/types/src/fulfillment/provider.ts b/packages/core/types/src/fulfillment/provider.ts
index 613a496c9f256..6729bc490aece 100644
--- a/packages/core/types/src/fulfillment/provider.ts
+++ b/packages/core/types/src/fulfillment/provider.ts
@@ -12,6 +12,11 @@ export type FulfillmentOption = {
   [k: string]: unknown
 }
 
+export type CalculatedShippingOptionPrice = {
+  calculated_amount: number
+  is_calculated_price_tax_inclusive: boolean
+}
+
 export interface IFulfillmentProvider {
   /**
    *
@@ -41,7 +46,7 @@ export interface IFulfillmentProvider {
    *
    * Check if the provider can calculate the fulfillment price.
    */
-  canCalculate(data: Record<string, unknown>): Promise<any>
+  canCalculate(data: Record<string, unknown>): Promise<boolean>
   /**
    *
    * Calculate the price for the given fulfillment option.
@@ -50,7 +55,7 @@ export interface IFulfillmentProvider {
     optionData: Record<string, unknown>,
     data: Record<string, unknown>,
     context: Record<string, unknown>
-  ): Promise<any>
+  ): Promise<CalculatedShippingOptionPrice>
   /**
    *
    * Create a fulfillment for the given data.
diff --git a/packages/core/types/src/fulfillment/service.ts b/packages/core/types/src/fulfillment/service.ts
index a0642822ebdab..46017e7b34a85 100644
--- a/packages/core/types/src/fulfillment/service.ts
+++ b/packages/core/types/src/fulfillment/service.ts
@@ -2625,6 +2625,28 @@ export interface IFulfillmentModuleService extends IModuleService {
     context: Record<string, unknown>
   ): Promise<boolean>
 
+  /**
+   * This method checks whether a shipping option can have calculated price.
+   *
+   * @param {FulfillmentTypes.CreateShippingOptionDTO[]} shippingOptionsData - The shipping options data to check.
+   * @returns {Promise<boolean[]>} Whether the shipping options can have calculated price.
+   *
+   * @example
+   * const isValid =
+   *   await fulfillmentModuleService.validateShippingOptionsForPriceCalculation(
+   *     [
+   *       {
+   *         provider_id: "webshipper",
+   *         price_type: "calculated",
+   *       },
+   *     ]
+   *   )
+   */
+  validateShippingOptionsForPriceCalculation(
+    shippingOptionsData: CreateShippingOptionDTO[],
+    sharedContext?: Context
+  ): Promise<boolean[]>
+
   /**
    * This method retrieves a paginated list of fulfillment providers based on optional filters and configuration.
    *
diff --git a/packages/core/types/src/workflow/fulfillment/create-shipping-options.ts b/packages/core/types/src/workflow/fulfillment/create-shipping-options.ts
index bb207b8649afd..15a7563f2854c 100644
--- a/packages/core/types/src/workflow/fulfillment/create-shipping-options.ts
+++ b/packages/core/types/src/workflow/fulfillment/create-shipping-options.ts
@@ -1,28 +1,27 @@
-import { ShippingOptionDTO, ShippingOptionPriceType } from "../../fulfillment"
+import { ShippingOptionDTO } from "../../fulfillment"
 import { RuleOperatorType } from "../../common"
 
-export interface CreateShippingOptionsWorkflowInput {
+type CreateFlatRateShippingOptionPriceRecord =
+  | {
+      currency_code: string
+      amount: number
+    }
+  | {
+      region_id: string
+      amount: number
+    }
+
+type CreateFlatShippingOptionInputBase = {
   name: string
   service_zone_id: string
   shipping_profile_id: string
   data?: Record<string, unknown>
-  price_type: ShippingOptionPriceType
   provider_id: string
   type: {
     label: string
     description: string
     code: string
   }
-  prices: (
-    | {
-        currency_code: string
-        amount: number
-      }
-    | {
-        region_id: string
-        amount: number
-      }
-  )[]
   rules?: {
     attribute: string
     operator: RuleOperatorType
@@ -30,4 +29,17 @@ export interface CreateShippingOptionsWorkflowInput {
   }[]
 }
 
+type CreateFlatRateShippingOptionInput = CreateFlatShippingOptionInputBase & {
+  price_type: "flat"
+  prices: CreateFlatRateShippingOptionPriceRecord[]
+}
+
+type CreateCalculatedShippingOptionInput = CreateFlatShippingOptionInputBase & {
+  price_type: "calculated"
+}
+
+export type CreateShippingOptionsWorkflowInput =
+  | CreateFlatRateShippingOptionInput
+  | CreateCalculatedShippingOptionInput
+
 export type CreateShippingOptionsWorkflowOutput = ShippingOptionDTO[]
diff --git a/packages/core/types/src/workflow/fulfillment/update-shipping-options.ts b/packages/core/types/src/workflow/fulfillment/update-shipping-options.ts
index 4e1ad086a7e99..573be19684ba0 100644
--- a/packages/core/types/src/workflow/fulfillment/update-shipping-options.ts
+++ b/packages/core/types/src/workflow/fulfillment/update-shipping-options.ts
@@ -1,34 +1,18 @@
 import { RuleOperatorType } from "../../common"
-import { ShippingOptionPriceType } from "../../fulfillment"
 import { PriceRule } from "../../pricing"
 
-export interface UpdateShippingOptionsWorkflowInput {
+type UpdateFlatShippingOptionInputBase = {
   id: string
   name?: string
   service_zone_id?: string
   shipping_profile_id?: string
   data?: Record<string, unknown>
-  price_type?: ShippingOptionPriceType
   provider_id?: string
   type?: {
     label: string
     description: string
     code: string
   }
-  prices?: (
-    | {
-        id?: string
-        currency_code?: string
-        amount?: number
-        rules?: PriceRule[]
-      }
-    | {
-        id?: string
-        region_id?: string
-        amount?: number
-        rules?: PriceRule[]
-      }
-  )[]
   rules?: {
     attribute: string
     operator: RuleOperatorType
@@ -36,6 +20,35 @@ export interface UpdateShippingOptionsWorkflowInput {
   }[]
 }
 
+export type UpdateShippingOptionPriceRecord =
+  | {
+      id?: string
+      currency_code?: string
+      amount?: number
+      rules?: PriceRule[]
+    }
+  | {
+      id?: string
+      region_id?: string
+      amount?: number
+      rules?: PriceRule[]
+    }
+
+export type UpdateCalculatedShippingOptionInput =
+  UpdateFlatShippingOptionInputBase & {
+    price_type?: "calculated"
+  }
+
+export type UpdateFlatRateShippingOptionInput =
+  UpdateFlatShippingOptionInputBase & {
+    price_type?: "flat"
+    prices?: UpdateShippingOptionPriceRecord[]
+  }
+
+export type UpdateShippingOptionsWorkflowInput =
+  | UpdateFlatRateShippingOptionInput
+  | UpdateCalculatedShippingOptionInput
+
 export type UpdateShippingOptionsWorkflowOutput = {
   id: string
 }[]
diff --git a/packages/core/utils/src/fulfillment/provider.ts b/packages/core/utils/src/fulfillment/provider.ts
index 53715f6a05043..781c2cf58dff8 100644
--- a/packages/core/utils/src/fulfillment/provider.ts
+++ b/packages/core/utils/src/fulfillment/provider.ts
@@ -1,4 +1,8 @@
-import { FulfillmentOption, IFulfillmentProvider } from "@medusajs/types"
+import {
+  CalculatedShippingOptionPrice,
+  FulfillmentOption,
+  IFulfillmentProvider,
+} from "@medusajs/types"
 
 /**
  * ### constructor
@@ -221,7 +225,7 @@ export class AbstractFulfillmentProviderService
     optionData: Record<string, unknown>,
     data: Record<string, unknown>,
     context: Record<string, unknown>
-  ): Promise<number> {
+  ): Promise<CalculatedShippingOptionPrice> {
     throw Error("calculatePrice must be overridden by the child class")
   }
 
@@ -345,7 +349,9 @@ export class AbstractFulfillmentProviderService
    *   }
    * }
    */
-  async createReturnFulfillment(fulfillment: Record<string, unknown>): Promise<any> {
+  async createReturnFulfillment(
+    fulfillment: Record<string, unknown>
+  ): Promise<any> {
     throw Error("createReturn must be overridden by the child class")
   }
 
diff --git a/packages/modules/fulfillment/src/services/fulfillment-module-service.ts b/packages/modules/fulfillment/src/services/fulfillment-module-service.ts
index 486ecf19e663b..dd43d15ac299b 100644
--- a/packages/modules/fulfillment/src/services/fulfillment-module-service.ts
+++ b/packages/modules/fulfillment/src/services/fulfillment-module-service.ts
@@ -1970,6 +1970,34 @@ export default class FulfillmentModuleService
     return !!shippingOptions.length
   }
 
+  @InjectManager()
+  async validateShippingOptionsForPriceCalculation(
+    shippingOptionsData: FulfillmentTypes.CreateShippingOptionDTO[],
+    @MedusaContext() sharedContext: Context = {}
+  ): Promise<boolean[]> {
+    const nonCalculatedOptions = shippingOptionsData.filter(
+      (option) => option.price_type !== "calculated"
+    )
+
+    if (nonCalculatedOptions.length) {
+      throw new MedusaError(
+        MedusaError.Types.INVALID_DATA,
+        `Cannot calculate price for non-calculated shipping options: ${nonCalculatedOptions
+          .map((o) => o.name)
+          .join(", ")}`
+      )
+    }
+
+    const promises = shippingOptionsData.map((option) =>
+      this.fulfillmentProviderService_.canCalculate(
+        option.provider_id,
+        option as unknown as Record<string, unknown>
+      )
+    )
+
+    return await promiseAll(promises)
+  }
+
   @InjectTransactionManager()
   // @ts-expect-error
   async deleteShippingProfiles(
diff --git a/packages/modules/fulfillment/src/services/fulfillment-provider.ts b/packages/modules/fulfillment/src/services/fulfillment-provider.ts
index ca926f66d58dd..16876730095d8 100644
--- a/packages/modules/fulfillment/src/services/fulfillment-provider.ts
+++ b/packages/modules/fulfillment/src/services/fulfillment-provider.ts
@@ -100,6 +100,21 @@ export default class FulfillmentProviderService extends ModulesSdkUtils.MedusaIn
     return await provider.validateOption(data)
   }
 
+  async canCalculate(providerId: string, data: Record<string, unknown>) {
+    const provider = this.retrieveProviderRegistration(providerId)
+    return await provider.canCalculate(data)
+  }
+
+  async calculatePrice(
+    providerId: string,
+    optionData: Record<string, unknown>,
+    data: Record<string, unknown>,
+    context: Record<string, unknown>
+  ) {
+    const provider = this.retrieveProviderRegistration(providerId)
+    return await provider.calculatePrice(optionData, data, context)
+  }
+
   async createFulfillment(
     providerId: string,
     data: object,
diff --git a/packages/modules/providers/fulfillment-manual/src/services/manual-fulfillment.ts b/packages/modules/providers/fulfillment-manual/src/services/manual-fulfillment.ts
index 5734782c92169..d560a4e051d80 100644
--- a/packages/modules/providers/fulfillment-manual/src/services/manual-fulfillment.ts
+++ b/packages/modules/providers/fulfillment-manual/src/services/manual-fulfillment.ts
@@ -1,5 +1,8 @@
 import { AbstractFulfillmentProviderService } from "@medusajs/framework/utils"
-import { FulfillmentOption } from "@medusajs/types"
+import {
+  CalculatedShippingOptionPrice,
+  FulfillmentOption,
+} from "@medusajs/types"
 
 // TODO rework type and DTO's
 
@@ -30,6 +33,18 @@ export class ManualFulfillmentService extends AbstractFulfillmentProviderService
     return data
   }
 
+  async calculatePrice(
+    optionData: Record<string, unknown>,
+    data: Record<string, unknown>,
+    context: Record<string, unknown>
+  ): Promise<CalculatedShippingOptionPrice> {
+    throw new Error("Manual fulfillment does not support price calculation")
+  }
+
+  async canCalculate(): Promise<boolean> {
+    return false
+  }
+
   async validateOption(data: Record<string, any>): Promise<boolean> {
     return true
   }