diff --git a/public/js/admin-reservations.js b/public/js/admin-reservations.js
index b6791f8..6ef0d19 100644
--- a/public/js/admin-reservations.js
+++ b/public/js/admin-reservations.js
@@ -83,7 +83,9 @@ function filterAndDisplayReservations() {
                             <i class="bi bi-x-lg"></i><span class="btn-text"> Reject Return</span>
                         </button>
                     ` : reservation.status === 'APPROVED' ? `
-                        <span class="text-success"><i class="bi bi-check-circle"></i><span class="btn-text"> Currently Borrowed</span></span>
+                        <button class="btn btn-info" onclick="updateReservation('${reservation._id}', 'RETURNED')" title="Mark as Returned">
+                            <i class="bi bi-arrow-return-left"></i><span class="btn-text"> Mark Returned</span>
+                        </button>
                     ` : reservation.status === 'RETURNED' ? `
                         <button class="btn btn-secondary" onclick="archiveReservation('${reservation._id}')" title="Archive Reservation">
                             <i class="bi bi-archive"></i><span class="btn-text"> Archive</span>
diff --git a/routes/reservations.js b/routes/reservations.js
index b5a0346..f2bf75e 100644
--- a/routes/reservations.js
+++ b/routes/reservations.js
@@ -150,7 +150,11 @@ router.patch('/:id', auth, async (req, res) => {
             item.reserved = Math.max(0, item.reserved - (reservation.quantity || 1));
             await item.save();
         } else if (oldStatus === 'RETURN_PENDING' && newStatus === 'RETURNED') {
-            // Admin approved the return
+            // Admin approved the return request
+            item.reserved = Math.max(0, item.reserved - (reservation.quantity || 1));
+            await item.save();
+        } else if (oldStatus === 'APPROVED' && newStatus === 'RETURNED') {
+            // Admin directly marked approved item as returned
             item.reserved = Math.max(0, item.reserved - (reservation.quantity || 1));
             await item.save();
         }