diff --git a/hrms/hr/doctype/expense_claim/expense_claim.js b/hrms/hr/doctype/expense_claim/expense_claim.js
index 0f826807bd..32c02611f2 100644
--- a/hrms/hr/doctype/expense_claim/expense_claim.js
+++ b/hrms/hr/doctype/expense_claim/expense_claim.js
@@ -64,6 +64,14 @@ frappe.ui.form.on("Expense Claim", {
 				query: "erpnext.controllers.queries.employee_query",
 			};
 		});
+
+		frm.set_query("department", function () {
+			return {
+				filters: {
+					company: frm.doc.company,
+				},
+			};
+		});
 	},
 
 	onload: function (frm) {
diff --git a/hrms/hr/doctype/expense_claim/expense_claim.py b/hrms/hr/doctype/expense_claim/expense_claim.py
index 04a02ba5d1..0717eed569 100644
--- a/hrms/hr/doctype/expense_claim/expense_claim.py
+++ b/hrms/hr/doctype/expense_claim/expense_claim.py
@@ -29,6 +29,10 @@ class ExpenseApproverIdentityError(frappe.ValidationError):
 	pass
 
 
+class MismatchError(frappe.ValidationError):
+	pass
+
+
 class ExpenseClaim(AccountsController, PWANotificationsMixin):
 	def onload(self):
 		self.get("__onload").make_payment_via_journal_entry = frappe.db.get_single_value(
@@ -47,6 +51,7 @@ def validate(self):
 		self.set_expense_account(validate=True)
 		self.calculate_taxes()
 		self.set_status()
+		self.validate_company_and_department()
 		if self.task and not self.project:
 			self.project = frappe.db.get_value("Task", self.task, "project")
 
@@ -83,6 +88,15 @@ def set_status(self, update=False):
 		else:
 			self.status = status
 
+	def validate_company_and_department(self):
+		if self.department:
+			company = frappe.db.get_value("Department", self.department, "company")
+			if company and self.company != company:
+				frappe.throw(
+					_("Department {0} does not belong to company: {1}").format(self.department, self.company),
+					exc=MismatchError,
+				)
+
 	def on_update(self):
 		share_doc_with_approver(self, self.expense_approver)
 		self.publish_update()
diff --git a/hrms/hr/doctype/expense_claim/test_expense_claim.py b/hrms/hr/doctype/expense_claim/test_expense_claim.py
index 2d74922eae..8c12ad6afa 100644
--- a/hrms/hr/doctype/expense_claim/test_expense_claim.py
+++ b/hrms/hr/doctype/expense_claim/test_expense_claim.py
@@ -10,6 +10,7 @@
 from erpnext.setup.doctype.employee.test_employee import make_employee
 
 from hrms.hr.doctype.expense_claim.expense_claim import (
+	MismatchError,
 	get_outstanding_amount_for_claim,
 	make_bank_entry,
 	make_expense_claim_for_delivery_trip,
@@ -568,6 +569,13 @@ def test_repost(self):
 		)
 		self.assertEqual(ledger_balance, expected_data)
 
+	def test_company_department_validation(self):
+		# validate company and department
+		expense_claim = frappe.new_doc("Expense Claim")
+		expense_claim.company = "_Test Company 3"
+		expense_claim.department = "Accounts - _TC2"
+		self.assertRaises(MismatchError, expense_claim.save)
+
 
 def get_payable_account(company):
 	return frappe.get_cached_value("Company", company, "default_payable_account")