diff --git a/pennylane/transforms/optimization/cancel_inverses.py b/pennylane/transforms/optimization/cancel_inverses.py
index 7a6e35e7c8e..be3550dae79 100644
--- a/pennylane/transforms/optimization/cancel_inverses.py
+++ b/pennylane/transforms/optimization/cancel_inverses.py
@@ -13,7 +13,9 @@
 # limitations under the License.
 """Transform for cancelling adjacent inverse gates in quantum circuits."""
 # pylint: disable=too-many-branches
+from functools import partial
 
+import pennylane as qml
 from pennylane.ops.op_math import Adjoint
 from pennylane.ops.qubit.attributes import (
     self_inverses,
@@ -63,7 +65,69 @@ def _are_inverses(op1, op2):
     return False
 
 
-@transform
+def _cancel_inverses_plxpr_transform(
+    primitive, tracers, params, targs, tkwargs, state
+):  # pylint: disable=unused-argument,too-many-arguments,too-many-positional-arguments
+    """Implementation for applying ``cancel_inverses`` to PLxPR."""
+    # pylint: disable=import-outside-toplevel
+    from pennylane.capture import TransformTracer
+
+    previous_ops = state[0].get("previous_ops", {})
+
+    with qml.QueuingManager.stop_recording():
+        tracers_in = [t.val if isinstance(t.val, qml.operation.Operator) else t for t in tracers]
+        cur_op = primitive.impl(*tracers_in, **params)
+
+    # if isinstance(cur_op, qml.measurements.MeasurementProcess):
+    #     tracers = [TransformTracer(t._trace, t.val, t.idx + 1) for t in tracers]
+    #     return primitive.bind(*tracers, **params)
+
+    prev_op = previous_ops.pop(cur_op.wires[0], None)
+    if prev_op is None:
+        # No operator to compare against, so we save the current op and don't bind anything
+        for w in cur_op.wires:
+            previous_ops[w] = cur_op
+        state[0]["cancel_inverses_previous_ops"] = previous_ops
+        return []
+
+    cancel = False
+    if _are_inverses(cur_op, prev_op):
+        if cur_op.wires == prev_op.wires:
+            # Inverse ops, same wires. Cancel
+            cancel = True
+        if cur_op in symmetric_over_all_wires and len(
+            Wires.shared_wires([cur_op.wires, prev_op.wires])
+        ) == len(cur_op.wires):
+            # Symmetric ops, full overlap in wires. Cancel
+            cancel = True
+        if cur_op in symmetric_over_control_wires and (
+            len(Wires.shared_wires([cur_op.wires[:-1], prev_op.wires[:-1]]))
+            == len(cur_op.wires) - 1
+        ):
+            # Is controlled op that is symmetric over control wires, and control
+            # wires have full overlap with prvious op's control wires
+            return
+
+    if cancel:
+        # Update dictionary and don't bind any new primitives
+        for w in prev_op.wires:
+            previous_ops.pop(w)
+        state["cancel_inverses_previous_ops"] = previous_ops
+        return None
+
+    # Can't cancel. Add current op to dictionary and
+    for w in prev_op.wires:
+        previous_ops.pop(w)
+    for w in cur_op.wires:
+        previous_ops[w] = cur_op
+
+    # pylint: disable=protected-access
+    tracers = [TransformTracer(t._trace, t.val, t.idx + 1) for t in tracers]
+    # FIXME: This needs to bind the previous primitive, not the current one
+    return primitive.bind(*tracers, **params)
+
+
+@partial(transform, plxpr_transform=_cancel_inverses_plxpr_transform)
 def cancel_inverses(tape: QuantumScript) -> tuple[QuantumScriptBatch, PostprocessingFn]:
     """Quantum function transform to remove any operations that are applied next to their
     (self-)inverses or adjoint.