diff --git a/core/src/main/java/kafka/server/share/SharePartition.java b/core/src/main/java/kafka/server/share/SharePartition.java
index 68ced23a5f75c..a07f9a12fbb36 100644
--- a/core/src/main/java/kafka/server/share/SharePartition.java
+++ b/core/src/main/java/kafka/server/share/SharePartition.java
@@ -1202,11 +1202,11 @@ private boolean archiveRecords(long startOffset, long endOffset, NavigableMap<Lo
                         }
                         inFlightBatch.maybeInitializeOffsetStateUpdate();
                     }
-                    isAnyOffsetArchived = isAnyOffsetArchived || archivePerOffsetBatchRecords(inFlightBatch, startOffset, endOffset - 1, initialState);
+                    isAnyOffsetArchived = archivePerOffsetBatchRecords(inFlightBatch, startOffset, endOffset - 1, initialState) || isAnyOffsetArchived;
                     continue;
                 }
                 // The in-flight batch is a full match hence change the state of the complete batch.
-                isAnyBatchArchived = isAnyBatchArchived || archiveCompleteBatch(inFlightBatch, initialState);
+                isAnyBatchArchived = archiveCompleteBatch(inFlightBatch, initialState) || isAnyBatchArchived;
             }
             return isAnyOffsetArchived || isAnyBatchArchived;
         } finally {
diff --git a/core/src/test/java/kafka/server/share/SharePartitionTest.java b/core/src/test/java/kafka/server/share/SharePartitionTest.java
index 30b49e17b1656..ba24f3b259579 100644
--- a/core/src/test/java/kafka/server/share/SharePartitionTest.java
+++ b/core/src/test/java/kafka/server/share/SharePartitionTest.java
@@ -4493,6 +4493,122 @@ public void testLsoMovementForArchivingBatches() {
         assertNotNull(sharePartition.cachedState().get(32L).batchAcquisitionLockTimeoutTask());
     }
 
+    @Test
+    public void testLsoMovementForArchivingAllAvailableBatches() {
+        SharePartition sharePartition = SharePartitionBuilder.builder().withState(SharePartitionState.ACTIVE).build();
+
+        // A client acquires 4 batches, 11 -> 20, 21 -> 30, 31 -> 40, 41 -> 50.
+        fetchAcquiredRecords(sharePartition, memoryRecords(10, 11), 10);
+        fetchAcquiredRecords(sharePartition, memoryRecords(10, 21), 10);
+        fetchAcquiredRecords(sharePartition, memoryRecords(10, 31), 10);
+        fetchAcquiredRecords(sharePartition, memoryRecords(10, 41), 10);
+
+        // After the acknowledgements, the state of share partition will be:
+        // 1. 11 -> 20: AVAILABLE
+        // 2. 21 -> 30: ACQUIRED
+        // 3. 31 -> 40: AVAILABLE
+        // 4. 41 -> 50: ACQUIRED
+        sharePartition.acknowledge(MEMBER_ID, List.of(
+            new ShareAcknowledgementBatch(11, 20, List.of((byte) 2)),
+            new ShareAcknowledgementBatch(31, 40, List.of((byte) 2))
+        ));
+
+        // Move the LSO to 41. When the LSO moves ahead, all batches that are AVAILABLE before the new LSO will be ARCHIVED.
+        // Thus, the state of the share partition will be:
+        // 1. 11 -> 20: ARCHIVED
+        // 2. 21 -> 30: ACQUIRED
+        // 3. 31 -> 40: ARCHIVED
+        // 4. 41 -> 50: ACQUIRED
+        // Note, the records that are in ACQUIRED state will remain in ACQUIRED state and will be transitioned to a Terminal
+        // state when the corresponding acquisition lock timer task expires.
+        sharePartition.updateCacheAndOffsets(41);
+
+        assertEquals(51, sharePartition.nextFetchOffset());
+        assertEquals(41, sharePartition.startOffset());
+        assertEquals(50, sharePartition.endOffset());
+
+        assertEquals(4, sharePartition.cachedState().size());
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(11L).batchState());
+        assertEquals(RecordState.ACQUIRED, sharePartition.cachedState().get(21L).batchState());
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(31L).batchState());
+        assertEquals(RecordState.ACQUIRED, sharePartition.cachedState().get(41L).batchState());
+
+        // The client acknowledges the batch 21 -> 30. Since this batch is before the LSO, nothing will be done and these
+        // records will remain in the ACQUIRED state.
+        sharePartition.acknowledge(MEMBER_ID, List.of(new ShareAcknowledgementBatch(21L, 30L, List.of((byte) 2))));
+
+        // The batch is still in ACQUIRED state.
+        assertEquals(RecordState.ACQUIRED, sharePartition.cachedState().get(21L).batchState());
+
+        // Once the acquisition lock timer task for the batch 21 -> 30 is expired, these records will directly be
+        // ARCHIVED.
+        sharePartition.cachedState().get(21L).batchAcquisitionLockTimeoutTask().run();
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(21L).batchState());
+    }
+
+    @Test
+    public void testLsoMovementForArchivingAllAvailableOffsets() {
+        SharePartition sharePartition = SharePartitionBuilder.builder().withState(SharePartitionState.ACTIVE).build();
+
+        // A client acquires 4 batches, 11 -> 20, 21 -> 30, 31 -> 40, 41 -> 50.
+        fetchAcquiredRecords(sharePartition, memoryRecords(10, 11), 10);
+        fetchAcquiredRecords(sharePartition, memoryRecords(10, 21), 10);
+        fetchAcquiredRecords(sharePartition, memoryRecords(10, 31), 10);
+        fetchAcquiredRecords(sharePartition, memoryRecords(10, 41), 10);
+
+        // After the acknowledgements, the share partition state will be:
+        // 1. 11 -> 20: AVAILABLE
+        // 2. 21 -> 30: ACQUIRED
+        // 3. 31 -> 40: AVAILABLE
+        // 4. 41 -> 50: ACQUIRED
+        sharePartition.acknowledge(MEMBER_ID, List.of(
+            new ShareAcknowledgementBatch(11, 20, List.of((byte) 2)),
+            new ShareAcknowledgementBatch(31, 40, List.of((byte) 2))
+        ));
+
+        // Move the LSO to 36. When the LSO moves ahead, all records that are AVAILABLE before the new LSO will be ARCHIVED.
+        // Thus, the state of the share partition will be:
+        // 1. 11 -> 20: ARCHIVED
+        // 2. 21 -> 30: ACQUIRED
+        // 3. 31 -> 35: ARCHIVED
+        // 3. 36 -> 40: AVAILABLE
+        // 4. 41 -> 50: ACQUIRED
+        // Note, the records that are in ACQUIRED state will remain in ACQUIRED state and will be transitioned to a Terminal
+        // state when the corresponding acquisition lock timer task expires.
+        sharePartition.updateCacheAndOffsets(36);
+
+        assertEquals(36, sharePartition.nextFetchOffset());
+        assertEquals(36, sharePartition.startOffset());
+        assertEquals(50, sharePartition.endOffset());
+
+        assertEquals(4, sharePartition.cachedState().size());
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(11L).batchState());
+        assertEquals(RecordState.ACQUIRED, sharePartition.cachedState().get(21L).batchState());
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(31L).offsetState().get(31L).state());
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(31L).offsetState().get(32L).state());
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(31L).offsetState().get(33L).state());
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(31L).offsetState().get(34L).state());
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(31L).offsetState().get(35L).state());
+        assertEquals(RecordState.AVAILABLE, sharePartition.cachedState().get(31L).offsetState().get(36L).state());
+        assertEquals(RecordState.AVAILABLE, sharePartition.cachedState().get(31L).offsetState().get(37L).state());
+        assertEquals(RecordState.AVAILABLE, sharePartition.cachedState().get(31L).offsetState().get(38L).state());
+        assertEquals(RecordState.AVAILABLE, sharePartition.cachedState().get(31L).offsetState().get(39L).state());
+        assertEquals(RecordState.AVAILABLE, sharePartition.cachedState().get(31L).offsetState().get(40L).state());
+        assertEquals(RecordState.ACQUIRED, sharePartition.cachedState().get(41L).batchState());
+
+        // The client acknowledges the batch 21 -> 30. Since this batch is before the LSO, nothing will be done and these
+        // records will remain in the ACQUIRED state.
+        sharePartition.acknowledge(MEMBER_ID, List.of(new ShareAcknowledgementBatch(21L, 30L, List.of((byte) 2))));
+
+        // The batch is still in ACQUIRED state.
+        assertEquals(RecordState.ACQUIRED, sharePartition.cachedState().get(21L).batchState());
+
+        // Once the acquisition lock timer task for the batch 21 -> 30 is expired, these records will directly be
+        // ARCHIVED.
+        sharePartition.cachedState().get(21L).batchAcquisitionLockTimeoutTask().run();
+        assertEquals(RecordState.ARCHIVED, sharePartition.cachedState().get(21L).batchState());
+    }
+
     @Test
     public void testLsoMovementForArchivingOffsets() {
         SharePartition sharePartition = SharePartitionBuilder.builder().withState(SharePartitionState.ACTIVE).build();