diff --git a/erpnext/setup/utils.py b/erpnext/setup/utils.py
index 506bac3b586cfb9cb4350feb6bd19d084b29c1c3..eabb7e373f17c5bb614264bf9a57229131557465 100644
--- a/erpnext/setup/utils.py
+++ b/erpnext/setup/utils.py
@@ -5,11 +5,15 @@
 import frappe
 from frappe import _
 from frappe.utils import add_days, flt, get_datetime_str, nowdate
-from frappe.utils.data import now_datetime
-from frappe.utils.nestedset import get_ancestors_of, get_root_of
+from frappe.utils.data import getdate, now_datetime
+from frappe.utils.nestedset import get_root_of
 
 from erpnext import get_default_company
 
+PEGGED_CURRENCIES = {
+	"USD": {"AED": 3.6725},  # AED is pegged to USD at a rate of 3.6725 since 1997
+}
+
 
 def before_tests():
 	frappe.clear_cache()
@@ -44,6 +48,14 @@ def before_tests():
 	frappe.db.commit()
 
 
+def get_pegged_rate(from_currency: str, to_currency: str, transaction_date) -> float | None:
+	if rate := PEGGED_CURRENCIES.get(from_currency, {}).get(to_currency):
+		return rate
+	elif rate := PEGGED_CURRENCIES.get(to_currency, {}).get(from_currency):
+		return 1 / rate
+	return None
+
+
 @frappe.whitelist()
 def get_exchange_rate(from_currency, to_currency, transaction_date=None, args=None):
 	if not (from_currency and to_currency):
@@ -54,6 +66,10 @@ def get_exchange_rate(from_currency, to_currency, transaction_date=None, args=No
 
 	if not transaction_date:
 		transaction_date = nowdate()
+
+	if rate := get_pegged_rate(from_currency, to_currency, transaction_date):
+		return rate
+
 	currency_settings = frappe.get_doc("Accounts Settings").as_dict()
 	allow_stale_rates = currency_settings.get("allow_stale")
 
@@ -94,8 +110,8 @@ def get_exchange_rate(from_currency, to_currency, transaction_date=None, args=No
 			settings = frappe.get_cached_doc("Currency Exchange Settings")
 			req_params = {
 				"transaction_date": transaction_date,
-				"from_currency": from_currency,
-				"to_currency": to_currency,
+				"from_currency": from_currency if from_currency != "AED" else "USD",
+				"to_currency": to_currency if to_currency != "AED" else "USD",
 			}
 			params = {}
 			for row in settings.req_params:
@@ -107,6 +123,14 @@ def get_exchange_rate(from_currency, to_currency, transaction_date=None, args=No
 			for res_key in settings.result_key:
 				value = value[format_ces_api(str(res_key.key), req_params)]
 			cache.setex(name=key, time=21600, value=flt(value))
+
+		# Support AED conversion through pegged USD
+		value = flt(value)
+		if to_currency == "AED":
+			value *= 3.6725
+		if from_currency == "AED":
+			value /= 3.6725
+
 		return flt(value)
 	except Exception:
 		frappe.log_error(title=_("Get Exchange Rate"))