diff --git a/packages/frontend/editor-ui/src/components/RunData.test.ts b/packages/frontend/editor-ui/src/components/RunData.test.ts
index b47f1eede9..dc10f24566 100644
--- a/packages/frontend/editor-ui/src/components/RunData.test.ts
+++ b/packages/frontend/editor-ui/src/components/RunData.test.ts
@@ -166,14 +166,14 @@ describe('RunData', () => {
 		expect(queryByTestId('ndv-pin-data')).not.toBeInTheDocument();
 	});
 
-	it('should disable pin data button when data is pinned', async () => {
+	it('should not disable pin data button when data is pinned [ADO-3143]', async () => {
 		const { getByTestId } = render({
 			defaultRunItems: [],
 			displayMode: 'table',
 			pinnedData: [{ json: { name: 'Test' } }],
 		});
 		const pinDataButton = getByTestId('ndv-pin-data');
-		expect(pinDataButton).toBeDisabled();
+		expect(pinDataButton).not.toBeDisabled();
 	});
 
 	it('should render callout when data is pinned in output panel', async () => {
diff --git a/packages/frontend/editor-ui/src/components/RunData.vue b/packages/frontend/editor-ui/src/components/RunData.vue
index 75ea77f386..c0e77ea259 100644
--- a/packages/frontend/editor-ui/src/components/RunData.vue
+++ b/packages/frontend/editor-ui/src/components/RunData.vue
@@ -528,8 +528,7 @@ const showPinButton = computed(() => {
 
 const pinButtonDisabled = computed(
 	() =>
-		pinnedData.hasData.value ||
-		!rawInputData.value.length ||
+		(!rawInputData.value.length && !pinnedData.hasData.value) ||
 		!!binaryData.value?.length ||
 		isReadOnlyRoute.value ||
 		readOnlyEnv.value,
diff --git a/packages/frontend/editor-ui/src/components/RunDataPinButton.test.ts b/packages/frontend/editor-ui/src/components/RunDataPinButton.test.ts
index 1e6b7958c8..56d25bc547 100644
--- a/packages/frontend/editor-ui/src/components/RunDataPinButton.test.ts
+++ b/packages/frontend/editor-ui/src/components/RunDataPinButton.test.ts
@@ -30,7 +30,7 @@ const renderComponent = createComponentRenderer(RunDataPinButton, {
 		},
 		dataPinningDocsUrl: '',
 		pinnedData: {
-			hasData: false,
+			hasData: { value: false },
 		},
 		disabled: false,
 	},
@@ -121,4 +121,30 @@ describe('RunDataPinButton.vue', () => {
 		expect(getByRole('tooltip')).toBeVisible();
 		expect(getByRole('tooltip')).toHaveTextContent('disabled');
 	});
+
+	it('pins data on button click', async () => {
+		const { getByTestId, getByRole, emitted } = renderComponent({});
+		// Should show 'Pin data' tooltip and emit togglePinData event
+		await userEvent.hover(getByTestId('ndv-pin-data'));
+		expect(getByRole('tooltip')).toBeVisible();
+		expect(getByRole('tooltip').textContent).toContain('Pin data');
+		await userEvent.click(getByTestId('ndv-pin-data'));
+		expect(emitted().togglePinData).toBeDefined();
+	});
+
+	it('should show correct tooltip and unpin data on button click', async () => {
+		const { getByTestId, getByRole, emitted } = renderComponent({
+			props: {
+				pinnedData: {
+					hasData: { value: true },
+				},
+			},
+		});
+		// Should show 'Unpin data' tooltip and emit togglePinData event
+		await userEvent.hover(getByTestId('ndv-pin-data'));
+		expect(getByRole('tooltip')).toBeVisible();
+		expect(getByRole('tooltip').textContent).toContain('Unpin data');
+		await userEvent.click(getByTestId('ndv-pin-data'));
+		expect(emitted().togglePinData).toBeDefined();
+	});
 });
diff --git a/packages/frontend/editor-ui/src/components/RunDataPinButton.vue b/packages/frontend/editor-ui/src/components/RunDataPinButton.vue
index 4b79abb6fa..d8a46a475e 100644
--- a/packages/frontend/editor-ui/src/components/RunDataPinButton.vue
+++ b/packages/frontend/editor-ui/src/components/RunDataPinButton.vue
@@ -37,14 +37,19 @@ const visible = computed(() =>
 				{{ locale.baseText('node.discovery.pinData.ndv') }}
 			</div>
 			<div v-else>
-				<strong>{{ locale.baseText('ndv.pinData.pin.title') }}</strong>
-				<N8nText size="small" tag="p">
-					{{ locale.baseText('ndv.pinData.pin.description') }}
+				<div v-if="pinnedData.hasData.value">
+					<strong>{{ locale.baseText('ndv.pinData.unpin.title') }}</strong>
+				</div>
+				<div v-else>
+					<strong>{{ locale.baseText('ndv.pinData.pin.title') }}</strong>
+					<N8nText size="small" tag="p">
+						{{ locale.baseText('ndv.pinData.pin.description') }}
 
-					<N8nLink :to="props.dataPinningDocsUrl" size="small">
-						{{ locale.baseText('ndv.pinData.pin.link') }}
-					</N8nLink>
-				</N8nText>
+						<N8nLink :to="props.dataPinningDocsUrl" size="small">
+							{{ locale.baseText('ndv.pinData.pin.link') }}
+						</N8nLink>
+					</N8nText>
+				</div>
 			</div>
 		</template>
 		<N8nIconButton
diff --git a/packages/frontend/editor-ui/src/plugins/i18n/locales/en.json b/packages/frontend/editor-ui/src/plugins/i18n/locales/en.json
index df7207286f..0bce1a0310 100644
--- a/packages/frontend/editor-ui/src/plugins/i18n/locales/en.json
+++ b/packages/frontend/editor-ui/src/plugins/i18n/locales/en.json
@@ -1042,9 +1042,10 @@
 	"ndv.title.rename": "Rename",
 	"ndv.title.renameNode": "Rename node",
 	"ndv.pinData.pin.title": "Pin data",
-	"ndv.pinData.pin.description": "Node will always output this data instead of executing.",
+	"ndv.pinData.pin.description": "Node will always output current data instead of executing. Doesn't apply to production executions.",
 	"ndv.pinData.pin.binary": "Pin Data is disabled as this node's output contains binary data.",
 	"ndv.pinData.pin.link": "More info",
+	"ndv.pinData.unpin.title": "Unpin data",
 	"ndv.pinData.pin.multipleRuns.title": "Run #{index} was pinned",
 	"ndv.pinData.pin.multipleRuns.description": "This run will be outputted each time the node is run.",
 	"ndv.pinData.unpinAndExecute.title": "Unpin output data?",