The invention relates to a flow activated circulating valve (1). The valve comprises an outer housing (10) comprising radial ports (11) provided axially between an upper portion (1a) of the valve (1) and a lower portion (1b) of the valve (1). An inner sleeve (20) provided inside the outer housing (10), where the inner sleeve (20) is providing an axial bore (21) through the upper portion (1a) of the valve (1) to the radial ports (11). A cylinder compartment (30) is provided between the inner sleeve (20) and the outer housing (10). A piston (40) is arranged for axial and rotational movement in the cylinder compartment (30), where the piston (40) comprises piston ports (41) arranged to provide fluid communication between the axial bore (21) and the radial ports (11) when the piston (40) is in an open position (P0), and where the piston (40) is arranged to prevent fluid communication between the axial bore (21) and the radial ports (11) when the piston (40) is in closed positions (P1, P2, P3). An actuating device (50) is applying an axial pressure on the piston (40). A sleeve opening (22) is providing fluid communication between the axial bore (21) and the cylinder compartment (30). A fluid orifice (24) provided radially inside the inner sleeve (20). A position controlling device (60) for controlling the axial and rotational position of the piston (40) in relation to the outer housing (10).