diff --git a/apps/web/src/app/billing/organizations/organization-plans.component.html b/apps/web/src/app/billing/organizations/organization-plans.component.html
index 3c8ef2c9337..bc46c147909 100644
--- a/apps/web/src/app/billing/organizations/organization-plans.component.html
+++ b/apps/web/src/app/billing/organizations/organization-plans.component.html
@@ -74,7 +74,10 @@
             </ng-container>
             <ng-template #nonEnterprisePlans>
               <ng-container
-                *ngIf="selectableProduct.product === productTypes.Teams; else fullFeatureList"
+                *ngIf="
+                  selectableProduct.product === productTypes.Teams && teamsStarterPlanIsAvailable;
+                  else fullFeatureList
+                "
               >
                 <ul class="tw-pl-0 tw-list-inside tw-mb-0">
                   <li>{{ "includeAllTeamsStarterFeatures" | i18n }}</li>
diff --git a/apps/web/src/app/billing/organizations/organization-plans.component.ts b/apps/web/src/app/billing/organizations/organization-plans.component.ts
index 41af702ba0f..2228ad9f3ad 100644
--- a/apps/web/src/app/billing/organizations/organization-plans.component.ts
+++ b/apps/web/src/app/billing/organizations/organization-plans.component.ts
@@ -438,6 +438,10 @@ export class OrganizationPlansComponent implements OnInit, OnDestroy {
     return this.selectedSecretsManagerPlan != null;
   }
 
+  get teamsStarterPlanIsAvailable() {
+    return this.selectablePlans.some((plan) => plan.type === PlanType.TeamsStarter);
+  }
+
   changedProduct() {
     const selectedPlan = this.selectablePlans[0];
 
@@ -511,8 +515,13 @@ export class OrganizationPlansComponent implements OnInit, OnDestroy {
     if (!this.formGroup.controls.businessOwned.value || this.selectedPlan.canBeUsedByBusiness) {
       return;
     }
-    this.formGroup.controls.product.setValue(ProductType.TeamsStarter);
-    this.formGroup.controls.plan.setValue(PlanType.TeamsStarter);
+    if (this.teamsStarterPlanIsAvailable) {
+      this.formGroup.controls.product.setValue(ProductType.TeamsStarter);
+      this.formGroup.controls.plan.setValue(PlanType.TeamsStarter);
+    } else {
+      this.formGroup.controls.product.setValue(ProductType.Teams);
+      this.formGroup.controls.plan.setValue(PlanType.TeamsAnnually);
+    }
     this.changedProduct();
   }
 
@@ -763,11 +772,20 @@ export class OrganizationPlansComponent implements OnInit, OnDestroy {
     }
 
     if (this.currentPlan && this.currentPlan.product !== ProductType.Enterprise) {
-      const upgradedPlan = this.passwordManagerPlans.find((plan) =>
-        this.currentPlan.product === ProductType.Free
-          ? plan.type === PlanType.FamiliesAnnually
-          : plan.upgradeSortOrder == this.currentPlan.upgradeSortOrder + 1,
-      );
+      const upgradedPlan = this.passwordManagerPlans.find((plan) => {
+        if (this.currentPlan.product === ProductType.Free) {
+          return plan.type === PlanType.FamiliesAnnually;
+        }
+
+        if (
+          this.currentPlan.product === ProductType.Families &&
+          !this.teamsStarterPlanIsAvailable
+        ) {
+          return plan.type === PlanType.TeamsAnnually;
+        }
+
+        return plan.upgradeSortOrder === this.currentPlan.upgradeSortOrder + 1;
+      });
 
       this.plan = upgradedPlan.type;
       this.product = upgradedPlan.product;