diff --git a/src/Billing/Services/Implementations/SubscriptionUpdatedHandler.cs b/src/Billing/Services/Implementations/SubscriptionUpdatedHandler.cs
index 81aeb460c2..38634172be 100644
--- a/src/Billing/Services/Implementations/SubscriptionUpdatedHandler.cs
+++ b/src/Billing/Services/Implementations/SubscriptionUpdatedHandler.cs
@@ -111,7 +111,7 @@ public class SubscriptionUpdatedHandler : ISubscriptionUpdatedHandler
                         break;
                     }
 
-                    if (subscription.Status is StripeSubscriptionStatus.Unpaid &&
+                    if ((subscription.Status is StripeSubscriptionStatus.Unpaid or StripeSubscriptionStatus.IncompleteExpired) &&
                         subscription.Items.Any(i => i.Price.Id is IStripeEventUtilityService.PremiumPlanId or IStripeEventUtilityService.PremiumPlanIdAppStore))
                     {
                         await CancelSubscription(subscription.Id);
@@ -120,6 +120,20 @@ public class SubscriptionUpdatedHandler : ISubscriptionUpdatedHandler
 
                     await _userService.DisablePremiumAsync(userId.Value, currentPeriodEnd);
 
+                    break;
+                }
+            case StripeSubscriptionStatus.Incomplete when userId.HasValue:
+                {
+                    // Handle Incomplete subscriptions for Premium users that have open invoices from failed payments
+                    // This prevents duplicate subscriptions when users retry the subscription flow
+                    if (subscription.Items.Any(i => i.Price.Id is IStripeEventUtilityService.PremiumPlanId or IStripeEventUtilityService.PremiumPlanIdAppStore) &&
+                        subscription.LatestInvoice is { Status: StripeInvoiceStatus.Open })
+                    {
+                        await CancelSubscription(subscription.Id);
+                        await VoidOpenInvoices(subscription.Id);
+                        await _userService.DisablePremiumAsync(userId.Value, currentPeriodEnd);
+                    }
+
                     break;
                 }
             case StripeSubscriptionStatus.Active when organizationId.HasValue:
diff --git a/test/Billing.Test/Services/SubscriptionUpdatedHandlerTests.cs b/test/Billing.Test/Services/SubscriptionUpdatedHandlerTests.cs
index 83ebd4aaa7..02a10af0a8 100644
--- a/test/Billing.Test/Services/SubscriptionUpdatedHandlerTests.cs
+++ b/test/Billing.Test/Services/SubscriptionUpdatedHandlerTests.cs
@@ -552,6 +552,55 @@ public class SubscriptionUpdatedHandlerTests
                 o.Status == StripeInvoiceStatus.Open && o.Subscription == subscriptionId));
     }
 
+    [Fact]
+    public async Task HandleAsync_IncompleteExpiredUserSubscription_DisablesPremiumAndCancelsSubscription()
+    {
+        // Arrange
+        var userId = Guid.NewGuid();
+        var subscriptionId = "sub_123";
+        var currentPeriodEnd = DateTime.UtcNow.AddDays(30);
+        var subscription = new Subscription
+        {
+            Id = subscriptionId,
+            Status = StripeSubscriptionStatus.IncompleteExpired,
+            Metadata = new Dictionary<string, string> { { "userId", userId.ToString() } },
+            Items = new StripeList<SubscriptionItem>
+            {
+                Data =
+                [
+                    new SubscriptionItem
+                    {
+                        CurrentPeriodEnd = currentPeriodEnd,
+                        Price = new Price { Id = IStripeEventUtilityService.PremiumPlanId }
+                    }
+                ]
+            }
+        };
+
+        var parsedEvent = new Event { Data = new EventData() };
+
+        _stripeEventService.GetSubscription(Arg.Any<Event>(), Arg.Any<bool>(), Arg.Any<List<string>>())
+            .Returns(subscription);
+
+        _stripeEventUtilityService.GetIdsFromMetadata(Arg.Any<Dictionary<string, string>>())
+            .Returns(Tuple.Create<Guid?, Guid?, Guid?>(null, userId, null));
+
+        _stripeFacade.ListInvoices(Arg.Any<InvoiceListOptions>())
+            .Returns(new StripeList<Invoice> { Data = new List<Invoice>() });
+
+        // Act
+        await _sut.HandleAsync(parsedEvent);
+
+        // Assert
+        await _userService.Received(1)
+            .DisablePremiumAsync(userId, currentPeriodEnd);
+        await _stripeFacade.Received(1)
+            .CancelSubscription(subscriptionId, Arg.Any<SubscriptionCancelOptions>());
+        await _stripeFacade.Received(1)
+            .ListInvoices(Arg.Is<InvoiceListOptions>(o =>
+                o.Status == StripeInvoiceStatus.Open && o.Subscription == subscriptionId));
+    }
+
     [Fact]
     public async Task HandleAsync_ActiveOrganizationSubscription_EnablesOrganizationAndUpdatesExpiration()
     {
@@ -1098,6 +1147,114 @@ public class SubscriptionUpdatedHandlerTests
         return (providerId, newSubscription, provider, parsedEvent);
     }
 
+    [Fact]
+    public async Task HandleAsync_IncompleteUserSubscriptionWithOpenInvoice_CancelsSubscriptionAndDisablesPremium()
+    {
+        // Arrange
+        var userId = Guid.NewGuid();
+        var subscriptionId = "sub_123";
+        var currentPeriodEnd = DateTime.UtcNow.AddDays(30);
+        var openInvoice = new Invoice
+        {
+            Id = "inv_123",
+            Status = StripeInvoiceStatus.Open
+        };
+        var subscription = new Subscription
+        {
+            Id = subscriptionId,
+            Status = StripeSubscriptionStatus.Incomplete,
+            Metadata = new Dictionary<string, string> { { "userId", userId.ToString() } },
+            LatestInvoice = openInvoice,
+            Items = new StripeList<SubscriptionItem>
+            {
+                Data =
+                [
+                    new SubscriptionItem
+                    {
+                        CurrentPeriodEnd = currentPeriodEnd,
+                        Price = new Price { Id = IStripeEventUtilityService.PremiumPlanId }
+                    }
+                ]
+            }
+        };
+
+        var parsedEvent = new Event { Data = new EventData() };
+
+        _stripeEventService.GetSubscription(Arg.Any<Event>(), Arg.Any<bool>(), Arg.Any<List<string>>())
+            .Returns(subscription);
+
+        _stripeEventUtilityService.GetIdsFromMetadata(Arg.Any<Dictionary<string, string>>())
+            .Returns(Tuple.Create<Guid?, Guid?, Guid?>(null, userId, null));
+
+        _stripeFacade.ListInvoices(Arg.Any<InvoiceListOptions>())
+            .Returns(new StripeList<Invoice> { Data = new List<Invoice> { openInvoice } });
+
+        // Act
+        await _sut.HandleAsync(parsedEvent);
+
+        // Assert
+        await _userService.Received(1)
+            .DisablePremiumAsync(userId, currentPeriodEnd);
+        await _stripeFacade.Received(1)
+            .CancelSubscription(subscriptionId, Arg.Any<SubscriptionCancelOptions>());
+        await _stripeFacade.Received(1)
+            .ListInvoices(Arg.Is<InvoiceListOptions>(o =>
+                o.Status == StripeInvoiceStatus.Open && o.Subscription == subscriptionId));
+        await _stripeFacade.Received(1)
+            .VoidInvoice(openInvoice.Id);
+    }
+
+    [Fact]
+    public async Task HandleAsync_IncompleteUserSubscriptionWithoutOpenInvoice_DoesNotCancelSubscription()
+    {
+        // Arrange
+        var userId = Guid.NewGuid();
+        var subscriptionId = "sub_123";
+        var currentPeriodEnd = DateTime.UtcNow.AddDays(30);
+        var paidInvoice = new Invoice
+        {
+            Id = "inv_123",
+            Status = StripeInvoiceStatus.Paid
+        };
+        var subscription = new Subscription
+        {
+            Id = subscriptionId,
+            Status = StripeSubscriptionStatus.Incomplete,
+            Metadata = new Dictionary<string, string> { { "userId", userId.ToString() } },
+            LatestInvoice = paidInvoice,
+            Items = new StripeList<SubscriptionItem>
+            {
+                Data =
+                [
+                    new SubscriptionItem
+                    {
+                        CurrentPeriodEnd = currentPeriodEnd,
+                        Price = new Price { Id = IStripeEventUtilityService.PremiumPlanId }
+                    }
+                ]
+            }
+        };
+
+        var parsedEvent = new Event { Data = new EventData() };
+
+        _stripeEventService.GetSubscription(Arg.Any<Event>(), Arg.Any<bool>(), Arg.Any<List<string>>())
+            .Returns(subscription);
+
+        _stripeEventUtilityService.GetIdsFromMetadata(Arg.Any<Dictionary<string, string>>())
+            .Returns(Tuple.Create<Guid?, Guid?, Guid?>(null, userId, null));
+
+        // Act
+        await _sut.HandleAsync(parsedEvent);
+
+        // Assert
+        await _userService.DidNotReceive()
+            .DisablePremiumAsync(Arg.Any<Guid>(), Arg.Any<DateTime?>());
+        await _stripeFacade.DidNotReceive()
+            .CancelSubscription(Arg.Any<string>(), Arg.Any<SubscriptionCancelOptions>());
+        await _stripeFacade.DidNotReceive()
+            .ListInvoices(Arg.Any<InvoiceListOptions>());
+    }
+
     public static IEnumerable<object[]> GetNonActiveSubscriptions()
     {
         return new List<object[]>