diff --git a/packages/stripe/src/index.ts b/packages/stripe/src/index.ts
index 047f2a4f..87931e72 100644
--- a/packages/stripe/src/index.ts
+++ b/packages/stripe/src/index.ts
@@ -354,15 +354,20 @@ export const stripe = <O extends StripeOptions>(options: O) => {
 							],
 						});
 
-				const existingSubscription = subscriptions.find(
+				const activeOrTrialingSubscription = subscriptions.find(
 					(sub) => sub.status === "active" || sub.status === "trialing",
 				);
 
+				// Also find any incomplete subscription that we can reuse
+				const incompleteSubscription = subscriptions.find(
+					(sub) => sub.status === "incomplete",
+				);
+
 				if (
-					existingSubscription &&
-					existingSubscription.status === "active" &&
-					existingSubscription.plan === ctx.body.plan &&
-					existingSubscription.seats === (ctx.body.seats || 1)
+					activeOrTrialingSubscription &&
+					activeOrTrialingSubscription.status === "active" &&
+					activeOrTrialingSubscription.plan === ctx.body.plan &&
+					activeOrTrialingSubscription.seats === (ctx.body.seats || 1)
 				) {
 					throw new APIError("BAD_REQUEST", {
 						message: STRIPE_ERROR_CODES.ALREADY_SUBSCRIBED_PLAN,
@@ -408,9 +413,32 @@ export const stripe = <O extends StripeOptions>(options: O) => {
 					});
 				}
 
-				const subscription =
-					existingSubscription ||
-					(await ctx.context.adapter.create<InputSubscription, Subscription>({
+				let subscription: Subscription | undefined =
+					activeOrTrialingSubscription || incompleteSubscription;
+
+				if (incompleteSubscription && !activeOrTrialingSubscription) {
+					const updated = await ctx.context.adapter.update<InputSubscription>({
+						model: "subscription",
+						update: {
+							plan: plan.name.toLowerCase(),
+							seats: ctx.body.seats || 1,
+							updatedAt: new Date(),
+						},
+						where: [
+							{
+								field: "id",
+								value: incompleteSubscription.id,
+							},
+						],
+					});
+					subscription = (updated as Subscription) || incompleteSubscription;
+				}
+
+				if (!subscription) {
+					subscription = await ctx.context.adapter.create<
+						InputSubscription,
+						Subscription
+					>({
 						model: "subscription",
 						data: {
 							plan: plan.name.toLowerCase(),
@@ -419,7 +447,8 @@ export const stripe = <O extends StripeOptions>(options: O) => {
 							referenceId,
 							seats: ctx.body.seats || 1,
 						},
-					}));
+					});
+				}
 
 				if (!subscription) {
 					ctx.context.logger.error("Subscription ID not found");
diff --git a/packages/stripe/src/stripe.test.ts b/packages/stripe/src/stripe.test.ts
index e85c9643..66031c6d 100644
--- a/packages/stripe/src/stripe.test.ts
+++ b/packages/stripe/src/stripe.test.ts
@@ -1102,4 +1102,69 @@ describe("stripe", async () => {
 		});
 		expect(personalAfter?.status).toBe("active");
 	});
+
+	it("should reuse incomplete subscription when upgrading again", async () => {
+		// Create a user
+		const userRes = await authClient.signUp.email(
+			{
+				email: "incomplete@example.com",
+				password: "password",
+				name: "Incomplete Test",
+			},
+			{
+				throw: true,
+			},
+		);
+
+		const headers = new Headers();
+		await authClient.signIn.email(
+			{
+				email: "incomplete@example.com",
+				password: "password",
+			},
+			{
+				throw: true,
+				onSuccess: setCookieToHeader(headers),
+			},
+		);
+
+		// First upgrade attempt - creates incomplete subscription
+		const firstUpgrade = await authClient.subscription.upgrade({
+			plan: "starter",
+			fetchOptions: {
+				headers,
+			},
+		});
+		expect(firstUpgrade.data?.url).toBe("https://checkout.stripe.com/mock");
+
+		// Check that an incomplete subscription was created
+		const subscriptions = await ctx.adapter.findMany<Subscription>({
+			model: "subscription",
+			where: [{ field: "referenceId", value: userRes.user.id }],
+		});
+		expect(subscriptions).toHaveLength(1);
+		expect(subscriptions[0].status).toBe("incomplete");
+		const firstSubId = subscriptions[0].id;
+
+		// Second upgrade attempt - should reuse the same subscription
+		const secondUpgrade = await authClient.subscription.upgrade({
+			plan: "premium",
+			seats: 2,
+			fetchOptions: {
+				headers,
+			},
+		});
+		expect(secondUpgrade.data?.url).toBe("https://checkout.stripe.com/mock");
+
+		// Check that the same subscription was updated, not a new one created
+		const subscriptionsAfter = await ctx.adapter.findMany<Subscription>({
+			model: "subscription",
+			where: [{ field: "referenceId", value: userRes.user.id }],
+		});
+		expect(subscriptionsAfter).toHaveLength(1);
+		expect(subscriptionsAfter[0].id).toBe(firstSubId);
+		expect(subscriptionsAfter[0].status).toBe("incomplete");
+		expect(subscriptionsAfter[0].plan).toBe("premium");
+		expect(subscriptionsAfter[0].seats).toBe(2);
+	});
 });