diff --git a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidator.cs b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidator.cs
index 345d678fdb..79a3487d19 100644
--- a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidator.cs
+++ b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUserValidator.cs
@@ -18,11 +18,13 @@ public class InviteOrganizationUsersValidator(
     IUpdateSecretsManagerSubscriptionCommand secretsManagerSubscriptionCommand,
     IPaymentService paymentService) : IInviteUsersValidator
 {
-    public async Task<ValidationResult<InviteOrganizationUsersValidationRequest>> ValidateAsync(InviteOrganizationUsersValidationRequest request)
+    public async Task<ValidationResult<InviteOrganizationUsersValidationRequest>> ValidateAsync(
+        InviteOrganizationUsersValidationRequest request)
     {
         var subscriptionUpdate = new PasswordManagerSubscriptionUpdate(request);
 
-        var passwordManagerValidationResult = await inviteUsersPasswordManagerValidator.ValidateAsync(subscriptionUpdate);
+        var passwordManagerValidationResult =
+            await inviteUsersPasswordManagerValidator.ValidateAsync(subscriptionUpdate);
 
         if (passwordManagerValidationResult is Invalid<PasswordManagerSubscriptionUpdate> invalidSubscriptionUpdate)
         {
@@ -53,18 +55,25 @@ public class InviteOrganizationUsersValidator(
     }
 
     private async Task<ValidationResult<InviteOrganizationUsersValidationRequest>> ValidateSecretsManagerSubscriptionUpdateAsync(
-        InviteOrganizationUsersValidationRequest request,
-        PasswordManagerSubscriptionUpdate subscriptionUpdate)
+            InviteOrganizationUsersValidationRequest request,
+            PasswordManagerSubscriptionUpdate subscriptionUpdate)
     {
         try
         {
-            var smSubscriptionUpdate = new SecretsManagerSubscriptionUpdate(
-                    organization: await organizationRepository.GetByIdAsync(request.InviteOrganization.OrganizationId),
-                    plan: request.InviteOrganization.Plan,
-                    autoscaling: true)
-                .AdjustSeats(GetSecretManagerSeatAdjustment(request));
 
-            await secretsManagerSubscriptionCommand.ValidateUpdateAsync(smSubscriptionUpdate);
+            var smSubscriptionUpdate = new SecretsManagerSubscriptionUpdate(
+                organization: await organizationRepository.GetByIdAsync(request.InviteOrganization.OrganizationId),
+                plan: request.InviteOrganization.Plan,
+                autoscaling: true);
+
+            var seatsToAdd = GetSecretManagerSeatAdjustment(request);
+
+            if (seatsToAdd > 0)
+            {
+                smSubscriptionUpdate.AdjustSeats(seatsToAdd);
+
+                await secretsManagerSubscriptionCommand.ValidateUpdateAsync(smSubscriptionUpdate);
+            }
 
             return new Valid<InviteOrganizationUsersValidationRequest>(new InviteOrganizationUsersValidationRequest(
                 request,
@@ -73,13 +82,27 @@ public class InviteOrganizationUsersValidator(
         }
         catch (Exception ex)
         {
-            return new Invalid<InviteOrganizationUsersValidationRequest>(new Error<InviteOrganizationUsersValidationRequest>(ex.Message, request));
+            return new Invalid<InviteOrganizationUsersValidationRequest>(
+                new Error<InviteOrganizationUsersValidationRequest>(ex.Message, request));
         }
-
-        int GetSecretManagerSeatAdjustment(InviteOrganizationUsersValidationRequest request) =>
-            Math.Abs(
-                request.InviteOrganization.SmSeats -
-                request.OccupiedSmSeats -
-                request.Invites.Count(x => x.AccessSecretsManager) ?? 0);
     }
+
+    /// <summary>
+    /// This calculates the number of SM seats to add to the organization seat total.
+    ///
+    /// If they have a current seat limit (it can be null), we want to figure out how many are available (seats -
+    /// occupied seats). Then, we'll subtract the available seats from the number of users we're trying to invite.
+    ///
+    /// If it's negative, we have available seats and do not need to increase, so we go with 0.
+    /// </summary>
+    /// <param name="request"></param>
+    /// <returns></returns>
+    private static int GetSecretManagerSeatAdjustment(InviteOrganizationUsersValidationRequest request) =>
+        request.InviteOrganization.SmSeats.HasValue
+            ? Math.Max(
+                request.Invites.Count(x => x.AccessSecretsManager) -
+                (request.InviteOrganization.SmSeats.Value -
+                 request.OccupiedSmSeats),
+                0)
+            : 0;
 }
diff --git a/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUsersValidatorTests.cs b/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUsersValidatorTests.cs
index fdc58cbdda..191ef05603 100644
--- a/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUsersValidatorTests.cs
+++ b/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/InviteUsers/Validation/InviteOrganizationUsersValidatorTests.cs
@@ -2,7 +2,9 @@
 using Bit.Core.AdminConsole.Models.Business;
 using Bit.Core.AdminConsole.OrganizationFeatures.OrganizationUsers.InviteUsers.Models;
 using Bit.Core.AdminConsole.OrganizationFeatures.OrganizationUsers.InviteUsers.Validation;
+using Bit.Core.AdminConsole.Shared.Validation;
 using Bit.Core.Billing.Models.StaticStore.Plans;
+using Bit.Core.Exceptions;
 using Bit.Core.Models.Business;
 using Bit.Core.OrganizationFeatures.OrganizationSubscriptions.Interface;
 using Bit.Core.Repositories;
@@ -10,6 +12,7 @@ using Bit.Core.Services;
 using Bit.Test.Common.AutoFixture;
 using Bit.Test.Common.AutoFixture.Attributes;
 using NSubstitute;
+using NSubstitute.ExceptionExtensions;
 using Xunit;
 using OrganizationUserInvite = Bit.Core.AdminConsole.OrganizationFeatures.OrganizationUsers.InviteUsers.Models.OrganizationUserInvite;
 
@@ -20,7 +23,7 @@ public class InviteOrganizationUsersValidatorTests
 {
     [Theory]
     [BitAutoData]
-    public async Task ValidateAsync_WhenOrganizationHasSecretsManagerInvites_ThenShouldCorrectlyCalculateSeatsToAdd(
+    public async Task ValidateAsync_WhenOrganizationHasSecretsManagerInvitesAndDoesNotHaveEnoughSeatsAvailable_ThenShouldCorrectlyCalculateSeatsToAdd(
         Organization organization,
         SutProvider<InviteOrganizationUsersValidator> sutProvider
     )
@@ -63,4 +66,96 @@ public class InviteOrganizationUsersValidatorTests
             .ValidateUpdateAsync(Arg.Is<SecretsManagerSubscriptionUpdate>(x =>
                 x.SmSeatsChanged == true && x.SmSeats == 12));
     }
+
+    [Theory]
+    [BitAutoData]
+    public async Task ValidateAsync_WhenOrganizationHasSecretsManagerInvitesAndHasSeatsAvailable_ThenShouldReturnValid(
+        Organization organization,
+        SutProvider<InviteOrganizationUsersValidator> sutProvider
+    )
+    {
+        organization.Seats = null;
+        organization.SmSeats = 12;
+        organization.UseSecretsManager = true;
+
+        var request = new InviteOrganizationUsersValidationRequest
+        {
+            Invites =
+            [
+                new OrganizationUserInvite(
+                    email: "test@email.com",
+                    externalId: "test-external-id"),
+                new OrganizationUserInvite(
+                    email: "test2@email.com",
+                    externalId: "test-external-id2"),
+                new OrganizationUserInvite(
+                    email: "test3@email.com",
+                    externalId: "test-external-id3")
+            ],
+            InviteOrganization = new InviteOrganization(organization, new Enterprise2023Plan(true)),
+            OccupiedPmSeats = 0,
+            OccupiedSmSeats = 9
+        };
+
+        sutProvider.GetDependency<IPaymentService>()
+            .HasSecretsManagerStandalone(request.InviteOrganization)
+            .Returns(true);
+
+        sutProvider.GetDependency<IOrganizationRepository>()
+            .GetByIdAsync(organization.Id)
+            .Returns(organization);
+
+        var result = await sutProvider.Sut.ValidateAsync(request);
+
+        Assert.IsType<Valid<InviteOrganizationUsersValidationRequest>>(result);
+    }
+
+    [Theory]
+    [BitAutoData]
+    public async Task ValidateAsync_WhenOrganizationHasSecretsManagerInvitesAndSmSeatUpdateFailsValidation_ThenShouldReturnInvalid(
+        Organization organization,
+        SutProvider<InviteOrganizationUsersValidator> sutProvider
+    )
+    {
+        organization.Seats = null;
+        organization.SmSeats = 5;
+        organization.MaxAutoscaleSmSeats = 5;
+        organization.UseSecretsManager = true;
+
+        var request = new InviteOrganizationUsersValidationRequest
+        {
+            Invites =
+            [
+                new OrganizationUserInvite(
+                    email: "test@email.com",
+                    externalId: "test-external-id"),
+                new OrganizationUserInvite(
+                    email: "test2@email.com",
+                    externalId: "test-external-id2"),
+                new OrganizationUserInvite(
+                    email: "test3@email.com",
+                    externalId: "test-external-id3")
+            ],
+            InviteOrganization = new InviteOrganization(organization, new Enterprise2023Plan(true)),
+            OccupiedPmSeats = 0,
+            OccupiedSmSeats = 4
+        };
+
+        sutProvider.GetDependency<IPaymentService>()
+            .HasSecretsManagerStandalone(request.InviteOrganization)
+            .Returns(true);
+
+        sutProvider.GetDependency<IOrganizationRepository>()
+            .GetByIdAsync(organization.Id)
+            .Returns(organization);
+
+        sutProvider.GetDependency<IUpdateSecretsManagerSubscriptionCommand>()
+            .ValidateUpdateAsync(Arg.Any<SecretsManagerSubscriptionUpdate>())
+            .Throws(new BadRequestException("Some Secrets Manager Failure"));
+
+        var result = await sutProvider.Sut.ValidateAsync(request);
+
+        Assert.IsType<Invalid<InviteOrganizationUsersValidationRequest>>(result);
+        Assert.Equal("Some Secrets Manager Failure", (result as Invalid<InviteOrganizationUsersValidationRequest>)!.ErrorMessageString);
+    }
 }