diff --git a/bitwarden_license/src/Sso/Controllers/AccountController.cs b/bitwarden_license/src/Sso/Controllers/AccountController.cs
index 4ab9d7ef03..fdbcf0f0d1 100644
--- a/bitwarden_license/src/Sso/Controllers/AccountController.cs
+++ b/bitwarden_license/src/Sso/Controllers/AccountController.cs
@@ -483,9 +483,9 @@ public class AccountController : Controller
         // Before any user creation - if Org User doesn't exist at this point - make sure there are enough seats to add one
         if (orgUser == null && organization.Seats.HasValue)
         {
-            var userCount = await _organizationUserRepository.GetCountByOrganizationIdAsync(orgId);
+            var occupiedSeats = await _organizationService.GetOccupiedSeatCount(organization);
             var initialSeatCount = organization.Seats.Value;
-            var availableSeats = initialSeatCount - userCount;
+            var availableSeats = initialSeatCount - occupiedSeats;
             var prorationDate = DateTime.UtcNow;
             if (availableSeats < 1)
             {
diff --git a/src/Admin/Models/OrganizationViewModel.cs b/src/Admin/Models/OrganizationViewModel.cs
index 5a487cd03e..31504f9371 100644
--- a/src/Admin/Models/OrganizationViewModel.cs
+++ b/src/Admin/Models/OrganizationViewModel.cs
@@ -18,7 +18,7 @@ public class OrganizationViewModel
         UserInvitedCount = orgUsers.Count(u => u.Status == OrganizationUserStatusType.Invited);
         UserAcceptedCount = orgUsers.Count(u => u.Status == OrganizationUserStatusType.Accepted);
         UserConfirmedCount = orgUsers.Count(u => u.Status == OrganizationUserStatusType.Confirmed);
-        UserCount = orgUsers.Count();
+        OccupiedSeatCount = orgUsers.Count(u => u.OccupiesOrganizationSeat);
         CipherCount = ciphers.Count();
         CollectionCount = collections.Count();
         GroupCount = groups?.Count() ?? 0;
@@ -40,7 +40,7 @@ public class OrganizationViewModel
     public int UserInvitedCount { get; set; }
     public int UserConfirmedCount { get; set; }
     public int UserAcceptedCount { get; set; }
-    public int UserCount { get; set; }
+    public int OccupiedSeatCount { get; set; }
     public int CipherCount { get; set; }
     public int CollectionCount { get; set; }
     public int GroupCount { get; set; }
diff --git a/src/Admin/Views/Organizations/_ViewInformation.cshtml b/src/Admin/Views/Organizations/_ViewInformation.cshtml
index 3c5a5ca8a6..24e69d298b 100644
--- a/src/Admin/Views/Organizations/_ViewInformation.cshtml
+++ b/src/Admin/Views/Organizations/_ViewInformation.cshtml
@@ -11,7 +11,7 @@
 
     <dt class="col-sm-4 col-lg-3">Users</dt>
     <dd class="col-sm-8 col-lg-9">
-        @Model.UserCount / @(Model.Organization.Seats?.ToString() ?? "-")
+        @Model.OccupiedSeatCount / @(Model.Organization.Seats?.ToString() ?? "-")
         (<span title="Invited">@Model.UserInvitedCount</span> /
         <span title="Accepted">@Model.UserAcceptedCount</span> /
         <span title="Confirmed">@Model.UserConfirmedCount</span>)
diff --git a/src/Core/Models/Data/Organizations/OrganizationUsers/OrganizationUserUserDetails.cs b/src/Core/Models/Data/Organizations/OrganizationUsers/OrganizationUserUserDetails.cs
index ff28d1f3cd..ce9cf64a5c 100644
--- a/src/Core/Models/Data/Organizations/OrganizationUsers/OrganizationUserUserDetails.cs
+++ b/src/Core/Models/Data/Organizations/OrganizationUsers/OrganizationUserUserDetails.cs
@@ -56,4 +56,12 @@ public class OrganizationUserUserDetails : IExternal, ITwoFactorProvidersUser
     {
         return Premium.GetValueOrDefault(false);
     }
+
+    public bool OccupiesOrganizationSeat
+    {
+        get
+        {
+            return Status != OrganizationUserStatusType.Revoked;
+        }
+    }
 }
diff --git a/src/Core/Services/IOrganizationService.cs b/src/Core/Services/IOrganizationService.cs
index 3bd3e1f6eb..45f91c8bbc 100644
--- a/src/Core/Services/IOrganizationService.cs
+++ b/src/Core/Services/IOrganizationService.cs
@@ -64,4 +64,5 @@ public interface IOrganizationService
     Task RestoreUserAsync(OrganizationUser organizationUser, Guid? restoringUserId, IUserService userService);
     Task<List<Tuple<OrganizationUser, string>>> RestoreUsersAsync(Guid organizationId,
         IEnumerable<Guid> organizationUserIds, Guid? restoringUserId, IUserService userService);
+    Task<int> GetOccupiedSeatCount(Organization organization);
 }
diff --git a/src/Core/Services/Implementations/OrganizationService.cs b/src/Core/Services/Implementations/OrganizationService.cs
index d9551811bb..ce2b33ec58 100644
--- a/src/Core/Services/Implementations/OrganizationService.cs
+++ b/src/Core/Services/Implementations/OrganizationService.cs
@@ -44,7 +44,6 @@ public class OrganizationService : IOrganizationService
     private readonly ICurrentContext _currentContext;
     private readonly ILogger<OrganizationService> _logger;
 
-
     public OrganizationService(
         IOrganizationRepository organizationRepository,
         IOrganizationUserRepository organizationUserRepository,
@@ -199,10 +198,10 @@ public class OrganizationService : IOrganizationService
             (newPlan.HasAdditionalSeatsOption ? upgrade.AdditionalSeats : 0));
         if (!organization.Seats.HasValue || organization.Seats.Value > newPlanSeats)
         {
-            var userCount = await _organizationUserRepository.GetCountByOrganizationIdAsync(organization.Id);
-            if (userCount > newPlanSeats)
+            var occupiedSeats = await GetOccupiedSeatCount(organization);
+            if (occupiedSeats > newPlanSeats)
             {
-                throw new BadRequestException($"Your organization currently has {userCount} seats filled. " +
+                throw new BadRequestException($"Your organization currently has {occupiedSeats} seats filled. " +
                     $"Your new plan only has ({newPlanSeats}) seats. Remove some users.");
             }
         }
@@ -494,10 +493,10 @@ public class OrganizationService : IOrganizationService
 
         if (!organization.Seats.HasValue || organization.Seats.Value > newSeatTotal)
         {
-            var userCount = await _organizationUserRepository.GetCountByOrganizationIdAsync(organization.Id);
-            if (userCount > newSeatTotal)
+            var occupiedSeats = await GetOccupiedSeatCount(organization);
+            if (occupiedSeats > newSeatTotal)
             {
-                throw new BadRequestException($"Your organization currently has {userCount} seats filled. " +
+                throw new BadRequestException($"Your organization currently has {occupiedSeats} seats filled. " +
                     $"Your new plan only has ({newSeatTotal}) seats. Remove some users.");
             }
         }
@@ -861,10 +860,10 @@ public class OrganizationService : IOrganizationService
         if (license.Seats.HasValue &&
             (!organization.Seats.HasValue || organization.Seats.Value > license.Seats.Value))
         {
-            var userCount = await _organizationUserRepository.GetCountByOrganizationIdAsync(organization.Id);
-            if (userCount > license.Seats.Value)
+            var occupiedSeats = await GetOccupiedSeatCount(organization);
+            if (occupiedSeats > license.Seats.Value)
             {
-                throw new BadRequestException($"Your organization currently has {userCount} seats filled. " +
+                throw new BadRequestException($"Your organization currently has {occupiedSeats} seats filled. " +
                     $"Your new license only has ({license.Seats.Value}) seats. Remove some users.");
             }
         }
@@ -1138,8 +1137,8 @@ public class OrganizationService : IOrganizationService
             organizationId, invites.SelectMany(i => i.invite.Emails), false), StringComparer.InvariantCultureIgnoreCase);
         if (organization.Seats.HasValue)
         {
-            var userCount = await _organizationUserRepository.GetCountByOrganizationIdAsync(organizationId);
-            var availableSeats = organization.Seats.Value - userCount;
+            var occupiedSeats = await GetOccupiedSeatCount(organization);
+            var availableSeats = organization.Seats.Value - occupiedSeats;
             newSeatsRequired = invites.Sum(i => i.invite.Emails.Count()) - existingEmails.Count() - availableSeats;
         }
 
@@ -1559,7 +1558,7 @@ public class OrganizationService : IOrganizationService
             organization.MaxAutoscaleSeats.HasValue &&
             organization.MaxAutoscaleSeats.Value < organization.Seats.Value + seatsToAdd)
         {
-            return (false, $"Cannot invite new users. Seat limit has been reached.");
+            return (false, $"Seat limit has been reached.");
         }
 
         return (true, failureReason);
@@ -1951,8 +1950,8 @@ public class OrganizationService : IOrganizationService
             var enoughSeatsAvailable = true;
             if (organization.Seats.HasValue)
             {
-                var userCount = await _organizationUserRepository.GetCountByOrganizationIdAsync(organizationId);
-                seatsAvailable = organization.Seats.Value - userCount;
+                var occupiedSeats = await GetOccupiedSeatCount(organization);
+                seatsAvailable = organization.Seats.Value - occupiedSeats;
                 enoughSeatsAvailable = seatsAvailable >= usersToAdd.Count;
             }
 
@@ -2324,6 +2323,14 @@ public class OrganizationService : IOrganizationService
             throw new BadRequestException("Only owners can restore other owners.");
         }
 
+        var organization = await _organizationRepository.GetByIdAsync(organizationUser.OrganizationId);
+        var occupiedSeats = await GetOccupiedSeatCount(organization);
+        var availableSeats = organization.Seats.GetValueOrDefault(0) - occupiedSeats;
+        if (availableSeats < 1)
+        {
+            await AutoAddSeatsAsync(organization, 1, DateTime.UtcNow);
+        }
+
         await CheckPoliciesBeforeRestoreAsync(organizationUser, userService);
 
         var status = GetPriorActiveOrganizationUserStatusType(organizationUser);
@@ -2345,6 +2352,12 @@ public class OrganizationService : IOrganizationService
             throw new BadRequestException("Users invalid.");
         }
 
+        var organization = await _organizationRepository.GetByIdAsync(organizationId);
+        var occupiedSeats = await GetOccupiedSeatCount(organization);
+        var availableSeats = organization.Seats.GetValueOrDefault(0) - occupiedSeats;
+        var newSeatsRequired = organizationUserIds.Count() - availableSeats;
+        await AutoAddSeatsAsync(organization, newSeatsRequired, DateTime.UtcNow);
+
         var deletingUserIsOwner = false;
         if (restoringUserId.HasValue)
         {
@@ -2455,4 +2468,10 @@ public class OrganizationService : IOrganizationService
 
         return status;
     }
+
+    public async Task<int> GetOccupiedSeatCount(Organization organization)
+    {
+        var orgUsers = await _organizationUserRepository.GetManyDetailsByOrganizationAsync(organization.Id);
+        return orgUsers.Count(ou => ou.OccupiesOrganizationSeat);
+    }
 }
diff --git a/test/Core.Test/Services/OrganizationServiceTests.cs b/test/Core.Test/Services/OrganizationServiceTests.cs
index c07a30184d..7e5e4474a1 100644
--- a/test/Core.Test/Services/OrganizationServiceTests.cs
+++ b/test/Core.Test/Services/OrganizationServiceTests.cs
@@ -897,7 +897,7 @@ public class OrganizationServiceTests
     [BitAutoData(0, 100, 100, true, "")]
     [BitAutoData(0, null, 100, true, "")]
     [BitAutoData(1, 100, null, true, "")]
-    [BitAutoData(1, 100, 100, false, "Cannot invite new users. Seat limit has been reached")]
+    [BitAutoData(1, 100, 100, false, "Seat limit has been reached")]
     public void CanScale(int seatsToAdd, int? currentSeats, int? maxAutoscaleSeats,
         bool expectedResult, string expectedFailureMessage, Organization organization,
         SutProvider<OrganizationService> sutProvider)