diff --git a/server/store/datastore/org.go b/server/store/datastore/org.go
index eb18ac8df0d..59fa18f804a 100644
--- a/server/store/datastore/org.go
+++ b/server/store/datastore/org.go
@@ -77,9 +77,15 @@ func (s storage) orgDelete(sess *xorm.Session, id int64) error {
 func (s storage) OrgFindByName(name string) (*model.Org, error) {
 	// sanitize
 	name = strings.ToLower(name)
-	// find
 	org := new(model.Org)
-	return org, wrapGet(s.engine.Where("name = ?", name).Get(org))
+	has, err := s.engine.Where("name = ?", name).Get(org)
+	if err != nil {
+		return nil, fmt.Errorf("failed to check if org exists: %w", err)
+	}
+	if !has {
+		return nil, nil
+	}
+	return org, nil
 }
 
 func (s storage) OrgRepoList(org *model.Org, p *model.ListOptions) ([]*model.Repo, error) {
diff --git a/server/store/datastore/user.go b/server/store/datastore/user.go
index aa3d35f7d70..deeddf54275 100644
--- a/server/store/datastore/user.go
+++ b/server/store/datastore/user.go
@@ -15,6 +15,8 @@
 package datastore
 
 import (
+	"fmt"
+
 	"xorm.io/xorm"
 
 	"go.woodpecker-ci.org/woodpecker/v3/server/model"
@@ -59,9 +61,24 @@ func (s storage) CreateUser(user *model.User) error {
 		Name:   user.Login,
 		IsUser: true,
 	}
-	err := s.orgCreate(org, sess)
+
+	existingOrg, err := s.OrgFindByName(org.Name)
 	if err != nil {
-		return err
+		return fmt.Errorf("failed to check if org exists: %w", err)
+	}
+
+	if existingOrg != nil {
+		if existingOrg.Name == user.Login {
+			err = s.OrgUpdate(org)
+			if err != nil {
+				return fmt.Errorf("failed to update existing org: %w", err)
+			}
+		}
+	} else {
+		err = s.orgCreate(org, sess)
+		if err != nil {
+			return fmt.Errorf("failed to create new org: %w", err)
+		}
 	}
 	user.OrgID = org.ID
 	// only Insert set auto created ID back to object
diff --git a/server/store/datastore/users_test.go b/server/store/datastore/users_test.go
index 0189e9f49bb..410daa36fca 100644
--- a/server/store/datastore/users_test.go
+++ b/server/store/datastore/users_test.go
@@ -94,3 +94,42 @@ func TestUsers(t *testing.T) {
 	_, err3 := store.GetUser(getUser.ID)
 	assert.Error(t, err3)
 }
+
+func TestCreateUserWithExistingOrg(t *testing.T) {
+	store, closer := newTestStore(t, new(model.User), new(model.Org), new(model.Perm))
+	defer closer()
+
+	existingOrg := &model.Org{
+		ForgeID: 1,
+		IsUser:  true,
+		Name:    "existingorg",
+		Private: false,
+	}
+
+	err := store.OrgCreate(existingOrg)
+	assert.NoError(t, err)
+	assert.EqualValues(t, "existingorg", existingOrg.Name)
+
+	// Create a new user with the same name as the existing organization
+	newUser := &model.User{
+		Login: "existingOrg",
+		Hash:  "A",
+	}
+	err = store.CreateUser(newUser)
+	assert.NoError(t, err)
+
+	updatedOrg, err := store.OrgGet(existingOrg.ID)
+	assert.NoError(t, err)
+	assert.Equal(t, "existingorg", updatedOrg.Name)
+
+	newUser2 := &model.User{
+		Login: "new-user",
+		Hash:  "B",
+	}
+	err = store.CreateUser(newUser2)
+	assert.NoError(t, err)
+
+	newOrg, err := store.OrgFindByName("new-user")
+	assert.NoError(t, err)
+	assert.Equal(t, "new-user", newOrg.Name)
+}