diff --git a/src/main/java/net/siegeln/cameleer/saas/tenant/TenantRepository.java b/src/main/java/net/siegeln/cameleer/saas/tenant/TenantRepository.java
index 30e355d..107eb21 100644
--- a/src/main/java/net/siegeln/cameleer/saas/tenant/TenantRepository.java
+++ b/src/main/java/net/siegeln/cameleer/saas/tenant/TenantRepository.java
@@ -13,4 +13,5 @@ public interface TenantRepository extends JpaRepository<TenantEntity, UUID> {
     Optional<TenantEntity> findByLogtoOrgId(String logtoOrgId);
     List<TenantEntity> findByStatus(TenantStatus status);
     boolean existsBySlug(String slug);
+    boolean existsBySlugAndStatusNot(String slug, TenantStatus status);
 }
diff --git a/src/main/java/net/siegeln/cameleer/saas/tenant/TenantService.java b/src/main/java/net/siegeln/cameleer/saas/tenant/TenantService.java
index 133c295..8d304cb 100644
--- a/src/main/java/net/siegeln/cameleer/saas/tenant/TenantService.java
+++ b/src/main/java/net/siegeln/cameleer/saas/tenant/TenantService.java
@@ -24,7 +24,7 @@ public class TenantService {
     }
 
     public TenantEntity create(CreateTenantRequest request, UUID actorId) {
-        if (tenantRepository.existsBySlug(request.slug())) {
+        if (tenantRepository.existsBySlugAndStatusNot(request.slug(), TenantStatus.DELETED)) {
             throw new IllegalArgumentException("Slug already taken");
         }
 
diff --git a/src/test/java/net/siegeln/cameleer/saas/tenant/TenantServiceTest.java b/src/test/java/net/siegeln/cameleer/saas/tenant/TenantServiceTest.java
index 7be62df..c12af09 100644
--- a/src/test/java/net/siegeln/cameleer/saas/tenant/TenantServiceTest.java
+++ b/src/test/java/net/siegeln/cameleer/saas/tenant/TenantServiceTest.java
@@ -44,7 +44,7 @@ class TenantServiceTest {
         var request = new CreateTenantRequest("Acme Corp", "acme-corp", "MID");
         var actorId = UUID.randomUUID();
 
-        when(tenantRepository.existsBySlug("acme-corp")).thenReturn(false);
+        when(tenantRepository.existsBySlugAndStatusNot("acme-corp", TenantStatus.DELETED)).thenReturn(false);
         when(tenantRepository.save(any(TenantEntity.class))).thenAnswer(inv -> inv.getArgument(0));
 
         var result = tenantService.create(request, actorId);
@@ -59,7 +59,7 @@ class TenantServiceTest {
     void create_throwsForDuplicateSlug() {
         var request = new CreateTenantRequest("Acme Corp", "acme-corp", null);
 
-        when(tenantRepository.existsBySlug("acme-corp")).thenReturn(true);
+        when(tenantRepository.existsBySlugAndStatusNot("acme-corp", TenantStatus.DELETED)).thenReturn(true);
 
         assertThatThrownBy(() -> tenantService.create(request, UUID.randomUUID()))
                 .isInstanceOf(IllegalArgumentException.class)
@@ -71,7 +71,7 @@ class TenantServiceTest {
         var request = new CreateTenantRequest("Acme Corp", "acme-corp", null);
         var actorId = UUID.randomUUID();
 
-        when(tenantRepository.existsBySlug("acme-corp")).thenReturn(false);
+        when(tenantRepository.existsBySlugAndStatusNot("acme-corp", TenantStatus.DELETED)).thenReturn(false);
         when(tenantRepository.save(any(TenantEntity.class))).thenAnswer(inv -> inv.getArgument(0));
 
         tenantService.create(request, actorId);
@@ -85,7 +85,7 @@ class TenantServiceTest {
     void create_defaultsToLowTier() {
         var request = new CreateTenantRequest("Acme Corp", "acme-corp", null);
 
-        when(tenantRepository.existsBySlug("acme-corp")).thenReturn(false);
+        when(tenantRepository.existsBySlugAndStatusNot("acme-corp", TenantStatus.DELETED)).thenReturn(false);
         when(tenantRepository.save(any(TenantEntity.class))).thenAnswer(inv -> inv.getArgument(0));
 
         var result = tenantService.create(request, UUID.randomUUID());