diff --git a/app/javascript/dashboard/routes/dashboard/settings/agents/AddAgent.vue b/app/javascript/dashboard/routes/dashboard/settings/agents/AddAgent.vue
index 17cc94be0..f2037b080 100644
--- a/app/javascript/dashboard/routes/dashboard/settings/agents/AddAgent.vue
+++ b/app/javascript/dashboard/routes/dashboard/settings/agents/AddAgent.vue
@@ -130,15 +130,23 @@ export default {
         this.showAlert(this.$t('AGENT_MGMT.ADD.API.SUCCESS_MESSAGE'));
         this.onClose();
       } catch (error) {
-        const { response: { data: { error: errorResponse = '' } = {} } = {} } =
-          error;
+        const {
+          response: {
+            data: {
+              error: errorResponse = '',
+              attributes: attributes = [],
+              message: attrError = '',
+            } = {},
+          } = {},
+        } = error;
+
         let errorMessage = '';
-        if (error.response.status === 422) {
+        if (error.response.status === 422 && !attributes.includes('base')) {
           errorMessage = this.$t('AGENT_MGMT.ADD.API.EXIST_MESSAGE');
         } else {
           errorMessage = this.$t('AGENT_MGMT.ADD.API.ERROR_MESSAGE');
         }
-        this.showAlert(errorResponse || errorMessage);
+        this.showAlert(errorResponse || attrError || errorMessage);
       }
     },
   },
diff --git a/app/models/user.rb b/app/models/user.rb
index 25ae2826a..2870983a4 100644
--- a/app/models/user.rb
+++ b/app/models/user.rb
@@ -161,3 +161,4 @@ class User < ApplicationRecord
 end
 
 User.include_mod_with('Audit::User')
+User.include_mod_with('Concerns::User')
diff --git a/enterprise/app/models/enterprise/concerns/user.rb b/enterprise/app/models/enterprise/concerns/user.rb
new file mode 100644
index 000000000..ccb677761
--- /dev/null
+++ b/enterprise/app/models/enterprise/concerns/user.rb
@@ -0,0 +1,13 @@
+module Enterprise::Concerns::User
+  extend ActiveSupport::Concern
+
+  included do
+    before_validation :ensure_installation_pricing_plan_quantity
+  end
+
+  def ensure_installation_pricing_plan_quantity
+    return unless ChatwootHub.pricing_plan == 'premium'
+
+    errors.add(:base, 'User limit reached. Please purchase more licenses from super admin') if User.count >= ChatwootHub.pricing_plan_quantity
+  end
+end
diff --git a/spec/enterprise/models/user_spec.rb b/spec/enterprise/models/user_spec.rb
index ba1890a78..f09ddefc1 100644
--- a/spec/enterprise/models/user_spec.rb
+++ b/spec/enterprise/models/user_spec.rb
@@ -5,6 +5,44 @@ require 'rails_helper'
 RSpec.describe User do
   let(:user) { create(:user) }
 
+  describe 'before validation for pricing plans' do
+    let(:new_user) { build(:user) }
+
+    context 'when pricing plan is not premium' do
+      before do
+        allow(ChatwootHub).to receive(:pricing_plan).and_return('community')
+        allow(ChatwootHub).to receive(:pricing_plan_quantity).and_return(0)
+      end
+
+      it 'does not add an error to the user' do
+        new_user.valid?
+        expect(new_user.errors[:base]).to be_empty
+      end
+    end
+
+    context 'when pricing plan is premium' do
+      before do
+        allow(ChatwootHub).to receive(:pricing_plan).and_return('premium')
+      end
+
+      context 'when the user limit is reached' do
+        it 'adds an error to the user' do
+          allow(ChatwootHub).to receive(:pricing_plan_quantity).and_return(1)
+          user.valid?
+          expect(user.errors[:base]).to include('User limit reached. Please purchase more licenses from super admin')
+        end
+      end
+
+      context 'when the user limit is not reached' do
+        it 'does not add an error to the user' do
+          allow(ChatwootHub).to receive(:pricing_plan_quantity).and_return(2)
+          user.valid?
+          expect(user.errors[:base]).to be_empty
+        end
+      end
+    end
+  end
+
   describe 'audit log' do
     context 'when user is created' do
       it 'has no associated audit log created' do