diff --git a/.sqlx/query-8941a709b6223b3ef010a1c41098738c87ab132a63c1736382bca59e882c47e4.json b/.sqlx/query-97b1f59b98de39bdd76a0960447f900acda7960bd61c7bb3f2650a3b289526af.json
similarity index 59%
rename from .sqlx/query-8941a709b6223b3ef010a1c41098738c87ab132a63c1736382bca59e882c47e4.json
rename to .sqlx/query-97b1f59b98de39bdd76a0960447f900acda7960bd61c7bb3f2650a3b289526af.json
index b75191b17e..3f24c2dba7 100644
--- a/.sqlx/query-8941a709b6223b3ef010a1c41098738c87ab132a63c1736382bca59e882c47e4.json
+++ b/.sqlx/query-97b1f59b98de39bdd76a0960447f900acda7960bd61c7bb3f2650a3b289526af.json
@@ -1,6 +1,6 @@
 {
   "db_name": "PostgreSQL",
-  "query": "SELECT (SELECT count(*) FROM \"user\") \"users!\", (SELECT count(*) FROM device WHERE device_type = 'user') \"user_devices!\", (SELECT count(*) FROM device WHERE device_type = 'network') \"network_devices!\",\n        (SELECT count(*) FROM wireguard_network) \"wireguard_networks!\"\n        ",
+  "query": "SELECT (SELECT count(*) FROM \"user\" WHERE is_active) \"users!\", (SELECT count(*) FROM device WHERE device_type = 'user') \"user_devices!\", (SELECT count(*) FROM device WHERE device_type = 'network') \"network_devices!\",\n        (SELECT count(*) FROM wireguard_network) \"wireguard_networks!\"\n        ",
   "describe": {
     "columns": [
       {
@@ -34,5 +34,5 @@
       null
     ]
   },
-  "hash": "8941a709b6223b3ef010a1c41098738c87ab132a63c1736382bca59e882c47e4"
+  "hash": "97b1f59b98de39bdd76a0960447f900acda7960bd61c7bb3f2650a3b289526af"
 }
diff --git a/crates/defguard_core/src/enterprise/limits.rs b/crates/defguard_core/src/enterprise/limits.rs
index 046bb22234..72fc2761b9 100644
--- a/crates/defguard_core/src/enterprise/limits.rs
+++ b/crates/defguard_core/src/enterprise/limits.rs
@@ -22,7 +22,7 @@ pub async fn update_counts<'e, E: sqlx::PgExecutor<'e>>(executor: E) -> sqlx::Re
     debug!("Updating device, user, and wireguard network counts.");
     let result = query!(
         "SELECT \
-        (SELECT count(*) FROM \"user\") \"users!\", \
+        (SELECT count(*) FROM \"user\" WHERE is_active) \"users!\", \
         (SELECT count(*) FROM device WHERE device_type = 'user') \"user_devices!\", \
         (SELECT count(*) FROM device WHERE device_type = 'network') \"network_devices!\",
         (SELECT count(*) FROM wireguard_network) \"wireguard_networks!\"
diff --git a/crates/defguard_core/src/handlers/user.rs b/crates/defguard_core/src/handlers/user.rs
index 974e16cf0e..0e19485ea9 100644
--- a/crates/defguard_core/src/handlers/user.rs
+++ b/crates/defguard_core/src/handlers/user.rs
@@ -973,6 +973,20 @@ pub(crate) async fn modify_user(
             return Ok(ApiResponse::with_status(StatusCode::BAD_REQUEST));
         }
 
+        // check if re-enabling a disabled user will go over license limits
+        if !user.is_active && user_info.is_active {
+            let user_count = get_counts().user();
+
+            if get_cached_license()
+                .as_ref()
+                .and_then(|l| l.limits.as_ref())
+                .is_some_and(|l| user_count >= l.users)
+            {
+                error!("Enabling user {username} blocked! License limit reached.");
+                return Ok(WebError::Forbidden("License limit reached").into());
+            }
+        }
+
         // update VPN gateway config if user status or groups have changed
         group_diff = user_info
             .handle_user_groups(&mut transaction, &mut user)
@@ -1003,6 +1017,9 @@ pub(crate) async fn modify_user(
 
     user.save(&mut *transaction).await?;
     transaction.commit().await?;
+    if status_changing {
+        update_counts(&appstate.pool).await?;
+    }
     let user_info = UserInfo::from_user(
         &appstate.pool,
         user.clone(),
@@ -1770,6 +1787,24 @@ pub(crate) async fn bulk_enable_users(
         ));
     }
 
+    // check if enabling the requested users will go over license limits
+    let to_enable_count = users.iter().filter(|user| !user.is_active).count() as u32;
+    if to_enable_count > 0 {
+        let user_count = get_counts().user();
+
+        if get_cached_license()
+            .as_ref()
+            .and_then(|l| l.limits.as_ref())
+            .is_some_and(|l| user_count + to_enable_count > l.users)
+        {
+            error!(
+                "User {} bulk-enabling users blocked! License limit reached.",
+                session.user.username
+            );
+            return Ok(WebError::Forbidden("License limit reached").into());
+        }
+    }
+
     let mut events = Vec::with_capacity(users.len());
     let mut transaction = appstate.pool.begin().await?;
     for user in users {
@@ -1784,6 +1819,9 @@ pub(crate) async fn bulk_enable_users(
         events.push((before, user_to_enable));
     }
     transaction.commit().await?;
+    if to_enable_count > 0 {
+        update_counts(&appstate.pool).await?;
+    }
 
     for (_, user) in &mut events {
         Box::pin(ldap_update_user_state(
diff --git a/crates/defguard_core/src/user_management.rs b/crates/defguard_core/src/user_management.rs
index 48308f4f83..89b3724872 100644
--- a/crates/defguard_core/src/user_management.rs
+++ b/crates/defguard_core/src/user_management.rs
@@ -88,6 +88,7 @@ pub async fn disable_user(
 ) -> Result<(), UserManagementError> {
     user.is_active = false;
     user.save(&mut *conn).await?;
+    update_counts(&mut *conn).await?;
     user.logout_all_sessions(&mut *conn).await?;
     sync_allowed_user_devices(user, conn, gateway_tx).await?;
     Ok(())
diff --git a/crates/defguard_core/tests/integration/api/user.rs b/crates/defguard_core/tests/integration/api/user.rs
index 7de417fc96..f70f433e8e 100644
--- a/crates/defguard_core/tests/integration/api/user.rs
+++ b/crates/defguard_core/tests/integration/api/user.rs
@@ -1046,6 +1046,222 @@ async fn test_add_user_blocked_when_user_count_exceeds_license_limit(
     client.assert_event_queue_is_empty();
 }
 
+#[sqlx::test]
+async fn test_disabled_users_not_counted_towards_license_limit(
+    _: PgPoolOptions,
+    options: PgConnectOptions,
+) {
+    let pool = setup_pool(options).await;
+
+    let (mut client, pool) = make_client_with_db(pool).await;
+
+    client.login_user("admin", "pass123").await;
+
+    // baseline is admin + hpotter, both active
+    let hpotter = get_db_user(&pool, "hpotter").await;
+    let response = client
+        .post("/api/v1/user/bulk-disable")
+        .json(&serde_json::json!({ "users": [hpotter.id] }))
+        .send()
+        .await;
+    assert_eq!(response.status(), StatusCode::OK);
+
+    let license = get_cached_license().clone();
+    set_cached_license(Some(License::new(
+        "test_customer".to_owned(),
+        false,
+        None,
+        Some(LicenseLimits {
+            users: 2,
+            devices: 100,
+            locations: 100,
+            network_devices: Some(100),
+        }),
+        None,
+        LicenseTier::Business,
+        SupportType::Basic,
+        vec![],
+    )));
+
+    // only admin is active, so there is still room under the limit of 2
+    let new_user = AddUserData {
+        username: "adumbledore".into(),
+        last_name: "Dumbledore".into(),
+        first_name: "Albus".into(),
+        email: "a.dumbledore@hogwart.edu.uk".into(),
+        phone: Some("1234".into()),
+        password: Some("Password1234543$!".into()),
+    };
+    let response = client.post("/api/v1/user").json(&new_user).send().await;
+    assert_eq!(response.status(), StatusCode::CREATED);
+
+    set_cached_license(license);
+}
+
+#[sqlx::test]
+async fn test_modify_user_enable_blocked_when_it_would_exceed_license_limit(
+    _: PgPoolOptions,
+    options: PgConnectOptions,
+) {
+    let pool = setup_pool(options).await;
+
+    let (mut client, pool) = make_client_with_db(pool).await;
+
+    client.login_user("admin", "pass123").await;
+
+    let new_user = AddUserData {
+        username: "adumbledore".into(),
+        last_name: "Dumbledore".into(),
+        first_name: "Albus".into(),
+        email: "a.dumbledore@hogwart.edu.uk".into(),
+        phone: Some("1234".into()),
+        password: Some("Password1234543$!".into()),
+    };
+    let response = client.post("/api/v1/user").json(&new_user).send().await;
+    assert_eq!(response.status(), StatusCode::CREATED);
+    let added_dumbledore = get_db_user(&pool, "adumbledore").await;
+
+    // disable the new user so there is something to re-enable; active count drops back to 2
+    let response = client
+        .post("/api/v1/user/bulk-disable")
+        .json(&serde_json::json!({ "users": [added_dumbledore.id] }))
+        .send()
+        .await;
+    assert_eq!(response.status(), StatusCode::OK);
+    let disabled_dumbledore = get_db_user(&pool, "adumbledore").await;
+    assert!(!disabled_dumbledore.is_active);
+
+    let license = get_cached_license().clone();
+    set_cached_license(Some(License::new(
+        "test_customer".to_owned(),
+        false,
+        None,
+        Some(LicenseLimits {
+            users: 2,
+            devices: 100,
+            locations: 100,
+            network_devices: Some(100),
+        }),
+        None,
+        LicenseTier::Business,
+        SupportType::Basic,
+        vec![],
+    )));
+
+    // active count is already at the limit of 2 (admin, hpotter), so re-enabling must be blocked
+    let mut user_details = fetch_user_details(&client, "adumbledore").await;
+    user_details.user.is_active = true;
+    let response = client
+        .put("/api/v1/user/adumbledore")
+        .json(&user_details.user)
+        .send()
+        .await;
+    assert_eq!(response.status(), StatusCode::FORBIDDEN);
+
+    let still_disabled_dumbledore = get_db_user(&pool, "adumbledore").await;
+    assert!(!still_disabled_dumbledore.is_active);
+
+    set_cached_license(license);
+    client.verify_api_events(&[
+        ApiEventType::UserAdded {
+            user: added_dumbledore.clone(),
+        },
+        ApiEventType::UserModified {
+            before: added_dumbledore,
+            after: disabled_dumbledore,
+        },
+    ]);
+}
+
+#[sqlx::test]
+async fn test_bulk_enable_users_blocked_when_it_would_exceed_license_limit(
+    _: PgPoolOptions,
+    options: PgConnectOptions,
+) {
+    let pool = setup_pool(options).await;
+
+    let (mut client, pool) = make_client_with_db(pool).await;
+
+    client.login_user("admin", "pass123").await;
+
+    for (username, email) in [
+        ("adumbledore", "a.dumbledore@hogwart.edu.uk"),
+        ("mmcgonagall", "m.mcgonagall@hogwart.edu.uk"),
+    ] {
+        let new_user = AddUserData {
+            username: username.into(),
+            last_name: format!("{username}-last"),
+            first_name: format!("{username}-first"),
+            email: email.into(),
+            phone: Some("1234".into()),
+            password: Some("Password1234543$!".into()),
+        };
+        let response = client.post("/api/v1/user").json(&new_user).send().await;
+        assert_eq!(response.status(), StatusCode::CREATED);
+    }
+
+    let added_dumbledore = get_db_user(&pool, "adumbledore").await;
+    let added_mcgonagall = get_db_user(&pool, "mmcgonagall").await;
+
+    // disable both new users; active count drops back to 2 (admin, hpotter)
+    let response = client
+        .post("/api/v1/user/bulk-disable")
+        .json(&serde_json::json!({ "users": [added_dumbledore.id, added_mcgonagall.id] }))
+        .send()
+        .await;
+    assert_eq!(response.status(), StatusCode::OK);
+    let disabled_dumbledore = get_db_user(&pool, "adumbledore").await;
+    let disabled_mcgonagall = get_db_user(&pool, "mmcgonagall").await;
+
+    let license = get_cached_license().clone();
+    set_cached_license(Some(License::new(
+        "test_customer".to_owned(),
+        false,
+        None,
+        Some(LicenseLimits {
+            users: 3,
+            devices: 100,
+            locations: 100,
+            network_devices: Some(100),
+        }),
+        None,
+        LicenseTier::Business,
+        SupportType::Basic,
+        vec![],
+    )));
+
+    // active count is 2 (admin, hpotter); re-enabling both would bring it to 4, over the limit of 3
+    let response = client
+        .post("/api/v1/user/bulk-enable")
+        .json(&serde_json::json!({ "users": [disabled_dumbledore.id, disabled_mcgonagall.id] }))
+        .send()
+        .await;
+    assert_eq!(response.status(), StatusCode::FORBIDDEN);
+
+    let still_disabled_dumbledore = get_db_user(&pool, "adumbledore").await;
+    let still_disabled_mcgonagall = get_db_user(&pool, "mmcgonagall").await;
+    assert!(!still_disabled_dumbledore.is_active);
+    assert!(!still_disabled_mcgonagall.is_active);
+
+    set_cached_license(license);
+    client.verify_api_events(&[
+        ApiEventType::UserAdded {
+            user: added_dumbledore.clone(),
+        },
+        ApiEventType::UserAdded {
+            user: added_mcgonagall.clone(),
+        },
+        ApiEventType::UserModified {
+            before: added_dumbledore,
+            after: disabled_dumbledore,
+        },
+        ApiEventType::UserModified {
+            before: added_mcgonagall,
+            after: disabled_mcgonagall,
+        },
+    ]);
+}
+
 #[sqlx::test]
 async fn test_check_username(_: PgPoolOptions, options: PgConnectOptions) {
     let pool = setup_pool(options).await;