diff --git a/doc/whats-new.rst b/doc/whats-new.rst
index d1505bfa081..8c807f03dab 100644
--- a/doc/whats-new.rst
+++ b/doc/whats-new.rst
@@ -53,6 +53,11 @@ Deprecations
 Bug Fixes
 ~~~~~~~~~
 
+- Fixed ``DataArray.str.replace`` replacing every occurrence instead of none when
+  ``n=0``. ``re.sub`` treats ``count=0`` as "replace all", so the regex code path
+  collapsed ``n=0`` onto ``n=-1``, while the ``regex=False`` path already handled
+  ``n=0`` correctly (:pull:`11545`).
+  By `Alexander Kropiunig <https://github.com/Kropiunig>`_.
 - Fix async zarr tests using ``wraps`` with ``autospec=True`` on async methods,
   which caused ``AsyncMock`` objects to leak through instead of real array data
   (:pull:`11232`).
diff --git a/xarray/core/accessor_str.py b/xarray/core/accessor_str.py
index 0699fbdd5b1..b2f6fd4a897 100644
--- a/xarray/core/accessor_str.py
+++ b/xarray/core/accessor_str.py
@@ -1944,8 +1944,10 @@ def replace(
 
         if regex:
             pat = self._re_compile(pat=pat, flags=flags, case=case)
-            func = lambda x, ipat, irepl, i_n: ipat.sub(
-                repl=irepl, string=x, count=max(i_n, 0)
+            # ``re.sub`` interprets ``count=0`` as "replace every occurrence",
+            # so ``n=0`` has to be special-cased to mean "replace nothing".
+            func = lambda x, ipat, irepl, i_n: (
+                x if i_n == 0 else ipat.sub(repl=irepl, string=x, count=max(i_n, 0))
             )
         else:
             pat = self._stringify(pat)
diff --git a/xarray/tests/test_accessor_str.py b/xarray/tests/test_accessor_str.py
index 0741fa364fc..5f5849bc9de 100644
--- a/xarray/tests/test_accessor_str.py
+++ b/xarray/tests/test_accessor_str.py
@@ -381,6 +381,28 @@ def test_replace(dtype) -> None:
     assert_equal(result, expected)
 
 
+def test_replace_n_zero(dtype) -> None:
+    # ``n=0`` means "make no replacements", for regex and literal patterns alike
+    values = xr.DataArray(["fooBAD__barBAD"], dims=["x"]).astype(dtype)
+
+    result = values.str.replace("BAD[_]*", "", n=0)
+    assert result.dtype == values.dtype
+    assert_equal(result, values)
+
+    result = values.str.replace("BAD", "", n=0, regex=False)
+    assert result.dtype == values.dtype
+    assert_equal(result, values)
+
+    # ``n`` is broadcast, so a single zero must not spill over to its neighbours
+    n = xr.DataArray([0, 1, -1], dims=["y"])
+    result = values.str.replace("BAD[_]*", "", n=n)
+    expected = xr.DataArray(
+        [["fooBAD__barBAD", "foobarBAD", "foobar"]], dims=["x", "y"]
+    ).astype(dtype)
+    assert result.dtype == expected.dtype
+    assert_equal(result, expected)
+
+
 def test_replace_callable() -> None:
     values = xr.DataArray(["fooBAD__barBAD"])