diff --git a/litellm/proxy/management_endpoints/scim/scim_errors.py b/litellm/proxy/management_endpoints/scim/scim_errors.py
new file mode 100644
index 00000000000..9e09f6e095e
--- /dev/null
+++ b/litellm/proxy/management_endpoints/scim/scim_errors.py
@@ -0,0 +1,13 @@
+from fastapi import HTTPException
+
+
+class ScimUserAlreadyExists(HTTPException):
+    """
+    Exception raised when a user already exists in the database.
+    """
+    def __init__(self, message: str, scim_type: str = "uniqueness"):
+        super().__init__(status_code=409, detail=message)
+        self.message = message
+        self.scim_type = scim_type
+        self.schemas = ["urn:ietf:params:scim:api:messages:2.0:Error"]
+    
\ No newline at end of file
diff --git a/litellm/proxy/management_endpoints/scim/scim_v2.py b/litellm/proxy/management_endpoints/scim/scim_v2.py
index 65dae40fa01..e6f7ed012cf 100644
--- a/litellm/proxy/management_endpoints/scim/scim_v2.py
+++ b/litellm/proxy/management_endpoints/scim/scim_v2.py
@@ -17,6 +17,7 @@ from fastapi import (
     Request,
     Response,
 )
+from prisma.types import HttpConfig
 
 from litellm._logging import verbose_proxy_logger
 from litellm.litellm_core_utils.safe_json_dumps import safe_dumps
@@ -32,9 +33,11 @@ from litellm.proxy._types import (
 )
 from litellm.proxy.auth.user_api_key_auth import user_api_key_auth
 from litellm.proxy.management_endpoints.internal_user_endpoints import new_user
+from litellm.proxy.management_endpoints.scim.scim_errors import ScimUserAlreadyExists
 from litellm.proxy.management_endpoints.scim.scim_transformations import (
     ScimTransformations,
 )
+from litellm.proxy.management_endpoints.scim.utils import _extract_error_message
 from litellm.proxy.management_endpoints.team_endpoints import (
     new_team,
     team_member_add,
@@ -285,7 +288,6 @@ async def get_user(
     except Exception as e:
         raise handle_exception_on_proxy(e)
 
-
 @scim_router.post(
     "/Users",
     response_model=SCIMUser,
@@ -335,7 +337,8 @@ async def create_user(
             user=created_user
         )
         return scim_user
-        
+    except HTTPException as e: # allow exceptions like SCIMUserAlreadyExists to be raised
+        raise e
     except Exception as e:
         raise handle_exception_on_proxy(e)
 
diff --git a/litellm/proxy/management_endpoints/scim/utils.py b/litellm/proxy/management_endpoints/scim/utils.py
new file mode 100644
index 00000000000..e899781b203
--- /dev/null
+++ b/litellm/proxy/management_endpoints/scim/utils.py
@@ -0,0 +1,20 @@
+from fastapi import HTTPException
+
+
+async def _check_user_exists(prisma_client, user_name: str) -> bool:
+    """Check if user already exists by username"""
+    if not user_name:
+        return False
+    
+    existing_user = await prisma_client.db.litellm_usertable.find_unique(
+        where={"user_id": user_name}
+    )
+    return existing_user is not None
+
+
+def _extract_error_message(http_exception: HTTPException) -> str:
+    """Extract error message from HTTPException detail"""
+    if isinstance(http_exception.detail, dict):
+        return http_exception.detail.get("error", "User already exists")
+    return str(http_exception.detail)
+
diff --git a/tests/test_litellm/proxy/management_endpoints/scim/test_scim_v2_endpoints.py b/tests/test_litellm/proxy/management_endpoints/scim/test_scim_v2_endpoints.py
new file mode 100644
index 00000000000..8f7ec1f9b46
--- /dev/null
+++ b/tests/test_litellm/proxy/management_endpoints/scim/test_scim_v2_endpoints.py
@@ -0,0 +1,42 @@
+from unittest.mock import AsyncMock
+
+import pytest
+
+from litellm.proxy.management_endpoints.scim.scim_errors import ScimUserAlreadyExists
+from litellm.proxy.management_endpoints.scim.scim_v2 import create_user
+from litellm.types.proxy.management_endpoints.scim_v2 import (
+    SCIMUser,
+    SCIMUserEmail,
+    SCIMUserName,
+)
+
+
+@pytest.mark.asyncio
+async def test_create_user_existing_user_conflict(mocker):
+    """If a user already exists, create_user should raise ScimUserAlreadyExists"""
+
+    scim_user = SCIMUser(
+        schemas=["urn:ietf:params:scim:schemas:core:2.0:User"],
+        userName="existing-user",
+        name=SCIMUserName(familyName="User", givenName="Existing"),
+        emails=[SCIMUserEmail(value="existing@example.com")],
+    )
+
+    mock_prisma = mocker.MagicMock()
+
+    mocker.patch("litellm.proxy.proxy_server.prisma_client", mock_prisma)
+    mocker.patch(
+        "litellm.proxy.management_endpoints.scim.scim_v2._check_user_exists",
+        AsyncMock(return_value=True),
+    )
+    mocked_new_user = mocker.patch(
+        "litellm.proxy.management_endpoints.scim.scim_v2.new_user",
+        AsyncMock(),
+    )
+
+    with pytest.raises(ScimUserAlreadyExists) as exc_info:
+        await create_user(user=scim_user)
+
+    assert exc_info.value.status_code == 409
+    assert "existing-user" in exc_info.value.message
+    mocked_new_user.assert_not_called()