diff --git a/app/Filament/Admin/Pages/Settings.php b/app/Filament/Admin/Pages/Settings.php
index 3887feea7..f7a8c9b63 100644
--- a/app/Filament/Admin/Pages/Settings.php
+++ b/app/Filament/Admin/Pages/Settings.php
@@ -623,6 +623,18 @@ class Settings extends Page implements HasSchemas
                         ->columnSpanFull()
                         ->stateCast(new BooleanStateCast(false))
                         ->default(env('PANEL_CLIENT_ALLOCATIONS_ENABLED', config('panel.client_features.allocations.enabled'))),
+                    Toggle::make('PANEL_CLIENT_ALLOCATIONS_CREATE_NEW')
+                        ->label(trans('admin/setting.misc.auto_allocation.create_new'))
+                        ->helperText(trans('admin/setting.misc.auto_allocation.create_new_help'))
+                        ->onIcon('tabler-check')
+                        ->offIcon('tabler-x')
+                        ->onColor('success')
+                        ->offColor('danger')
+                        ->live()
+                        ->columnSpanFull()
+                        ->visible(fn (Get $get) => $get('PANEL_CLIENT_ALLOCATIONS_ENABLED'))
+                        ->stateCast(new BooleanStateCast(false))
+                        ->default(env('PANEL_CLIENT_ALLOCATIONS_CREATE_NEW', config('panel.client_features.allocations.create_new'))),
                     TextInput::make('PANEL_CLIENT_ALLOCATIONS_RANGE_START')
                         ->label(trans('admin/setting.misc.auto_allocation.start'))
                         ->required()
diff --git a/app/Services/Allocations/FindAssignableAllocationService.php b/app/Services/Allocations/FindAssignableAllocationService.php
index d242564be..69aa8470d 100644
--- a/app/Services/Allocations/FindAssignableAllocationService.php
+++ b/app/Services/Allocations/FindAssignableAllocationService.php
@@ -21,9 +21,11 @@ class FindAssignableAllocationService
     public function __construct(private AssignmentService $service) {}
 
     /**
-     * Finds an existing unassigned allocation and attempts to assign it to the given server. If
-     * no allocation can be found, a new one will be created with a random port between the defined
-     * range from the configuration.
+     * Finds an existing unassigned allocation and attempts to assign it to the given server.
+     *
+     * Always attempts to find an existing unassigned allocation first. If create_new is enabled
+     * and no unassigned allocation is available, creates a new one from the configured port range.
+     * If create_new is disabled, throws an exception when no unassigned allocations are available.
      *
      * @throws DisplayException
      * @throws CidrOutOfRangeException
@@ -37,9 +39,11 @@ class FindAssignableAllocationService
             throw new AutoAllocationNotEnabledException();
         }
 
+        $createNew = config('panel.client_features.allocations.create_new', true);
+
         // Attempt to find a given available allocation for a server. If one cannot be found
-        // we will fall back to attempting to create a new allocation that can be used for the
-        // server.
+        // and create_new is enabled, we will fall back to attempting to create a new allocation
+        // that can be used for the server.
         $start = config('panel.client_features.allocations.range_start', null);
         $end = config('panel.client_features.allocations.range_end', null);
 
@@ -61,6 +65,12 @@ class FindAssignableAllocationService
             ->inRandomOrder()
             ->first();
 
+        // If create_new is disabled, only pick from existing allocations
+        if (!$createNew && !$allocation) {
+            throw new NoAutoAllocationSpaceAvailableException();
+        }
+
+        // If create_new is enabled, create a new allocation if none available
         $allocation ??= $this->createNewAllocation($server, $start, $end);
 
         $allocation->update(['server_id' => $server->id]);
diff --git a/config/panel.php b/config/panel.php
index 70a0c2952..c03b626b1 100644
--- a/config/panel.php
+++ b/config/panel.php
@@ -33,6 +33,7 @@ return [
 
         'allocations' => [
             'enabled' => env('PANEL_CLIENT_ALLOCATIONS_ENABLED', false),
+            'create_new' => env('PANEL_CLIENT_ALLOCATIONS_CREATE_NEW', true),
             'range_start' => env('PANEL_CLIENT_ALLOCATIONS_RANGE_START'),
             'range_end' => env('PANEL_CLIENT_ALLOCATIONS_RANGE_END'),
         ],
diff --git a/lang/en/admin/setting.php b/lang/en/admin/setting.php
index 963143c10..356842bf1 100644
--- a/lang/en/admin/setting.php
+++ b/lang/en/admin/setting.php
@@ -108,6 +108,8 @@ return [
             'title' => 'Automatic Allocation Creation',
             'helper' => 'Toggle if Users can create allocations via the client area.',
             'question' => 'Allow Users to create Allocations?',
+            'create_new' => 'Create new allocations if none available?',
+            'create_new_help' => 'When enabled, creates new allocations. When disabled, only assigns from existing unassigned allocations. Both options faktor the port range below into account.',
             'start' => 'Start Port',
             'end' => 'End Port',
         ],