diff --git a/bitwarden_license/src/Commercial.Core/Billing/Providers/Services/BusinessUnitConverter.cs b/bitwarden_license/src/Commercial.Core/Billing/Providers/Services/BusinessUnitConverter.cs
index 5fa2c9405c45..8a2dd2a4891a 100644
--- a/bitwarden_license/src/Commercial.Core/Billing/Providers/Services/BusinessUnitConverter.cs
+++ b/bitwarden_license/src/Commercial.Core/Billing/Providers/Services/BusinessUnitConverter.cs
@@ -332,6 +332,11 @@ private async Task SendInviteAsync(
             Fail("Organization must be on an enterprise plan.");
         }
 
+        if (organization.UseSecretsManager)
+        {
+            Fail("Organization is subscribed to Secrets Manager.");
+        }
+
         var subscription = await subscriberService.GetSubscription(organization);
 
         if (subscription is not
@@ -418,6 +423,11 @@ void Fail(string scopedError)
             problems.Add("Organization must be on an enterprise plan.");
         }
 
+        if (organization.UseSecretsManager)
+        {
+            problems.Add("Organization is subscribed to Secrets Manager. Please contact Customer Support to convert this organization to a business unit.");
+        }
+
         var subscription = await subscriberService.GetSubscription(organization);
 
         if (subscription is not
diff --git a/bitwarden_license/test/Commercial.Core.Test/Billing/Providers/Services/BusinessUnitConverterTests.cs b/bitwarden_license/test/Commercial.Core.Test/Billing/Providers/Services/BusinessUnitConverterTests.cs
index 48b971a032a8..d00b67051e2a 100644
--- a/bitwarden_license/test/Commercial.Core.Test/Billing/Providers/Services/BusinessUnitConverterTests.cs
+++ b/bitwarden_license/test/Commercial.Core.Test/Billing/Providers/Services/BusinessUnitConverterTests.cs
@@ -72,6 +72,7 @@ public async Task FinalizeConversion_Succeeds_ReturnsProviderId(
         string organizationKey)
     {
         organization.PlanType = PlanType.EnterpriseAnnually2020;
+        organization.UseSecretsManager = false;
 
         var enterpriseAnnually2020 = MockPlans.Get(PlanType.EnterpriseAnnually2020);
 
@@ -206,6 +207,25 @@ await _organizationUserRepository.DidNotReceiveWithAnyArgs()
             .GetByOrganizationAsync(Arg.Any<Guid>(), Arg.Any<Guid>());
     }
 
+    [Theory, BitAutoData]
+    public async Task FinalizeConversion_OrganizationUsesSecretsManager_ThrowsBillingException(
+        Organization organization,
+        Guid userId,
+        string token,
+        string providerKey,
+        string organizationKey)
+    {
+        organization.PlanType = PlanType.EnterpriseAnnually2020;
+        organization.UseSecretsManager = true;
+
+        var businessUnitConverter = BuildConverter();
+
+        await Assert.ThrowsAsync<BillingException>(() =>
+            businessUnitConverter.FinalizeConversion(organization, userId, token, providerKey, organizationKey));
+
+        await _subscriberService.DidNotReceiveWithAnyArgs().GetSubscription(Arg.Any<Organization>());
+    }
+
     #endregion
 
     #region InitiateConversion
@@ -216,6 +236,7 @@ public async Task InitiateConversion_Succeeds_ReturnsProviderId(
         string providerAdminEmail)
     {
         organization.PlanType = PlanType.EnterpriseAnnually;
+        organization.UseSecretsManager = false;
 
         _subscriberService.GetSubscription(organization).Returns(new Subscription
         {
@@ -292,6 +313,7 @@ public async Task InitiateConversion_ValidationFails_ReturnsErrors(
         string providerAdminEmail)
     {
         organization.PlanType = PlanType.TeamsMonthly;
+        organization.UseSecretsManager = true;
 
         _subscriberService.GetSubscription(organization).Returns(new Subscription
         {
@@ -324,6 +346,8 @@ public async Task InitiateConversion_ValidationFails_ReturnsErrors(
 
         Assert.Contains("Organization must be on an enterprise plan.", problems);
 
+        Assert.Contains("Organization is subscribed to Secrets Manager. Please contact Customer Support to convert this organization to a business unit.", problems);
+
         Assert.Contains("Organization must have a valid subscription.", problems);
 
         Assert.Contains("Organization is already linked to a provider.", problems);
@@ -331,6 +355,45 @@ public async Task InitiateConversion_ValidationFails_ReturnsErrors(
         Assert.Contains("Provider admin must be a confirmed member of the organization being converted.", problems);
     }
 
+    [Theory, BitAutoData]
+    public async Task InitiateConversion_OrganizationUsesSecretsManager_ReturnsError(
+        Organization organization,
+        string providerAdminEmail)
+    {
+        organization.PlanType = PlanType.EnterpriseAnnually;
+        organization.UseSecretsManager = true;
+
+        _subscriberService.GetSubscription(organization).Returns(new Subscription
+        {
+            Status = StripeConstants.SubscriptionStatus.Active
+        });
+
+        var user = new User
+        {
+            Id = Guid.NewGuid(),
+            Email = providerAdminEmail
+        };
+
+        _userRepository.GetByEmailAsync(providerAdminEmail).Returns(user);
+
+        var organizationUser = new OrganizationUser { Status = OrganizationUserStatusType.Confirmed };
+
+        _organizationUserRepository.GetByOrganizationAsync(organization.Id, user.Id)
+            .Returns(organizationUser);
+
+        var businessUnitConverter = BuildConverter();
+
+        var result = await businessUnitConverter.InitiateConversion(organization, providerAdminEmail);
+
+        Assert.True(result.IsT1);
+
+        var problems = result.AsT1;
+
+        Assert.Contains("Organization is subscribed to Secrets Manager. Please contact Customer Support to convert this organization to a business unit.", problems);
+
+        await _providerRepository.DidNotReceiveWithAnyArgs().CreateAsync(Arg.Any<Provider>());
+    }
+
     #endregion
 
     #region ResendConversionInvite
diff --git a/src/Admin/AdminConsole/Views/Organizations/Edit.cshtml b/src/Admin/AdminConsole/Views/Organizations/Edit.cshtml
index 690ee3d778c1..a736de797657 100644
--- a/src/Admin/AdminConsole/Views/Organizations/Edit.cshtml
+++ b/src/Admin/AdminConsole/Views/Organizations/Edit.cshtml
@@ -18,7 +18,8 @@
     var canConvertToBusinessUnit = AccessControlService.UserHasPermission(Permission.Org_Billing_ConvertToBusinessUnit) &&
                                    Model.Organization.PlanType.GetProductTier() == ProductTierType.Enterprise &&
                                    !string.IsNullOrEmpty(Model.Organization.GatewaySubscriptionId) &&
-                                   Model.Provider is null or { Type: ProviderType.BusinessUnit, Status: ProviderStatusType.Pending };
+                                   Model.Provider is null or { Type: ProviderType.BusinessUnit, Status: ProviderStatusType.Pending } &&
+                                   !Model.Organization.UseSecretsManager;
 }
 
 @section Scripts {