diff --git a/libs/ui-lib-tests/cypress/support/interceptors.ts b/libs/ui-lib-tests/cypress/support/interceptors.ts
index e0799b4fdb..593eb1f947 100644
--- a/libs/ui-lib-tests/cypress/support/interceptors.ts
+++ b/libs/ui-lib-tests/cypress/support/interceptors.ts
@@ -248,6 +248,8 @@ const addClusterPatchAndDetailsIntercepts = () => {
 
 const addDay1InfraEnvIntercepts = () => {
   const infraEnvApiPath = getDay1InfraEnvApiPath();
+  let infraEnvCreated = false;
+
   // Actions on particular infraEnv
   cy.intercept('GET', infraEnvApiPath, mockInfraEnvResponse).as('infra-env-details');
 
@@ -258,11 +260,26 @@ const addDay1InfraEnvIntercepts = () => {
   // Actions on all the infraEnvs
   cy.intercept('PATCH', infraEnvApiPath, mockInfraEnvResponse).as('update-infra-env');
 
-  cy.intercept('GET', `${allInfraEnvsApiPath}?cluster_id=${Cypress.env('clusterId')}`, [
-    fixtures.baseInfraEnv,
-  ]).as('filter-infra-envs');
+  cy.intercept('GET', `${allInfraEnvsApiPath}?cluster_id=${Cypress.env('clusterId')}`, (req) => {
+    // Return empty array until POST creates the infraEnv, or if signal indicates it already exists
+    // Signal starts as '' and is set to a value after cluster/infraenv creation
+    const currentSignal = Cypress.env('AI_LAST_SIGNAL');
+    const willReturnFixture = infraEnvCreated || (currentSignal !== '' && currentSignal !== undefined && currentSignal !== null);
+
+    console.log(`GET infra-envs: signal="${currentSignal}", infraEnvCreated=${infraEnvCreated}, returning ${willReturnFixture ? 'fixture' : 'empty'}`);
+
+    if (willReturnFixture) {
+      req.reply([fixtures.baseInfraEnv]);
+    } else {
+      req.reply([]);
+    }
+  }).as('filter-infra-envs');
 
-  cy.intercept('POST', allInfraEnvsApiPath, mockInfraEnvResponse).as('create-infra-env');
+  cy.intercept('POST', allInfraEnvsApiPath, (req) => {
+    console.log('POST infra-env');
+    infraEnvCreated = true;
+    mockInfraEnvResponse(req);
+  }).as('create-infra-env');
 };
 
 const getDay2InfraEnvByCpuArch = (req) => {
diff --git a/libs/ui-lib/lib/ocm/hooks/useInfraEnvId.ts b/libs/ui-lib/lib/ocm/hooks/useInfraEnvId.ts
index 8dca06a67a..655652a5b0 100644
--- a/libs/ui-lib/lib/ocm/hooks/useInfraEnvId.ts
+++ b/libs/ui-lib/lib/ocm/hooks/useInfraEnvId.ts
@@ -22,24 +22,29 @@ export default function useInfraEnvId(
 
   const findInfraEnvId = React.useCallback(async () => {
     try {
-      const infraEnvId = await InfraEnvsService.getInfraEnvId(
-        clusterId,
-        cpuArchitecture,
-        isSingleClusterFeatureEnabled,
-      );
-      if (infraEnvId && !(infraEnvId instanceof Error)) {
-        setInfraEnv(infraEnvId);
-      } else {
-        //If infraEnv doesn't exist create a new one
-        if (pullSecret) {
-          const infraEnv = await InfraEnvsService.create({
+      if (pullSecret) {
+        const infraEnv = await InfraEnvsService.getOrCreate(
+          {
             name: InfraEnvsService.makeInfraEnvName(cpuArchitecture, clusterName),
             pullSecret,
             clusterId,
             openshiftVersion,
             cpuArchitecture: cpuArchitecture as InfraEnvCreateParams['cpuArchitecture'],
-          });
-          setInfraEnv(infraEnv.id);
+          },
+          isSingleClusterFeatureEnabled,
+        );
+        setInfraEnv(infraEnv.id);
+      } else {
+        // No pullSecret available, just try to find existing InfraEnv
+        const infraEnvId = await InfraEnvsService.getInfraEnvId(
+          clusterId,
+          cpuArchitecture,
+          isSingleClusterFeatureEnabled,
+        );
+        if (infraEnvId && !(infraEnvId instanceof Error)) {
+          setInfraEnv(infraEnvId);
+        } else if (infraEnvId instanceof Error) {
+          setError(getErrorMessage(infraEnvId));
         }
       }
     } catch (e) {
diff --git a/libs/ui-lib/lib/ocm/services/ClustersService.ts b/libs/ui-lib/lib/ocm/services/ClustersService.ts
index f6c5c94e9e..331f83f3c6 100644
--- a/libs/ui-lib/lib/ocm/services/ClustersService.ts
+++ b/libs/ui-lib/lib/ocm/services/ClustersService.ts
@@ -48,9 +48,7 @@ const ClustersService = {
       infraEnvCreateParams.imageType = 'minimal-iso';
     }
 
-    if (!isSingleClusterFeatureEnabled) {
-      await InfraEnvsService.create(infraEnvCreateParams);
-    }
+    await InfraEnvsService.getOrCreate(infraEnvCreateParams, isSingleClusterFeatureEnabled);
 
     return cluster;
   },
diff --git a/libs/ui-lib/lib/ocm/services/InfraEnvsService.ts b/libs/ui-lib/lib/ocm/services/InfraEnvsService.ts
index d122399700..7470aeb9cd 100644
--- a/libs/ui-lib/lib/ocm/services/InfraEnvsService.ts
+++ b/libs/ui-lib/lib/ocm/services/InfraEnvsService.ts
@@ -3,6 +3,7 @@ import { CpuArchitecture } from '../../common';
 import { InfraEnvsAPI } from './apis';
 import InfraEnvCache from './InfraEnvIdsCacheService';
 import { getDummyInfraEnvField } from '../components/clusterConfiguration/staticIp/data/dummyData';
+import { isAxiosError } from '../../common/api/axiosExtensions';
 import {
   Cluster,
   HostStaticNetworkConfig,
@@ -67,6 +68,47 @@ const InfraEnvsService = {
     return infraEnv;
   },
 
+  async getOrCreate(
+    params: InfraEnvCreateParams,
+    isSingleClusterFeatureEnabled?: boolean,
+  ): Promise<InfraEnv> {
+    if (!params.clusterId) {
+      throw new Error('Cannot create InfraEnv, clusterId is missing');
+    }
+
+    if (!params.cpuArchitecture) {
+      throw new Error('Cannot get or create InfraEnv, cpuArchitecture is missing');
+    }
+
+    // Check if an InfraEnv already exists
+    try {
+      const existingInfraEnvId = await InfraEnvsService.getInfraEnvId(
+        params.clusterId,
+        params.cpuArchitecture as CpuArchitecture,
+        isSingleClusterFeatureEnabled,
+      );
+
+      if (existingInfraEnvId && !(existingInfraEnvId instanceof Error)) {
+        // InfraEnv exists, fetch and return it
+        const { data: infraEnv } = await InfraEnvsAPI.get(existingInfraEnvId);
+        // Update cache to maintain consistency
+        InfraEnvCache.updateInfraEnvs(params.clusterId, [infraEnv]);
+        return infraEnv;
+      }
+    } catch (error) {
+      // Only suppress 404 (not found) errors - let other errors propagate
+      if (isAxiosError(error) && error.response?.status === 404) {
+        // Fall through to create a new InfraEnv
+      } else {
+        // Re-throw authentication, network, and other unexpected errors
+        throw error;
+      }
+    }
+
+    // No InfraEnv exists, create one
+    return InfraEnvsService.create(params);
+  },
+
   async removeAll(clusterId: Cluster['id']) {
     const { data: infraEnvs } = await InfraEnvsAPI.list(clusterId);