diff --git a/server/src/main/java/com/cloud/user/AccountManagerImpl.java b/server/src/main/java/com/cloud/user/AccountManagerImpl.java
index d4c23e8d62be..2e0884cbce24 100644
--- a/server/src/main/java/com/cloud/user/AccountManagerImpl.java
+++ b/server/src/main/java/com/cloud/user/AccountManagerImpl.java
@@ -2112,14 +2112,30 @@ public boolean deleteUserAccount(long accountId) {
 
     protected void checkIfAccountManagesProjects(long accountId) {
         List<Long> managedProjectIds = _projectAccountDao.listAdministratedProjectIds(accountId);
-        if (!CollectionUtils.isEmpty(managedProjectIds)) {
-            throw new InvalidParameterValueException(String.format(
+
+        if (CollectionUtils.isEmpty(managedProjectIds)) {
+            return;
+        }
+
+        List<Long> activeManagedProjects = new ArrayList<>();
+
+        for (Long projectId : managedProjectIds) {
+            ProjectVO project = _projectDao.findById(projectId);
+            if (project != null && project.getRemoved() == null) {
+                activeManagedProjects.add(projectId);
+            }
+        }
+
+        if (!activeManagedProjects.isEmpty()) {
+            throw new InvalidParameterValueException(
+                String.format(
                     "Unable to delete account [%s], because it manages the following project(s): %s. Please, remove the account from these projects or demote it to a regular project role first.",
-                    accountId, managedProjectIds
+                    accountId, activeManagedProjects
             ));
         }
     }
 
+
     protected boolean isDeleteNeeded(AccountVO account, long accountId, Account caller) {
         if (account == null) {
             logger.info(String.format("The account, identified by id %d, doesn't exist", accountId ));
diff --git a/server/src/test/java/com/cloud/user/AccountManagerImplTest.java b/server/src/test/java/com/cloud/user/AccountManagerImplTest.java
index 2aeb43469d19..a2684bfe8d60 100644
--- a/server/src/test/java/com/cloud/user/AccountManagerImplTest.java
+++ b/server/src/test/java/com/cloud/user/AccountManagerImplTest.java
@@ -26,6 +26,8 @@
 import java.util.HashMap;
 import java.util.List;
 import java.util.Map;
+import java.util.Date;
+
 
 import org.apache.cloudstack.acl.ControlledEntity;
 import org.apache.cloudstack.acl.Role;
@@ -54,8 +56,11 @@
 import org.mockito.MockedStatic;
 import org.mockito.Mockito;
 import org.mockito.junit.MockitoJUnitRunner;
+import org.mockito.InjectMocks;
+import org.mockito.Spy;
 import org.springframework.beans.factory.NoSuchBeanDefinitionException;
 
+
 import com.cloud.acl.DomainChecker;
 import com.cloud.api.auth.SetupUserTwoFactorAuthenticationCmd;
 import com.cloud.domain.Domain;
@@ -75,10 +80,17 @@
 import com.cloud.vm.UserVmVO;
 import com.cloud.vm.VMInstanceVO;
 import com.cloud.vm.snapshot.VMSnapshotVO;
+import com.cloud.projects.ProjectVO;
+import com.cloud.projects.dao.ProjectAccountDao;
+import com.cloud.projects.dao.ProjectDao;
 
 @RunWith(MockitoJUnitRunner.class)
 public class AccountManagerImplTest extends AccountManagetImplTestBase {
 
+    @Spy
+    @InjectMocks
+    private AccountManagerImpl accountManagerImpl;
+
     @Mock
     private UserVmManagerImpl _vmMgr;
     @Mock
@@ -117,9 +129,16 @@ public class AccountManagerImplTest extends AccountManagetImplTestBase {
 
     @Mock
     private ProjectAccountVO projectAccountVO;
+
     @Mock
     private Project project;
 
+    @Mock
+    private ProjectAccountDao _projectAccountDao;
+
+    @Mock
+    private ProjectDao _projectDao;
+
     @Mock
     PasswordPolicyImpl passwordPolicyMock;
 
@@ -1589,4 +1608,23 @@ public void testcheckCallerApiPermissionsForUserOperationsNotAllowedApis() {
 
         accountManagerImpl.checkCallerApiPermissionsForUserOrAccountOperations(accountMock);
     }
+
+    @Test
+    public void testCheckIfAccountManagesOnlyDeletedProjectsDoesNotThrow() {
+        long accountId = 42L;
+        long projectId = 100L;
+
+        Mockito.when(_projectAccountDao.listAdministratedProjectIds(accountId))
+                .thenReturn(List.of(projectId));
+
+        ProjectVO deletedProject = Mockito.mock(ProjectVO.class);
+        Mockito.when(deletedProject.getRemoved()).thenReturn(new Date());
+
+        Mockito.when(_projectDao.findById(projectId))
+                .thenReturn(deletedProject);
+
+        accountManagerImpl.checkIfAccountManagesProjects(accountId);
+
+    }
+
 }