diff --git a/src/Database/DatabaseManager.php b/src/Database/DatabaseManager.php
index e85fd659..6242ffa9 100644
--- a/src/Database/DatabaseManager.php
+++ b/src/Database/DatabaseManager.php
@@ -7,10 +7,12 @@ namespace Stancl\Tenancy\Database;
 use Illuminate\Config\Repository;
 use Illuminate\Contracts\Foundation\Application;
 use Illuminate\Database\DatabaseManager as BaseDatabaseManager;
+use Stancl\Tenancy\Contracts\ManagesDatabaseUsers;
 use Stancl\Tenancy\Contracts\TenantCannotBeCreatedException;
 use Stancl\Tenancy\Contracts\TenantWithDatabase;
 use Stancl\Tenancy\Exceptions\DatabaseManagerNotRegisteredException;
 use Stancl\Tenancy\Exceptions\TenantDatabaseAlreadyExistsException;
+use Stancl\Tenancy\Exceptions\TenantDatabaseUserAlreadyExistsException;
 
 /**
  * @internal Class is subject to breaking changes in minor and patch versions.
@@ -90,8 +92,14 @@ class DatabaseManager
      */
     public function ensureTenantCanBeCreated(TenantWithDatabase $tenant): void
     {
-        if ($tenant->database()->manager()->databaseExists($database = $tenant->database()->getName())) {
+        $manager = $tenant->database()->manager();
+
+        if ($manager->databaseExists($database = $tenant->database()->getName())) {
             throw new TenantDatabaseAlreadyExistsException($database);
         }
+
+        if ($manager instanceof ManagesDatabaseUsers && $manager->userExists($username = $tenant->database()->getUsername())) {
+            throw new TenantDatabaseUserAlreadyExistsException($username);
+        }
     }
 }
diff --git a/src/TenantDatabaseManagers/PermissionControlledMySQLDatabaseManager.php b/src/TenantDatabaseManagers/PermissionControlledMySQLDatabaseManager.php
index f8bedc97..918601a8 100644
--- a/src/TenantDatabaseManagers/PermissionControlledMySQLDatabaseManager.php
+++ b/src/TenantDatabaseManagers/PermissionControlledMySQLDatabaseManager.php
@@ -7,7 +7,6 @@ namespace Stancl\Tenancy\TenantDatabaseManagers;
 use Stancl\Tenancy\Concerns\CreatesDatabaseUsers;
 use Stancl\Tenancy\Contracts\ManagesDatabaseUsers;
 use Stancl\Tenancy\DatabaseConfig;
-use Stancl\Tenancy\Exceptions\TenantDatabaseUserAlreadyExistsException;
 
 class PermissionControlledMySQLDatabaseManager extends MySQLDatabaseManager implements ManagesDatabaseUsers
 {
@@ -26,10 +25,6 @@ class PermissionControlledMySQLDatabaseManager extends MySQLDatabaseManager impl
         $hostname = $databaseConfig->connection()['host'];
         $password = $databaseConfig->getPassword();
 
-        if ($this->userExists($username)) {
-            throw new TenantDatabaseUserAlreadyExistsException($username);
-        }
-
         $this->database()->statement("CREATE USER `{$username}`@`%` IDENTIFIED BY '{$password}'");
 
         $grants = implode(', ', static::$grants);
diff --git a/tests/DatabaseUsersTest.php b/tests/DatabaseUsersTest.php
index 0b095024..344239d1 100644
--- a/tests/DatabaseUsersTest.php
+++ b/tests/DatabaseUsersTest.php
@@ -10,6 +10,7 @@ use Illuminate\Support\Str;
 use Stancl\JobPipeline\JobPipeline;
 use Stancl\Tenancy\Bootstrappers\DatabaseTenancyBootstrapper;
 use Stancl\Tenancy\Contracts\ManagesDatabaseUsers;
+use Stancl\Tenancy\Events\DatabaseCreated;
 use Stancl\Tenancy\Events\TenancyInitialized;
 use Stancl\Tenancy\Events\TenantCreated;
 use Stancl\Tenancy\Exceptions\TenantDatabaseUserAlreadyExistsException;
@@ -67,14 +68,18 @@ class DatabaseUsersTest extends TestCase
         $this->assertTrue($manager->databaseExists($tenant->database()->getName()));
 
         $this->expectException(TenantDatabaseUserAlreadyExistsException::class);
+        Event::fake([DatabaseCreated::class]);
+
         $tenant2 = Tenant::create([
             'tenancy_db_username' => $username,
         ]);
 
         /** @var ManagesDatabaseUsers $manager */
-        $manager = $tenant2->database()->manager();
+        $manager2 = $tenant2->database()->manager();
+
         // database was not created because of DB transaction
-        $this->assertFalse($manager->databaseExists($tenant2->database()->getName()));
+        $this->assertFalse($manager2->databaseExists($tenant2->database()->getName()));
+        Event::assertNotDispatched(DatabaseCreated::class);
     }
 
     /** @test */