diff --git a/packages/void/src/cli/create-project.ts b/packages/void/src/cli/create-project.ts
index 04880c29b..6bd083286 100644
--- a/packages/void/src/cli/create-project.ts
+++ b/packages/void/src/cli/create-project.ts
@@ -1,25 +1,35 @@
 import { log } from '@clack/prompts';
-import { PlatformApiError, type PlatformClient } from './client.ts';
+import { PlatformApiError, type CreateProjectResponse, type PlatformClient } from './client.ts';
 import { pc } from './output.ts';
 import { writeProjectConfig, type ProjectConfig } from './project.ts';
 import { promptProjectSlug } from './prompt.ts';
 import { inferDefaultSlug } from './resolve-project.ts';
 
-export async function promptAndCreateProject(
-  root: string,
+/**
+ * Prompts for a slug and calls `client.createProject`, re-prompting whenever
+ * the server rejects with a retryable error (e.g. free-plan short-slug 403,
+ * slug-already-taken 409, validation 400/422). Returns `undefined` when the
+ * caller's prompt callback returns `undefined` (cancel).
+ *
+ * The shared retry loop keeps `promptAndCreateProject` (deploy/link paths)
+ * and the AI-setup path in `index.ts` in sync.
+ */
+export async function createProjectWithSlugRetry(
   client: PlatformClient,
-): Promise<ProjectConfig> {
-  let defaultSlug = inferDefaultSlug(root);
+  initialDefaultSlug: string,
+  promptSlug: (defaultSlug: string) => Promise<string | undefined>,
+): Promise<CreateProjectResponse | undefined> {
+  let defaultSlug = initialDefaultSlug;
   while (true) {
-    // promptProjectSlug exits the process on Ctrl+C, so no cancel check needed here
-    const slug = await promptProjectSlug(defaultSlug);
+    const slug = await promptSlug(defaultSlug);
+    if (slug === undefined) {
+      return undefined;
+    }
     try {
       log.step(`Creating project ${pc.blue(slug)}...`);
       const project = await client.createProject(slug);
-      const config: ProjectConfig = { projectId: project.id, slug: project.slug };
-      writeProjectConfig(root, config);
-      log.success(`Project created: ${pc.blue(config.slug)}`);
-      return config;
+      log.success(`Project created: ${pc.blue(project.slug)}`);
+      return project;
     } catch (error) {
       if (error instanceof PlatformApiError && isRetryableCreateError(error)) {
         const reason = error.code || error.body || `HTTP ${error.status}`;
@@ -32,6 +42,44 @@ export async function promptAndCreateProject(
   }
 }
 
-function isRetryableCreateError(error: PlatformApiError): boolean {
-  return error.status === 400 || error.status === 409 || error.status === 422;
+export async function promptAndCreateProject(
+  root: string,
+  client: PlatformClient,
+): Promise<ProjectConfig> {
+  // promptProjectSlug exits the process on Ctrl+C, so it never returns undefined.
+  const project = await createProjectWithSlugRetry(
+    client,
+    inferDefaultSlug(root),
+    async (defaultSlug) => promptProjectSlug(defaultSlug),
+  );
+  // createProjectWithSlugRetry only returns undefined when the prompt does,
+  // which promptProjectSlug never does (it exits on cancel).
+  if (!project) {
+    throw new Error('Project creation cancelled.');
+  }
+  const config: ProjectConfig = { projectId: project.id, slug: project.slug };
+  writeProjectConfig(root, config);
+  return config;
+}
+
+export function isRetryableCreateError(error: PlatformApiError): boolean {
+  if (error.status === 400 || error.status === 409 || error.status === 422) {
+    return true;
+  }
+  // 403 is retryable ONLY when it's the slug-length plan rejection — other
+  // 403s (e.g. account suspended from auth middleware) are not fixable by
+  // choosing a different slug and would cause an infinite re-prompt loop.
+  if (error.status === 403) {
+    return isSlugRelatedError(error);
+  }
+  return false;
+}
+
+function isSlugRelatedError(error: PlatformApiError): boolean {
+  // Inspect BOTH `code` (parsed error/message field) and `body` (full response
+  // text). The server's current short-slug response embeds "slug" in `error`,
+  // but a future generic code like "forbidden" with the slug detail only in a
+  // separate message field would slip past a `code ?? body` short-circuit.
+  const haystack = `${error.code ?? ''} ${error.body ?? ''}`.toLowerCase();
+  return haystack.includes('slug');
 }
diff --git a/packages/void/src/cli/project-slug.ts b/packages/void/src/cli/project-slug.ts
index 03770840f..3c4ca04a0 100644
--- a/packages/void/src/cli/project-slug.ts
+++ b/packages/void/src/cli/project-slug.ts
@@ -10,9 +10,9 @@ export function validateProjectSlug(value: string | undefined): string | undefin
   if (!valid) {
     return 'Slug must be lowercase alphanumeric with dashes.';
   }
-  if (slug.length <= 5) {
-    return 'Slugs of 5 characters or fewer require a paid plan. Use at least 6 characters.';
-  }
 
+  // Plan-based slug-length restrictions are enforced server-side so the check
+  // can read the caller's current plan. The retry loop in create-project.ts
+  // re-prompts when the server rejects.
   return undefined;
 }
diff --git a/packages/void/src/index.ts b/packages/void/src/index.ts
index df6d91f72..a4771a181 100644
--- a/packages/void/src/index.ts
+++ b/packages/void/src/index.ts
@@ -514,29 +514,41 @@ async function runAiSetupPrompt(
   let slug: string;
 
   if (result === '__create__') {
-    const defaultSlug = inferDefaultSlug(root);
     const { validateProjectSlug } = await import('./cli/project-slug.ts');
-    const slugResult = await text({
-      message: 'Choose a slug for your new Void project:',
-      placeholder: 'my-app',
-      initialValue: defaultSlug,
-      validate: validateProjectSlug,
-    });
-    if (isCancel(slugResult)) {
-      return;
-    }
-
+    const { createProjectWithSlugRetry } = await import('./cli/create-project.ts');
+    let created;
     try {
-      const created = await client.createProject(slugResult.trim());
-      projectId = created.id;
-      slug = created.slug;
+      // Share the slug-retry loop with deploy/link paths so server-side plan
+      // rejections (e.g. free-plan short-slug 403) re-prompt consistently.
+      // The prompt callback returns `undefined` on Ctrl+C so the helper can
+      // exit cleanly instead of calling process.exit().
+      created = await createProjectWithSlugRetry(
+        client,
+        inferDefaultSlug(root),
+        async (defaultSlug) => {
+          const slugResult = await text({
+            message: 'Choose a slug for your new Void project:',
+            placeholder: 'my-app',
+            initialValue: defaultSlug,
+            validate: validateProjectSlug,
+          });
+          if (isCancel(slugResult)) {
+            return undefined;
+          }
+          return slugResult.trim();
+        },
+      );
     } catch (err: unknown) {
       voidError(
         `project: Failed to create project: '${err instanceof Error ? err.message : String(err)}'.`,
       );
       return;
     }
-    log.success(`Project created: ${pc.blue(slug)}`);
+    if (!created) {
+      return;
+    }
+    projectId = created.id;
+    slug = created.slug;
   } else {
     const project = projects.find(
       (p: import('./cli/client.ts').ProjectResponse) => p.id === result,
diff --git a/packages/void/test/unit/deploy-project-setup.test.ts b/packages/void/test/unit/deploy-project-setup.test.ts
index a29659832..e862b1543 100644
--- a/packages/void/test/unit/deploy-project-setup.test.ts
+++ b/packages/void/test/unit/deploy-project-setup.test.ts
@@ -77,7 +77,7 @@ describe('promptDeployProjectConfig', () => {
     expect(JSON.parse(readFileSync(join(root, '.void', 'project.json'), 'utf-8'))).toEqual(config);
   });
 
-  it('rejects short free-plan project slugs at the prompt', async () => {
+  it('accepts short slugs at the prompt and lets the server enforce plan limits', async () => {
     const { promptProjectSlug } = await import('../../src/cli/prompt.ts');
     mockText.mockResolvedValueOnce('valid-app');
 
@@ -86,11 +86,81 @@ describe('promptDeployProjectConfig', () => {
     const promptConfig = mockText.mock.calls[0]?.[0] as {
       validate: (value: string) => string | undefined;
     };
-    expect(promptConfig.validate('abcde')).toBe(
-      'Slugs of 5 characters or fewer require a paid plan. Use at least 6 characters.',
-    );
+    // Short slugs no longer rejected client-side — plan is checked server-side.
+    expect(promptConfig.validate('abc')).toBeUndefined();
+    expect(promptConfig.validate('abcde')).toBeUndefined();
     expect(promptConfig.validate('abcdef')).toBeUndefined();
+    // Format check still runs locally.
     expect(promptConfig.validate('ABC')).toBe('Slug must be lowercase alphanumeric with dashes.');
+    expect(promptConfig.validate('')).toBe('Project slug is required.');
+  });
+
+  it('re-prompts when the server rejects a short slug for a free-plan user', async () => {
+    const { promptDeployProjectConfig } = await import('../../src/cli/deploy.ts');
+    const { PlatformApiError } = await import('../../src/cli/client.ts');
+    const client = createClient();
+    client.listProjects.mockResolvedValueOnce([]);
+    client.createProject
+      .mockRejectedValueOnce(
+        new PlatformApiError(
+          'createProject',
+          403,
+          JSON.stringify({ error: 'short slugs (5 characters or fewer) require a paid plan' }),
+        ),
+      )
+      .mockResolvedValueOnce({ id: 'proj_new', slug: 'longer-app' });
+    mockSelect.mockResolvedValueOnce('create');
+    mockText.mockResolvedValueOnce('oxc').mockResolvedValueOnce('longer-app');
+
+    const config = await promptDeployProjectConfig(root, client);
+
+    expect(client.createProject).toHaveBeenNthCalledWith(1, 'oxc');
+    expect(client.createProject).toHaveBeenNthCalledWith(2, 'longer-app');
+    expect(mockText).toHaveBeenCalledTimes(2);
+    expect(config).toEqual({ projectId: 'proj_new', slug: 'longer-app' });
+  });
+
+  it('retries when 403 body mentions slug but code is generic', async () => {
+    const { promptDeployProjectConfig } = await import('../../src/cli/deploy.ts');
+    const { PlatformApiError } = await import('../../src/cli/client.ts');
+    const client = createClient();
+    client.listProjects.mockResolvedValueOnce([]);
+    // Generic top-level error code with the slug detail only in `message` —
+    // the retry check must inspect both fields, not short-circuit on `code`.
+    client.createProject
+      .mockRejectedValueOnce(
+        new PlatformApiError(
+          'createProject',
+          403,
+          JSON.stringify({ error: 'forbidden', message: 'slug too short for plan' }),
+        ),
+      )
+      .mockResolvedValueOnce({ id: 'proj_new', slug: 'longer-app' });
+    mockSelect.mockResolvedValueOnce('create');
+    mockText.mockResolvedValueOnce('oxc').mockResolvedValueOnce('longer-app');
+
+    const config = await promptDeployProjectConfig(root, client);
+
+    expect(client.createProject).toHaveBeenNthCalledWith(1, 'oxc');
+    expect(client.createProject).toHaveBeenNthCalledWith(2, 'longer-app');
+    expect(config).toEqual({ projectId: 'proj_new', slug: 'longer-app' });
+  });
+
+  it('does not retry on non-slug 403 errors (e.g. account suspended)', async () => {
+    const { promptDeployProjectConfig } = await import('../../src/cli/deploy.ts');
+    const { PlatformApiError } = await import('../../src/cli/client.ts');
+    const client = createClient();
+    client.listProjects.mockResolvedValueOnce([]);
+    client.createProject.mockRejectedValueOnce(
+      new PlatformApiError('createProject', 403, JSON.stringify({ error: 'account suspended' })),
+    );
+    mockSelect.mockResolvedValueOnce('create');
+    mockText.mockResolvedValueOnce('my-app');
+
+    await expect(promptDeployProjectConfig(root, client)).rejects.toThrow(PlatformApiError);
+
+    expect(client.createProject).toHaveBeenCalledTimes(1);
+    expect(mockText).toHaveBeenCalledTimes(1);
   });
 
   it('does not show project names when creating with existing projects available', async () => {