diff --git a/server/src/__tests__/issues-service.test.ts b/server/src/__tests__/issues-service.test.ts
index 825e0048fd1..00ee44729e8 100644
--- a/server/src/__tests__/issues-service.test.ts
+++ b/server/src/__tests__/issues-service.test.ts
@@ -34,6 +34,7 @@ import { instanceSettingsService } from "../services/instance-settings.ts";
 import {
   clampIssueListLimit,
   deriveIssueCommentRunLogAttribution,
+  MAX_CHILD_ISSUES_CREATED_BY_HELPER,
   ISSUE_LIST_MAX_LIMIT,
   issueService,
 } from "../services/issues.ts";
@@ -3677,6 +3678,62 @@ describeEmbeddedPostgres("issueService.create workspace inheritance", () => {
 
     expect(child.requestDepth).toBe(MAX_ISSUE_REQUEST_DEPTH);
   });
+
+  it("counts only non-terminal children toward the helper child limit", async () => {
+    const companyId = randomUUID();
+    const parentIssueId = randomUUID();
+
+    await db.insert(companies).values({
+      id: companyId,
+      name: "Paperclip",
+      issuePrefix: `T${companyId.replace(/-/g, "").slice(0, 6).toUpperCase()}`,
+      requireBoardApprovalForNewAgents: false,
+    });
+    await db.insert(issues).values({
+      id: parentIssueId,
+      companyId,
+      title: "Recurring coordinator",
+      status: "in_progress",
+      priority: "high",
+    });
+
+    const terminalChildren = Array.from(
+      { length: MAX_CHILD_ISSUES_CREATED_BY_HELPER },
+      (_, index) => ({
+        id: randomUUID(),
+        companyId,
+        parentId: parentIssueId,
+        title: `Terminal child ${index + 1}`,
+        status: index % 2 === 0 ? "done" as const : "cancelled" as const,
+        priority: "medium" as const,
+      }),
+    );
+    const activeChildren = Array.from(
+      { length: MAX_CHILD_ISSUES_CREATED_BY_HELPER - 1 },
+      (_, index) => ({
+        id: randomUUID(),
+        companyId,
+        parentId: parentIssueId,
+        title: `Active child ${index + 1}`,
+        status: "todo" as const,
+        priority: "medium" as const,
+      }),
+    );
+    await db.insert(issues).values([...terminalChildren, ...activeChildren]);
+
+    const { issue: finalActiveChild } = await svc.createChild(parentIssueId, {
+      title: "Final active child",
+      status: "todo",
+    });
+
+    expect(finalActiveChild.parentId).toBe(parentIssueId);
+    await expect(svc.createChild(parentIssueId, {
+      title: "Over active limit",
+      status: "todo",
+    })).rejects.toThrow(
+      `Parent issue already has the maximum ${MAX_CHILD_ISSUES_CREATED_BY_HELPER} active child issues for this helper`,
+    );
+  });
 });
 
 describeEmbeddedPostgres("issueService blockers and dependency wake readiness", () => {
diff --git a/server/src/services/issues.ts b/server/src/services/issues.ts
index e7500973b01..34480f21123 100644
--- a/server/src/services/issues.ts
+++ b/server/src/services/issues.ts
@@ -6595,9 +6595,13 @@ export function issueService(db: Db) {
       const [{ childCount }] = await db
         .select({ childCount: sql<number>`count(*)::int` })
         .from(issues)
-        .where(and(eq(issues.companyId, parent.companyId), eq(issues.parentId, parent.id)));
+        .where(and(
+          eq(issues.companyId, parent.companyId),
+          eq(issues.parentId, parent.id),
+          notInArray(issues.status, ["done", "cancelled"]),
+        ));
       if (childCount >= MAX_CHILD_ISSUES_CREATED_BY_HELPER) {
-        throw unprocessable(`Parent issue already has the maximum ${MAX_CHILD_ISSUES_CREATED_BY_HELPER} child issues for this helper`);
+        throw unprocessable(`Parent issue already has the maximum ${MAX_CHILD_ISSUES_CREATED_BY_HELPER} active child issues for this helper`);
       }
 
       const {