diff --git a/resources/js/Components/CommandPalette/CommandPaletteProvider.vue b/resources/js/Components/CommandPalette/CommandPaletteProvider.vue
index 43aa0e3c..910c766b 100644
--- a/resources/js/Components/CommandPalette/CommandPaletteProvider.vue
+++ b/resources/js/Components/CommandPalette/CommandPaletteProvider.vue
@@ -29,6 +29,7 @@ import ClientCreateModal from '@/Components/Common/Client/ClientCreateModal.vue'
 import TaskCreateModal from '@/Components/Common/Task/TaskCreateModal.vue';
 import TagCreateModal from '@/packages/ui/src/Tag/TagCreateModal.vue';
 import GoalCreateModal from '@/Components/Common/Goal/GoalCreateModal.vue';
+import UpgradeModal from '@/packages/ui/src/UpgradeModal.vue';
 import MemberInviteModal from '@/Components/Common/Member/MemberInviteModal.vue';
 import TimeEntryCreateModal from '@/packages/ui/src/TimeEntry/TimeEntryCreateModal.vue';
 
@@ -53,6 +54,7 @@ const {
     showCreateTaskModal,
     showCreateTagModal,
     showCreateGoalModal,
+    showGoalUpgradeModal,
     showInviteMemberModal,
     showCreateTimeEntryModal,
     showProjectSelector,
@@ -185,6 +187,7 @@ const firstProjectId = computed(() => projects.value[0]?.id ?? '');
 
     <!-- Goal Create Modal -->
     <GoalCreateModal v-model:show="showCreateGoalModal" />
+    <UpgradeModal v-model:show="showGoalUpgradeModal" feature="goals" />
 
     <!-- Member Invite Modal -->
     <MemberInviteModal v-model:show="showInviteMemberModal" :available-roles="availableRoles" />
diff --git a/resources/js/Components/Common/Goal/GoalCreateButton.test.ts b/resources/js/Components/Common/Goal/GoalCreateButton.test.ts
new file mode 100644
index 00000000..52ef7cac
--- /dev/null
+++ b/resources/js/Components/Common/Goal/GoalCreateButton.test.ts
@@ -0,0 +1,43 @@
+import { describe, it, expect } from 'vitest';
+import { mount } from '@vue/test-utils';
+import GoalCreateButton from './GoalCreateButton.vue';
+
+function mountGoalCreateButton(canCreateMoreGoals: boolean) {
+    return mount(GoalCreateButton, {
+        props: { canCreateMoreGoals },
+        slots: { default: 'Create your first goal' },
+        global: {
+            stubs: {
+                GoalCreateModal: { name: 'GoalCreateModal', props: ['show'], template: '<div />' },
+                UpgradeModal: {
+                    name: 'UpgradeModal',
+                    props: ['show', 'feature'],
+                    template: '<div />',
+                },
+            },
+        },
+    });
+}
+
+describe('GoalCreateButton', () => {
+    it('opens the create modal while more goals can be created', async () => {
+        const wrapper = mountGoalCreateButton(true);
+
+        await wrapper.get('button').trigger('click');
+
+        expect(wrapper.getComponent({ name: 'GoalCreateModal' }).props('show')).toBe(true);
+        expect(wrapper.getComponent({ name: 'UpgradeModal' }).props('show')).toBe(false);
+    });
+
+    it('opens the upgrade modal once the goal limit is reached', async () => {
+        const wrapper = mountGoalCreateButton(false);
+
+        expect(wrapper.get('button').text()).toBe('Create your first goal');
+        await wrapper.get('button').trigger('click');
+
+        const upgradeModal = wrapper.getComponent({ name: 'UpgradeModal' });
+        expect(upgradeModal.props('show')).toBe(true);
+        expect(upgradeModal.props('feature')).toBe('goals');
+        expect(wrapper.getComponent({ name: 'GoalCreateModal' }).props('show')).toBe(false);
+    });
+});
diff --git a/resources/js/Components/Common/Goal/GoalCreateButton.vue b/resources/js/Components/Common/Goal/GoalCreateButton.vue
new file mode 100644
index 00000000..17928e43
--- /dev/null
+++ b/resources/js/Components/Common/Goal/GoalCreateButton.vue
@@ -0,0 +1,31 @@
+<script setup lang="ts">
+import SecondaryButton from '@/packages/ui/src/Buttons/SecondaryButton.vue';
+import UpgradeModal from '@/packages/ui/src/UpgradeModal.vue';
+import GoalCreateModal from '@/Components/Common/Goal/GoalCreateModal.vue';
+import { PlusIcon } from '@heroicons/vue/16/solid';
+import { ref } from 'vue';
+
+const props = defineProps<{
+    canCreateMoreGoals: boolean;
+}>();
+
+const showCreateGoalModal = ref(false);
+const showUpgradeModal = ref(false);
+
+// The button stays visible when the goal limit is reached and explains the limit instead
+function onClick() {
+    if (props.canCreateMoreGoals) {
+        showCreateGoalModal.value = true;
+    } else {
+        showUpgradeModal.value = true;
+    }
+}
+</script>
+
+<template>
+    <GoalCreateModal v-model:show="showCreateGoalModal"></GoalCreateModal>
+    <UpgradeModal v-model:show="showUpgradeModal" feature="goals" />
+    <SecondaryButton :icon="PlusIcon" @click="onClick">
+        <slot>Create Goal</slot>
+    </SecondaryButton>
+</template>
diff --git a/resources/js/Components/Common/Goal/GoalTable.vue b/resources/js/Components/Common/Goal/GoalTable.vue
index a5360828..53606f65 100644
--- a/resources/js/Components/Common/Goal/GoalTable.vue
+++ b/resources/js/Components/Common/Goal/GoalTable.vue
@@ -1,12 +1,9 @@
 <script setup lang="ts">
-import SecondaryButton from '@/packages/ui/src/Buttons/SecondaryButton.vue';
 import { Target } from '@lucide/vue';
-import { PlusIcon } from '@heroicons/vue/16/solid';
-import { ref } from 'vue';
 import type { Goal } from '@/packages/api/src';
 import GoalTableRow from '@/Components/Common/Goal/GoalTableRow.vue';
 import GoalTableHeading from '@/Components/Common/Goal/GoalTableHeading.vue';
-import GoalCreateModal from '@/Components/Common/Goal/GoalCreateModal.vue';
+import GoalCreateButton from '@/Components/Common/Goal/GoalCreateButton.vue';
 import { canCreateGoals } from '@/utils/permissions';
 import { LoadingSpinner } from '@/packages/ui/src';
 import { isGoalsExtensionActivated } from '@/utils/billing';
@@ -18,7 +15,6 @@ const props = defineProps<{
     showingArchived: boolean;
 }>();
 
-const showCreateGoalModal = ref(false);
 const showTargetColumn = isGoalsExtensionActivated();
 // Every column gets a share of the free space so the columns are spread evenly over the table
 const gridTemplateColumns = [
@@ -33,7 +29,6 @@ const gridTemplateColumns = [
 </script>
 
 <template>
-    <GoalCreateModal v-model:show="showCreateGoalModal"></GoalCreateModal>
     <div class="flow-root max-w-[100vw] overflow-x-auto">
         <div class="inline-block min-w-full align-middle">
             <div data-testid="goal_table" class="grid min-w-full" :style="{ gridTemplateColumns }">
@@ -51,14 +46,11 @@ const gridTemplateColumns = [
                     <p v-if="canCreateGoals() && !props.showingArchived" class="pb-5">
                         Set yourself a target and track your progress every day, week or month.
                     </p>
-                    <SecondaryButton
-                        v-if="
-                            canCreateGoals() && !props.showingArchived && props.canCreateMoreGoals
-                        "
-                        :icon="PlusIcon"
-                        @click="showCreateGoalModal = true"
+                    <GoalCreateButton
+                        v-if="canCreateGoals() && !props.showingArchived"
+                        :can-create-more-goals="props.canCreateMoreGoals"
                         >Create your first goal
-                    </SecondaryButton>
+                    </GoalCreateButton>
                 </div>
                 <template v-for="goal in props.goals" :key="goal.id">
                     <GoalTableRow
diff --git a/resources/js/Pages/Goals.vue b/resources/js/Pages/Goals.vue
index 1b2bd8ff..e422d0b0 100644
--- a/resources/js/Pages/Goals.vue
+++ b/resources/js/Pages/Goals.vue
@@ -2,19 +2,15 @@
 import MainContainer from '@/packages/ui/src/MainContainer.vue';
 import AppLayout from '@/Layouts/AppLayout.vue';
 import { Target } from '@lucide/vue';
-import { PlusIcon } from '@heroicons/vue/16/solid';
-import SecondaryButton from '@/packages/ui/src/Buttons/SecondaryButton.vue';
 import { computed, ref } from 'vue';
 import GoalTable from '@/Components/Common/Goal/GoalTable.vue';
-import GoalCreateModal from '@/Components/Common/Goal/GoalCreateModal.vue';
+import GoalCreateButton from '@/Components/Common/Goal/GoalCreateButton.vue';
 import PageTitle from '@/Components/Common/PageTitle.vue';
-import UpgradeBadge from '@/packages/ui/src/UpgradeBadge.vue';
 import { canCreateGoals } from '@/utils/permissions';
 import { canCreateMoreGoals } from '@/utils/billing';
 import { useGoalsQuery } from '@/utils/useGoalsQuery';
 import { TabBar, TabBarItem } from '@/packages/ui/src';
 
-const showCreateGoalModal = ref(false);
 const activeTab = ref('active');
 const showArchived = computed(() => activeTab.value === 'archived');
 
@@ -41,16 +37,9 @@ const canCreateMore = computed(() => canCreateMoreGoals(goals.value.length));
                     </TabBarItem>
                 </TabBar>
             </div>
-            <div class="flex items-center space-x-3">
-                <UpgradeBadge v-if="canCreateGoals() && !canCreateMore" feature="goals" />
-                <SecondaryButton
-                    v-if="canCreateGoals() && canCreateMore"
-                    :icon="PlusIcon"
-                    @click="showCreateGoalModal = true"
-                    >Create Goal
-                </SecondaryButton>
-            </div>
-            <GoalCreateModal v-model:show="showCreateGoalModal"></GoalCreateModal>
+            <GoalCreateButton
+                v-if="canCreateGoals()"
+                :can-create-more-goals="canCreateMore"></GoalCreateButton>
         </MainContainer>
         <GoalTable
             :goals="visibleGoals"
diff --git a/resources/js/utils/useCommandPalette.ts b/resources/js/utils/useCommandPalette.ts
index a340740b..a9d0b585 100644
--- a/resources/js/utils/useCommandPalette.ts
+++ b/resources/js/utils/useCommandPalette.ts
@@ -22,6 +22,8 @@ import {
     canCreateInvitations,
 } from '@/utils/permissions';
 import { isBillingActivated, isInvoicingActivated } from '@/utils/billing';
+import { useQueryClient } from '@tanstack/vue-query';
+import { fetchCanCreateMoreGoals } from '@/utils/useGoalsQuery';
 import { useTimeEntriesInfiniteQuery } from '@/utils/useTimeEntriesInfiniteQuery';
 import { useProjectsQuery } from '@/utils/useProjectsQuery';
 import { useClientsQuery } from '@/utils/useClientsQuery';
@@ -66,6 +68,7 @@ const showCreateClientModal = ref(false);
 const showCreateTaskModal = ref(false);
 const showCreateTagModal = ref(false);
 const showCreateGoalModal = ref(false);
+const showGoalUpgradeModal = ref(false);
 const showInviteMemberModal = ref(false);
 const showCreateTimeEntryModal = ref(false);
 
@@ -103,6 +106,7 @@ const ENTITY_ICONS: Record<string, typeof FolderIcon> = {
 };
 
 export function useCommandPalette() {
+    const queryClient = useQueryClient();
     const currentTimeEntryStore = useCurrentTimeEntryStore();
     const { currentTimeEntry, isActive } = storeToRefs(currentTimeEntryStore);
     const { setActiveState, updateTimer } = currentTimeEntryStore;
@@ -240,9 +244,13 @@ export function useCommandPalette() {
         showCreateTagModal.value = true;
     }
 
-    function openCreateGoalModal() {
+    async function openCreateGoalModal() {
         closePaletteAfterAction();
-        showCreateGoalModal.value = true;
+        if (await fetchCanCreateMoreGoals(queryClient)) {
+            showCreateGoalModal.value = true;
+        } else {
+            showGoalUpgradeModal.value = true;
+        }
     }
 
     function openInviteMemberModal() {
@@ -525,6 +533,7 @@ export function useCommandPalette() {
         showCreateTaskModal,
         showCreateTagModal,
         showCreateGoalModal,
+        showGoalUpgradeModal,
         showInviteMemberModal,
         showCreateTimeEntryModal,
         showProjectSelector,
diff --git a/resources/js/utils/useGoalsQuery.ts b/resources/js/utils/useGoalsQuery.ts
index 5146bba6..e2890f3c 100644
--- a/resources/js/utils/useGoalsQuery.ts
+++ b/resources/js/utils/useGoalsQuery.ts
@@ -1,9 +1,10 @@
-import { useQuery, useQueryClient } from '@tanstack/vue-query';
+import { useQuery, useQueryClient, type QueryClient } from '@tanstack/vue-query';
 import { api } from '@/packages/api/src';
 import { getCurrentOrganizationId } from '@/utils/useUser';
 import type { Goal } from '@/packages/api/src';
 import { computed } from 'vue';
 import { fetchAllPages } from '@/utils/fetchAllPages';
+import { canCreateMoreGoals, goalLimit } from '@/utils/billing';
 
 export type GoalArchivedFilter = 'true' | 'false' | 'all';
 
@@ -19,19 +20,38 @@ export async function fetchAllGoals(
     );
 }
 
-export function useGoalsQuery(archived: GoalArchivedFilter = 'false') {
-    const queryClient = useQueryClient();
-
-    const query = useQuery({
-        queryKey: computed(() => ['goals', getCurrentOrganizationId(), archived]),
+export function goalsQueryOptions(archived: GoalArchivedFilter = 'false') {
+    return {
+        queryKey: ['goals', getCurrentOrganizationId(), archived],
         queryFn: async () => {
             const organizationId = getCurrentOrganizationId();
             if (!organizationId) throw new Error('No organization');
             const data = await fetchAllGoals(organizationId, archived);
             return { data };
         },
-        enabled: () => !!getCurrentOrganizationId(),
         staleTime: 1000 * 30, // 30 seconds
+    };
+}
+
+/**
+ * Checks the goal limit outside of the goals page, where the goals are not loaded yet.
+ * Archived goals count towards the limit, so all goals are counted.
+ */
+export async function fetchCanCreateMoreGoals(queryClient: QueryClient): Promise<boolean> {
+    if (goalLimit() === null) {
+        return true;
+    }
+    const { data } = await queryClient.fetchQuery(goalsQueryOptions('all'));
+    return canCreateMoreGoals(data.length);
+}
+
+export function useGoalsQuery(archived: GoalArchivedFilter = 'false') {
+    const queryClient = useQueryClient();
+
+    const query = useQuery({
+        ...goalsQueryOptions(archived),
+        queryKey: computed(() => goalsQueryOptions(archived).queryKey),
+        enabled: () => !!getCurrentOrganizationId(),
         // Progress is computed server side, keep it fresh while the page is open
         refetchInterval: 1000 * 60,
     });