diff --git a/src/vs/workbench/contrib/chat/browser/chatTipService.ts b/src/vs/workbench/contrib/chat/browser/chatTipService.ts
index 067031e1330..deed7959ada 100644
--- a/src/vs/workbench/contrib/chat/browser/chatTipService.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatTipService.ts
@@ -608,6 +608,11 @@ export class ChatTipService extends Disposable implements IChatTipService {
 			return undefined;
 		}
 
+		// Don't show tips when chat quota is exceeded, the upgrade widget is more relevant
+		if (this._isChatQuotaExceeded(contextKeyService)) {
+			return undefined;
+		}
+
 		// Return the already-shown tip for stable rerenders
 		if (this._tipRequestId === 'welcome' && this._shownTip) {
 			return this._createTip(this._shownTip);
@@ -722,6 +727,10 @@ export class ChatTipService extends Disposable implements IChatTipService {
 		return !location || location === ChatAgentLocation.Chat;
 	}
 
+	private _isChatQuotaExceeded(contextKeyService: IContextKeyService): boolean {
+		return contextKeyService.getContextKeyValue<boolean>(ChatContextKeys.chatQuotaExceeded.key) === true;
+	}
+
 	private _isCopilotEnabled(): boolean {
 		const defaultChatAgent = this._productService.defaultChatAgent;
 		return !!defaultChatAgent?.chatExtensionId;