diff --git a/command/v7/create_user_provided_service_command.go b/command/v7/create_user_provided_service_command.go
index fbe7a412bda..7b6b5fc27c7 100644
--- a/command/v7/create_user_provided_service_command.go
+++ b/command/v7/create_user_provided_service_command.go
@@ -1,6 +1,7 @@
 package v7
 
 import (
+	"code.cloudfoundry.org/cli/api/cloudcontroller/ccerror"
 	"code.cloudfoundry.org/cli/command"
 	"code.cloudfoundry.org/cli/command/flag"
 	"code.cloudfoundry.org/cli/resources"
@@ -43,7 +44,16 @@ func (cmd CreateUserProvidedServiceCommand) Execute(args []string) error {
 
 	warnings, err := cmd.Actor.CreateUserProvidedServiceInstance(serviceInstance)
 	cmd.UI.DisplayWarnings(warnings)
-	if err != nil {
+	switch err.(type) {
+	case nil:
+	case ccerror.ServiceInstanceNameTakenError:
+		cmd.UI.DisplayTextWithFlavor("Service instance {{.ServiceInstanceName}} already exists",
+			map[string]interface{}{
+				"ServiceInstanceName": serviceInstance.Name,
+			})
+		cmd.UI.DisplayOK()
+		return nil
+	default:
 		return err
 	}
 
diff --git a/command/v7/create_user_provided_service_command_test.go b/command/v7/create_user_provided_service_command_test.go
index bccc37e67fd..c63c24c86d6 100644
--- a/command/v7/create_user_provided_service_command_test.go
+++ b/command/v7/create_user_provided_service_command_test.go
@@ -3,6 +3,7 @@ package v7_test
 import (
 	"errors"
 
+	"code.cloudfoundry.org/cli/api/cloudcontroller/ccerror"
 	"code.cloudfoundry.org/cli/types"
 
 	"code.cloudfoundry.org/cli/actor/v7action"
@@ -215,5 +216,20 @@ var _ = Describe("create-user-provided-service Command", func() {
 				))
 			})
 		})
+
+		When("the service instance name is taken", func() {
+			BeforeEach(func() {
+				fakeActor.CreateUserProvidedServiceInstanceReturns(
+					nil,
+					ccerror.ServiceInstanceNameTakenError{},
+				)
+			})
+
+			It("succeeds, displaying warnings, 'OK' and an informative message", func() {
+				Expect(executeErr).NotTo(HaveOccurred())
+				Expect(testUI.Out).To(Say("Service instance %s already exists", fakeServiceInstanceName))
+				Expect(testUI.Out).To(Say("OK"))
+			})
+		})
 	})
 })