diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7c86ff63..bfc9fe04 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 ### Fixed
 
 - Remove requisite dependency between ignition disk target and ignition service. #2083
+- Return HTTP 409 status when creating an existing overlay
 
 ## v4.6.5, 2026-01-12
 
@@ -156,7 +157,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 ### Removed
 
 - Removed the gRPC API servers and client. #1876
-- Removed ``wwctl node import --csv``. #1862
+- Removed `wwctl node import --csv`. #1862
 
 ## v4.6.1, 2025-04-04
 
@@ -165,7 +166,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 - Added `wwctl overlay import --overwrite` to overwrite existing overlay file.
 - wwclient uses `WW_IPADDR`, if set, to contact the Warewulf server. #1788
 - Add `wwctl node import --yes` to assume yes to confirmations.
-- Set an IPMI tag ``vlan`` to configure the vlan during ``ipmiwrite``. #1031
+- Set an IPMI tag `vlan` to configure the vlan during `ipmiwrite`. #1031
 - Added net.ifnames=1 to default kernel argument list. #1820
 - Add a new OpenAPI v3 REST API to warewulfd at /api. #1588
 - New sos plugin in `warewulf-sos` subpackage. #1822
@@ -528,7 +529,6 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 - Fix dhcpd.conf static template to include next-server and dhcp-range #1536
 - Fix panic when adding tag with existing netdev #1546
 
-
 ## v4.5.7, 2024-09-11
 
 ### Added
@@ -559,6 +559,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 - `wwctl conatiner list --kernel` shows the kernel detected for each container. #1283
 - `wwctl container list --size` shows the uncompressed size of each container. `--compressed` shows the compressed size, and `--chroot` shows the size of the container source on the server. #954, #1117
 - Add a logrotate config for `warewulfd.log`. #1311
+
 ### Changed
 
 - Refactor URL handling in wwclient to consistently escape arguments.
@@ -653,7 +654,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 ### Added
 
 - Document warewulf.conf:paths. #635
-- New "Overlay" template variable contains the name of the overlay being built. #1052 
+- New "Overlay" template variable contains the name of the overlay being built. #1052
 - Documented HTTP proxy environment variables for `wwctl container import`. #1214
 
 ### Changed
diff --git a/internal/pkg/warewulfd/api/overlay.go b/internal/pkg/warewulfd/api/overlay.go
index a850cb82..46db6705 100644
--- a/internal/pkg/warewulfd/api/overlay.go
+++ b/internal/pkg/warewulfd/api/overlay.go
@@ -213,12 +213,13 @@ func createOverlay() usecase.Interactor {
 
 	u := usecase.NewInteractor(func(ctx context.Context, input createOverlayInput, output *OverlayResponse) error {
 		wwlog.Debug("api.createOverlay(Name:%v)", input.Name)
-		newOverlay, err := overlay.Get(input.Name)
+		if _, err := overlay.Get(input.Name); err == nil {
+			// existing overlay, return a conflict error
+			return status.Wrap(fmt.Errorf("%s overlay already exists", input.Name), status.AlreadyExists)
+		}
+		newOverlay, err := overlay.Create(input.Name)
 		if err != nil {
-			newOverlay, err = overlay.Create(input.Name)
-			if err != nil {
-				return err
-			}
+			return err
 		}
 		*output = *NewOverlayResponse(newOverlay.Name())
 		return nil
diff --git a/internal/pkg/warewulfd/api/overlay_test.go b/internal/pkg/warewulfd/api/overlay_test.go
index d9991fd1..28022197 100644
--- a/internal/pkg/warewulfd/api/overlay_test.go
+++ b/internal/pkg/warewulfd/api/overlay_test.go
@@ -18,7 +18,8 @@ import (
 const sampleTemplate = `{{ if .Tags.email }}eMail: {{ .Tags.email }}{{else}} noMail{{- end }}
 `
 
-var overlayTests = map[string]struct {
+var overlayTests = []struct {
+	name          string
 	initFiles     map[string]string
 	request       func(serverURL string) (*http.Request, error)
 	response      string
@@ -26,7 +27,8 @@ var overlayTests = map[string]struct {
 	resultFiles   []string
 	validateFiles map[string]string // file path -> expected content
 }{
-	"get all overlays": {
+	{
+		name: "get all overlays",
 		initFiles: map[string]string{
 			"/usr/share/warewulf/overlays/testoverlay/email.ww": sampleTemplate,
 		},
@@ -35,8 +37,8 @@ var overlayTests = map[string]struct {
 		},
 		response: `{"testoverlay":{"files":["/email.ww"], "site":false}}`,
 	},
-
-	"get one specific overlay": {
+	{
+		name: "get one specific overlay",
 		initFiles: map[string]string{
 			"/usr/share/warewulf/overlays/testoverlay/email.ww": sampleTemplate,
 		},
@@ -45,8 +47,8 @@ var overlayTests = map[string]struct {
 		},
 		response: `{"files":["/email.ww"], "site":false}`,
 	},
-
-	"get overlay file": {
+	{
+		name: "get overlay file",
 		initFiles: map[string]string{
 			"/usr/share/warewulf/overlays/testoverlay/email.ww": sampleTemplate,
 		},
@@ -62,8 +64,8 @@ var overlayTests = map[string]struct {
 			"gid": "<<PRESENCE>>"
 		}`,
 	},
-
-	"update overlay file": {
+	{
+		name: "update overlay file",
 		initFiles: map[string]string{
 			"/usr/share/warewulf/overlays/testoverlay/email.ww": sampleTemplate,
 		},
@@ -75,8 +77,8 @@ var overlayTests = map[string]struct {
 			"/var/lib/warewulf/overlays/testoverlay/email.ww": "hello world",
 		},
 	},
-
-	"create an overlay": {
+	{
+		name: "create an overlay",
 		request: func(serverURL string) (*http.Request, error) {
 			return http.NewRequest(http.MethodPut, serverURL+"/api/overlays/test", nil)
 		},
@@ -85,8 +87,15 @@ var overlayTests = map[string]struct {
 			"/var/lib/warewulf/overlays/test",
 		},
 	},
-
-	"get all overlays after creation": {
+	{
+		name: "create an overlay conflict",
+		request: func(serverURL string) (*http.Request, error) {
+			return http.NewRequest(http.MethodPut, serverURL+"/api/overlays/test", nil)
+		},
+		status: 409,
+	},
+	{
+		name: "get all overlays after creation",
 		initFiles: map[string]string{
 			"/usr/share/warewulf/overlays/testoverlay/email.ww": sampleTemplate,
 			"/var/lib/warewulf/overlays/test/rootfs/":           "",
@@ -97,8 +106,8 @@ var overlayTests = map[string]struct {
 		},
 		response: `{"test":{"files":null, "site":true},"testoverlay":{"files":["/email.ww"], "site":true}}`,
 	},
-
-	"delete overlay file": {
+	{
+		name: "delete overlay file",
 		initFiles: map[string]string{
 			"/var/lib/warewulf/overlays/testoverlay/email.ww": sampleTemplate,
 		},
@@ -107,8 +116,8 @@ var overlayTests = map[string]struct {
 		},
 		response: `{"files":null, "site":true}`,
 	},
-
-	"force delete site overlay": {
+	{
+		name: "force delete site overlay",
 		initFiles: map[string]string{
 			"/var/lib/warewulf/overlays/test/": "",
 		},
@@ -117,8 +126,8 @@ var overlayTests = map[string]struct {
 		},
 		response: `{"files":[], "site":true}`,
 	},
-
-	"force delete distribution overlay": {
+	{
+		name: "force delete distribution overlay",
 		initFiles: map[string]string{
 			"/usr/share/warewulf/overlays/test/email.ww": sampleTemplate,
 		},
@@ -130,12 +139,12 @@ var overlayTests = map[string]struct {
 }
 
 func TestOverlayAPI(t *testing.T) {
-	for name, tt := range overlayTests {
-		t.Run(name, func(t *testing.T) {
-			warewulfd.SetNoDaemon()
-			env := testenv.New(t)
-			defer env.RemoveAll()
+	warewulfd.SetNoDaemon()
+	env := testenv.New(t)
+	defer env.RemoveAll()
 
+	for _, tt := range overlayTests {
+		t.Run(tt.name, func(t *testing.T) {
 			// Create test files
 			for fileName, fileContent := range tt.initFiles {
 				if strings.HasSuffix(fileName, "/") {