diff --git a/src/Core/AdminConsole/OrganizationFeatures/Collections/CollectionUtils.cs b/src/Core/AdminConsole/OrganizationFeatures/Collections/CollectionUtils.cs
new file mode 100644
index 000000000000..116992146f87
--- /dev/null
+++ b/src/Core/AdminConsole/OrganizationFeatures/Collections/CollectionUtils.cs
@@ -0,0 +1,53 @@
+using Bit.Core.Entities;
+using Bit.Core.Enums;
+using Bit.Core.Utilities;
+
+namespace Bit.Core.AdminConsole.OrganizationFeatures.Collections;
+
+public static class CollectionUtils
+{
+    /// <summary>
+    /// Arranges Collection and CollectionUser objects to create default user collections.
+    /// </summary>
+    /// <param name="organizationId">The organization ID.</param>
+    /// <param name="organizationUserIds">The IDs for organization users who need default collections.</param>
+    /// <param name="defaultCollectionName">The encrypted string to use as the default collection name.</param>
+    /// <returns>A tuple containing the collections and collection users.</returns>
+    public static (ICollection<Collection> collections, ICollection<CollectionUser> collectionUsers)
+        BuildDefaultUserCollections(Guid organizationId, IEnumerable<Guid> organizationUserIds,
+            string defaultCollectionName)
+    {
+        var now = DateTime.UtcNow;
+
+        var collectionUsers = new List<CollectionUser>();
+        var collections = new List<Collection>();
+
+        foreach (var orgUserId in organizationUserIds)
+        {
+            var collectionId = CoreHelpers.GenerateComb();
+
+            collections.Add(new Collection
+            {
+                Id = collectionId,
+                OrganizationId = organizationId,
+                Name = defaultCollectionName,
+                CreationDate = now,
+                RevisionDate = now,
+                Type = CollectionType.DefaultUserCollection,
+                DefaultUserCollectionEmail = null
+
+            });
+
+            collectionUsers.Add(new CollectionUser
+            {
+                CollectionId = collectionId,
+                OrganizationUserId = orgUserId,
+                ReadOnly = false,
+                HidePasswords = false,
+                Manage = true,
+            });
+        }
+
+        return (collections, collectionUsers);
+    }
+}
diff --git a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/AutoConfirmUser/AutomaticallyConfirmOrganizationUserCommand.cs b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/AutoConfirmUser/AutomaticallyConfirmOrganizationUserCommand.cs
index 1b488677ae0e..029238185702 100644
--- a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/AutoConfirmUser/AutomaticallyConfirmOrganizationUserCommand.cs
+++ b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/AutoConfirmUser/AutomaticallyConfirmOrganizationUserCommand.cs
@@ -4,9 +4,7 @@
 using Bit.Core.AdminConsole.OrganizationFeatures.OrganizationUsers.OrganizationConfirmation;
 using Bit.Core.AdminConsole.OrganizationFeatures.Policies;
 using Bit.Core.AdminConsole.OrganizationFeatures.Policies.PolicyRequirements;
-using Bit.Core.Entities;
 using Bit.Core.Enums;
-using Bit.Core.Models.Data;
 using Bit.Core.Platform.Push;
 using Bit.Core.Repositories;
 using Bit.Core.Services;
@@ -83,19 +81,10 @@ private async Task CreateDefaultCollectionsAsync(AutomaticallyConfirmOrganizatio
                 return;
             }
 
-            await collectionRepository.CreateAsync(
-                new Collection
-                {
-                    OrganizationId = request.Organization!.Id,
-                    Name = request.DefaultUserCollectionName,
-                    Type = CollectionType.DefaultUserCollection
-                },
-                groups: null,
-                [new CollectionAccessSelection
-                {
-                    Id = request.OrganizationUser!.Id,
-                    Manage = true
-                }]);
+            await collectionRepository.CreateDefaultCollectionsAsync(
+                request.Organization!.Id,
+                [request.OrganizationUser!.Id],
+                request.DefaultUserCollectionName);
         }
         catch (Exception ex)
         {
diff --git a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/ConfirmOrganizationUserCommand.cs b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/ConfirmOrganizationUserCommand.cs
index 0b82ac7ea441..02f3346ba636 100644
--- a/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/ConfirmOrganizationUserCommand.cs
+++ b/src/Core/AdminConsole/OrganizationFeatures/OrganizationUsers/ConfirmOrganizationUserCommand.cs
@@ -14,7 +14,6 @@
 using Bit.Core.Entities;
 using Bit.Core.Enums;
 using Bit.Core.Exceptions;
-using Bit.Core.Models.Data;
 using Bit.Core.Platform.Push;
 using Bit.Core.Repositories;
 using Bit.Core.Services;
@@ -294,21 +293,10 @@ private async Task CreateDefaultCollectionAsync(OrganizationUser organizationUse
             return;
         }
 
-        var defaultCollection = new Collection
-        {
-            OrganizationId = organizationUser.OrganizationId,
-            Name = defaultUserCollectionName,
-            Type = CollectionType.DefaultUserCollection
-        };
-        var collectionUser = new CollectionAccessSelection
-        {
-            Id = organizationUser.Id,
-            ReadOnly = false,
-            HidePasswords = false,
-            Manage = true
-        };
-
-        await _collectionRepository.CreateAsync(defaultCollection, groups: null, users: [collectionUser]);
+        await _collectionRepository.CreateDefaultCollectionsAsync(
+            organizationUser.OrganizationId,
+            [organizationUser.Id],
+            defaultUserCollectionName);
     }
 
     /// <summary>
@@ -339,7 +327,7 @@ private async Task CreateManyDefaultCollectionsAsync(Guid organizationId,
             return;
         }
 
-        await _collectionRepository.UpsertDefaultCollectionsAsync(organizationId, eligibleOrganizationUserIds, defaultUserCollectionName);
+        await _collectionRepository.CreateDefaultCollectionsAsync(organizationId, eligibleOrganizationUserIds, defaultUserCollectionName);
     }
 
     /// <summary>
diff --git a/src/Core/AdminConsole/OrganizationFeatures/Policies/PolicyValidators/OrganizationDataOwnershipPolicyValidator.cs b/src/Core/AdminConsole/OrganizationFeatures/Policies/PolicyValidators/OrganizationDataOwnershipPolicyValidator.cs
index 7a47baa65a78..104a5751fffa 100644
--- a/src/Core/AdminConsole/OrganizationFeatures/Policies/PolicyValidators/OrganizationDataOwnershipPolicyValidator.cs
+++ b/src/Core/AdminConsole/OrganizationFeatures/Policies/PolicyValidators/OrganizationDataOwnershipPolicyValidator.cs
@@ -57,14 +57,15 @@ private async Task UpsertDefaultCollectionsForUsersAsync(PolicyUpdate policyUpda
         var userOrgIds = requirements
             .Select(requirement => requirement.GetDefaultCollectionRequestOnPolicyEnable(policyUpdate.OrganizationId))
             .Where(request => request.ShouldCreateDefaultCollection)
-            .Select(request => request.OrganizationUserId);
+            .Select(request => request.OrganizationUserId)
+            .ToList();
 
         if (!userOrgIds.Any())
         {
             return;
         }
 
-        await collectionRepository.UpsertDefaultCollectionsAsync(
+        await collectionRepository.CreateDefaultCollectionsBulkAsync(
             policyUpdate.OrganizationId,
             userOrgIds,
             defaultCollectionName);
diff --git a/src/Core/Repositories/ICollectionRepository.cs b/src/Core/Repositories/ICollectionRepository.cs
index f86147ca7da6..3f3b71d2d5e8 100644
--- a/src/Core/Repositories/ICollectionRepository.cs
+++ b/src/Core/Repositories/ICollectionRepository.cs
@@ -64,11 +64,22 @@ Task CreateOrUpdateAccessForManyAsync(Guid organizationId, IEnumerable<Guid> col
         IEnumerable<CollectionAccessSelection> users, IEnumerable<CollectionAccessSelection> groups);
 
     /// <summary>
-    /// Creates default user collections for the specified organization users if they do not already have one.
+    /// Creates default user collections for the specified organization users.
+    /// Filters internally to only create collections for users who don't already have one.
     /// </summary>
     /// <param name="organizationId">The Organization ID.</param>
     /// <param name="organizationUserIds">The Organization User IDs to create default collections for.</param>
     /// <param name="defaultCollectionName">The encrypted string to use as the default collection name.</param>
-    /// <returns></returns>
-    Task UpsertDefaultCollectionsAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds, string defaultCollectionName);
+    Task CreateDefaultCollectionsAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds, string defaultCollectionName);
+
+    /// <summary>
+    /// Creates default user collections for the specified organization users using bulk insert operations.
+    /// Use this if you need to create collections for > ~1k users.
+    /// Filters internally to only create collections for users who don't already have one.
+    /// </summary>
+    /// <param name="organizationId">The Organization ID.</param>
+    /// <param name="organizationUserIds">The Organization User IDs to create default collections for.</param>
+    /// <param name="defaultCollectionName">The encrypted string to use as the default collection name.</param>
+    Task CreateDefaultCollectionsBulkAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds, string defaultCollectionName);
+
 }
diff --git a/src/Infrastructure.Dapper/DapperHelpers.cs b/src/Infrastructure.Dapper/DapperHelpers.cs
index 9a119e1e320d..4384a6f7527b 100644
--- a/src/Infrastructure.Dapper/DapperHelpers.cs
+++ b/src/Infrastructure.Dapper/DapperHelpers.cs
@@ -160,6 +160,21 @@ public static DataTable ToGuidIdArrayTVP(this IEnumerable<Guid> ids)
         return ids.ToArrayTVP("GuidId");
     }
 
+    public static DataTable ToTwoGuidIdArrayTVP(this IEnumerable<(Guid id1, Guid id2)> values)
+    {
+        var table = new DataTable();
+        table.SetTypeName("[dbo].[TwoGuidIdArray]");
+        table.Columns.Add("Id1", typeof(Guid));
+        table.Columns.Add("Id2", typeof(Guid));
+
+        foreach (var value in values)
+        {
+            table.Rows.Add(value.id1, value.id2);
+        }
+
+        return table;
+    }
+
     public static DataTable ToArrayTVP<T>(this IEnumerable<T> values, string columnName)
     {
         var table = new DataTable();
diff --git a/src/Infrastructure.Dapper/Repositories/CollectionRepository.cs b/src/Infrastructure.Dapper/Repositories/CollectionRepository.cs
index 9985b41d56c4..153170342729 100644
--- a/src/Infrastructure.Dapper/Repositories/CollectionRepository.cs
+++ b/src/Infrastructure.Dapper/Repositories/CollectionRepository.cs
@@ -1,6 +1,7 @@
 using System.Data;
 using System.Diagnostics.CodeAnalysis;
 using System.Text.Json;
+using Bit.Core.AdminConsole.OrganizationFeatures.Collections;
 using Bit.Core.Entities;
 using Bit.Core.Enums;
 using Bit.Core.Models.Data;
@@ -360,7 +361,45 @@ public async Task<ICollection<CollectionAccessSelection>> GetManyUsersByIdAsync(
         }
     }
 
-    public async Task UpsertDefaultCollectionsAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds, string defaultCollectionName)
+    public async Task CreateDefaultCollectionsAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds, string defaultCollectionName)
+    {
+        organizationUserIds = organizationUserIds.ToList();
+        if (!organizationUserIds.Any())
+        {
+            return;
+        }
+
+        var organizationUserCollectionIds = organizationUserIds
+            .Select(ou => (ou, CoreHelpers.GenerateComb()))
+            .ToTwoGuidIdArrayTVP();
+
+        await using var connection = new SqlConnection(ConnectionString);
+        await connection.OpenAsync();
+        await using var transaction = connection.BeginTransaction();
+
+        try
+        {
+            await connection.ExecuteAsync(
+                "[dbo].[Collection_CreateDefaultCollections]",
+                new
+                {
+                    OrganizationId = organizationId,
+                    DefaultCollectionName = defaultCollectionName,
+                    OrganizationUserCollectionIds = organizationUserCollectionIds
+                },
+                commandType: CommandType.StoredProcedure,
+                transaction: transaction);
+
+            await transaction.CommitAsync();
+        }
+        catch
+        {
+            await transaction.RollbackAsync();
+            throw;
+        }
+    }
+
+    public async Task CreateDefaultCollectionsBulkAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds, string defaultCollectionName)
     {
         organizationUserIds = organizationUserIds.ToList();
         if (!organizationUserIds.Any())
@@ -377,7 +416,8 @@ public async Task UpsertDefaultCollectionsAsync(Guid organizationId, IEnumerable
 
             var missingDefaultCollectionUserIds = organizationUserIds.Except(orgUserIdWithDefaultCollection);
 
-            var (collectionUsers, collections) = BuildDefaultCollectionForUsers(organizationId, missingDefaultCollectionUserIds, defaultCollectionName);
+            var (collections, collectionUsers) =
+                CollectionUtils.BuildDefaultUserCollections(organizationId, missingDefaultCollectionUserIds, defaultCollectionName);
 
             if (!collectionUsers.Any() || !collections.Any())
             {
@@ -387,11 +427,11 @@ public async Task UpsertDefaultCollectionsAsync(Guid organizationId, IEnumerable
             await BulkResourceCreationService.CreateCollectionsAsync(connection, transaction, collections);
             await BulkResourceCreationService.CreateCollectionsUsersAsync(connection, transaction, collectionUsers);
 
-            transaction.Commit();
+            await transaction.CommitAsync();
         }
         catch
         {
-            transaction.Rollback();
+            await transaction.RollbackAsync();
             throw;
         }
     }
@@ -421,40 +461,6 @@ INNER JOIN
         return organizationUserIds.ToHashSet();
     }
 
-    private (List<CollectionUser> collectionUser, List<Collection> collection) BuildDefaultCollectionForUsers(Guid organizationId, IEnumerable<Guid> missingDefaultCollectionUserIds, string defaultCollectionName)
-    {
-        var collectionUsers = new List<CollectionUser>();
-        var collections = new List<Collection>();
-
-        foreach (var orgUserId in missingDefaultCollectionUserIds)
-        {
-            var collectionId = CoreHelpers.GenerateComb();
-
-            collections.Add(new Collection
-            {
-                Id = collectionId,
-                OrganizationId = organizationId,
-                Name = defaultCollectionName,
-                CreationDate = DateTime.UtcNow,
-                RevisionDate = DateTime.UtcNow,
-                Type = CollectionType.DefaultUserCollection,
-                DefaultUserCollectionEmail = null
-
-            });
-
-            collectionUsers.Add(new CollectionUser
-            {
-                CollectionId = collectionId,
-                OrganizationUserId = orgUserId,
-                ReadOnly = false,
-                HidePasswords = false,
-                Manage = true,
-            });
-        }
-
-        return (collectionUsers, collections);
-    }
-
     public class CollectionWithGroupsAndUsers : Collection
     {
         public CollectionWithGroupsAndUsers() { }
diff --git a/src/Infrastructure.EntityFramework/Repositories/CollectionRepository.cs b/src/Infrastructure.EntityFramework/Repositories/CollectionRepository.cs
index 5aa156d1f821..74150246b109 100644
--- a/src/Infrastructure.EntityFramework/Repositories/CollectionRepository.cs
+++ b/src/Infrastructure.EntityFramework/Repositories/CollectionRepository.cs
@@ -1,11 +1,10 @@
 using AutoMapper;
+using Bit.Core.AdminConsole.OrganizationFeatures.Collections;
 using Bit.Core.Enums;
 using Bit.Core.Models.Data;
 using Bit.Core.Repositories;
-using Bit.Core.Utilities;
 using Bit.Infrastructure.EntityFramework.Models;
 using Bit.Infrastructure.EntityFramework.Repositories.Queries;
-using LinqToDB.EntityFrameworkCore;
 using Microsoft.EntityFrameworkCore;
 using Microsoft.Extensions.DependencyInjection;
 
@@ -794,7 +793,7 @@ private static async Task ReplaceCollectionUsersAsync(DatabaseContext dbContext,
         // SaveChangesAsync is expected to be called outside this method
     }
 
-    public async Task UpsertDefaultCollectionsAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds, string defaultCollectionName)
+    public async Task CreateDefaultCollectionsAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds, string defaultCollectionName)
     {
         organizationUserIds = organizationUserIds.ToList();
         if (!organizationUserIds.Any())
@@ -808,15 +807,15 @@ public async Task UpsertDefaultCollectionsAsync(Guid organizationId, IEnumerable
         var orgUserIdWithDefaultCollection = await GetOrgUserIdsWithDefaultCollectionAsync(dbContext, organizationId);
         var missingDefaultCollectionUserIds = organizationUserIds.Except(orgUserIdWithDefaultCollection);
 
-        var (collectionUsers, collections) = BuildDefaultCollectionForUsers(organizationId, missingDefaultCollectionUserIds, defaultCollectionName);
+        var (collections, collectionUsers) = CollectionUtils.BuildDefaultUserCollections(organizationId, missingDefaultCollectionUserIds, defaultCollectionName);
 
-        if (!collectionUsers.Any() || !collections.Any())
+        if (!collections.Any() || !collectionUsers.Any())
         {
             return;
         }
 
-        await dbContext.BulkCopyAsync(collections);
-        await dbContext.BulkCopyAsync(collectionUsers);
+        await dbContext.Collections.AddRangeAsync(Mapper.Map<IEnumerable<Collection>>(collections));
+        await dbContext.CollectionUsers.AddRangeAsync(Mapper.Map<IEnumerable<CollectionUser>>(collectionUsers));
 
         await dbContext.SaveChangesAsync();
     }
@@ -844,37 +843,7 @@ private async Task<HashSet<Guid>> GetOrgUserIdsWithDefaultCollectionAsync(Databa
         return results.ToHashSet();
     }
 
-    private (List<CollectionUser> collectionUser, List<Collection> collection) BuildDefaultCollectionForUsers(Guid organizationId, IEnumerable<Guid> missingDefaultCollectionUserIds, string defaultCollectionName)
-    {
-        var collectionUsers = new List<CollectionUser>();
-        var collections = new List<Collection>();
-
-        foreach (var orgUserId in missingDefaultCollectionUserIds)
-        {
-            var collectionId = CoreHelpers.GenerateComb();
-
-            collections.Add(new Collection
-            {
-                Id = collectionId,
-                OrganizationId = organizationId,
-                Name = defaultCollectionName,
-                CreationDate = DateTime.UtcNow,
-                RevisionDate = DateTime.UtcNow,
-                Type = CollectionType.DefaultUserCollection,
-                DefaultUserCollectionEmail = null
-
-            });
-
-            collectionUsers.Add(new CollectionUser
-            {
-                CollectionId = collectionId,
-                OrganizationUserId = orgUserId,
-                ReadOnly = false,
-                HidePasswords = false,
-                Manage = true,
-            });
-        }
-
-        return (collectionUsers, collections);
-    }
+    public Task CreateDefaultCollectionsBulkAsync(Guid organizationId, IEnumerable<Guid> organizationUserIds,
+        string defaultCollectionName) =>
+        CreateDefaultCollectionsAsync(organizationId, organizationUserIds, defaultCollectionName);
 }
diff --git a/src/Infrastructure.EntityFramework/Repositories/DatabaseContext.cs b/src/Infrastructure.EntityFramework/Repositories/DatabaseContext.cs
index b748a26db2df..3ddcad55c3d1 100644
--- a/src/Infrastructure.EntityFramework/Repositories/DatabaseContext.cs
+++ b/src/Infrastructure.EntityFramework/Repositories/DatabaseContext.cs
@@ -17,8 +17,6 @@
 using DP = Microsoft.AspNetCore.DataProtection;
 
 
-#nullable enable
-
 namespace Bit.Infrastructure.EntityFramework.Repositories;
 
 public class DatabaseContext : DbContext
diff --git a/src/Sql/dbo/AdminConsole/Stored Procedures/Collection_CreateDefaultCollections.sql b/src/Sql/dbo/AdminConsole/Stored Procedures/Collection_CreateDefaultCollections.sql
new file mode 100644
index 000000000000..4e671bd1e40e
--- /dev/null
+++ b/src/Sql/dbo/AdminConsole/Stored Procedures/Collection_CreateDefaultCollections.sql	
@@ -0,0 +1,69 @@
+-- Creates default user collections for organization users
+-- Filters out existing default collections at database level
+CREATE PROCEDURE [dbo].[Collection_CreateDefaultCollections]
+    @OrganizationId UNIQUEIDENTIFIER,
+    @DefaultCollectionName VARCHAR(MAX),
+    @OrganizationUserCollectionIds AS [dbo].[TwoGuidIdArray] READONLY -- OrganizationUserId, CollectionId
+AS
+BEGIN
+    SET NOCOUNT ON
+
+    DECLARE @Now DATETIME2(7) = GETUTCDATE()
+
+    -- Filter to only users who don't have default collections
+    SELECT ids.Id1, ids.Id2
+    INTO #FilteredIds
+    FROM @OrganizationUserCollectionIds ids
+    WHERE NOT EXISTS (
+        SELECT 1
+        FROM [dbo].[CollectionUser] cu
+        INNER JOIN [dbo].[Collection] c ON c.Id = cu.CollectionId
+        WHERE c.OrganizationId = @OrganizationId
+          AND c.[Type] = 1 -- CollectionType.DefaultUserCollection
+          AND cu.OrganizationUserId = ids.Id1
+    );
+
+    -- Insert collections only for users who don't have default collections yet
+    INSERT INTO [dbo].[Collection]
+    (
+        [Id],
+        [OrganizationId],
+        [Name],
+        [CreationDate],
+        [RevisionDate],
+        [Type],
+        [ExternalId],
+        [DefaultUserCollectionEmail]
+    )
+    SELECT
+        ids.Id2, -- CollectionId
+        @OrganizationId,
+        @DefaultCollectionName,
+        @Now,
+        @Now,
+        1, -- CollectionType.DefaultUserCollection
+        NULL,
+        NULL
+    FROM
+        #FilteredIds ids;
+
+    -- Insert collection user mappings
+    INSERT INTO [dbo].[CollectionUser]
+    (
+        [CollectionId],
+        [OrganizationUserId],
+        [ReadOnly],
+        [HidePasswords],
+        [Manage]
+    )
+    SELECT
+        ids.Id2, -- CollectionId
+        ids.Id1, -- OrganizationUserId
+        0, -- ReadOnly = false
+        0, -- HidePasswords = false
+        1  -- Manage = true
+    FROM
+        #FilteredIds ids;
+
+    DROP TABLE #FilteredIds;
+END
diff --git a/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/AutoConfirmUsers/AutomaticallyConfirmUsersCommandTests.cs b/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/AutoConfirmUsers/AutomaticallyConfirmUsersCommandTests.cs
index 180750a9d0ef..252fb89c87e1 100644
--- a/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/AutoConfirmUsers/AutomaticallyConfirmUsersCommandTests.cs
+++ b/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/AutoConfirmUsers/AutomaticallyConfirmUsersCommandTests.cs
@@ -10,7 +10,6 @@
 using Bit.Core.AdminConsole.Utilities.v2.Validation;
 using Bit.Core.Entities;
 using Bit.Core.Enums;
-using Bit.Core.Models.Data;
 using Bit.Core.Platform.Push;
 using Bit.Core.Repositories;
 using Bit.Core.Services;
@@ -204,14 +203,10 @@ public async Task AutomaticallyConfirmOrganizationUserAsync_WithDefaultCollectio
 
         await sutProvider.GetDependency<ICollectionRepository>()
             .Received(1)
-            .CreateAsync(
-                Arg.Is<Collection>(c =>
-                    c.OrganizationId == organization.Id &&
-                    c.Name == defaultCollectionName &&
-                    c.Type == CollectionType.DefaultUserCollection),
-                Arg.Is<IEnumerable<CollectionAccessSelection>>(groups => groups == null),
-                Arg.Is<IEnumerable<CollectionAccessSelection>>(access =>
-                    access.FirstOrDefault(x => x.Id == organizationUser.Id && x.Manage) != null));
+            .CreateDefaultCollectionsAsync(
+                organization.Id,
+                Arg.Is<IEnumerable<Guid>>(ids => ids.Single() == organizationUser.Id),
+                defaultCollectionName);
     }
 
     [Theory]
@@ -253,9 +248,7 @@ public async Task AutomaticallyConfirmOrganizationUserAsync_WithDefaultCollectio
 
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceive()
-            .CreateAsync(Arg.Any<Collection>(),
-                Arg.Any<IEnumerable<CollectionAccessSelection>>(),
-                Arg.Any<IEnumerable<CollectionAccessSelection>>());
+            .CreateDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
     }
 
     [Theory]
@@ -291,9 +284,7 @@ public async Task AutomaticallyConfirmOrganizationUserAsync_WhenCreateDefaultCol
 
         var collectionException = new Exception("Collection creation failed");
         sutProvider.GetDependency<ICollectionRepository>()
-            .CreateAsync(Arg.Any<Collection>(),
-                Arg.Any<IEnumerable<CollectionAccessSelection>>(),
-                Arg.Any<IEnumerable<CollectionAccessSelection>>())
+            .CreateDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>())
             .ThrowsAsync(collectionException);
 
         // Act
diff --git a/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/ConfirmOrganizationUserCommandTests.cs b/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/ConfirmOrganizationUserCommandTests.cs
index 65359b830483..6643f26eb5f4 100644
--- a/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/ConfirmOrganizationUserCommandTests.cs
+++ b/test/Core.Test/AdminConsole/OrganizationFeatures/OrganizationUsers/ConfirmOrganizationUserCommandTests.cs
@@ -13,7 +13,6 @@
 using Bit.Core.Entities;
 using Bit.Core.Enums;
 using Bit.Core.Exceptions;
-using Bit.Core.Models.Data;
 using Bit.Core.Models.Data.Organizations.OrganizationUsers;
 using Bit.Core.Platform.Push;
 using Bit.Core.Repositories;
@@ -493,15 +492,10 @@ public async Task ConfirmUserAsync_WithOrganizationDataOwnershipPolicyApplicable
 
         await sutProvider.GetDependency<ICollectionRepository>()
             .Received(1)
-            .CreateAsync(
-                Arg.Is<Collection>(c =>
-                    c.Name == collectionName &&
-                    c.OrganizationId == organization.Id &&
-                    c.Type == CollectionType.DefaultUserCollection),
-                Arg.Any<IEnumerable<CollectionAccessSelection>>(),
-                Arg.Is<IEnumerable<CollectionAccessSelection>>(cu =>
-                    cu.Single().Id == orgUser.Id &&
-                    cu.Single().Manage));
+            .CreateDefaultCollectionsAsync(
+                organization.Id,
+                Arg.Is<IEnumerable<Guid>>(ids => ids.Single() == orgUser.Id),
+                collectionName);
     }
 
     [Theory, BitAutoData]
@@ -522,7 +516,7 @@ public async Task ConfirmUserAsync_WithOrganizationDataOwnershipPolicyApplicable
 
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceive()
-            .UpsertDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
+            .CreateDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
     }
 
     [Theory, BitAutoData]
@@ -539,24 +533,15 @@ public async Task ConfirmUserAsync_WithOrganizationDataOwnershipPolicyNotApplica
         sutProvider.GetDependency<IOrganizationUserRepository>().GetManyAsync(default).ReturnsForAnyArgs(new[] { orgUser });
         sutProvider.GetDependency<IUserRepository>().GetManyAsync(default).ReturnsForAnyArgs(new[] { user });
 
-        var policyDetails = new PolicyDetails
-        {
-            OrganizationId = org.Id,
-            OrganizationUserId = orgUser.Id,
-            IsProvider = false,
-            OrganizationUserStatus = orgUser.Status,
-            OrganizationUserType = orgUser.Type,
-            PolicyType = PolicyType.OrganizationDataOwnership
-        };
         sutProvider.GetDependency<IPolicyRequirementQuery>()
             .GetAsync<OrganizationDataOwnershipPolicyRequirement>(orgUser.UserId!.Value)
-            .Returns(new OrganizationDataOwnershipPolicyRequirement(OrganizationDataOwnershipState.Disabled, [policyDetails]));
+            .Returns(new OrganizationDataOwnershipPolicyRequirement(OrganizationDataOwnershipState.Disabled, []));
 
         await sutProvider.Sut.ConfirmUserAsync(orgUser.OrganizationId, orgUser.Id, key, confirmingUser.Id, collectionName);
 
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceive()
-            .UpsertDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
+            .CreateDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
     }
 
     [Theory, BitAutoData]
diff --git a/test/Core.Test/AdminConsole/OrganizationFeatures/Policies/PolicyValidators/OrganizationDataOwnershipPolicyValidatorTests.cs b/test/Core.Test/AdminConsole/OrganizationFeatures/Policies/PolicyValidators/OrganizationDataOwnershipPolicyValidatorTests.cs
index 93cbde89ecf2..dd2f1d76e802 100644
--- a/test/Core.Test/AdminConsole/OrganizationFeatures/Policies/PolicyValidators/OrganizationDataOwnershipPolicyValidatorTests.cs
+++ b/test/Core.Test/AdminConsole/OrganizationFeatures/Policies/PolicyValidators/OrganizationDataOwnershipPolicyValidatorTests.cs
@@ -38,7 +38,7 @@ public async Task ExecuteSideEffectsAsync_PolicyAlreadyEnabled_DoesNothing(
         // Assert
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceive()
-            .UpsertDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
+            .CreateDefaultCollectionsBulkAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
     }
 
     [Theory, BitAutoData]
@@ -60,7 +60,7 @@ public async Task ExecuteSideEffectsAsync_PolicyBeingDisabled_DoesNothing(
         // Assert
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceive()
-            .UpsertDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
+            .CreateDefaultCollectionsBulkAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
     }
 
     [Theory, BitAutoData]
@@ -86,7 +86,7 @@ public async Task ExecuteSideEffectsAsync_WhenNoUsersExist_DoNothing(
         // Assert
         await collectionRepository
             .DidNotReceive()
-            .UpsertDefaultCollectionsAsync(
+            .CreateDefaultCollectionsBulkAsync(
                 Arg.Any<Guid>(),
                 Arg.Any<IEnumerable<Guid>>(),
                 Arg.Any<string>());
@@ -172,10 +172,10 @@ public async Task ExecuteSideEffectsAsync_WithRequirements_ShouldUpsertDefaultCo
         // Act
         await sut.ExecuteSideEffectsAsync(policyRequest, postUpdatedPolicy, previousPolicyState);
 
-        // Assert
+        // Assert - Should call with all user IDs (repository does internal filtering)
         await collectionRepository
             .Received(1)
-            .UpsertDefaultCollectionsAsync(
+            .CreateDefaultCollectionsBulkAsync(
                 policyUpdate.OrganizationId,
                 Arg.Is<IEnumerable<Guid>>(ids => ids.Count() == 3),
                 _defaultUserCollectionName);
@@ -210,7 +210,7 @@ public async Task ExecuteSideEffectsAsync_WhenDefaultCollectionNameIsInvalid_Doe
         // Assert
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceive()
-            .UpsertDefaultCollectionsAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
+            .CreateDefaultCollectionsBulkAsync(Arg.Any<Guid>(), Arg.Any<IEnumerable<Guid>>(), Arg.Any<string>());
     }
 
     private static IPolicyRepository ArrangePolicyRepository(IEnumerable<OrganizationPolicyDetails> policyDetails)
@@ -251,7 +251,7 @@ public async Task ExecutePostUpsertSideEffectAsync_PolicyAlreadyEnabled_DoesNoth
         // Assert
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceiveWithAnyArgs()
-            .UpsertDefaultCollectionsAsync(default, default, default);
+            .CreateDefaultCollectionsBulkAsync(default, default, default);
     }
 
     [Theory, BitAutoData]
@@ -273,7 +273,7 @@ public async Task ExecutePostUpsertSideEffectAsync_PolicyBeingDisabled_DoesNothi
         // Assert
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceiveWithAnyArgs()
-            .UpsertDefaultCollectionsAsync(default, default, default);
+            .CreateDefaultCollectionsBulkAsync(default, default, default);
     }
 
     [Theory, BitAutoData]
@@ -299,7 +299,7 @@ public async Task ExecutePostUpsertSideEffectAsync_WhenNoUsersExist_DoNothing(
         // Assert
         await collectionRepository
             .DidNotReceiveWithAnyArgs()
-            .UpsertDefaultCollectionsAsync(
+            .CreateDefaultCollectionsBulkAsync(
                 default,
                 default,
                 default);
@@ -336,10 +336,10 @@ public async Task ExecutePostUpsertSideEffectAsync_WithRequirements_ShouldUpsert
         // Act
         await sut.ExecutePostUpsertSideEffectAsync(policyRequest, postUpdatedPolicy, previousPolicyState);
 
-        // Assert
+        // Assert - Should call with all user IDs (repository does internal filtering)
         await collectionRepository
             .Received(1)
-            .UpsertDefaultCollectionsAsync(
+            .CreateDefaultCollectionsBulkAsync(
                 policyUpdate.OrganizationId,
                 Arg.Is<IEnumerable<Guid>>(ids => ids.Count() == 3),
                 _defaultUserCollectionName);
@@ -367,6 +367,6 @@ public async Task ExecutePostUpsertSideEffectAsync_WhenDefaultCollectionNameIsIn
         // Assert
         await sutProvider.GetDependency<ICollectionRepository>()
             .DidNotReceiveWithAnyArgs()
-            .UpsertDefaultCollectionsAsync(default, default, default);
+            .CreateDefaultCollectionsBulkAsync(default, default, default);
     }
 }
diff --git a/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsBulkTests.cs b/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsBulkTests.cs
new file mode 100644
index 000000000000..712ad7d62e38
--- /dev/null
+++ b/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsBulkTests.cs
@@ -0,0 +1,53 @@
+using Bit.Core.Repositories;
+using Xunit;
+
+namespace Bit.Infrastructure.IntegrationTest.AdminConsole.Repositories.CollectionRepository;
+
+
+public class CreateDefaultCollectionsBulkAsyncTests
+{
+    [Theory, DatabaseData]
+    public async Task CreateDefaultCollectionsBulkAsync_CreatesDefaultCollections_Success(
+        IOrganizationRepository organizationRepository,
+        IUserRepository userRepository,
+        IOrganizationUserRepository organizationUserRepository,
+        ICollectionRepository collectionRepository)
+    {
+        await CreateDefaultCollectionsSharedTests.CreatesDefaultCollections_Success(
+            collectionRepository.CreateDefaultCollectionsBulkAsync,
+            organizationRepository,
+            userRepository,
+            organizationUserRepository,
+            collectionRepository);
+    }
+
+    [Theory, DatabaseData]
+    public async Task CreateDefaultCollectionsBulkAsync_CreatesForNewUsersOnly_AndIgnoresExistingUsers(
+        IOrganizationRepository organizationRepository,
+        IUserRepository userRepository,
+        IOrganizationUserRepository organizationUserRepository,
+        ICollectionRepository collectionRepository)
+    {
+        await CreateDefaultCollectionsSharedTests.CreatesForNewUsersOnly_AndIgnoresExistingUsers(
+            collectionRepository.CreateDefaultCollectionsBulkAsync,
+            organizationRepository,
+            userRepository,
+            organizationUserRepository,
+            collectionRepository);
+    }
+
+    [Theory, DatabaseData]
+    public async Task CreateDefaultCollectionsBulkAsync_IgnoresAllExistingUsers(
+        IOrganizationRepository organizationRepository,
+        IUserRepository userRepository,
+        IOrganizationUserRepository organizationUserRepository,
+        ICollectionRepository collectionRepository)
+    {
+        await CreateDefaultCollectionsSharedTests.IgnoresAllExistingUsers(
+            collectionRepository.CreateDefaultCollectionsBulkAsync,
+            organizationRepository,
+            userRepository,
+            organizationUserRepository,
+            collectionRepository);
+    }
+}
diff --git a/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/UpsertDefaultCollectionsTests.cs b/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsSharedTests.cs
similarity index 69%
rename from test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/UpsertDefaultCollectionsTests.cs
rename to test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsSharedTests.cs
index 64dffa473f1f..0fb4a5b446e1 100644
--- a/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/UpsertDefaultCollectionsTests.cs
+++ b/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsSharedTests.cs
@@ -6,10 +6,14 @@
 
 namespace Bit.Infrastructure.IntegrationTest.AdminConsole.Repositories.CollectionRepository;
 
-public class UpsertDefaultCollectionsTests
+/// <summary>
+/// Shared tests for CreateDefaultCollections methods - both bulk and non-bulk implementations,
+/// as they share the same behavior. Both test suites call the tests in this class.
+/// </summary>
+public static class CreateDefaultCollectionsSharedTests
 {
-    [Theory, DatabaseData]
-    public async Task UpsertDefaultCollectionsAsync_ShouldCreateDefaultCollection_WhenUsersDoNotHaveDefaultCollection(
+    public static async Task CreatesDefaultCollections_Success(
+        Func<Guid, IEnumerable<Guid>, string, Task> createDefaultCollectionsFunc,
         IOrganizationRepository organizationRepository,
         IUserRepository userRepository,
         IOrganizationUserRepository organizationUserRepository,
@@ -21,14 +25,13 @@ public async Task UpsertDefaultCollectionsAsync_ShouldCreateDefaultCollection_Wh
         var resultOrganizationUsers = await Task.WhenAll(
             CreateUserForOrgAsync(userRepository, organizationUserRepository, organization),
             CreateUserForOrgAsync(userRepository, organizationUserRepository, organization)
-            );
-
+        );
 
-        var affectedOrgUserIds = resultOrganizationUsers.Select(organizationUser => organizationUser.Id);
+        var affectedOrgUserIds = resultOrganizationUsers.Select(organizationUser => organizationUser.Id).ToList();
         var defaultCollectionName = $"default-name-{organization.Id}";
 
         // Act
-        await collectionRepository.UpsertDefaultCollectionsAsync(organization.Id, affectedOrgUserIds, defaultCollectionName);
+        await createDefaultCollectionsFunc(organization.Id, affectedOrgUserIds, defaultCollectionName);
 
         // Assert
         await AssertAllUsersHaveOneDefaultCollectionAsync(collectionRepository, resultOrganizationUsers, organization.Id);
@@ -36,8 +39,8 @@ public async Task UpsertDefaultCollectionsAsync_ShouldCreateDefaultCollection_Wh
         await CleanupAsync(organizationRepository, userRepository, organization, resultOrganizationUsers);
     }
 
-    [Theory, DatabaseData]
-    public async Task UpsertDefaultCollectionsAsync_ShouldUpsertCreateDefaultCollection_ForUsersWithAndWithoutDefaultCollectionsExist(
+    public static async Task CreatesForNewUsersOnly_AndIgnoresExistingUsers(
+        Func<Guid, IEnumerable<Guid>, string, Task> createDefaultCollectionsFunc,
         IOrganizationRepository organizationRepository,
         IUserRepository userRepository,
         IOrganizationUserRepository organizationUserRepository,
@@ -51,31 +54,30 @@ public async Task UpsertDefaultCollectionsAsync_ShouldUpsertCreateDefaultCollect
             CreateUserForOrgAsync(userRepository, organizationUserRepository, organization)
         );
 
-        var arrangedOrgUserIds = arrangedOrganizationUsers.Select(organizationUser => organizationUser.Id);
+        var arrangedOrgUserIds = arrangedOrganizationUsers.Select(organizationUser => organizationUser.Id).ToList();
         var defaultCollectionName = $"default-name-{organization.Id}";
 
+        await CreateUsersWithExistingDefaultCollectionsAsync(createDefaultCollectionsFunc, collectionRepository, organization.Id, arrangedOrgUserIds, defaultCollectionName, arrangedOrganizationUsers);
 
-        await CreateUsersWithExistingDefaultCollectionsAsync(collectionRepository, organization.Id, arrangedOrgUserIds, defaultCollectionName, arrangedOrganizationUsers);
-
-        var newOrganizationUsers = new List<OrganizationUser>()
+        var newOrganizationUsers = new List<OrganizationUser>
         {
             await CreateUserForOrgAsync(userRepository, organizationUserRepository, organization)
         };
 
-        var affectedOrgUsers = newOrganizationUsers.Concat(arrangedOrganizationUsers);
-        var affectedOrgUserIds = affectedOrgUsers.Select(organizationUser => organizationUser.Id);
+        var affectedOrgUsers = newOrganizationUsers.Concat(arrangedOrganizationUsers).ToList();
+        var affectedOrgUserIds = affectedOrgUsers.Select(organizationUser => organizationUser.Id).ToList();
 
         // Act
-        await collectionRepository.UpsertDefaultCollectionsAsync(organization.Id, affectedOrgUserIds, defaultCollectionName);
+        await createDefaultCollectionsFunc(organization.Id, affectedOrgUserIds, defaultCollectionName);
 
         // Assert
-        await AssertAllUsersHaveOneDefaultCollectionAsync(collectionRepository, arrangedOrganizationUsers, organization.Id);
+        await AssertAllUsersHaveOneDefaultCollectionAsync(collectionRepository, affectedOrgUsers, organization.Id);
 
         await CleanupAsync(organizationRepository, userRepository, organization, affectedOrgUsers);
     }
 
-    [Theory, DatabaseData]
-    public async Task UpsertDefaultCollectionsAsync_ShouldNotCreateDefaultCollection_WhenUsersAlreadyHaveOne(
+    public static async Task IgnoresAllExistingUsers(
+        Func<Guid, IEnumerable<Guid>, string, Task> createDefaultCollectionsFunc,
         IOrganizationRepository organizationRepository,
         IUserRepository userRepository,
         IOrganizationUserRepository organizationUserRepository,
@@ -89,26 +91,29 @@ public async Task UpsertDefaultCollectionsAsync_ShouldNotCreateDefaultCollection
             CreateUserForOrgAsync(userRepository, organizationUserRepository, organization)
         );
 
-        var affectedOrgUserIds = resultOrganizationUsers.Select(organizationUser => organizationUser.Id);
+        var affectedOrgUserIds = resultOrganizationUsers.Select(organizationUser => organizationUser.Id).ToList();
         var defaultCollectionName = $"default-name-{organization.Id}";
 
+        await CreateUsersWithExistingDefaultCollectionsAsync(createDefaultCollectionsFunc, collectionRepository, organization.Id, affectedOrgUserIds, defaultCollectionName, resultOrganizationUsers);
 
-        await CreateUsersWithExistingDefaultCollectionsAsync(collectionRepository, organization.Id, affectedOrgUserIds, defaultCollectionName, resultOrganizationUsers);
+        // Act - Try to create again, should silently filter and not create duplicates
+        await createDefaultCollectionsFunc(organization.Id, affectedOrgUserIds, defaultCollectionName);
 
-        // Act
-        await collectionRepository.UpsertDefaultCollectionsAsync(organization.Id, affectedOrgUserIds, defaultCollectionName);
-
-        // Assert
+        // Assert - Original collections should remain unchanged, still only one per user
         await AssertAllUsersHaveOneDefaultCollectionAsync(collectionRepository, resultOrganizationUsers, organization.Id);
 
         await CleanupAsync(organizationRepository, userRepository, organization, resultOrganizationUsers);
     }
 
-    private static async Task CreateUsersWithExistingDefaultCollectionsAsync(ICollectionRepository collectionRepository,
-        Guid organizationId, IEnumerable<Guid> affectedOrgUserIds, string defaultCollectionName,
+    private static async Task CreateUsersWithExistingDefaultCollectionsAsync(
+        Func<Guid, IEnumerable<Guid>, string, Task> createDefaultCollectionsFunc,
+        ICollectionRepository collectionRepository,
+        Guid organizationId,
+        IEnumerable<Guid> affectedOrgUserIds,
+        string defaultCollectionName,
         OrganizationUser[] resultOrganizationUsers)
     {
-        await collectionRepository.UpsertDefaultCollectionsAsync(organizationId, affectedOrgUserIds, defaultCollectionName);
+        await createDefaultCollectionsFunc(organizationId, affectedOrgUserIds, defaultCollectionName);
 
         await AssertAllUsersHaveOneDefaultCollectionAsync(collectionRepository, resultOrganizationUsers, organizationId);
     }
@@ -131,7 +136,6 @@ private static async Task AssertAllUsersHaveOneDefaultCollectionAsync(ICollectio
     private static async Task<OrganizationUser> CreateUserForOrgAsync(IUserRepository userRepository,
         IOrganizationUserRepository organizationUserRepository, Organization organization)
     {
-
         var user = await userRepository.CreateTestUserAsync();
         var orgUser = await organizationUserRepository.CreateTestOrganizationUserAsync(organization, user);
 
diff --git a/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsTests.cs b/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsTests.cs
new file mode 100644
index 000000000000..bd894e9ca59a
--- /dev/null
+++ b/test/Infrastructure.IntegrationTest/AdminConsole/Repositories/CollectionRepository/CreateDefaultCollectionsTests.cs
@@ -0,0 +1,52 @@
+using Bit.Core.Repositories;
+using Xunit;
+
+namespace Bit.Infrastructure.IntegrationTest.AdminConsole.Repositories.CollectionRepository;
+
+public class CreateDefaultCollectionsAsyncTests
+{
+    [Theory, DatabaseData]
+    public async Task CreateDefaultCollectionsAsync_CreatesDefaultCollections_Success(
+        IOrganizationRepository organizationRepository,
+        IUserRepository userRepository,
+        IOrganizationUserRepository organizationUserRepository,
+        ICollectionRepository collectionRepository)
+    {
+        await CreateDefaultCollectionsSharedTests.CreatesDefaultCollections_Success(
+            collectionRepository.CreateDefaultCollectionsAsync,
+            organizationRepository,
+            userRepository,
+            organizationUserRepository,
+            collectionRepository);
+    }
+
+    [Theory, DatabaseData]
+    public async Task CreateDefaultCollectionsAsync_CreatesForNewUsersOnly_AndIgnoresExistingUsers(
+        IOrganizationRepository organizationRepository,
+        IUserRepository userRepository,
+        IOrganizationUserRepository organizationUserRepository,
+        ICollectionRepository collectionRepository)
+    {
+        await CreateDefaultCollectionsSharedTests.CreatesForNewUsersOnly_AndIgnoresExistingUsers(
+            collectionRepository.CreateDefaultCollectionsAsync,
+            organizationRepository,
+            userRepository,
+            organizationUserRepository,
+            collectionRepository);
+    }
+
+    [Theory, DatabaseData]
+    public async Task CreateDefaultCollectionsAsync_IgnoresAllExistingUsers(
+        IOrganizationRepository organizationRepository,
+        IUserRepository userRepository,
+        IOrganizationUserRepository organizationUserRepository,
+        ICollectionRepository collectionRepository)
+    {
+        await CreateDefaultCollectionsSharedTests.IgnoresAllExistingUsers(
+            collectionRepository.CreateDefaultCollectionsAsync,
+            organizationRepository,
+            userRepository,
+            organizationUserRepository,
+            collectionRepository);
+    }
+}
diff --git a/util/Migrator/DbScripts/2026-01-13_00_Collection_CreateDefaultCollections.sql b/util/Migrator/DbScripts/2026-01-13_00_Collection_CreateDefaultCollections.sql
new file mode 100644
index 000000000000..c7935db5e846
--- /dev/null
+++ b/util/Migrator/DbScripts/2026-01-13_00_Collection_CreateDefaultCollections.sql
@@ -0,0 +1,70 @@
+-- Creates default user collections for organization users
+-- Filters out existing default collections at database level
+CREATE OR ALTER PROCEDURE [dbo].[Collection_CreateDefaultCollections]
+    @OrganizationId UNIQUEIDENTIFIER,
+    @DefaultCollectionName VARCHAR(MAX),
+    @OrganizationUserCollectionIds AS [dbo].[TwoGuidIdArray] READONLY -- OrganizationUserId, CollectionId
+AS
+BEGIN
+    SET NOCOUNT ON
+
+    DECLARE @Now DATETIME2(7) = GETUTCDATE()
+
+    -- Filter to only users who don't have default collections
+    SELECT ids.Id1, ids.Id2
+    INTO #FilteredIds
+    FROM @OrganizationUserCollectionIds ids
+    WHERE NOT EXISTS (
+        SELECT 1
+        FROM [dbo].[CollectionUser] cu
+        INNER JOIN [dbo].[Collection] c ON c.Id = cu.CollectionId
+        WHERE c.OrganizationId = @OrganizationId
+          AND c.[Type] = 1 -- CollectionType.DefaultUserCollection
+          AND cu.OrganizationUserId = ids.Id1
+    );
+
+    -- Insert collections only for users who don't have default collections yet
+    INSERT INTO [dbo].[Collection]
+    (
+        [Id],
+        [OrganizationId],
+        [Name],
+        [CreationDate],
+        [RevisionDate],
+        [Type],
+        [ExternalId],
+        [DefaultUserCollectionEmail]
+    )
+    SELECT
+        ids.Id2, -- CollectionId
+        @OrganizationId,
+        @DefaultCollectionName,
+        @Now,
+        @Now,
+        1, -- CollectionType.DefaultUserCollection
+        NULL,
+        NULL
+    FROM
+        #FilteredIds ids;
+
+    -- Insert collection user mappings
+    INSERT INTO [dbo].[CollectionUser]
+    (
+        [CollectionId],
+        [OrganizationUserId],
+        [ReadOnly],
+        [HidePasswords],
+        [Manage]
+    )
+    SELECT
+        ids.Id2, -- CollectionId
+        ids.Id1, -- OrganizationUserId
+        0, -- ReadOnly = false
+        0, -- HidePasswords = false
+        1  -- Manage = true
+    FROM
+        #FilteredIds ids;
+
+    DROP TABLE #FilteredIds;
+END
+GO