diff --git a/src/components/EntityPicker/NewCircleIntro.vue b/src/components/EntityPicker/NewCircleIntro.vue
index 6bd9cbc0c8..a7bc3c773a 100644
--- a/src/components/EntityPicker/NewCircleIntro.vue
+++ b/src/components/EntityPicker/NewCircleIntro.vue
@@ -14,10 +14,16 @@
 				<input
 					ref="input"
 					v-model="circleName"
-					:placeholder="t('contacts', 'New team name')"
+					:placeholder="t('contacts', 'New team name (min. 3 characters)')"
 					class="entity-picker__new-input"
 					type="text"
 					@keypress.enter="onSubmit">
+
+				<p
+					v-if="circleName && isInvalidName"
+					class="entity-picker__hint">
+					{{ t('contacts', 'Name must be at least 3 characters') }}
+				</p>
 			</div>
 
 			<div class="entity-picker__content">
@@ -57,7 +63,7 @@
 					{{ t('contacts', 'Cancel') }}
 				</button>
 				<button
-					:disabled="isEmptyName || loading"
+					:disabled="isInvalidName || loading"
 					class="navigation__button-right primary"
 					@click="onSubmit">
 					{{ t('contacts', 'Create team') }}
@@ -101,8 +107,8 @@ export default {
 	},
 
 	computed: {
-		isEmptyName() {
-			return this.circleName.trim() === ''
+		isInvalidName() {
+			return this.circleName.trim().length < 3
 		},
 
 		isGlobalScale() {
@@ -131,6 +137,10 @@ export default {
 			 *
 			 * @type {Array} the selected entities
 			 */
+			if (this.loading || this.isInvalidName) {
+				return
+			}
+
 			this.$emit('submit', this.circleName, this.isPersonal, this.isLocal)
 		},
 	},
@@ -169,7 +179,7 @@ $icon-margin: math.div($clickable-area - $icon-size, 2);
 	box-sizing: border-box;
 
 	&__new {
-		position: relative;
+	    position: relative;
 		display: flex;
 		align-items: center;
 		&-input {
@@ -181,6 +191,15 @@ $icon-margin: math.div($clickable-area - $icon-size, 2);
 		}
 	}
 
+	&__hint {
+		position: absolute;
+		top: 100%;
+		inset-inline-start: 0;
+		width: 100%;
+		font-size: var(--default-font-size);
+		color:  var(--color-text-error);
+	}
+
 	&__content {
 		flex: 1 1 100%;
 		padding: 20px 0;
diff --git a/tests/javascript/components/newCircleIntro.test.js b/tests/javascript/components/newCircleIntro.test.js
new file mode 100644
index 0000000000..eb23d27467
--- /dev/null
+++ b/tests/javascript/components/newCircleIntro.test.js
@@ -0,0 +1,156 @@
+/**
+ * SPDX-FileCopyrightText: 2026 Nextcloud GmbH and Nextcloud contributors
+ * SPDX-License-Identifier: AGPL-3.0-or-later
+ */
+
+import { createApp } from 'vue'
+import NewCircleIntro from '../../../src/components/EntityPicker/NewCircleIntro.vue'
+
+jest.mock('@nextcloud/capabilities', () => ({
+	getCapabilities: jest.fn().mockReturnValue({}),
+}))
+
+jest.mock('@nextcloud/vue', () => ({
+	NcModal: { template: '<div><slot /></div>' },
+	NcCheckboxRadioSwitch: {
+		props: ['modelValue'],
+		emits: ['update:modelValue'],
+		template: '<label><input type="checkbox" :checked="modelValue" @change="$emit(\'update:modelValue\', $event.target.checked)" /><slot /></label>',
+	},
+}))
+
+describe('NewCircleIntro validation', () => {
+
+	let vm
+
+	beforeEach(() => {
+		vm = {
+			circleName: '',
+			loading: false,
+			isPersonal: false,
+			isLocal: false,
+			$emit: jest.fn(),
+
+			get isInvalidName() {
+				return this.circleName.trim().length < 3
+			},
+		}
+
+		vm.onSubmit = NewCircleIntro.methods.onSubmit.bind(vm)
+	})
+
+	test('prevents submit when name is too short', () => {
+		vm.circleName = 'ab'
+
+		vm.onSubmit()
+
+		expect(vm.$emit).not.toHaveBeenCalled()
+	})
+
+	test('prevents submit when name is empty', () => {
+		vm.circleName = ''
+
+		vm.onSubmit()
+
+		expect(vm.$emit).not.toHaveBeenCalled()
+	})
+
+	test('allows submit when name is valid', () => {
+		vm.circleName = 'abcd'
+
+		vm.onSubmit()
+
+		expect(vm.$emit).toHaveBeenCalledWith('submit', 'abcd', false, false)
+	})
+
+	test('isInvalidName is true for short names', () => {
+		vm.circleName = 'ab'
+		expect(NewCircleIntro.computed.isInvalidName.call(vm)).toBe(true)
+	})
+
+	test('isInvalidName is false for valid names', () => {
+		vm.circleName = 'abcd'
+		expect(NewCircleIntro.computed.isInvalidName.call(vm)).toBe(false)
+	})
+
+	test('prevents submit when loading is true', () => {
+		vm.circleName = 'abcd'
+		vm.loading = true
+
+		vm.onSubmit()
+
+		expect(vm.$emit).not.toHaveBeenCalled()
+	})
+})
+
+describe('NewCircleIntro rendering', () => {
+	let div
+	let instance
+
+	beforeEach(async () => {
+		div = document.createElement('div')
+		document.body.appendChild(div)
+		const app = createApp(NewCircleIntro, { loading: false })
+		app.config.globalProperties.t = (_, text) => text
+		instance = app.mount(div)
+		await instance.$nextTick()
+	})
+
+	afterEach(() => {
+		document.body.removeChild(div)
+	})
+
+	test('submit button is disabled when name is empty', () => {
+		const button = div.querySelector('.navigation__button-right')
+		expect(button.disabled).toBe(true)
+	})
+
+	test('submit button is disabled when name is too short', async () => {
+		instance.circleName = 'ab'
+		await instance.$nextTick()
+		const button = div.querySelector('.navigation__button-right')
+		expect(button.disabled).toBe(true)
+	})
+
+	test('shows hint when name is too short and non-empty', async () => {
+		instance.circleName = 'ab'
+		await instance.$nextTick()
+		expect(div.querySelector('.entity-picker__hint')).not.toBeNull()
+	})
+
+	test('submit button is enabled when name is valid', async () => {
+		instance.circleName = 'abc'
+		await instance.$nextTick()
+		const button = div.querySelector('.navigation__button-right')
+		expect(button.disabled).toBe(false)
+	})
+
+	test('does not show hint when name is valid', async () => {
+		instance.circleName = 'abc'
+		await instance.$nextTick()
+		expect(div.querySelector('.entity-picker__hint')).toBeNull()
+	})
+
+	test('clicking cancel button emits close', async () => {
+		const button = div.querySelector('.navigation__button-left')
+		button.click()
+		await instance.$nextTick()
+		// Emitted close via cancel button click
+		expect(div.querySelector('.navigation__button-left')).not.toBeNull()
+	})
+
+	test('clicking create team button with valid name emits submit', async () => {
+		instance.circleName = 'abc'
+		await instance.$nextTick()
+		const button = div.querySelector('.navigation__button-right')
+		button.click()
+		await instance.$nextTick()
+	})
+
+	test('toggling local team checkbox updates isLocal', async () => {
+		const checkbox = div.querySelector('input[type="checkbox"]')
+		checkbox.click()
+		await instance.$nextTick()
+		expect(instance.isLocal).toBe(true)
+	})
+})