diff --git a/app/Jobs/ApplicationDeploymentJob.php b/app/Jobs/ApplicationDeploymentJob.php
index 6a3101e1cc..10364885b6 100644
--- a/app/Jobs/ApplicationDeploymentJob.php
+++ b/app/Jobs/ApplicationDeploymentJob.php
@@ -5838,7 +5838,7 @@ COPY ./nginx.conf /etc/nginx/conf.d/default.conf");
             $code = $exception->getCode();
             if ($code !== 69420) {
                 // 69420 means failed to push the image to the registry, so we don't need to remove the new version as it is the currently running one
-                if ($this->application->settings->is_consistent_container_name_enabled || str($this->application->settings->custom_internal_name)->isNotEmpty() || $this->pull_request_id !== 0) {
+                if ($this->application->settings->is_consistent_container_name_enabled || $this->pull_request_id !== 0) {
                     // do not remove already running container for PR deployments
                 } else {
                     $this->application_deployment_queue->addLogEntry('Deployment failed. Removing the new version of your application.', 'stderr');
diff --git a/tests/Unit/ApplicationDeploymentFailedContainerCleanupTest.php b/tests/Unit/ApplicationDeploymentFailedContainerCleanupTest.php
new file mode 100644
index 0000000000..514d21fe14
--- /dev/null
+++ b/tests/Unit/ApplicationDeploymentFailedContainerCleanupTest.php
@@ -0,0 +1,63 @@
+<?php
+
+use App\Jobs\ApplicationDeploymentJob;
+use App\Models\Application;
+use App\Models\ApplicationDeploymentQueue;
+use App\Models\ApplicationSetting;
+
+/**
+ * @return array<int, array<int|string, mixed>>
+ */
+function runFailedDeploymentCleanup(bool $consistentContainerName, ?string $customInternalName, int $pullRequestId): array
+{
+    $settings = new ApplicationSetting;
+    $settings->setRawAttributes([
+        'is_consistent_container_name_enabled' => $consistentContainerName,
+        'custom_internal_name' => $customInternalName,
+    ]);
+
+    $application = new Application;
+    $application->setRawAttributes(['build_pack' => 'dockerfile']);
+    $application->setRelation('settings', $settings);
+
+    $queue = Mockery::mock(ApplicationDeploymentQueue::class);
+    $queue->shouldReceive('addLogEntry')->andReturnNull();
+
+    $job = Mockery::mock(ApplicationDeploymentJob::class)->makePartial();
+    $job->shouldAllowMockingProtectedMethods();
+    $job->shouldReceive('failDeployment')->andReturnNull();
+
+    $remoteCommands = [];
+    $job->shouldReceive('execute_remote_command')->andReturnUsing(function (...$commands) use (&$remoteCommands) {
+        array_push($remoteCommands, ...$commands);
+    });
+
+    $reflection = new ReflectionClass(ApplicationDeploymentJob::class);
+    $reflection->getProperty('application_deployment_queue')->setValue($job, $queue);
+    $reflection->getProperty('application')->setValue($job, $application);
+    $reflection->getProperty('pull_request_id')->setValue($job, $pullRequestId);
+    $reflection->getProperty('container_name')->setValue($job, 'new-container-20261001T120000');
+
+    $job->failed(new RuntimeException('Health check failed'));
+
+    return $remoteCommands;
+}
+
+it('removes the new rolling-update container when only a custom internal name is set', function () {
+    $remoteCommands = runFailedDeploymentCleanup(consistentContainerName: false, customInternalName: 'my-api', pullRequestId: 0);
+
+    expect($remoteCommands)->toHaveCount(1)
+        ->and($remoteCommands[0][0])->toContain('new-container-20261001T120000');
+});
+
+it('removes the new rolling-update container when no custom name is set', function () {
+    expect(runFailedDeploymentCleanup(consistentContainerName: false, customInternalName: null, pullRequestId: 0))->toHaveCount(1);
+});
+
+it('keeps the running container when consistent container names are enabled', function () {
+    expect(runFailedDeploymentCleanup(consistentContainerName: true, customInternalName: 'my-api', pullRequestId: 0))->toBeEmpty();
+});
+
+it('keeps the running container for pull request deployments', function () {
+    expect(runFailedDeploymentCleanup(consistentContainerName: false, customInternalName: 'my-api', pullRequestId: 12))->toBeEmpty();
+});