diff --git a/api/routers/models.py b/api/routers/models.py
index 7b2b31c..6574dac 100644
--- a/api/routers/models.py
+++ b/api/routers/models.py
@@ -98,16 +98,16 @@ async def create_model(model_data: ModelCreate):
                 detail=f"Invalid model type. Must be one of: {valid_types}"
             )
 
-        # Check for duplicate model name under the same provider (case-insensitive)
+        # Check for duplicate model name under the same provider and type (case-insensitive)
         from open_notebook.database.repository import repo_query
         existing = await repo_query(
-            "SELECT * FROM model WHERE string::lowercase(provider) = $provider AND string::lowercase(name) = $name LIMIT 1",
-            {"provider": model_data.provider.lower(), "name": model_data.name.lower()}
+            "SELECT * FROM model WHERE string::lowercase(provider) = $provider AND string::lowercase(name) = $name AND string::lowercase(type) = $type LIMIT 1",
+            {"provider": model_data.provider.lower(), "name": model_data.name.lower(), "type": model_data.type.lower()}
         )
         if existing:
             raise HTTPException(
                 status_code=400,
-                detail=f"Model '{model_data.name}' already exists for provider '{model_data.provider}'"
+                detail=f"Model '{model_data.name}' already exists for provider '{model_data.provider}' with type '{model_data.type}'"
             )
 
         new_model = Model(
diff --git a/tests/test_models_api.py b/tests/test_models_api.py
index 60319ce..b0ef456 100644
--- a/tests/test_models_api.py
+++ b/tests/test_models_api.py
@@ -41,7 +41,7 @@ class TestModelCreation:
         assert response.status_code == 400
         assert (
             response.json()["detail"]
-            == "Model 'gpt-4' already exists for provider 'openai'"
+            == "Model 'gpt-4' already exists for provider 'openai' with type 'language'"
         )
 
     @pytest.mark.asyncio
@@ -70,7 +70,7 @@ class TestModelCreation:
         assert response.status_code == 400
         assert (
             response.json()["detail"]
-            == "Model 'GPT-4' already exists for provider 'OpenAI'"
+            == "Model 'GPT-4' already exists for provider 'OpenAI' with type 'language'"
         )
 
     @pytest.mark.asyncio
@@ -95,6 +95,28 @@ class TestModelCreation:
             # Should succeed because provider is different
             assert response.status_code == 200
 
+    @pytest.mark.asyncio
+    @patch("open_notebook.database.repository.repo_query")
+    async def test_create_same_model_name_different_type(
+        self, mock_repo_query, client
+    ):
+        """Test that creating a model with same name but different type is allowed."""
+        from open_notebook.ai.models import Model
+
+        # Mock repo_query to return empty (no duplicate found for different type)
+        mock_repo_query.return_value = []
+
+        # Patch the save method on the Model class
+        with patch.object(Model, "save", new_callable=AsyncMock) as mock_save:
+            # Attempt to create same model name with different type (embedding instead of language)
+            response = client.post(
+                "/api/models",
+                json={"name": "gpt-4", "provider": "openai", "type": "embedding"},
+            )
+
+            # Should succeed because type is different
+            assert response.status_code == 200
+
 
 class TestModelsProviderAvailability:
     """Test suite for Models Provider Availability endpoint."""