diff --git a/src/azure-cli-core/azure/cli/core/_profile.py b/src/azure-cli-core/azure/cli/core/_profile.py
index 2312aa2402b..6c68bddcb0c 100644
--- a/src/azure-cli-core/azure/cli/core/_profile.py
+++ b/src/azure-cli-core/azure/cli/core/_profile.py
@@ -182,16 +182,22 @@ def _set_subscriptions(self, new_subscriptions):
                 s[_IS_DEFAULT_SUBSCRIPTION] = False
 
             if not new_active_one:
-                new_active_one = new_subscriptions[0]
-            new_active_one[_IS_DEFAULT_SUBSCRIPTION] = True
-            default_sub_id = new_active_one[_SUBSCRIPTION_ID]
+                new_active_one = Profile._pick_working_subscription(new_subscriptions)
         else:
-            new_subscriptions[0][_IS_DEFAULT_SUBSCRIPTION] = True
-            default_sub_id = new_subscriptions[0][_SUBSCRIPTION_ID]
+            new_active_one = Profile._pick_working_subscription(new_subscriptions)
+
+        new_active_one[_IS_DEFAULT_SUBSCRIPTION] = True
+        default_sub_id = new_active_one[_SUBSCRIPTION_ID]
 
         set_cloud_subscription(active_cloud.name, default_sub_id)
         self._storage[_SUBSCRIPTIONS] = subscriptions
 
+    @staticmethod
+    def _pick_working_subscription(subscriptions):
+        from azure.mgmt.resource.subscriptions.models import SubscriptionState
+        s = next((x for x in subscriptions if x['state'] == SubscriptionState.enabled.value), None)
+        return s or subscriptions[0]
+
     def set_active_subscription(self, subscription):  # take id or name
         subscriptions = self.load_cached_subscriptions(all_clouds=True)
         active_cloud = get_active_cloud()
diff --git a/src/azure-cli-core/tests/test_profile.py b/src/azure-cli-core/tests/test_profile.py
index 08ab8288fb3..2ce6494ed5a 100644
--- a/src/azure-cli-core/tests/test_profile.py
+++ b/src/azure-cli-core/tests/test_profile.py
@@ -165,6 +165,19 @@ def test_set_active_subscription(self):
         self.assertFalse(storage_mock['subscriptions'][1]['isDefault'])
         self.assertTrue(storage_mock['subscriptions'][0]['isDefault'])
 
+    def test_default_active_subscription_to_non_disabled_one(self):
+        storage_mock = {'subscriptions': None}
+        profile = Profile(storage_mock)
+
+        subscriptions = profile._normalize_properties(
+            self.user2, [self.subscription2, self.subscription1], False)
+
+        profile._set_subscriptions(subscriptions)
+
+        # verify we skip the overdued subscription and default to the 2nd one in the list
+        self.assertEqual(storage_mock['subscriptions'][1]['name'], self.subscription1.display_name)
+        self.assertTrue(storage_mock['subscriptions'][1]['isDefault'])
+
     def test_get_subscription(self):
         storage_mock = {'subscriptions': None}
         profile = Profile(storage_mock)