diff --git a/packages/subscription-controller/CHANGELOG.md b/packages/subscription-controller/CHANGELOG.md
index 94c10fff777..79412d81fbd 100644
--- a/packages/subscription-controller/CHANGELOG.md
+++ b/packages/subscription-controller/CHANGELOG.md
@@ -9,6 +9,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Changed
 
+- Updated `submitShieldSubscriptionCryptoApproval` to handle change payment method transaction if subscription already existed ([#7231](https://github.com/MetaMask/core/pull/7231))
 - Bump `@metamask/transaction-controller` from `^62.0.0` to `^62.3.0` ([#7215](https://github.com/MetaMask/core/pull/7215), [#7220](https://github.com/MetaMask/core/pull/7220), [#7236](https://github.com/MetaMask/core/pull/7236))
 - Move peer dependencies for controller and service packages to direct dependencies ([#7209](https://github.com/MetaMask/core/pull/7209))
   - The dependencies moved are:
diff --git a/packages/subscription-controller/src/SubscriptionController.test.ts b/packages/subscription-controller/src/SubscriptionController.test.ts
index eac28dde529..3b8ea5f9f1c 100644
--- a/packages/subscription-controller/src/SubscriptionController.test.ts
+++ b/packages/subscription-controller/src/SubscriptionController.test.ts
@@ -1891,9 +1891,12 @@ describe('SubscriptionController', () => {
             status: SUBSCRIPTION_STATUSES.trialing,
           });
 
-          mockService.getSubscriptions.mockResolvedValue(
-            MOCK_GET_SUBSCRIPTIONS_RESPONSE,
-          );
+          mockService.getSubscriptions
+            .mockResolvedValueOnce({
+              subscriptions: [],
+              trialedProducts: [],
+            })
+            .mockResolvedValue(MOCK_GET_SUBSCRIPTIONS_RESPONSE);
 
           // Create a shield subscription approval transaction
           const txMeta = {
@@ -2095,5 +2098,103 @@ describe('SubscriptionController', () => {
         },
       );
     });
+
+    it('should update payment method when user has active subscription', async () => {
+      await withController(
+        {
+          state: {
+            pricing: MOCK_PRICE_INFO_RESPONSE,
+            trialedProducts: [],
+            subscriptions: [MOCK_SUBSCRIPTION],
+            lastSelectedPaymentMethod: {
+              [PRODUCT_TYPES.SHIELD]: {
+                type: PAYMENT_TYPES.byCrypto,
+                paymentTokenAddress: '0xtoken',
+                paymentTokenSymbol: 'USDT',
+                plan: RECURRING_INTERVALS.month,
+              },
+            },
+          },
+        },
+        async ({ controller, mockService }) => {
+          mockService.updatePaymentMethodCrypto.mockResolvedValue({});
+          mockService.getSubscriptions.mockResolvedValue(
+            MOCK_GET_SUBSCRIPTIONS_RESPONSE,
+          );
+
+          const txMeta = {
+            ...generateMockTxMeta(),
+            type: TransactionType.shieldSubscriptionApprove,
+            chainId: '0x1' as Hex,
+            rawTx: '0x123',
+            txParams: {
+              data: '0x456',
+              from: '0x1234567890123456789012345678901234567890',
+              to: '0xtoken',
+            },
+            status: TransactionStatus.submitted,
+          };
+
+          await controller.submitShieldSubscriptionCryptoApproval(txMeta);
+
+          expect(mockService.updatePaymentMethodCrypto).toHaveBeenCalledTimes(
+            1,
+          );
+          expect(
+            mockService.startSubscriptionWithCrypto,
+          ).not.toHaveBeenCalled();
+        },
+      );
+    });
+
+    it('should throw error when subscription status is not valid for crypto approval', async () => {
+      await withController(
+        {
+          state: {
+            pricing: MOCK_PRICE_INFO_RESPONSE,
+            trialedProducts: [],
+            subscriptions: [],
+            lastSelectedPaymentMethod: {
+              [PRODUCT_TYPES.SHIELD]: {
+                type: PAYMENT_TYPES.byCrypto,
+                paymentTokenAddress: '0xtoken',
+                paymentTokenSymbol: 'USDT',
+                plan: RECURRING_INTERVALS.month,
+              },
+            },
+          },
+        },
+        async ({ controller, mockService }) => {
+          mockService.getSubscriptions.mockResolvedValue({
+            subscriptions: [
+              {
+                ...MOCK_SUBSCRIPTION,
+                status: SUBSCRIPTION_STATUSES.incomplete,
+              },
+            ],
+            trialedProducts: [],
+          });
+
+          const txMeta = {
+            ...generateMockTxMeta(),
+            type: TransactionType.shieldSubscriptionApprove,
+            chainId: '0x1' as Hex,
+            rawTx: '0x123',
+            txParams: {
+              data: '0x456',
+              from: '0x1234567890123456789012345678901234567890',
+              to: '0xtoken',
+            },
+            status: TransactionStatus.submitted,
+          };
+
+          await expect(
+            controller.submitShieldSubscriptionCryptoApproval(txMeta),
+          ).rejects.toThrow(
+            SubscriptionControllerErrorMessage.SubscriptionNotValidForCryptoApproval,
+          );
+        },
+      );
+    });
   });
 });
diff --git a/packages/subscription-controller/src/SubscriptionController.ts b/packages/subscription-controller/src/SubscriptionController.ts
index 6a654d39fed..ffdb2c2cdbc 100644
--- a/packages/subscription-controller/src/SubscriptionController.ts
+++ b/packages/subscription-controller/src/SubscriptionController.ts
@@ -33,10 +33,12 @@ import type {
   CachedLastSelectedPaymentMethod,
   SubmitSponsorshipIntentsMethodParams,
   RecurringInterval,
+  SubscriptionStatus,
 } from './types';
 import {
   PAYMENT_TYPES,
   PRODUCT_TYPES,
+  SUBSCRIPTION_STATUSES,
   type ISubscriptionService,
   type PricingResponse,
   type ProductType,
@@ -509,26 +511,50 @@ export class SubscriptionController extends StaticIntervalPollingController()<
       lastSelectedPaymentMethod[PRODUCT_TYPES.SHIELD];
     this.#assertIsPaymentMethodCrypto(lastSelectedPaymentMethodShield);
 
-    const isTrialed = trialedProducts?.includes(PRODUCT_TYPES.SHIELD);
-
     const productPrice = this.#getProductPriceByProductAndPlan(
       PRODUCT_TYPES.SHIELD,
       lastSelectedPaymentMethodShield.plan,
     );
+    const isTrialed = trialedProducts?.includes(PRODUCT_TYPES.SHIELD);
+    // get the latest subscriptions state to check if the user has an active shield subscription
+    await this.getSubscriptions();
+    const currentSubscription = this.state.subscriptions.find((subscription) =>
+      subscription.products.some((p) => p.name === PRODUCT_TYPES.SHIELD),
+    );
+
+    this.#assertValidSubscriptionStateForCryptoApproval({
+      product: PRODUCT_TYPES.SHIELD,
+    });
+    // if shield subscription exists, this transaction is for changing payment method
+    const isChangePaymentMethod = Boolean(currentSubscription);
+
+    if (isChangePaymentMethod) {
+      await this.updatePaymentMethod({
+        paymentType: PAYMENT_TYPES.byCrypto,
+        subscriptionId: (currentSubscription as Subscription).id,
+        chainId,
+        payerAddress: txMeta.txParams.from as Hex,
+        tokenSymbol: lastSelectedPaymentMethodShield.paymentTokenSymbol,
+        rawTransaction: rawTx as Hex,
+        recurringInterval: productPrice.interval,
+        billingCycles: productPrice.minBillingCycles,
+      });
+    } else {
+      const params = {
+        products: [PRODUCT_TYPES.SHIELD],
+        isTrialRequested: !isTrialed,
+        recurringInterval: productPrice.interval,
+        billingCycles: productPrice.minBillingCycles,
+        chainId,
+        payerAddress: txMeta.txParams.from as Hex,
+        tokenSymbol: lastSelectedPaymentMethodShield.paymentTokenSymbol,
+        rawTransaction: rawTx as Hex,
+        isSponsored,
+        useTestClock: lastSelectedPaymentMethodShield.useTestClock,
+      };
+      await this.startSubscriptionWithCrypto(params);
+    }
 
-    const params = {
-      products: [PRODUCT_TYPES.SHIELD],
-      isTrialRequested: !isTrialed,
-      recurringInterval: productPrice.interval,
-      billingCycles: productPrice.minBillingCycles,
-      chainId,
-      payerAddress: txMeta.txParams.from as Hex,
-      tokenSymbol: lastSelectedPaymentMethodShield.paymentTokenSymbol,
-      rawTransaction: rawTx as Hex,
-      isSponsored,
-      useTestClock: lastSelectedPaymentMethodShield.useTestClock,
-    };
-    await this.startSubscriptionWithCrypto(params);
     // update the subscriptions state after subscription created in server
     await this.getSubscriptions();
   }
@@ -799,6 +825,34 @@ export class SubscriptionController extends StaticIntervalPollingController()<
     return productPrice;
   }
 
+  #assertValidSubscriptionStateForCryptoApproval({
+    product,
+  }: {
+    product: ProductType;
+  }) {
+    const subscription = this.state.subscriptions.find((sub) =>
+      sub.products.some((p) => p.name === product),
+    );
+
+    const isValid =
+      !subscription ||
+      (
+        [
+          SUBSCRIPTION_STATUSES.pastDue,
+          SUBSCRIPTION_STATUSES.unpaid,
+          SUBSCRIPTION_STATUSES.paused,
+          SUBSCRIPTION_STATUSES.provisional,
+          SUBSCRIPTION_STATUSES.active,
+          SUBSCRIPTION_STATUSES.trialing,
+        ] as SubscriptionStatus[]
+      ).includes(subscription.status);
+    if (!isValid) {
+      throw new Error(
+        SubscriptionControllerErrorMessage.SubscriptionNotValidForCryptoApproval,
+      );
+    }
+  }
+
   #assertIsUserNotSubscribed({ products }: { products: ProductType[] }) {
     const subscription = this.state.subscriptions.find((sub) =>
       sub.products.some((p) => products.includes(p.name)),
diff --git a/packages/subscription-controller/src/constants.ts b/packages/subscription-controller/src/constants.ts
index d5bdc8ed0f7..a86a1e22dc0 100644
--- a/packages/subscription-controller/src/constants.ts
+++ b/packages/subscription-controller/src/constants.ts
@@ -45,6 +45,7 @@ export enum SubscriptionControllerErrorMessage {
   PaymentTokenAddressAndSymbolRequiredForCrypto = `${controllerName} - Payment token address and symbol are required for crypto payment`,
   PaymentMethodNotCrypto = `${controllerName} - Payment method is not crypto`,
   ProductPriceNotFound = `${controllerName} - Product price not found`,
+  SubscriptionNotValidForCryptoApproval = `${controllerName} - Subscription is not valid for crypto approval`,
 }
 
 export const DEFAULT_POLLING_INTERVAL = 5 * 60 * 1_000; // 5 minutes