diff --git a/.changeset/breezy-stingrays-give.md b/.changeset/breezy-stingrays-give.md
new file mode 100644
index 00000000000..8e5c8b5f62d
--- /dev/null
+++ b/.changeset/breezy-stingrays-give.md
@@ -0,0 +1,5 @@
+---
+"@clerk/vue": patch
+---
+
+Fixed an issue where `useOrganization` would show an incorrect warning and dialog due to checking environment settings before Clerk was fully loaded.
diff --git a/packages/vue/src/composables/__tests__/useOrganization.test.ts b/packages/vue/src/composables/__tests__/useOrganization.test.ts
new file mode 100644
index 00000000000..4f40c917e16
--- /dev/null
+++ b/packages/vue/src/composables/__tests__/useOrganization.test.ts
@@ -0,0 +1,70 @@
+import type { Clerk } from '@clerk/shared/types';
+import { render } from '@testing-library/vue';
+import { vi } from 'vitest';
+import { defineComponent, shallowRef } from 'vue';
+
+import { useOrganization } from '../useOrganization';
+
+const mockAttemptToEnableEnvironmentSetting = vi.fn();
+
+const mockLoaded = shallowRef(false);
+const mockClerk = shallowRef<Partial<Clerk> | null>(null);
+
+vi.mock('../useClerkContext', () => ({
+  useClerkContext: () => ({
+    loaded: mockLoaded,
+    clerk: mockClerk,
+    organizationCtx: shallowRef(undefined),
+  }),
+}));
+
+vi.mock('../useSession', () => ({
+  useSession: () => ({
+    session: shallowRef(null),
+  }),
+}));
+
+describe('useOrganization', () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+    mockLoaded.value = false;
+    mockClerk.value = null;
+  });
+
+  it('should not call __internal_attemptToEnableEnvironmentSetting before Clerk is loaded', () => {
+    mockClerk.value = {
+      __internal_attemptToEnableEnvironmentSetting: mockAttemptToEnableEnvironmentSetting,
+    };
+
+    const Component = defineComponent(() => {
+      useOrganization();
+      return () => null;
+    });
+
+    render(Component);
+
+    expect(mockAttemptToEnableEnvironmentSetting).not.toHaveBeenCalled();
+  });
+
+  it('should call __internal_attemptToEnableEnvironmentSetting after Clerk is loaded', async () => {
+    mockClerk.value = {
+      __internal_attemptToEnableEnvironmentSetting: mockAttemptToEnableEnvironmentSetting,
+    };
+
+    const Component = defineComponent(() => {
+      useOrganization();
+      return () => null;
+    });
+
+    render(Component);
+
+    mockLoaded.value = true;
+
+    await vi.waitFor(() => {
+      expect(mockAttemptToEnableEnvironmentSetting).toHaveBeenCalledWith({
+        for: 'organizations',
+        caller: 'useOrganization',
+      });
+    });
+  });
+});
diff --git a/packages/vue/src/composables/useOrganization.ts b/packages/vue/src/composables/useOrganization.ts
index 5545b284e9c..1d53da1b5b4 100644
--- a/packages/vue/src/composables/useOrganization.ts
+++ b/packages/vue/src/composables/useOrganization.ts
@@ -53,21 +53,23 @@ type UseOrganization = () => ToComputedRefs<UseOrganizationReturn>;
  * </template>
  */
 export const useOrganization: UseOrganization = () => {
-  const { clerk, organizationCtx } = useClerkContext('useOrganization');
+  const { loaded, clerk, organizationCtx } = useClerkContext('useOrganization');
   const { session } = useSession();
 
   watch(
-    clerk,
+    loaded,
     value => {
       if (value) {
         // Optional chaining is important for `@clerk/vue` usage with older clerk-js versions that don't have the method
-        value.__internal_attemptToEnableEnvironmentSetting?.({
+        clerk.value?.__internal_attemptToEnableEnvironmentSetting?.({
           for: 'organizations',
           caller: 'useOrganization',
         });
       }
     },
-    { once: true },
+    {
+      once: true,
+    },
   );
 
   const result = computed<UseOrganizationReturn>(() => {
@@ -80,7 +82,7 @@ export const useOrganization: UseOrganization = () => {
     }
 
     /** In SSR context we include only the organization object when loadOrg is set to true. */
-    if (!clerk.value?.loaded) {
+    if (!loaded.value) {
       return {
         isLoaded: true,
         organization: organizationCtx.value,
@@ -89,7 +91,7 @@ export const useOrganization: UseOrganization = () => {
     }
 
     return {
-      isLoaded: clerk.value.loaded,
+      isLoaded: loaded.value,
       organization: organizationCtx.value,
       membership: getCurrentOrganizationMembership(
         // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
diff --git a/packages/vue/src/plugin.ts b/packages/vue/src/plugin.ts
index 04573bbaa45..0aba60a8d0c 100644
--- a/packages/vue/src/plugin.ts
+++ b/packages/vue/src/plugin.ts
@@ -167,6 +167,7 @@ export const clerkPlugin: Plugin<[PluginOptions]> = {
     const organizationCtx = computed(() => derivedState.value.organization);
 
     app.provide(ClerkInjectionKey, {
+      loaded,
       clerk,
       authCtx,
       clientCtx,
diff --git a/packages/vue/src/types.ts b/packages/vue/src/types.ts
index e2670df88d9..f396f5e4afc 100644
--- a/packages/vue/src/types.ts
+++ b/packages/vue/src/types.ts
@@ -17,6 +17,7 @@ import type {
 import type { Component, ComputedRef, ShallowRef, Slot, VNode } from 'vue';
 
 export interface VueClerkInjectionKeyType {
+  loaded: ShallowRef<boolean>;
   clerk: ShallowRef<Clerk | null>;
   authCtx: ComputedRef<{
     userId: string | null | undefined;