diff --git a/server/jetstream_cluster.go b/server/jetstream_cluster.go
index 224e4576b5..baf15307d5 100644
--- a/server/jetstream_cluster.go
+++ b/server/jetstream_cluster.go
@@ -1136,6 +1136,7 @@ func (js *jetStream) isMetaRecovering() bool {
 type recoveryUpdates struct {
 	removeStreams   map[string]*streamAssignment
 	removeConsumers map[string]map[string]*consumerAssignment
+	addStreams      map[string]*streamAssignment
 	updateStreams   map[string]*streamAssignment
 	updateConsumers map[string]map[string]*consumerAssignment
 }
@@ -1343,6 +1344,7 @@ func (js *jetStream) monitorCluster() {
 	ru := &recoveryUpdates{
 		removeStreams:   make(map[string]*streamAssignment),
 		removeConsumers: make(map[string]map[string]*consumerAssignment),
+		addStreams:      make(map[string]*streamAssignment),
 		updateStreams:   make(map[string]*streamAssignment),
 		updateConsumers: make(map[string]map[string]*consumerAssignment),
 	}
@@ -1381,6 +1383,10 @@ func (js *jetStream) monitorCluster() {
 					for _, sa := range ru.removeStreams {
 						js.processStreamRemoval(sa)
 					}
+					// Process stream additions.
+					for _, sa := range ru.addStreams {
+						js.processStreamAssignment(sa)
+					}
 					// Process pending updates.
 					for _, sa := range ru.updateStreams {
 						js.processUpdateStreamAssignment(sa)
@@ -1637,6 +1643,7 @@ func (js *jetStream) applyMetaSnapshot(buf []byte, ru *recoveryUpdates, isRecove
 			key := sa.recoveryKey()
 			ru.removeStreams[key] = sa
 			delete(ru.updateConsumers, key)
+			delete(ru.addStreams, key)
 			delete(ru.updateStreams, key)
 		} else {
 			js.processStreamRemoval(sa)
@@ -1661,6 +1668,7 @@ func (js *jetStream) applyMetaSnapshot(buf []byte, ru *recoveryUpdates, isRecove
 		if isRecovering {
 			key := sa.recoveryKey()
 			ru.updateStreams[key] = sa
+			delete(ru.addStreams, key)
 			delete(ru.removeStreams, key)
 		} else {
 			js.processUpdateStreamAssignment(sa)
@@ -1945,9 +1953,10 @@ func (js *jetStream) applyMetaEntries(entries []*Entry, ru *recoveryUpdates) (bo
 				}
 				if isRecovering {
 					js.setStreamAssignmentRecovering(sa)
-					delete(ru.removeStreams, sa.recoveryKey())
-				}
-				if js.processStreamAssignment(sa) {
+					key := sa.recoveryKey()
+					ru.addStreams[key] = sa
+					delete(ru.removeStreams, key)
+				} else if js.processStreamAssignment(sa) {
 					didRemoveStream = true
 				}
 			case removeStreamOp:
@@ -1960,6 +1969,7 @@ func (js *jetStream) applyMetaEntries(entries []*Entry, ru *recoveryUpdates) (bo
 					js.setStreamAssignmentRecovering(sa)
 					key := sa.recoveryKey()
 					ru.removeStreams[key] = sa
+					delete(ru.addStreams, key)
 					delete(ru.updateStreams, key)
 					delete(ru.updateConsumers, key)
 				} else {
@@ -2031,6 +2041,7 @@ func (js *jetStream) applyMetaEntries(entries []*Entry, ru *recoveryUpdates) (bo
 					js.setStreamAssignmentRecovering(sa)
 					key := sa.recoveryKey()
 					ru.updateStreams[key] = sa
+					delete(ru.addStreams, key)
 					delete(ru.removeStreams, key)
 				} else {
 					js.processUpdateStreamAssignment(sa)
diff --git a/server/jetstream_cluster_1_test.go b/server/jetstream_cluster_1_test.go
index 4d4f7b3e2c..31d68eaab1 100644
--- a/server/jetstream_cluster_1_test.go
+++ b/server/jetstream_cluster_1_test.go
@@ -6527,6 +6527,7 @@ func TestJetStreamClusterMetaRecoveryUpdatesDeletesConsumers(t *testing.T) {
 	ru := &recoveryUpdates{
 		removeStreams:   make(map[string]*streamAssignment),
 		removeConsumers: make(map[string]map[string]*consumerAssignment),
+		addStreams:      make(map[string]*streamAssignment),
 		updateStreams:   make(map[string]*streamAssignment),
 		updateConsumers: make(map[string]map[string]*consumerAssignment),
 	}
@@ -6544,6 +6545,75 @@ func TestJetStreamClusterMetaRecoveryUpdatesDeletesConsumers(t *testing.T) {
 	require_Len(t, len(ru.updateConsumers), 0)
 }
 
+func TestJetStreamClusterMetaRecoveryRecreateFileStreamAsMemory(t *testing.T) {
+	c := createJetStreamClusterExplicit(t, "R3S", 3)
+	defer c.shutdown()
+
+	js := c.leader().getJetStream()
+
+	createFileStream := []*Entry{
+		{EntryNormal, encodeAddStreamAssignment(&streamAssignment{
+			Config: &StreamConfig{Name: "TEST", Storage: FileStorage},
+		})},
+	}
+
+	deleteFileStream := []*Entry{
+		{EntryNormal, encodeDeleteStreamAssignment(&streamAssignment{
+			Config: &StreamConfig{Name: "TEST", Storage: FileStorage},
+		})},
+	}
+
+	createMemoryStream := []*Entry{
+		{EntryNormal, encodeAddStreamAssignment(&streamAssignment{
+			Config: &StreamConfig{Name: "TEST", Storage: FileStorage},
+		})},
+	}
+
+	createConsumer := []*Entry{
+		{EntryNormal, encodeAddConsumerAssignment(&consumerAssignment{
+			Stream: "TEST",
+			Config: &ConsumerConfig{Name: "consumer"},
+		})},
+	}
+
+	// Need to be recovering so that we accumulate recoveryUpdates.
+	js.setMetaRecovering()
+	ru := &recoveryUpdates{
+		removeStreams:   make(map[string]*streamAssignment),
+		removeConsumers: make(map[string]map[string]*consumerAssignment),
+		addStreams:      make(map[string]*streamAssignment),
+		updateStreams:   make(map[string]*streamAssignment),
+		updateConsumers: make(map[string]map[string]*consumerAssignment),
+	}
+
+	// We created a file-based stream first, but deleted it shortly after.
+	_, _, _, err := js.applyMetaEntries(createFileStream, ru)
+	require_NoError(t, err)
+	require_Len(t, len(ru.addStreams), 1)
+	require_Len(t, len(ru.removeStreams), 0)
+
+	// Now push another recovery entry that deletes the stream.
+	// The file-based stream should not have been created.
+	_, _, _, err = js.applyMetaEntries(deleteFileStream, ru)
+	require_NoError(t, err)
+	require_Len(t, len(ru.addStreams), 0)
+	require_Len(t, len(ru.removeStreams), 1)
+
+	// Now stage a memory-based stream to be created.
+	_, _, _, err = js.applyMetaEntries(createMemoryStream, ru)
+	require_NoError(t, err)
+	require_Len(t, len(ru.addStreams), 1)
+	require_Len(t, len(ru.removeStreams), 0)
+	require_Len(t, len(ru.updateConsumers), 0)
+
+	// Also create a consumer on that memory-based stream.
+	_, _, _, err = js.applyMetaEntries(createConsumer, ru)
+	require_NoError(t, err)
+	require_Len(t, len(ru.addStreams), 1)
+	require_Len(t, len(ru.removeStreams), 0)
+	require_Len(t, len(ru.updateConsumers), 1)
+}
+
 //
 // DO NOT ADD NEW TESTS IN THIS FILE (unless to balance test times)
 // Add at the end of jetstream_cluster_<n>_test.go, with <n> being the highest value.