diff --git a/WooCommerce/WooCommerceTests/Mocks/MockWordPressComAccountService.swift b/WooCommerce/WooCommerceTests/Mocks/MockWordPressComAccountService.swift
index a3cb9344f07..f04a4b62e39 100644
--- a/WooCommerce/WooCommerceTests/Mocks/MockWordPressComAccountService.swift
+++ b/WooCommerce/WooCommerceTests/Mocks/MockWordPressComAccountService.swift
@@ -17,7 +17,11 @@ final class MockWordPressComAccountService: WordPressComAccountServiceProtocol {
         failure(passwordlessAccountCheckError)
     }
 
-    func requestAuthenticationLink(for email: String, jetpackLogin: Bool, success: @escaping () -> Void, failure: @escaping (Error) -> Void) {
+    func requestAuthenticationLink(for email: String,
+                                   jetpackLogin: Bool,
+                                   createAccountIfNotFound: Bool,
+                                   success: @escaping () -> Void,
+                                   failure: @escaping (Error) -> Void) {
         triggeredRequestAuthenticationLink = true
         guard let authenticationLinkRequestError else {
             return success()
diff --git a/WooCommerce/WooCommerceTests/ViewRelated/JetpackSetup/WPComLogin/WPComEmailLoginViewModelTests.swift b/WooCommerce/WooCommerceTests/ViewRelated/JetpackSetup/WPComLogin/WPComEmailLoginViewModelTests.swift
index 866db08a807..198a08f012f 100644
--- a/WooCommerce/WooCommerceTests/ViewRelated/JetpackSetup/WPComLogin/WPComEmailLoginViewModelTests.swift
+++ b/WooCommerce/WooCommerceTests/ViewRelated/JetpackSetup/WPComLogin/WPComEmailLoginViewModelTests.swift
@@ -1,4 +1,5 @@
 import XCTest
+@testable import WordPressKit
 @testable import WooCommerce
 
 final class WPComEmailLoginViewModelTests: XCTestCase {
@@ -8,6 +9,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         let siteURL = "https://example.com"
         let viewModel = WPComEmailLoginViewModel(siteURL: siteURL,
                                                  requiresConnectionOnly: false,
+                                                 allowAccountCreation: false,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in },
                                                  onError: { _ in })
@@ -24,6 +26,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         let siteURL = "https://example.com"
         let viewModel = WPComEmailLoginViewModel(siteURL: siteURL,
                                                  requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in },
                                                  onError: { _ in })
@@ -40,6 +43,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         let siteURL = "https://example.com"
         let viewModel = WPComEmailLoginViewModel(siteURL: siteURL,
                                                  requiresConnectionOnly: false,
+                                                 allowAccountCreation: false,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in },
                                                  onError: { _ in })
@@ -56,6 +60,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         let siteURL = "https://example.com"
         let viewModel = WPComEmailLoginViewModel(siteURL: siteURL,
                                                  requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in },
                                                  onError: { _ in })
@@ -72,6 +77,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         let siteURL = "https://example.com"
         let viewModel = WPComEmailLoginViewModel(siteURL: siteURL,
                                                  requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in },
                                                  onError: { _ in })
@@ -92,6 +98,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         mockAccountService.shouldReturnPasswordlessAccount = true
         let viewModel = WPComEmailLoginViewModel(siteURL: "https://example.com",
                                                  requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
                                                  accountService: mockAccountService,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in },
@@ -115,6 +122,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         var triggeredOnError = false
         let viewModel = WPComEmailLoginViewModel(siteURL: "https://example.com",
                                                  requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
                                                  accountService: mockAccountService,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in },
@@ -133,6 +141,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         var triggeredPasswordUIRequest = false
         let viewModel = WPComEmailLoginViewModel(siteURL: "https://example.com",
                                                  requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
                                                  accountService: mockAccountService,
                                                  onPasswordUIRequest: { _ in triggeredPasswordUIRequest = true },
                                                  onMagicLinkUIRequest: { _ in },
@@ -150,6 +159,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         var triggeredOnMagicLinkUIRequest = false
         let viewModel = WPComEmailLoginViewModel(siteURL: "https://example.com",
                                                  requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
                                                  accountService: mockAccountService,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in triggeredOnMagicLinkUIRequest = true },
@@ -168,6 +178,7 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         var triggeredOnError = false
         let viewModel = WPComEmailLoginViewModel(siteURL: "https://example.com",
                                                  requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
                                                  accountService: mockAccountService,
                                                  onPasswordUIRequest: { _ in },
                                                  onMagicLinkUIRequest: { _ in },
@@ -178,4 +189,54 @@ final class WPComEmailLoginViewModelTests: XCTestCase {
         // Then
         XCTAssertTrue(triggeredOnError)
     }
+
+    func test_given_unknown_email_when_allowAccountCreation_true_then_create_account() async {
+        // Given
+        let mockAccountService = MockWordPressComAccountService()
+        mockAccountService.passwordlessAccountCheckError = WordPressAPIError.endpointError(
+            WordPressComRestApiEndpointError(
+                code: WordPressComRestApiErrorCode.unknown,
+                apiErrorCode: "unknown_user"
+            )
+        )
+        var triggeredOnMagicLinkUIRequest = false
+        let viewModel = WPComEmailLoginViewModel(siteURL: "https://example.com",
+                                                 requiresConnectionOnly: true,
+                                                 allowAccountCreation: true,
+                                                 accountService: mockAccountService,
+                                                 onPasswordUIRequest: { _ in },
+                                                 onMagicLinkUIRequest: { _ in triggeredOnMagicLinkUIRequest = true },
+                                                 onError: { _ in })
+
+        // When
+        await viewModel.checkWordPressComAccount(email: "mail@example.com")
+
+        // Then
+        XCTAssertTrue(triggeredOnMagicLinkUIRequest)
+    }
+
+    func test_given_unknown_email_when_allowAccountCreation_false_then_trigger_onError() async {
+        // Given
+        let mockAccountService = MockWordPressComAccountService()
+        mockAccountService.passwordlessAccountCheckError = WordPressAPIError.endpointError(
+            WordPressComRestApiEndpointError(
+                code: WordPressComRestApiErrorCode.unknown,
+                apiErrorCode: "unknown_user"
+            )
+        )
+        var triggeredOnError = false
+        let viewModel = WPComEmailLoginViewModel(siteURL: "https://example.com",
+                                                 requiresConnectionOnly: true,
+                                                 allowAccountCreation: false,
+                                                 accountService: mockAccountService,
+                                                 onPasswordUIRequest: { _ in },
+                                                 onMagicLinkUIRequest: { _ in },
+                                                 onError: { _ in triggeredOnError = true })
+
+        // When
+        await viewModel.checkWordPressComAccount(email: "mail@example.com")
+
+        // Then
+        XCTAssertTrue(triggeredOnError)
+    }
 }