diff --git a/backend/igny8_core/auth/admin.py b/backend/igny8_core/auth/admin.py
index acf1bc49..7387a7af 100644
--- a/backend/igny8_core/auth/admin.py
+++ b/backend/igny8_core/auth/admin.py
@@ -161,6 +161,10 @@ class PlanAdmin(ImportExportMixin, Igny8ModelAdmin):
         ('Stripe Integration', {
             'fields': ('stripe_product_id', 'stripe_price_id')
         }),
+        ('PayPal Integration', {
+            'fields': ('paypal_plan_id',),
+            'description': 'PayPal subscription plan ID (required for PayPal subscriptions)'
+        }),
     )
     
     def bulk_set_active(self, request, queryset):
diff --git a/backend/igny8_core/auth/migrations/0036_add_paypal_plan_id_to_plan.py b/backend/igny8_core/auth/migrations/0036_add_paypal_plan_id_to_plan.py
new file mode 100644
index 00000000..c370e51e
--- /dev/null
+++ b/backend/igny8_core/auth/migrations/0036_add_paypal_plan_id_to_plan.py
@@ -0,0 +1,28 @@
+# Generated by Django 5.2.10 on 2026-01-20 18:26
+
+from django.db import migrations, models
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ('igny8_core_auth', '0035_account_bonus_credits'),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name='plan',
+            name='paypal_plan_id',
+            field=models.CharField(blank=True, help_text='PayPal subscription plan ID', max_length=255, null=True),
+        ),
+        migrations.AlterField(
+            model_name='account',
+            name='status',
+            field=models.CharField(choices=[('active', 'Active'), ('suspended', 'Suspended'), ('trial', 'Trial'), ('cancelled', 'Cancelled'), ('pending_payment', 'Pending Payment')], default='active', max_length=20),
+        ),
+        migrations.AlterField(
+            model_name='historicalaccount',
+            name='status',
+            field=models.CharField(choices=[('active', 'Active'), ('suspended', 'Suspended'), ('trial', 'Trial'), ('cancelled', 'Cancelled'), ('pending_payment', 'Pending Payment')], default='active', max_length=20),
+        ),
+    ]
diff --git a/backend/igny8_core/auth/models.py b/backend/igny8_core/auth/models.py
index 7f2b3462..3feb5dc3 100644
--- a/backend/igny8_core/auth/models.py
+++ b/backend/igny8_core/auth/models.py
@@ -387,6 +387,9 @@ class Plan(models.Model):
     stripe_product_id = models.CharField(max_length=255, blank=True, null=True, help_text="For Stripe plan sync")
     stripe_price_id = models.CharField(max_length=255, blank=True, null=True, help_text="Monthly price ID for Stripe")
     
+    # PayPal Integration
+    paypal_plan_id = models.CharField(max_length=255, blank=True, null=True, help_text="PayPal subscription plan ID")
+    
     # Legacy field for backward compatibility
     credits_per_month = models.IntegerField(default=0, validators=[MinValueValidator(0)], help_text="DEPRECATED: Use included_credits instead")
 
diff --git a/backend/igny8_core/business/billing/urls.py b/backend/igny8_core/business/billing/urls.py
index 3d66f110..4e0c1091 100644
--- a/backend/igny8_core/business/billing/urls.py
+++ b/backend/igny8_core/business/billing/urls.py
@@ -30,6 +30,7 @@ from .views.paypal_views import (
     PayPalCreateSubscriptionOrderView,
     PayPalCaptureOrderView,
     PayPalCreateSubscriptionView,
+    PayPalVerifySubscriptionView,
     PayPalReturnVerificationView,
     paypal_webhook,
 )
@@ -68,6 +69,7 @@ urlpatterns = [
     path('paypal/create-subscription-order/', PayPalCreateSubscriptionOrderView.as_view(), name='paypal-create-subscription-order'),
     path('paypal/capture-order/', PayPalCaptureOrderView.as_view(), name='paypal-capture-order'),
     path('paypal/create-subscription/', PayPalCreateSubscriptionView.as_view(), name='paypal-create-subscription'),
+    path('paypal/verify-subscription/', PayPalVerifySubscriptionView.as_view(), name='paypal-verify-subscription'),
     path('paypal/verify-return/', PayPalReturnVerificationView.as_view(), name='paypal-verify-return'),
     path('webhooks/paypal/', paypal_webhook, name='paypal-webhook'),
 ]
diff --git a/backend/igny8_core/business/billing/views/paypal_views.py b/backend/igny8_core/business/billing/views/paypal_views.py
index 4a5df942..1320b204 100644
--- a/backend/igny8_core/business/billing/views/paypal_views.py
+++ b/backend/igny8_core/business/billing/views/paypal_views.py
@@ -384,6 +384,240 @@ class PayPalCaptureOrderView(APIView):
             )
 
 
+class PayPalVerifySubscriptionView(APIView):
+    """Verify PayPal subscription and activate account"""
+    permission_classes = [IsAuthenticatedAndActive]
+
+    def post(self, request):
+        """
+        Verify PayPal subscription status and activate account if approved.
+        
+        This is a fallback for when webhooks don't fire or are delayed.
+        Called by frontend after user returns from PayPal approval.
+
+        Request body:
+        {
+            "subscription_id": "I-xxxxxxxxxxxxx"
+        }
+
+        Returns:
+        {
+            "status": "active",
+            "subscription_id": "I-...",
+            "plan_name": "Starter",
+            "message": "Subscription activated"
+        }
+        """
+        account = request.user.account
+        subscription_id = request.data.get('subscription_id')
+
+        if not subscription_id:
+            return error_response(
+                error='subscription_id is required',
+                status_code=status.HTTP_400_BAD_REQUEST,
+                request=request
+            )
+
+        try:
+            service = PayPalService()
+
+            # Get subscription details from PayPal
+            sub_details = service.get_subscription(subscription_id)
+            
+            logger.info(
+                f"PayPal subscription verification for account {account.id}: "
+                f"subscription={subscription_id}, status={sub_details.get('status')}"
+            )
+
+            paypal_status = sub_details.get('status', '').upper()
+            
+            # Check if subscription is active/approved
+            if paypal_status not in ['ACTIVE', 'APPROVED']:
+                return error_response(
+                    error=f'Subscription not active. Status: {paypal_status}',
+                    status_code=status.HTTP_400_BAD_REQUEST,
+                    request=request
+                )
+
+            # Get PayPal plan ID and find matching Django plan
+            paypal_plan_id = sub_details.get('plan_id')
+            
+            plan = Plan.objects.filter(paypal_plan_id=paypal_plan_id).first()
+            if not plan:
+                logger.error(f"No plan found with paypal_plan_id={paypal_plan_id}")
+                return error_response(
+                    error='Plan configuration error',
+                    status_code=status.HTTP_400_BAD_REQUEST,
+                    request=request
+                )
+
+            # Check if already activated (avoid duplicates)
+            existing_sub = Subscription.objects.filter(
+                account=account,
+                external_payment_id=subscription_id,
+                status='active'
+            ).first()
+            
+            if existing_sub:
+                logger.info(f"Subscription {subscription_id} already activated for account {account.id}")
+                return success_response(
+                    data={
+                        'status': 'active',
+                        'subscription_id': subscription_id,
+                        'plan_name': plan.name,
+                        'already_active': True
+                    },
+                    message='Subscription already active',
+                    request=request
+                )
+
+            # Activate the subscription
+            with transaction.atomic():
+                now = timezone.now()
+                period_end = now + timedelta(days=30)
+
+                # Create or update subscription
+                subscription, created = Subscription.objects.update_or_create(
+                    account=account,
+                    defaults={
+                        'plan': plan,
+                        'status': 'active',
+                        'external_payment_id': subscription_id,
+                        'current_period_start': now,
+                        'current_period_end': period_end,
+                    }
+                )
+
+                # Get or create invoice
+                invoice, _ = InvoiceService.get_or_create_subscription_invoice(
+                    subscription=subscription,
+                    billing_period_start=now,
+                    billing_period_end=period_end,
+                )
+
+                # Mark invoice as paid
+                InvoiceService.mark_paid(
+                    invoice=invoice,
+                    payment_method='paypal',
+                    transaction_id=subscription_id
+                )
+
+                # Create payment record
+                Payment.objects.create(
+                    account=account,
+                    invoice=invoice,
+                    amount=float(plan.price),
+                    currency='USD',
+                    payment_method='paypal',
+                    status='succeeded',
+                    processed_at=now,
+                    approved_at=now,
+                    metadata={
+                        'plan_id': str(plan.id),
+                        'subscription_type': 'paypal_subscription',
+                        'paypal_subscription_id': subscription_id,
+                        'auto_approved': True,
+                    }
+                )
+
+                # Update/create AccountPaymentMethod
+                from ..models import AccountPaymentMethod
+                
+                # Clear default from existing methods
+                AccountPaymentMethod.objects.filter(account=account).update(is_default=False)
+                
+                # Delete any existing PayPal method
+                AccountPaymentMethod.objects.filter(account=account, type='paypal').delete()
+                
+                # Create fresh PayPal payment method
+                AccountPaymentMethod.objects.create(
+                    account=account,
+                    type='paypal',
+                    display_name='PayPal',
+                    is_default=True,
+                    is_enabled=True,
+                    is_verified=True,
+                    country_code=account.billing_country or '',
+                    metadata={
+                        'last_payment_at': now.isoformat(),
+                        'paypal_subscription_id': subscription_id,
+                    }
+                )
+
+                # Add subscription credits
+                credits_added = 0
+                if plan.included_credits and plan.included_credits > 0:
+                    CreditService.add_credits(
+                        account=account,
+                        amount=plan.included_credits,
+                        transaction_type='subscription',
+                        description=f'PayPal Subscription: {plan.name}',
+                        metadata={
+                            'plan_id': str(plan.id),
+                            'payment_method': 'paypal',
+                        }
+                    )
+                    credits_added = plan.included_credits
+
+                # Activate account and set plan
+                update_fields = ['updated_at']
+                if account.status != 'active':
+                    account.status = 'active'
+                    update_fields.append('status')
+                if account.plan_id != plan.id:
+                    account.plan = plan
+                    update_fields.append('plan')
+                if account.payment_method != 'paypal':
+                    account.payment_method = 'paypal'
+                    update_fields.append('payment_method')
+                account.save(update_fields=update_fields)
+
+                logger.info(
+                    f"PayPal subscription activated for account {account.id}: "
+                    f"plan={plan.name}, credits_added={credits_added}"
+                )
+
+                # Send subscription activated email
+                try:
+                    from igny8_core.business.billing.services.email_service import BillingEmailService
+                    BillingEmailService.send_subscription_activated_email(account, subscription)
+                except Exception as e:
+                    logger.error(f"Failed to send subscription activated email: {e}")
+
+            return success_response(
+                data={
+                    'status': 'active',
+                    'subscription_id': subscription_id,
+                    'plan_name': plan.name,
+                    'credits_added': credits_added,
+                },
+                message='Subscription activated successfully',
+                request=request
+            )
+
+        except PayPalConfigurationError as e:
+            logger.error(f"PayPal configuration error: {e}")
+            return error_response(
+                error='Payment system not configured',
+                status_code=status.HTTP_503_SERVICE_UNAVAILABLE,
+                request=request
+            )
+        except PayPalAPIError as e:
+            logger.error(f"PayPal API error verifying subscription: {e}")
+            return error_response(
+                error=f'PayPal error: {str(e)}',
+                status_code=status.HTTP_502_BAD_GATEWAY,
+                request=request
+            )
+        except Exception as e:
+            logger.exception(f"PayPal subscription verification error: {e}")
+            return error_response(
+                error='Failed to verify subscription',
+                status_code=status.HTTP_500_INTERNAL_SERVER_ERROR,
+                request=request
+            )
+
+
 class PayPalCreateSubscriptionView(APIView):
     """Create PayPal recurring subscription"""
     permission_classes = [IsAuthenticatedAndActive]
diff --git a/backend/igny8_core/modules/billing/admin.py b/backend/igny8_core/modules/billing/admin.py
index a3b8f91a..d958571d 100644
--- a/backend/igny8_core/modules/billing/admin.py
+++ b/backend/igny8_core/modules/billing/admin.py
@@ -640,10 +640,27 @@ class CreditPackageAdmin(ImportExportMixin, Igny8ModelAdmin):
         'bulk_activate',
         'bulk_deactivate',
     ]
-    actions = [
-        'bulk_activate',
-        'bulk_deactivate',
-    ]
+    
+    fieldsets = (
+        ('Package Info', {
+            'fields': ('name', 'slug', 'credits', 'price', 'discount_percentage', 'is_active', 'is_featured', 'sort_order')
+        }),
+        ('Display', {
+            'fields': ('description', 'features')
+        }),
+        ('Stripe Integration', {
+            'fields': ('stripe_product_id', 'stripe_price_id'),
+            'description': 'Stripe product/price IDs for credit package purchases'
+        }),
+        ('PayPal Integration', {
+            'fields': ('paypal_plan_id',),
+            'description': 'PayPal plan ID for credit package purchases'
+        }),
+        ('Timestamps', {
+            'fields': ('created_at', 'updated_at'),
+            'classes': ('collapse',)
+        }),
+    )
     
     def bulk_activate(self, request, queryset):
         updated = queryset.update(is_active=True)
diff --git a/docs/90-REFERENCE/DJANGO-ADMIN-ACCESS-GUIDE.md b/docs/90-REFERENCE/DJANGO-ADMIN-ACCESS-GUIDE.md
index e15bb20a..baf601c2 100644
--- a/docs/90-REFERENCE/DJANGO-ADMIN-ACCESS-GUIDE.md
+++ b/docs/90-REFERENCE/DJANGO-ADMIN-ACCESS-GUIDE.md
@@ -226,12 +226,53 @@ Go to [developer.paypal.com](https://developer.paypal.com)
 5. Click **"Save"**
 6. Copy the **Webhook ID** (starts with `WH-...`)
 
-#### Step 4: Create Subscription Plans (Optional)
+#### Step 4: Create Subscription Plans (Required for Subscriptions)
 
-If you want PayPal subscriptions:
-1. Go to **Products** in PayPal dashboard
-2. Create subscription plans matching your Stripe plans
-3. Copy the **Plan IDs**
+PayPal subscriptions require creating **Products** and **Plans** in the PayPal dashboard. This is a manual process (not done via API in our implementation).
+
+##### 4.4.1 Create a PayPal Product
+
+1. Go to [sandbox.paypal.com/billing/plans](https://www.sandbox.paypal.com/billing/plans) (Sandbox) or [paypal.com/billing/plans](https://www.paypal.com/billing/plans) (Live)
+2. Click **"Create product"** (or go to Products tab first)
+3. Fill in:
+   - **Product name**: `IGNY8 Subscription`
+   - **Product type**: `Service`
+   - **Product ID**: `IGNY8-SUB` (or auto-generate)
+   - **Description**: `IGNY8 subscription plans`
+4. Click **"Create product"**
+5. Note the **Product ID** (e.g., `PROD-xxxxxxxxxxxxx`)
+
+##### 4.4.2 Create PayPal Plans (One Per IGNY8 Plan)
+
+For each plan in your system (Starter, Growth, Scale), create a PayPal plan:
+
+1. In PayPal dashboard, click **"Create plan"**
+2. Select the product you just created
+3. Fill in plan details:
+
+**Starter Plan:**
+- **Plan name**: `Starter Plan - Monthly`
+- **Description**: `Basic plan for small projects`
+- **Pricing**:
+  - Billing cycle: `Monthly`
+  - Price: `$99.00 USD`
+  - Total cycles: `0` (infinite)
+- **Setup fee**: `$0.00` (optional)
+4. Click **"Create plan"**
+5. **Copy the Plan ID** (starts with `P-...`, e.g., `P-5ML4271244454362WXXX`)
+
+Repeat for Growth ($199/month) and Scale ($299/month) plans.
+
+##### 4.4.3 Map PayPal Plan IDs to Django Plans
+
+1. Go to Django Admin → **Auth → Plans**
+2. Edit **Starter Plan**:
+   - Scroll to **"PayPal Integration"** section
+   - **Paypal plan id**: Paste `P-xxxxxxxxxxxxx`
+3. Click **"Save"**
+4. Repeat for Growth and Scale plans
+
+**Note:** Without `paypal_plan_id` set, the subscription creation API will return an error.
 
 ### 4.2 Adding to Django Admin
 
@@ -266,6 +307,65 @@ Config (JSON):
 
 4. Click **"Save"**
 
+### 4.3 Live PayPal Payment Enablement (Production)
+
+Use this section when switching from sandbox to live PayPal payments.
+
+#### Step 1: Create/Select a Live App
+1. Go to [developer.paypal.com](https://developer.paypal.com)
+2. Select **Live** (top toggle)
+3. Create a new app or select your existing live app
+4. Copy the **Live Client ID** and **Live Secret**
+
+#### Step 2: Configure Live Webhook
+1. In your live app settings, add a webhook:
+   ```
+   https://api.igny8.com/api/v1/billing/webhooks/paypal/
+   ```
+2. Select events:
+   - `CHECKOUT.ORDER.APPROVED`
+   - `PAYMENT.CAPTURE.COMPLETED`
+   - `PAYMENT.CAPTURE.DENIED`
+   - `BILLING.SUBSCRIPTION.ACTIVATED`
+   - `BILLING.SUBSCRIPTION.CANCELLED`
+3. Copy the **Live Webhook ID**
+
+#### Step 3: Update Django Admin Provider (Live)
+1. Go to **System → Integration providers → paypal**
+2. Update fields:
+   - **API key**: Live Client ID
+   - **API secret**: Live Secret
+   - **API endpoint**: `https://api-m.paypal.com`
+   - **Config (JSON)**: set `webhook_id` to the live webhook ID
+3. Set:
+   - ✅ `is_active` = True
+   - ✅ `is_sandbox` = False
+4. Click **"Save"**
+
+#### Step 3.1: Map PayPal Plan IDs in Django
+PayPal subscription webhooks only work if your plans are mapped.
+
+1. Go to Django Admin → **Auth → Plans**
+2. For each plan, set:
+   - **Paypal plan id**: Live PayPal Plan ID (starts with `P-...`)
+3. Save each plan
+
+#### Step 4: Validate Live Payment Flow
+1. Open frontend: `/account/usage`
+2. Select **PayPal** and complete a real payment
+3. Confirm:
+   - Order is captured
+   - Credits are added
+   - Payment email is sent
+
+#### Step 5: Validate PayPal Subscriptions (If Enabled)
+1. Open frontend: `/account/plans`
+2. Select **PayPal** and subscribe to a plan
+3. Confirm:
+   - Subscription is activated
+   - Webhook events are processed
+   - Account plan is updated
+
 ---
 
 ## 5. Resend Configuration
@@ -561,21 +661,83 @@ Go to Admin → **System → Integration providers**
 
 ### 8.3 Test PayPal Integration
 
-1. **Get Config Endpoint:**
-   ```bash
-   curl -X GET https://api.igny8.com/api/v1/billing/paypal/config/ \
-     -H "Authorization: Bearer YOUR_JWT_TOKEN"
-   ```
-   Should return client_id and sandbox status
+#### 8.3.1 Verify PayPal Provider Config
 
-2. **Test Credit Purchase:**
-   - Go to frontend: `/account/usage`
-   - Select "PayPal" as payment method
-   - Click "Buy Credits" on a package
-   - Should redirect to PayPal
-   - Login with sandbox account
-   - Complete payment
-   - Should capture order and add credits
+```bash
+curl -X GET https://api.igny8.com/api/v1/billing/paypal/config/ \
+  -H "Authorization: Bearer YOUR_JWT_TOKEN"
+```
+Should return `client_id` and `sandbox: true`.
+
+#### 8.3.2 Test One-Time Credit Purchase (Orders API)
+
+1. Go to frontend: `/account/usage`
+2. Select **PayPal** as payment method
+3. Click **"Buy Credits"** on a package
+4. Should redirect to PayPal sandbox
+5. Login with sandbox buyer account:
+   - Email: `sb-buyer@personal.example.com` (from PayPal sandbox accounts)
+   - Password: (your sandbox password)
+6. Complete payment
+7. **Verify:**
+   - Order is captured (check webhook logs)
+   - Credits are added to account
+   - Payment email is sent
+
+#### 8.3.3 Test PayPal Subscriptions (Subscriptions API)
+
+**Prerequisites:**
+- [ ] PayPal Plans created in dashboard (see Section 4, Step 4)
+- [ ] `paypal_plan_id` set on each Django Plan (Auth → Plans)
+
+**Test Steps:**
+
+1. **Verify Plan Configuration:**
+   ```bash
+   # Check if plan has paypal_plan_id
+   docker exec -it igny8_backend python manage.py shell -c "
+   from igny8_core.auth.models import Plan
+   for p in Plan.objects.filter(is_active=True):
+       print(f'{p.name}: paypal_plan_id={p.paypal_plan_id}')
+   "
+   ```
+   All paid plans should show a `P-xxxxx` ID.
+
+2. **Create PayPal Subscription:**
+   - Go to frontend: `/account/plans`
+   - Select **PayPal** as payment method
+   - Click **"Subscribe"** on Starter/Growth/Scale plan
+   - Redirects to PayPal for approval
+   - Login with sandbox buyer account
+   - Approve the subscription
+
+3. **Verify Subscription Activation:**
+   - Check webhook logs: `BILLING.SUBSCRIPTION.ACTIVATED` should fire
+   - Account plan should be updated
+   - `Subscription` record created with `external_payment_id` = PayPal subscription ID
+   - Credits added based on plan's `included_credits`
+
+4. **Verify in Django Admin:**
+   - Go to **Auth → Subscriptions**
+   - Find the new subscription
+   - Confirm:
+     - `status` = `active`
+     - `external_payment_id` = `I-xxxxx` (PayPal subscription ID)
+     - `plan` = correct plan
+
+5. **Test Subscription Cancellation:**
+   - In PayPal sandbox, go to **Pay & Get Paid → Subscriptions**
+   - Cancel the test subscription
+   - `BILLING.SUBSCRIPTION.CANCELLED` webhook should fire
+   - Subscription status should update to `canceled`
+
+**Sandbox Test Accounts:**
+
+Create sandbox accounts at [developer.paypal.com/dashboard/accounts](https://developer.paypal.com/dashboard/accounts):
+- **Business account** - receives payments (seller)
+- **Personal account** - makes payments (buyer)
+
+Use the personal account credentials when approving payments/subscriptions.
 
 ### 8.4 Test Email Service
 
@@ -694,6 +856,28 @@ Go to Admin → **System → Integration providers**
 - Check order status (must be APPROVED)
 - Verify order hasn't already been captured
 
+**"PayPal plan ID not configured for this plan"**
+- The Plan model is missing `paypal_plan_id`
+- Go to Django Admin → **Auth → Plans**
+- Edit the plan and add the PayPal Plan ID (starts with `P-...`)
+- Create the plan in PayPal dashboard first if not done
+
+**"No plan found with paypal_plan_id=..."**
+- Webhook received but no matching plan in Django
+- Verify the `paypal_plan_id` in Django matches exactly what's in PayPal
+- Check for typos or extra whitespace
+
+**Subscription not activating after approval**
+- Check webhook logs for `BILLING.SUBSCRIPTION.ACTIVATED` event
+- Verify webhook URL is correctly configured in PayPal app
+- Check that `webhook_id` in config JSON matches PayPal dashboard
+- Ensure sandbox/live environment matches between app and PayPal
+
+**PayPal subscription appears but no credits added**
+- Check `included_credits` field on the Plan model
+- Verify subscription webhook handler completed successfully
+- Look for errors in Django logs during webhook processing
+
 ### Resend Issues
 
 **"Invalid API key"**
diff --git a/frontend/src/pages/account/PlansAndBillingPage.tsx b/frontend/src/pages/account/PlansAndBillingPage.tsx
index 287ae2ae..21f0adac 100644
--- a/frontend/src/pages/account/PlansAndBillingPage.tsx
+++ b/frontend/src/pages/account/PlansAndBillingPage.tsx
@@ -153,6 +153,7 @@ export default function PlansAndBillingPage() {
     const purchase = params.get('purchase');
     const paypalStatus = params.get('paypal');
     const paypalToken = params.get('token'); // PayPal token from URL
+    const paypalSubscriptionId = params.get('subscription_id'); // PayPal subscription ID (for recurring)
     const planIdParam = params.get('plan_id');
     const packageIdParam = params.get('package_id');
     
@@ -169,7 +170,8 @@ export default function PlansAndBillingPage() {
     
     // Detect which payment flow we're in
     const paymentFlow = 
-      (paypalStatus === 'success' && paypalToken) ? 'PAYPAL_SUCCESS' :
+      (paypalStatus === 'success' && paypalSubscriptionId) ? 'PAYPAL_SUBSCRIPTION_SUCCESS' :
+      (paypalStatus === 'success' && paypalToken) ? 'PAYPAL_ORDER_SUCCESS' :
       paypalStatus === 'cancel' ? 'PAYPAL_CANCEL' :
       (success === 'true' && sessionId) ? 'STRIPE_SUCCESS_WITH_SESSION' :
       success === 'true' ? 'STRIPE_SUCCESS_NO_SESSION' :
@@ -180,11 +182,90 @@ export default function PlansAndBillingPage() {
     
     console.log(`${LOG_PREFIX} ===== DETECTED PAYMENT FLOW =====`);
     console.log(`${LOG_PREFIX} Flow type:`, paymentFlow);
+    console.log(`${LOG_PREFIX} PayPal subscription_id:`, paypalSubscriptionId);
     console.groupEnd();
 
-    // Handle PayPal return - Get order_id from localStorage and capture
+    // Handle PayPal SUBSCRIPTION return (recurring billing)
+    // Call backend to verify subscription status and activate account
+    if (paypalStatus === 'success' && paypalSubscriptionId) {
+      console.group(`${LOG_PREFIX} PayPal Subscription Success Flow`);
+      console.log(`${LOG_PREFIX} Subscription ID:`, paypalSubscriptionId);
+      
+      // Show processing UI
+      setPaymentProcessing({
+        active: true,
+        stage: 'verifying',
+        message: 'Verifying your subscription...'
+      });
+      
+      // Clean URL immediately
+      window.history.replaceState({}, '', window.location.pathname);
+      
+      // Clean up any stored data
+      localStorage.removeItem('paypal_order_id');
+      localStorage.removeItem('paypal_subscription_id');
+      
+      // Call backend to verify and activate subscription
+      import('../../services/billing.api').then(async ({ verifyPayPalSubscription }) => {
+        try {
+          console.log(`${LOG_PREFIX} Calling verifyPayPalSubscription...`);
+          
+          setPaymentProcessing({
+            active: true,
+            stage: 'processing',
+            message: 'Processing your subscription...'
+          });
+          
+          const result = await verifyPayPalSubscription(paypalSubscriptionId);
+          
+          console.log(`${LOG_PREFIX} ✓ Subscription verification result:`, result);
+          
+          setPaymentProcessing({
+            active: true,
+            stage: 'activating',
+            message: 'Activating your account...'
+          });
+          
+          // Refresh user data to get updated account status
+          try {
+            await refreshUser();
+            console.log(`${LOG_PREFIX} ✓ User refreshed after subscription activation`);
+          } catch (refreshErr) {
+            console.error(`${LOG_PREFIX} User refresh failed:`, refreshErr);
+          }
+          
+          // Show success
+          setTimeout(() => {
+            setPaymentProcessing(null);
+            if (result.already_active) {
+              toast?.info?.('Subscription is already active!');
+            } else {
+              toast?.success?.(`Subscription activated! ${result.credits_added ? `${result.credits_added} credits added.` : ''}`);
+            }
+            loadData();
+          }, 500);
+          
+        } catch (err: any) {
+          console.error(`${LOG_PREFIX} ❌ Subscription verification FAILED:`, err);
+          setPaymentProcessing(null);
+          
+          // Show specific error message
+          const errorMsg = err?.message || err?.error || 'Failed to activate subscription';
+          toast?.error?.(errorMsg);
+          
+          // Still load data to show current state
+          loadData();
+        }
+        
+        console.groupEnd();
+      });
+      
+      return;
+    }
+
+    // Handle PayPal ORDER return (one-time credit purchase) - Get order_id from localStorage and capture
     if (paypalStatus === 'success' && paypalToken) {
-      console.group(`${LOG_PREFIX} PayPal Success Flow`);
+      console.group(`${LOG_PREFIX} PayPal Order Success Flow`);
       
       // FIX: Retrieve order_id from localStorage (stored before redirect)
       const storedOrderId = localStorage.getItem('paypal_order_id');
diff --git a/frontend/src/services/billing.api.ts b/frontend/src/services/billing.api.ts
index 28e33229..14f40c88 100644
--- a/frontend/src/services/billing.api.ts
+++ b/frontend/src/services/billing.api.ts
@@ -1373,6 +1373,27 @@ export async function createPayPalSubscription(planId: string, options?: {
   });
 }
 
+/**
+ * Verify and activate PayPal subscription
+ * Called after user returns from PayPal with subscription_id
+ * This activates the account if subscription is approved on PayPal
+ */
+export async function verifyPayPalSubscription(subscriptionId: string): Promise<{
+  status: string;
+  subscription_id: string;
+  plan_name: string;
+  credits_added?: number;
+  already_active?: boolean;
+  message: string;
+}> {
+  return fetchAPI('/v1/billing/paypal/verify-subscription/', {
+    method: 'POST',
+    body: JSON.stringify({
+      subscription_id: subscriptionId,
+    }),
+  });
+}
+
 // ============================================================================
 // PAYMENT GATEWAY HELPERS
 // ============================================================================
@@ -1445,10 +1466,11 @@ export async function subscribeToPlan(
       return { redirect_url: redirectUrl.toString() };
     }
     case 'paypal': {
-      const order = await createPayPalSubscriptionOrder(planId, options);
-      // FIX: Store order_id in localStorage before redirect
-      localStorage.setItem('paypal_order_id', order.order_id);
-      return { redirect_url: order.approval_url };
+      // Use PayPal Subscriptions API for recurring billing
+      const subscription = await createPayPalSubscription(planId, options);
+      // Store subscription_id for verification after return
+      localStorage.setItem('paypal_subscription_id', subscription.subscription_id);
+      return { redirect_url: subscription.approval_url };
     }
     case 'manual':
       throw new Error('Manual payment requires different flow - use submitManualPayment()');