diff --git a/src/common-utils/main.sh b/src/common-utils/main.sh
index b0fd2f3b0..6ecd090f9 100644
--- a/src/common-utils/main.sh
+++ b/src/common-utils/main.sh
@@ -422,7 +422,7 @@ elif [ "${USERNAME}" = "none" ]; then
     USER_GID=0
 fi
 # Create or update a non-root user to match UID/GID.
-group_name="${USERNAME}"
+group_name="$(id -gn "$USERNAME" 2>/dev/null || echo "$USERNAME")"
 if id -u ${USERNAME} > /dev/null 2>&1; then
     # User exists, update if needed
     if [ "${USER_GID}" != "automatic" ] && [ "$USER_GID" != "$(id -g $USERNAME)" ]; then
@@ -430,8 +430,18 @@ if id -u ${USERNAME} > /dev/null 2>&1; then
         groupmod --gid $USER_GID ${group_name}
         usermod --gid $USER_GID $USERNAME
     fi
+    # Check if the target UID is different from current user's UID before modifying
     if [ "${USER_UID}" != "automatic" ] && [ "$USER_UID" != "$(id -u $USERNAME)" ]; then
-        usermod --uid $USER_UID $USERNAME
+        # Additional safety check: ensure target UID isn't already taken by another user
+        # This prevents "UID already exists" errors when multiple users have the same UID
+        if id -u $USER_UID > /dev/null 2>&1; then
+            existing_user=$(id -nu $USER_UID)
+            if [ "$existing_user" != "$USERNAME" ]; then
+                echo "Warning: UID $USER_UID is already in use by user '$existing_user'. Skipping UID modification."
+            fi
+        else
+            usermod --uid $USER_UID $USERNAME
+        fi
     fi
 else
     # Create user
diff --git a/test/common-utils/devcontainer-custom-user.sh b/test/common-utils/devcontainer-custom-user.sh
new file mode 100644
index 000000000..8e1a6e18b
--- /dev/null
+++ b/test/common-utils/devcontainer-custom-user.sh
@@ -0,0 +1,57 @@
+#!/bin/bash
+
+set -e
+
+# Optional: Import test library
+source dev-container-features-test-lib
+
+# Check current user
+current_user=$(whoami)
+echo "Current user: $current_user"
+
+# Check user's primary group ID
+user_gid=$(id -g)
+echo "User's primary GID: $user_gid"
+
+# Check user's primary group name
+user_group_name=$(id -gn)
+echo "User's primary group name: $user_group_name"
+
+# Check if user exists and get their info
+if id -u vscode > /dev/null 2>&1; then
+    echo "vscode user exists"
+    vscode_uid=$(id -u vscode)
+    vscode_gid=$(id -g vscode)
+    vscode_group_name=$(id -gn vscode)
+    
+    echo "vscode UID: $vscode_uid"
+    echo "vscode GID: $vscode_gid" 
+    echo "vscode group name: $vscode_group_name"
+else
+    echo "vscode user does not exist"
+fi
+
+# Check what group has GID 100
+if getent group 100 >/dev/null 2>&1; then
+    group_100_info=$(getent group 100)
+    echo "GID 100 belongs to: $group_100_info"
+else
+    echo "No group found with GID 100"
+fi
+
+# Check all groups the user belongs to
+echo "All groups for $current_user: $(groups)"
+
+# Definition specific tests based on the scenario
+check "user is vscode" grep "vscode" <(whoami)
+check "vscode user exists" id -u vscode
+check "vscode primary group exists" id -g vscode
+
+# If the test is specifically for GID 100, check that
+if [ "$(id -g vscode)" = "100" ]; then
+    check "vscode has GID 100" [ "$(id -g vscode)" = "100" ]
+    check "GID 100 group name" getent group 100
+fi
+
+# Report result
+reportResults
\ No newline at end of file
diff --git a/test/common-utils/devcontainer-custom-user/Dockerfile b/test/common-utils/devcontainer-custom-user/Dockerfile
new file mode 100644
index 000000000..1065a106a
--- /dev/null
+++ b/test/common-utils/devcontainer-custom-user/Dockerfile
@@ -0,0 +1,13 @@
+FROM ubuntu:noble
+ARG USERNAME=vscode
+ARG USER_UID=1000
+ARG USER_GID=100
+RUN if ! getent group users > /dev/null 2>&1; then groupadd --gid $USER_GID users; fi \
+    && if ! id -u $USERNAME > /dev/null 2>&1; then \
+            if ! id -u $USER_UID > /dev/null 2>&1; then \
+                useradd --uid $USER_UID --gid $USER_GID -m $USERNAME; \
+            else \
+                echo "UID $USER_UID already exists, creating user without specifying UID"; \
+                useradd --gid $USER_GID -m $USERNAME; \
+            fi; \
+        fi
\ No newline at end of file
diff --git a/test/common-utils/scenarios.json b/test/common-utils/scenarios.json
index ee138ca22..61856a9c3 100644
--- a/test/common-utils/scenarios.json
+++ b/test/common-utils/scenarios.json
@@ -284,5 +284,18 @@
         "features": {
             "common-utils": {}
         }
+    },
+    "devcontainer-custom-user": {
+        "build": {
+            "dockerfile": "Dockerfile"
+        },
+        "remoteUser": "vscode",
+        "features": {
+            "common-utils": {
+                "username": "vscode",
+                "userUid": "1000",
+                "userGid": "100" // Test GID 100 conflict resolution (users group)
+            }
+        }
     }
 }
\ No newline at end of file