diff --git a/server/accounts.go b/server/accounts.go
index 1ccb6295..f409f6b3 100644
--- a/server/accounts.go
+++ b/server/accounts.go
@@ -3817,9 +3817,13 @@ func removeCb(s *Server, pubKey string) {
 	a.mu.Unlock()
 	// set the account to be expired and disconnect clients
 	a.expiredTimeout()
-	// For JS, we need also to disable JS
+	// For JS, we need also to disable it.
 	if js := s.getJetStream(); js != nil && jsa != nil {
 		js.disableJetStream(jsa)
+		// Remove JetStream state in memory, this will be reset
+		// on the changed callback from the account in case it is
+		// enabled again.
+		a.js = nil
 	}
 	// We also need to remove all ServerImport subscriptions
 	a.removeAllServiceImportSubs()
@@ -3838,11 +3842,23 @@ func (dr *DirAccResolver) Start(s *Server) error {
 	dr.Server = s
 	dr.operator = opKeys
 	dr.DirJWTStore.changed = func(pubKey string) {
-		if v, ok := s.accounts.Load(pubKey); !ok {
-		} else if theJwt, err := dr.LoadAcc(pubKey); err != nil {
-			s.Errorf("update got error on load: %v", err)
-		} else if err := s.updateAccountWithClaimJWT(v.(*Account), theJwt); err != nil {
-			s.Errorf("update resulted in error %v", err)
+		if v, ok := s.accounts.Load(pubKey); ok {
+			if theJwt, err := dr.LoadAcc(pubKey); err != nil {
+				s.Errorf("update got error on load: %v", err)
+			} else {
+				acc := v.(*Account)
+				if err = s.updateAccountWithClaimJWT(acc, theJwt); err != nil {
+					s.Errorf("update resulted in error %v", err)
+				} else {
+					if _, jsa, err := acc.checkForJetStream(); err != nil {
+						s.Warnf("error checking for JetStream enabled error %v", err)
+					} else if jsa == nil {
+						if err = s.configJetStream(acc); err != nil {
+							s.Errorf("updated resulted in error when configuring JetStream %v", err)
+						}
+					}
+				}
+			}
 		}
 	}
 	dr.DirJWTStore.deleted = func(pubKey string) {
diff --git a/server/jetstream_jwt_test.go b/server/jetstream_jwt_test.go
index 0317c882..faaef767 100644
--- a/server/jetstream_jwt_test.go
+++ b/server/jetstream_jwt_test.go
@@ -18,6 +18,7 @@ package server
 
 import (
 	"encoding/json"
+	"errors"
 	"fmt"
 	"net/http"
 	"net/http/httptest"
@@ -1040,7 +1041,7 @@ func TestJetStreamDeletedAccountDoesNotLeakSubscriptions(t *testing.T) {
 	conf := createConfFile(t, []byte(fmt.Sprintf(`
 		listen: 127.0.0.1:-1
 		operator: %s
-		jetstream: {max_mem_store: 10Mb, max_file_store: 10Mb}
+		jetstream: {max_mem_store: 10Mb, max_file_store: 10Mb, store_dir: %v}
 		system_account: %s
 		resolver: {
 			type: full
@@ -1048,7 +1049,7 @@ func TestJetStreamDeletedAccountDoesNotLeakSubscriptions(t *testing.T) {
 			dir: '%s'
 			timeout: "500ms"
 		}
-	`, opJwt, syspub, dirSrv)))
+	`, opJwt, dirSrv, syspub, dirSrv)))
 	defer removeFile(t, conf)
 
 	s, _ := RunServerWithConfig(conf)
@@ -1113,3 +1114,178 @@ func TestJetStreamDeletedAccountDoesNotLeakSubscriptions(t *testing.T) {
 	// and that will not go away, so discount it.
 	checkNumSubs(beforeCreate + 1)
 }
+
+func TestJetStreamDeletedAccountIsReEnabled(t *testing.T) {
+	op, _ := nkeys.CreateOperator()
+	opPk, _ := op.PublicKey()
+	sk, _ := nkeys.CreateOperator()
+	skPk, _ := sk.PublicKey()
+	opClaim := jwt.NewOperatorClaims(opPk)
+	opClaim.SigningKeys.Add(skPk)
+	opJwt, err := opClaim.Encode(op)
+	require_NoError(t, err)
+	createAccountAndUser := func(pubKey, jwt1, creds1 *string) {
+		t.Helper()
+		kp, _ := nkeys.CreateAccount()
+		*pubKey, _ = kp.PublicKey()
+		claim := jwt.NewAccountClaims(*pubKey)
+		claim.Limits.JetStreamLimits = jwt.JetStreamLimits{MemoryStorage: 7 * 1024 * 1024, DiskStorage: 7 * 1024 * 1024, Streams: 10}
+		var err error
+		*jwt1, err = claim.Encode(sk)
+		require_NoError(t, err)
+
+		ukp, _ := nkeys.CreateUser()
+		seed, _ := ukp.Seed()
+		upub, _ := ukp.PublicKey()
+		uclaim := newJWTTestUserClaims()
+		uclaim.Subject = upub
+
+		ujwt1, err := uclaim.Encode(kp)
+		require_NoError(t, err)
+		*creds1 = genCredsFile(t, ujwt1, seed)
+	}
+	generateRequest := func(accs []string, kp nkeys.KeyPair) []byte {
+		t.Helper()
+		opk, _ := kp.PublicKey()
+		c := jwt.NewGenericClaims(opk)
+		c.Data["accounts"] = accs
+		cJwt, err := c.Encode(kp)
+		if err != nil {
+			t.Fatalf("Expected no error %v", err)
+		}
+		return []byte(cJwt)
+	}
+
+	// admin user
+	var syspub, sysjwt, sysCreds string
+	createAccountAndUser(&syspub, &sysjwt, &sysCreds)
+	defer removeFile(t, sysCreds)
+
+	dirSrv := createDir(t, "srv")
+	defer removeDir(t, dirSrv)
+	conf := createConfFile(t, []byte(fmt.Sprintf(`
+		listen: 127.0.0.1:-1
+		operator: %s
+		jetstream: {max_mem_store: 10Mb, max_file_store: 10Mb, store_dir: %v}
+		system_account: %s
+		resolver: {
+			type: full
+			allow_delete: true
+			dir: '%s'
+			timeout: "500ms"
+		}
+	`, opJwt, dirSrv, syspub, dirSrv)))
+	defer removeFile(t, conf)
+
+	s, _ := RunServerWithConfig(conf)
+	defer s.Shutdown()
+
+	// update system account jwt
+	updateJwt(t, s.ClientURL(), sysCreds, sysjwt, 1)
+
+	// create account
+	var apub, ajwt1, aCreds1 string
+	kp, _ := nkeys.CreateAccount()
+	apub, _ = kp.PublicKey()
+	claim := jwt.NewAccountClaims(apub)
+	claim.Limits.JetStreamLimits = jwt.JetStreamLimits{
+		MemoryStorage: 7 * 1024 * 1024,
+		DiskStorage:   7 * 1024 * 1024,
+		Streams:       10,
+	}
+	ajwt1, err = claim.Encode(sk)
+	require_NoError(t, err)
+
+	// user
+	ukp, _ := nkeys.CreateUser()
+	seed, _ := ukp.Seed()
+	upub, _ := ukp.PublicKey()
+	uclaim := newJWTTestUserClaims()
+	uclaim.Subject = upub
+
+	ujwt1, err := uclaim.Encode(kp)
+	require_NoError(t, err)
+	aCreds1 = genCredsFile(t, ujwt1, seed)
+	defer removeFile(t, aCreds1)
+
+	// push user account
+	updateJwt(t, s.ClientURL(), sysCreds, ajwt1, 1)
+
+	ncA, jsA := jsClientConnect(t, s, nats.UserCredentials(aCreds1))
+	defer ncA.Close()
+
+	jsA.AddStream(&nats.StreamConfig{Name: "foo"})
+	jsA.Publish("foo", []byte("Hello World"))
+	jsA.Publish("foo", []byte("Hello Again"))
+
+	// JS should be working
+	ai, err := jsA.AccountInfo()
+	require_NoError(t, err)
+	require_True(t, ai.Limits.MaxMemory == 7*1024*1024)
+	require_True(t, ai.Limits.MaxStore == 7*1024*1024)
+	require_True(t, ai.Tier.Streams == 1)
+
+	// connect with a different connection and delete the account.
+	nc := natsConnect(t, s.ClientURL(), nats.UserCredentials(sysCreds))
+	defer nc.Close()
+
+	// delete account
+	resp, err := nc.Request(accDeleteReqSubj, generateRequest([]string{apub}, sk), time.Second)
+	require_NoError(t, err)
+	require_True(t, strings.Contains(string(resp.Data), `"message":"deleted 1 accounts"`))
+
+	// account was disabled and now disconnected, this should get a connection is closed error.
+	_, err = jsA.AccountInfo()
+	if err == nil || !errors.Is(err, nats.ErrConnectionClosed) {
+		t.Errorf("Expected connection closed error, got: %v", err)
+	}
+	ncA.Close()
+
+	// re-enable, same claims would be detected
+	updateJwt(t, s.ClientURL(), sysCreds, ajwt1, 1)
+
+	// expected to get authorization timeout at this time
+	_, err = nats.Connect(s.ClientURL(), nats.UserCredentials(aCreds1))
+	if !errors.Is(err, nats.ErrAuthorization) {
+		t.Errorf("Expected authorization issue on connect, got: %v", err)
+	}
+
+	// edit the account and push again with updated claims to same account
+	claim = jwt.NewAccountClaims(apub)
+	claim.Limits.JetStreamLimits = jwt.JetStreamLimits{
+		MemoryStorage: -1,
+		DiskStorage:   10 * 1024 * 1024,
+		Streams:       10,
+	}
+	ajwt1, err = claim.Encode(sk)
+	require_NoError(t, err)
+	updateJwt(t, s.ClientURL(), sysCreds, ajwt1, 1)
+
+	// reconnect with the updated account
+	ncA, jsA = jsClientConnect(t, s, nats.UserCredentials(aCreds1))
+	defer ncA.Close()
+	ai, err = jsA.AccountInfo()
+	if err != nil {
+		t.Fatal(err)
+	}
+	require_True(t, ai.Limits.MaxMemory == -1)
+	require_True(t, ai.Limits.MaxStore == 10*1024*1024)
+	require_True(t, ai.Tier.Streams == 1)
+
+	// should be possible to get stream info again
+	si, err := jsA.StreamInfo("foo")
+	if err != nil {
+		t.Fatal(err)
+	}
+	if si.State.Msgs != 2 {
+		t.Fatal("Unexpected number of messages from recovered stream")
+	}
+	msg, err := jsA.GetMsg("foo", 1)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if string(msg.Data) != "Hello World" {
+		t.Error("Unexpected message")
+	}
+	ncA.Close()
+}