diff --git a/actions/setup/js/update_project.cjs b/actions/setup/js/update_project.cjs
index c38c820fefb..d39f6cdd7fe 100644
--- a/actions/setup/js/update_project.cjs
+++ b/actions/setup/js/update_project.cjs
@@ -617,21 +617,71 @@ async function updateProject(output, temporaryIdMap = new Map(), githubClient =
       }
 
       const draftBody = typeof output.draft_body === "string" ? output.draft_body : undefined;
-      const result = await github.graphql(
-        `mutation($projectId: ID!, $title: String!, $body: String) {
-          addProjectV2DraftIssue(input: {
-            projectId: $projectId,
-            title: $title,
-            body: $body
-          }) {
-            projectItem {
-              id
+
+      // Check for existing draft issue with the same title
+      const existingDraftItem = await (async function findExistingDraftByTitle(projectId, targetTitle) {
+        let hasNextPage = true;
+        let endCursor = null;
+
+        while (hasNextPage) {
+          const result = await github.graphql(
+            `query($projectId: ID!, $after: String) {
+              node(id: $projectId) {
+                ... on ProjectV2 {
+                  items(first: 100, after: $after) {
+                    nodes {
+                      id
+                      content {
+                        __typename
+                        ... on DraftIssue {
+                          id
+                          title
+                        }
+                      }
+                    }
+                    pageInfo {
+                      hasNextPage
+                      endCursor
+                    }
+                  }
+                }
+              }
+            }`,
+            { projectId, after: endCursor }
+          );
+
+          const found = result.node.items.nodes.find(item => item.content?.__typename === "DraftIssue" && item.content.title === targetTitle);
+          if (found) return found;
+
+          hasNextPage = result.node.items.pageInfo.hasNextPage;
+          endCursor = result.node.items.pageInfo.endCursor;
+        }
+
+        return null;
+      })(projectId, draftTitle);
+
+      let itemId;
+      if (existingDraftItem) {
+        itemId = existingDraftItem.id;
+        core.info(`✓ Found existing draft issue "${draftTitle}" - updating fields instead of creating duplicate`);
+      } else {
+        const result = await github.graphql(
+          `mutation($projectId: ID!, $title: String!, $body: String) {
+            addProjectV2DraftIssue(input: {
+              projectId: $projectId,
+              title: $title,
+              body: $body
+            }) {
+              projectItem {
+                id
+              }
             }
-          }
-        }`,
-        { projectId, title: draftTitle, body: draftBody }
-      );
-      const itemId = result.addProjectV2DraftIssue.projectItem.id;
+          }`,
+          { projectId, title: draftTitle, body: draftBody }
+        );
+        itemId = result.addProjectV2DraftIssue.projectItem.id;
+        core.info(`✓ Created new draft issue "${draftTitle}"`);
+      }
 
       const fieldsToUpdate = output.fields ? { ...output.fields } : {};
       if (Object.keys(fieldsToUpdate).length > 0) {
diff --git a/actions/setup/js/update_project.test.cjs b/actions/setup/js/update_project.test.cjs
index 305b7366e46..cc3e2708add 100644
--- a/actions/setup/js/update_project.test.cjs
+++ b/actions/setup/js/update_project.test.cjs
@@ -267,6 +267,24 @@ const addDraftIssueResponse = (itemId = "draft-item") => ({
   },
 });
 
+const existingDraftItemResponse = (title, itemId = "existing-draft-item") => ({
+  node: {
+    items: {
+      nodes: [
+        {
+          id: itemId,
+          content: {
+            __typename: "DraftIssue",
+            id: `draft-content-${itemId}`,
+            title: title,
+          },
+        },
+      ],
+      pageInfo: { hasNextPage: false, endCursor: null },
+    },
+  },
+});
+
 function queueResponses(responses) {
   responses.forEach(response => {
     mockGithub.graphql.mockResolvedValueOnce(response);
@@ -427,13 +445,20 @@ describe("updateProject", () => {
       draft_body: "Draft body",
     };
 
-    queueResponses([repoResponse(), viewerResponse(), orgProjectV2Response(projectUrl, 60, "project-draft"), addDraftIssueResponse("draft-item-1")]);
+    queueResponses([
+      repoResponse(),
+      viewerResponse(),
+      orgProjectV2Response(projectUrl, 60, "project-draft"),
+      emptyItemsResponse(), // No existing drafts with this title
+      addDraftIssueResponse("draft-item-1"),
+    ]);
 
     await updateProject(output);
 
     expect(mockGithub.graphql.mock.calls.some(([query]) => query.includes("addProjectV2DraftIssue"))).toBe(true);
     expect(mockGithub.rest.issues.addLabels).not.toHaveBeenCalled();
     expect(getOutput("item-id")).toBe("draft-item-1");
+    expect(mockCore.info).toHaveBeenCalledWith('✓ Created new draft issue "Draft title"');
   });
 
   it("rejects draft issues without a title", async () => {
@@ -450,6 +475,36 @@ describe("updateProject", () => {
     await expect(updateProject(output)).rejects.toThrow(/draft_title/);
   });
 
+  it("reuses existing draft issue instead of creating duplicate", async () => {
+    const projectUrl = "https://github.com/orgs/testowner/projects/60";
+    const output = {
+      type: "update_project",
+      project: projectUrl,
+      content_type: "draft_issue",
+      draft_title: "Existing Draft",
+      fields: { Status: "In Progress" },
+    };
+
+    queueResponses([
+      repoResponse(),
+      viewerResponse(),
+      orgProjectV2Response(projectUrl, 60, "project-draft"),
+      existingDraftItemResponse("Existing Draft", "existing-draft-123"), // Draft with same title exists
+      fieldsResponse([{ id: "field-status", name: "Status" }]),
+      updateFieldValueResponse(),
+    ]);
+
+    await updateProject(output);
+
+    // Should NOT call addProjectV2DraftIssue since draft already exists
+    expect(mockGithub.graphql.mock.calls.some(([query]) => query.includes("addProjectV2DraftIssue"))).toBe(false);
+    // Should call updateProjectV2ItemFieldValue to update the existing draft
+    expect(mockGithub.graphql.mock.calls.some(([query]) => query.includes("updateProjectV2ItemFieldValue"))).toBe(true);
+    expect(mockGithub.rest.issues.addLabels).not.toHaveBeenCalled();
+    expect(getOutput("item-id")).toBe("existing-draft-123");
+    expect(mockCore.info).toHaveBeenCalledWith('✓ Found existing draft issue "Existing Draft" - updating fields instead of creating duplicate');
+  });
+
   it("skips adding an issue that already exists on the board", async () => {
     const projectUrl = "https://github.com/orgs/testowner/projects/60";
     const output = { type: "update_project", project: projectUrl, content_type: "issue", content_number: 99 };
@@ -583,6 +638,7 @@ describe("updateProject", () => {
       repoResponse(),
       viewerResponse(),
       orgProjectV2Response(projectUrl, 60, "project-draft-fields"),
+      emptyItemsResponse(), // No existing drafts with this title
       addDraftIssueResponse("draft-item-fields"),
       fieldsResponse([{ id: "field-status", name: "Status" }]),
       updateFieldValueResponse(),
@@ -1263,7 +1319,13 @@ describe("updateProject", () => {
       draft_body: "This is a test",
     };
 
-    queueResponses([repoResponse(), viewerResponse(), orgProjectV2Response(messageProjectUrl, 60, "project-message"), addDraftIssueResponse("draft-item-message")]);
+    queueResponses([
+      repoResponse(),
+      viewerResponse(),
+      orgProjectV2Response(messageProjectUrl, 60, "project-message"),
+      emptyItemsResponse(), // No existing drafts with this title
+      addDraftIssueResponse("draft-item-message"),
+    ]);
 
     const result = await messageHandler(messageWithProject, new Map());