diff --git a/app/javascript/dashboard/components-next/Conversation/ConversationCard/CardMessagePreviewWithMeta.vue b/app/javascript/dashboard/components-next/Conversation/ConversationCard/CardMessagePreviewWithMeta.vue
index df2b22b7e..3486816d5 100644
--- a/app/javascript/dashboard/components-next/Conversation/ConversationCard/CardMessagePreviewWithMeta.vue
+++ b/app/javascript/dashboard/components-next/Conversation/ConversationCard/CardMessagePreviewWithMeta.vue
@@ -16,6 +16,10 @@ const props = defineProps({
     type: Array,
     required: true,
   },
+  contact: {
+    type: Object,
+    required: true,
+  },
 });
 
 const { t } = useI18n();
@@ -49,7 +53,9 @@ const unreadMessagesCount = computed(() => {
 
 const hasSlaThreshold = computed(() => {
   return (
-    slaCardLabelRef.value?.hasSlaThreshold && props.conversation?.slaPolicyId
+    !props.contact?.blocked &&
+    slaCardLabelRef.value?.hasSlaThreshold &&
+    props.conversation?.appliedSla?.id
   );
 });
 
diff --git a/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCard.vue b/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCard.vue
index f9a2507a1..be3ddf280 100644
--- a/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCard.vue
+++ b/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCard.vue
@@ -126,6 +126,7 @@ const onCardClick = e => {
         v-show="!showMessagePreviewWithoutMeta"
         ref="cardMessagePreviewWithMetaRef"
         :conversation="conversation"
+        :contact="contact"
         :account-labels="accountLabels"
       />
     </div>
diff --git a/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCardExpanded.vue b/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCardExpanded.vue
index d0f8f0211..0119b7168 100644
--- a/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCardExpanded.vue
+++ b/app/javascript/dashboard/components-next/Conversation/ConversationCard/ConversationCardExpanded.vue
@@ -51,7 +51,9 @@ const unreadCount = computed(() => props.chat.unread_count);
 const slaCardLabel = useTemplateRef('slaCardLabel');
 
 const hasSlaPolicyId = computed(
-  () => props.chat?.sla_policy_id || slaCardLabel.value?.hasSlaThreshold
+  () =>
+    !props.currentContact?.blocked &&
+    (props.chat?.applied_sla?.id || slaCardLabel.value?.hasSlaThreshold)
 );
 
 const selectedModel = computed({
diff --git a/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue b/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
index 95ef53491..a5dec806d 100644
--- a/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
@@ -57,7 +57,9 @@ const showMetaSection = computed(() => {
   );
 });
 
-const hasSlaPolicyId = computed(() => props.chat?.sla_policy_id);
+const hasSlaPolicyId = computed(
+  () => props.chat?.applied_sla?.id && !props.currentContact?.blocked
+);
 
 const showLabelsSection = computed(() => {
   return props.chat.labels?.length > 0 || hasSlaPolicyId.value;
diff --git a/app/javascript/dashboard/components/widgets/conversation/ConversationHeader.vue b/app/javascript/dashboard/components/widgets/conversation/ConversationHeader.vue
index ccd1a8aae..b1e3bc603 100644
--- a/app/javascript/dashboard/components/widgets/conversation/ConversationHeader.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/ConversationHeader.vue
@@ -93,7 +93,9 @@ const hasMultipleInboxes = computed(
   () => store.getters['inboxes/getInboxes'].length > 1
 );
 
-const hasSlaPolicyId = computed(() => props.chat?.sla_policy_id);
+const hasSlaPolicyId = computed(
+  () => props.chat?.applied_sla?.id && !currentContact.value?.blocked
+);
 
 const copyConversationId = async () => {
   try {
diff --git a/app/javascript/dashboard/components/widgets/conversation/specs/ConversationCard.spec.js b/app/javascript/dashboard/components/widgets/conversation/specs/ConversationCard.spec.js
new file mode 100644
index 000000000..a5f45fc56
--- /dev/null
+++ b/app/javascript/dashboard/components/widgets/conversation/specs/ConversationCard.spec.js
@@ -0,0 +1,60 @@
+import { shallowMount } from '@vue/test-utils';
+import ConversationCard from '../ConversationCard.vue';
+
+const defaultChat = {
+  id: 1,
+  labels: [],
+  messages: [],
+  priority: null,
+  unread_count: 0,
+  timestamp: 1700000000,
+  created_at: 1700000000,
+};
+
+const mountComponent = (chat, currentContact = {}) =>
+  shallowMount(ConversationCard, {
+    props: {
+      chat: { ...defaultChat, ...chat },
+      currentContact: {
+        name: 'Jane Doe',
+        thumbnail: '',
+        availability_status: 'offline',
+        ...currentContact,
+      },
+      inbox: { id: 1 },
+    },
+    global: {
+      stubs: {
+        'fluent-icon': true,
+      },
+    },
+  });
+
+describe('ConversationCard', () => {
+  it('does not reserve the labels row when only a persisted SLA policy id is present', () => {
+    const wrapper = mountComponent({ sla_policy_id: 1, applied_sla: null });
+
+    expect(wrapper.findComponent({ name: 'CardLabels' }).exists()).toBe(false);
+  });
+
+  it('shows the labels row when an active applied SLA is present', () => {
+    const wrapper = mountComponent({
+      sla_policy_id: 1,
+      applied_sla: { id: 1 },
+    });
+
+    expect(wrapper.findComponent({ name: 'CardLabels' }).exists()).toBe(true);
+  });
+
+  it('does not reserve the labels row when the contact is blocked', () => {
+    const wrapper = mountComponent(
+      {
+        sla_policy_id: 1,
+        applied_sla: { id: 1 },
+      },
+      { blocked: true }
+    );
+
+    expect(wrapper.findComponent({ name: 'CardLabels' }).exists()).toBe(false);
+  });
+});
diff --git a/app/views/api/v1/conversations/partials/_conversation.json.jbuilder b/app/views/api/v1/conversations/partials/_conversation.json.jbuilder
index 4cb13f543..5fdd4ecee 100644
--- a/app/views/api/v1/conversations/partials/_conversation.json.jbuilder
+++ b/app/views/api/v1/conversations/partials/_conversation.json.jbuilder
@@ -58,5 +58,6 @@ json.last_non_activity_message conversation.messages.where(account_id: conversat
 json.last_activity_at conversation.last_activity_at.to_i
 json.priority conversation.priority
 json.waiting_since conversation.waiting_since.to_i.to_i
-json.sla_policy_id conversation.sla_policy_id
+sla_applicable = !conversation.respond_to?(:sla_applicable?) || conversation.sla_applicable?
+json.sla_policy_id sla_applicable ? conversation.sla_policy_id : nil
 json.partial! 'enterprise/api/v1/conversations/partials/conversation', conversation: conversation if ChatwootApp.enterprise?
diff --git a/enterprise/app/controllers/api/v1/accounts/applied_slas_controller.rb b/enterprise/app/controllers/api/v1/accounts/applied_slas_controller.rb
index e195686a3..1ca3c015e 100644
--- a/enterprise/app/controllers/api/v1/accounts/applied_slas_controller.rb
+++ b/enterprise/app/controllers/api/v1/accounts/applied_slas_controller.rb
@@ -47,7 +47,7 @@ class Api::V1::Accounts::AppliedSlasController < Api::V1::Accounts::EnterpriseAc
   end
 
   def set_applied_slas
-    initial_query = Current.account.applied_slas.includes(:conversation)
+    initial_query = Current.account.applied_slas.with_sla_applicable_conversation.includes(:conversation)
     @applied_slas = apply_filters(initial_query)
   end
 
diff --git a/enterprise/app/jobs/sla/process_account_applied_slas_job.rb b/enterprise/app/jobs/sla/process_account_applied_slas_job.rb
index d8786565c..4eb2d182b 100644
--- a/enterprise/app/jobs/sla/process_account_applied_slas_job.rb
+++ b/enterprise/app/jobs/sla/process_account_applied_slas_job.rb
@@ -2,7 +2,7 @@ class Sla::ProcessAccountAppliedSlasJob < ApplicationJob
   queue_as :medium
 
   def perform(account)
-    account.applied_slas.where(sla_status: %w[active active_with_misses]).each do |applied_sla|
+    account.applied_slas.with_sla_applicable_conversation.where(sla_status: %w[active active_with_misses]).each do |applied_sla|
       Sla::ProcessAppliedSlaJob.perform_later(applied_sla)
     end
   end
diff --git a/enterprise/app/models/applied_sla.rb b/enterprise/app/models/applied_sla.rb
index 092daf256..cab812b36 100644
--- a/enterprise/app/models/applied_sla.rb
+++ b/enterprise/app/models/applied_sla.rb
@@ -40,6 +40,7 @@ class AppliedSla < ApplicationRecord
                                         joins(:conversation).where(conversations: { assignee_id: assigned_agent_id }) if assigned_agent_id.present?
                                       }
   scope :missed, -> { where(sla_status: %i[missed active_with_misses]) }
+  scope :with_sla_applicable_conversation, -> { where(conversation_id: Conversation.with_sla_applicable_contact.select(:id)) }
 
   after_update_commit :push_conversation_event
 
diff --git a/enterprise/app/models/enterprise/concerns/conversation.rb b/enterprise/app/models/enterprise/concerns/conversation.rb
index 0f7595e0d..a075704d1 100644
--- a/enterprise/app/models/enterprise/concerns/conversation.rb
+++ b/enterprise/app/models/enterprise/concerns/conversation.rb
@@ -7,10 +7,16 @@ module Enterprise::Concerns::Conversation
     has_many :sla_events, dependent: :destroy_async
     has_many :calls, dependent: :destroy_async
     has_many :captain_responses, class_name: 'Captain::AssistantResponse', dependent: :nullify, as: :documentable
+    scope :with_sla_applicable_contact, -> { left_joins(:contact).where(contacts: { blocked: [false, nil] }) }
+
     before_validation :validate_sla_policy, if: -> { sla_policy_id_changed? }
     around_save :ensure_applied_sla_is_created, if: -> { sla_policy_id_changed? }
   end
 
+  def sla_applicable?
+    !contact&.blocked?
+  end
+
   private
 
   def validate_sla_policy
@@ -20,6 +26,11 @@ module Enterprise::Concerns::Conversation
       return
     end
 
+    unless sla_applicable?
+      errors.add(:sla_policy, 'cannot be assigned to conversations with blocked contacts')
+      return
+    end
+
     if changes[:sla_policy_id].first.present?
       errors.add(:sla_policy, 'conversation already has a different sla')
       return
diff --git a/enterprise/app/presenters/enterprise/conversations/event_data_presenter.rb b/enterprise/app/presenters/enterprise/conversations/event_data_presenter.rb
index 9ec0a1875..142ce4dc2 100644
--- a/enterprise/app/presenters/enterprise/conversations/event_data_presenter.rb
+++ b/enterprise/app/presenters/enterprise/conversations/event_data_presenter.rb
@@ -1,13 +1,13 @@
 module Enterprise::Conversations::EventDataPresenter
   def push_data
-    if account.feature_enabled?('sla')
-      super.merge(
-        applied_sla: applied_sla&.push_event_data,
-        sla_events: sla_events.map(&:push_event_data),
-        sla_policy_id: sla_policy_id
-      )
-    else
-      super
-    end
+    return super unless account.feature_enabled?('sla')
+
+    sla_applicable = sla_applicable?
+
+    super.merge(
+      applied_sla: sla_applicable ? applied_sla&.push_event_data : nil,
+      sla_events: sla_applicable ? sla_events.map(&:push_event_data) : [],
+      sla_policy_id: sla_applicable ? sla_policy_id : nil
+    )
   end
 end
diff --git a/enterprise/app/services/enterprise/action_service.rb b/enterprise/app/services/enterprise/action_service.rb
index f0c3bbf9f..c841f5054 100644
--- a/enterprise/app/services/enterprise/action_service.rb
+++ b/enterprise/app/services/enterprise/action_service.rb
@@ -5,6 +5,7 @@ module Enterprise::ActionService
     sla_policy = @account.sla_policies.find_by(id: sla_policy_id.first)
     return if sla_policy.nil?
     return if @conversation.sla_policy.present?
+    return unless @conversation.sla_applicable?
 
     Rails.logger.info "SLA:: Adding SLA #{sla_policy.id} to conversation: #{@conversation.id}"
     @conversation.update!(sla_policy_id: sla_policy.id)
diff --git a/enterprise/app/services/sla/evaluate_applied_sla_service.rb b/enterprise/app/services/sla/evaluate_applied_sla_service.rb
index 49d01cf93..2adf3ad9f 100644
--- a/enterprise/app/services/sla/evaluate_applied_sla_service.rb
+++ b/enterprise/app/services/sla/evaluate_applied_sla_service.rb
@@ -2,6 +2,8 @@ class Sla::EvaluateAppliedSlaService
   pattr_initialize [:applied_sla!]
 
   def perform
+    return unless conversation.sla_applicable?
+
     check_frt
     check_nrt
     check_rt
diff --git a/enterprise/app/views/enterprise/api/v1/conversations/partials/_conversation.json.jbuilder b/enterprise/app/views/enterprise/api/v1/conversations/partials/_conversation.json.jbuilder
index 5a390a68b..741a4d58b 100644
--- a/enterprise/app/views/enterprise/api/v1/conversations/partials/_conversation.json.jbuilder
+++ b/enterprise/app/views/enterprise/api/v1/conversations/partials/_conversation.json.jbuilder
@@ -1,10 +1,15 @@
 if conversation.account.feature_enabled?('sla')
-  json.applied_sla do
-    json.partial! 'api/v1/models/applied_sla', formats: [:json], resource: conversation.applied_sla if conversation.applied_sla.present?
-  end
-  json.sla_events do
-    json.array! conversation.sla_events do |sla_event|
-      json.partial! 'api/v1/models/sla_event', formats: [:json], sla_event: sla_event
+  if conversation.sla_applicable?
+    json.applied_sla do
+      json.partial! 'api/v1/models/applied_sla', formats: [:json], resource: conversation.applied_sla if conversation.applied_sla.present?
     end
+    json.sla_events do
+      json.array! conversation.sla_events do |sla_event|
+        json.partial! 'api/v1/models/sla_event', formats: [:json], sla_event: sla_event
+      end
+    end
+  else
+    json.applied_sla nil
+    json.sla_events []
   end
 end
diff --git a/lib/tasks/apply_sla.rake b/lib/tasks/apply_sla.rake
index 70adf8cf3..162a372bb 100644
--- a/lib/tasks/apply_sla.rake
+++ b/lib/tasks/apply_sla.rake
@@ -62,7 +62,9 @@ namespace :sla do
       exit(1)
     end
 
-    conversations = account.conversations.where(sla_policy_id: nil).order(id: :desc).limit(batch_size)
+    conversations = account.conversations.where(sla_policy_id: nil)
+    conversations = conversations.with_sla_applicable_contact if conversations.respond_to?(:with_sla_applicable_contact)
+    conversations = conversations.order(id: :desc).limit(batch_size)
     total_count = conversations.count
 
     if total_count.zero?
diff --git a/spec/enterprise/controllers/api/v1/accounts/applied_slas_controller_spec.rb b/spec/enterprise/controllers/api/v1/accounts/applied_slas_controller_spec.rb
index 299b8ac7a..4187adfea 100644
--- a/spec/enterprise/controllers/api/v1/accounts/applied_slas_controller_spec.rb
+++ b/spec/enterprise/controllers/api/v1/accounts/applied_slas_controller_spec.rb
@@ -37,6 +37,21 @@ RSpec.describe 'Applied SLAs API', type: :request do
         expect(body).to include('hit_rate' => '0.0%')
       end
 
+      it 'excludes conversations with blocked contacts from metrics' do
+        create(:applied_sla, sla_policy: sla_policy1, conversation: conversation1, sla_status: 'missed')
+        create(:applied_sla, sla_policy: sla_policy1, conversation: conversation2, sla_status: 'missed')
+        conversation2.contact.update!(blocked: true)
+
+        get "/api/v1/accounts/#{account.id}/applied_slas/metrics",
+            headers: administrator.create_new_auth_token
+        expect(response).to have_http_status(:success)
+        body = JSON.parse(response.body)
+
+        expect(body).to include('total_applied_slas' => 1)
+        expect(body).to include('number_of_sla_misses' => 1)
+        expect(body).to include('hit_rate' => '0.0%')
+      end
+
       it 'filters sla metrics based on a date range' do
         create(:applied_sla, sla_policy: sla_policy1, conversation: conversation1, created_at: 10.days.ago)
         create(:applied_sla, sla_policy: sla_policy1, conversation: conversation2, created_at: 3.days.ago)
@@ -131,6 +146,21 @@ RSpec.describe 'Applied SLAs API', type: :request do
         expect(csv_data.size).to eq(3)
         expect(csv_data[1][0].to_i).to eq(conversation1.display_id)
       end
+
+      it 'excludes conversations with blocked contacts from the CSV file' do
+        create(:applied_sla, sla_policy: sla_policy1, conversation: conversation1, sla_status: 'missed')
+        create(:applied_sla, sla_policy: sla_policy1, conversation: conversation2, sla_status: 'missed')
+        conversation2.contact.update!(blocked: true)
+
+        get "/api/v1/accounts/#{account.id}/applied_slas/download",
+            headers: administrator.create_new_auth_token
+
+        expect(response).to have_http_status(:success)
+        csv_data = CSV.parse(response.body)
+        csv_data.reject! { |row| row.all?(&:nil?) }
+        expect(csv_data.size).to eq(2)
+        expect(csv_data[1][0].to_i).to eq(conversation1.display_id)
+      end
     end
   end
 
@@ -156,6 +186,21 @@ RSpec.describe 'Applied SLAs API', type: :request do
         expect(body['meta']).to include('count' => 1)
       end
 
+      it 'excludes conversations with blocked contacts' do
+        create(:applied_sla, sla_policy: sla_policy1, conversation: conversation1, sla_status: 'missed')
+        create(:applied_sla, sla_policy: sla_policy1, conversation: conversation2, sla_status: 'missed')
+        conversation2.contact.update!(blocked: true)
+
+        get "/api/v1/accounts/#{account.id}/applied_slas",
+            headers: administrator.create_new_auth_token
+        expect(response).to have_http_status(:success)
+        body = JSON.parse(response.body)
+
+        expect(body['payload'].size).to eq(1)
+        expect(body['payload'].first['conversation']['id']).to eq(conversation1.display_id)
+        expect(body['meta']).to include('count' => 1)
+      end
+
       it 'filters applied slas based on a date range' do
         create(:applied_sla, sla_policy: sla_policy1, conversation: conversation1, created_at: 10.days.ago, sla_status: 'missed')
         create(:applied_sla, sla_policy: sla_policy1, conversation: conversation2, created_at: 3.days.ago, sla_status: 'missed')
diff --git a/spec/enterprise/controllers/api/v1/accounts/conversations_controller_spec.rb b/spec/enterprise/controllers/api/v1/accounts/conversations_controller_spec.rb
index 472dc959b..7d053eccf 100644
--- a/spec/enterprise/controllers/api/v1/accounts/conversations_controller_spec.rb
+++ b/spec/enterprise/controllers/api/v1/accounts/conversations_controller_spec.rb
@@ -18,6 +18,21 @@ RSpec.describe 'Conversations API', type: :request do
       expect(response.parsed_body['sla_events'].first['id']).to eq(sla_event.id)
     end
 
+    it 'returns cleared SLA data when the contact is blocked' do
+      account.enable_features!('sla')
+      conversation = create(:conversation, account: account)
+      applied_sla = create(:applied_sla, conversation: conversation)
+      create(:sla_event, conversation: conversation, applied_sla: applied_sla)
+      conversation.contact.update!(blocked: true)
+
+      get "/api/v1/accounts/#{account.id}/conversations/#{conversation.display_id}", headers: administrator.create_new_auth_token
+
+      expect(response).to have_http_status(:ok)
+      expect(response.parsed_body['sla_policy_id']).to be_nil
+      expect(response.parsed_body['applied_sla']).to be_nil
+      expect(response.parsed_body['sla_events']).to eq([])
+    end
+
     it 'does not return SLA data for the conversation if the feature is disabled' do
       account.disable_features!('sla')
       conversation = create(:conversation, account: account)
diff --git a/spec/enterprise/controllers/enterprise/api/v1/accounts/conversations_controller_spec.rb b/spec/enterprise/controllers/enterprise/api/v1/accounts/conversations_controller_spec.rb
index fb028b76f..4fe7f46e5 100644
--- a/spec/enterprise/controllers/enterprise/api/v1/accounts/conversations_controller_spec.rb
+++ b/spec/enterprise/controllers/enterprise/api/v1/accounts/conversations_controller_spec.rb
@@ -36,6 +36,19 @@ RSpec.describe 'Enterprise Conversations API', type: :request do
         expect(response).to have_http_status(:unprocessable_entity)
         expect(JSON.parse(response.body, symbolize_names: true)[:message]).to eq('Sla policy conversation already has a different sla')
       end
+
+      it 'throws error if conversation contact is blocked' do
+        conversation.contact.update!(blocked: true)
+
+        patch "/api/v1/accounts/#{account.id}/conversations/#{conversation.display_id}",
+              params: params,
+              headers: agent.create_new_auth_token,
+              as: :json
+
+        expect(response).to have_http_status(:unprocessable_entity)
+        expect(JSON.parse(response.body, symbolize_names: true)[:message])
+          .to eq('Sla policy cannot be assigned to conversations with blocked contacts')
+      end
     end
   end
 end
diff --git a/spec/enterprise/jobs/sla/process_account_applied_slas_job_spec.rb b/spec/enterprise/jobs/sla/process_account_applied_slas_job_spec.rb
index abddfca23..e99a5087b 100644
--- a/spec/enterprise/jobs/sla/process_account_applied_slas_job_spec.rb
+++ b/spec/enterprise/jobs/sla/process_account_applied_slas_job_spec.rb
@@ -8,6 +8,11 @@ RSpec.describe Sla::ProcessAccountAppliedSlasJob do
     let!(:hit_applied_sla) { create(:applied_sla, account: account, sla_policy: sla_policy, sla_status: 'hit') }
     let!(:miss_applied_sla) { create(:applied_sla, account: account, sla_policy: sla_policy, sla_status: 'missed') }
     let!(:active_with_misses_applied_sla) { create(:applied_sla, account: account, sla_policy: sla_policy, sla_status: 'active_with_misses') }
+    let!(:blocked_contact_applied_sla) { create(:applied_sla, account: account, sla_policy: sla_policy, sla_status: 'active') }
+
+    before do
+      blocked_contact_applied_sla.conversation.contact.update!(blocked: true)
+    end
 
     it 'enqueues the job' do
       expect { described_class.perform_later(account) }.to have_enqueued_job(described_class)
@@ -18,6 +23,7 @@ RSpec.describe Sla::ProcessAccountAppliedSlasJob do
     it 'calls the ProcessAppliedSlaJob for both active and active_with_misses' do
       expect(Sla::ProcessAppliedSlaJob).to receive(:perform_later).with(active_with_misses_applied_sla).and_call_original
       expect(Sla::ProcessAppliedSlaJob).to receive(:perform_later).with(applied_sla).and_call_original
+      expect(Sla::ProcessAppliedSlaJob).not_to receive(:perform_later).with(blocked_contact_applied_sla)
       described_class.perform_now(account)
     end
 
diff --git a/spec/enterprise/models/applied_sla_spec.rb b/spec/enterprise/models/applied_sla_spec.rb
index 343294b75..df685444c 100644
--- a/spec/enterprise/models/applied_sla_spec.rb
+++ b/spec/enterprise/models/applied_sla_spec.rb
@@ -70,6 +70,20 @@ RSpec.describe AppliedSla, type: :model do
     end
   end
 
+  describe '.with_sla_applicable_conversation' do
+    it 'excludes blocked contacts and keeps conversations with missing contacts' do
+      applied_sla = create(:applied_sla)
+      blocked_applied_sla = create(:applied_sla)
+      missing_contact_applied_sla = create(:applied_sla)
+
+      blocked_applied_sla.conversation.contact.update!(blocked: true)
+      missing_contact_applied_sla.conversation.update_columns(contact_id: nil, contact_inbox_id: nil) # rubocop:disable Rails/SkipsModelValidations
+
+      expect(described_class.with_sla_applicable_conversation).to include(applied_sla, missing_contact_applied_sla)
+      expect(described_class.with_sla_applicable_conversation).not_to include(blocked_applied_sla)
+    end
+  end
+
   describe '#frt_due_at' do
     it 'returns nil when first_response_time_threshold is blank' do
       applied_sla = create(:applied_sla)
diff --git a/spec/enterprise/models/conversation_spec.rb b/spec/enterprise/models/conversation_spec.rb
index f7116eb54..7138c468c 100644
--- a/spec/enterprise/models/conversation_spec.rb
+++ b/spec/enterprise/models/conversation_spec.rb
@@ -59,6 +59,30 @@ RSpec.describe Conversation, type: :model do
         conversation.save!
         expect(conversation.applied_sla.sla_policy_id).to eq(sla_policy.id)
       end
+
+      it 'throws error if contact is blocked' do
+        conversation.contact.update!(blocked: true)
+        conversation.sla_policy = sla_policy
+
+        expect(conversation.valid?).to be false
+        expect(conversation.errors[:sla_policy]).to eq(['cannot be assigned to conversations with blocked contacts'])
+      end
+
+      it 'allows assigning sla after contact is unblocked' do
+        conversation.contact.update!(blocked: true)
+        conversation.contact.update!(blocked: false)
+        conversation.sla_policy = sla_policy
+
+        conversation.save!
+
+        expect(conversation.applied_sla.sla_policy_id).to eq(sla_policy.id)
+      end
+
+      it 'keeps existing behavior when contact is missing' do
+        conversation.update_columns(contact_id: nil, contact_inbox_id: nil) # rubocop:disable Rails/SkipsModelValidations
+
+        expect(conversation.reload.sla_applicable?).to be true
+      end
     end
 
     context 'when conversation already has a different sla' do
diff --git a/spec/enterprise/presenters/conversations/event_data_presenter_spec.rb b/spec/enterprise/presenters/conversations/event_data_presenter_spec.rb
index f9897c96d..d87a43363 100644
--- a/spec/enterprise/presenters/conversations/event_data_presenter_spec.rb
+++ b/spec/enterprise/presenters/conversations/event_data_presenter_spec.rb
@@ -20,6 +20,19 @@ RSpec.describe Conversations::EventDataPresenter do
       )
     end
 
+    it 'returns push event payload without active sla data when contact is blocked' do
+      conversation.account.enable_features!('sla')
+      conversation.contact.update!(blocked: true)
+
+      expect(presenter.push_data).to include(
+        {
+          applied_sla: nil,
+          sla_events: [],
+          sla_policy_id: nil
+        }
+      )
+    end
+
     it 'returns push event payload without applied sla & sla events if the feature is disabled' do
       conversation.account.disable_features!('sla')
 
diff --git a/spec/enterprise/services/enterprise/action_service_spec.rb b/spec/enterprise/services/enterprise/action_service_spec.rb
index a77a039dd..9396dc15d 100644
--- a/spec/enterprise/services/enterprise/action_service_spec.rb
+++ b/spec/enterprise/services/enterprise/action_service_spec.rb
@@ -20,6 +20,13 @@ describe ActionService do
         expect(applied_sla.conversation_id).to eq(conversation.id)
         expect(applied_sla.sla_status).to eq('active')
       end
+
+      it 'does not add the sla policy when contact is blocked' do
+        conversation.contact.update!(blocked: true)
+
+        expect { action_service.add_sla([sla_policy.id]) }.not_to change(AppliedSla, :count)
+        expect(conversation.reload.sla_policy_id).to be_nil
+      end
     end
 
     context 'when sla_policy_id is not present' do
diff --git a/spec/enterprise/services/sla/evaluate_applied_sla_service_spec.rb b/spec/enterprise/services/sla/evaluate_applied_sla_service_spec.rb
index 40e361e00..6f672e694 100644
--- a/spec/enterprise/services/sla/evaluate_applied_sla_service_spec.rb
+++ b/spec/enterprise/services/sla/evaluate_applied_sla_service_spec.rb
@@ -19,6 +19,29 @@ RSpec.describe Sla::EvaluateAppliedSlaService do
   end
   let!(:applied_sla) { conversation.applied_sla }
 
+  describe '#perform - blocked contacts' do
+    before do
+      applied_sla.sla_policy.update(first_response_time_threshold: 1.hour, resolution_time_threshold: 1.hour)
+      conversation.contact.update!(blocked: true)
+    end
+
+    it 'does not create SLA events or update SLA status' do
+      described_class.new(applied_sla: applied_sla).perform
+
+      expect(SlaEvent.where(applied_sla: applied_sla)).not_to exist
+      expect(applied_sla.reload.sla_status).to eq('active')
+    end
+
+    it 'does not mark resolved conversations as hit or missed' do
+      conversation.resolved!
+
+      described_class.new(applied_sla: applied_sla).perform
+
+      expect(SlaEvent.where(applied_sla: applied_sla)).not_to exist
+      expect(applied_sla.reload.sla_status).to eq('active')
+    end
+  end
+
   describe '#perform - SLA misses' do
     context 'when first response SLA is missed' do
       before { applied_sla.sla_policy.update(first_response_time_threshold: 1.hour) }