diff --git a/openmetadata-service/src/main/java/org/openmetadata/service/jdbi3/SuggestionRepository.java b/openmetadata-service/src/main/java/org/openmetadata/service/jdbi3/SuggestionRepository.java
index 783f0f52630..d4ec0e0ea0b 100644
--- a/openmetadata-service/src/main/java/org/openmetadata/service/jdbi3/SuggestionRepository.java
+++ b/openmetadata-service/src/main/java/org/openmetadata/service/jdbi3/SuggestionRepository.java
@@ -15,7 +15,9 @@ import static org.openmetadata.service.jdbi3.UserRepository.TEAMS_FIELD;
 import java.util.ArrayList;
 import java.util.Collections;
 import java.util.List;
+import java.util.Set;
 import java.util.UUID;
+import java.util.stream.Collectors;
 import javax.json.JsonPatch;
 import javax.ws.rs.core.Response;
 import javax.ws.rs.core.SecurityContext;
@@ -39,11 +41,13 @@ import org.openmetadata.service.exception.CatalogExceptionMessage;
 import org.openmetadata.service.exception.EntityNotFoundException;
 import org.openmetadata.service.resources.feeds.MessageParser;
 import org.openmetadata.service.resources.feeds.SuggestionsResource;
+import org.openmetadata.service.resources.tags.TagLabelUtil;
 import org.openmetadata.service.security.AuthorizationException;
 import org.openmetadata.service.security.Authorizer;
 import org.openmetadata.service.security.policyevaluator.OperationContext;
 import org.openmetadata.service.security.policyevaluator.ResourceContext;
 import org.openmetadata.service.util.EntityUtil;
+import org.openmetadata.service.util.FullyQualifiedName;
 import org.openmetadata.service.util.JsonUtils;
 import org.openmetadata.service.util.RestUtil;
 import org.openmetadata.service.util.ResultList;
@@ -172,8 +176,7 @@ public class SuggestionRepository {
             entity, entityLink.getFullyQualifiedFieldValue(), suggestion);
       } else {
         if (suggestion.getType().equals(SuggestionType.SuggestTagLabel)) {
-          List<TagLabel> tags = new ArrayList<>(entity.getTags());
-          tags.addAll(suggestion.getTagLabels());
+          List<TagLabel> tags = mergeTags(entity.getTags(), suggestion.getTagLabels());
           entity.setTags(tags);
           return entity;
         } else if (suggestion.getType().equals(SuggestionType.SuggestDescription)) {
@@ -186,6 +189,50 @@ public class SuggestionRepository {
     }
   }
 
+  private static List<TagLabel> mergeTags(
+      List<TagLabel> existingTags, List<TagLabel> incomingTags) {
+    if (incomingTags == null || incomingTags.isEmpty()) {
+      return existingTags;
+    }
+    // Throw an error if incoming tags are mutually exclusive
+    TagLabelUtil.checkMutuallyExclusive(incomingTags);
+
+    ArrayList<TagLabel> tags = new ArrayList<>();
+    Set<String> incomingClassification =
+        incomingTags.stream()
+            .map(t -> FullyQualifiedName.getParentFQN(t.getTagFQN()))
+            .collect(Collectors.toSet());
+
+    // We'll give priority to incoming tags over existing tags
+    // so we'll skip any existing tag that is mutually exclusive and clashing with incoming
+    // classification
+    for (TagLabel tag : existingTags) {
+      if (TagLabelUtil.mutuallyExclusive(tag)
+          && incomingClassification.contains(FullyQualifiedName.getParentFQN(tag.getTagFQN()))) {
+        LOG.debug(
+            String.format(
+                "Incoming tags are mutually exclusive with existing tag [%s]", tag.getTagFQN()));
+      } else {
+        tags.add(tag);
+      }
+    }
+    return naiveMergeTags(tags, incomingTags);
+  }
+
+  // Add all tags without repeats
+  private static List<TagLabel> naiveMergeTags(
+      List<TagLabel> existingTags, List<TagLabel> incomingTags) {
+    List<TagLabel> tags = new ArrayList<>(existingTags);
+    Set<String> existingTagFQNs =
+        existingTags.stream().map(TagLabel::getTagFQN).collect(Collectors.toSet());
+    for (TagLabel incomingTag : incomingTags) {
+      if (!existingTagFQNs.contains(incomingTag.getTagFQN())) {
+        tags.add(incomingTag);
+      }
+    }
+    return tags;
+  }
+
   public RestUtil.PutResponse<Suggestion> acceptSuggestion(
       UriInfo uriInfo,
       Suggestion suggestion,
diff --git a/openmetadata-service/src/test/java/org/openmetadata/service/resources/feeds/SuggestionsResourceTest.java b/openmetadata-service/src/test/java/org/openmetadata/service/resources/feeds/SuggestionsResourceTest.java
index a3375627643..dea47791288 100644
--- a/openmetadata-service/src/test/java/org/openmetadata/service/resources/feeds/SuggestionsResourceTest.java
+++ b/openmetadata-service/src/test/java/org/openmetadata/service/resources/feeds/SuggestionsResourceTest.java
@@ -12,6 +12,8 @@ import static org.openmetadata.service.resources.EntityResourceTest.C1;
 import static org.openmetadata.service.resources.EntityResourceTest.C2;
 import static org.openmetadata.service.resources.EntityResourceTest.PERSONAL_DATA_TAG_LABEL;
 import static org.openmetadata.service.resources.EntityResourceTest.PII_SENSITIVE_TAG_LABEL;
+import static org.openmetadata.service.resources.EntityResourceTest.TIER1_TAG_LABEL;
+import static org.openmetadata.service.resources.EntityResourceTest.TIER2_TAG_LABEL;
 import static org.openmetadata.service.security.SecurityUtil.authHeaders;
 import static org.openmetadata.service.util.TestUtils.ADMIN_AUTH_HEADERS;
 import static org.openmetadata.service.util.TestUtils.assertResponse;
@@ -528,6 +530,37 @@ public class SuggestionsResourceTest extends OpenMetadataApplicationTest {
     }
   }
 
+  @Test
+  @Order(6)
+  void put_acceptSuggestion_mutuallyExclusiveTags_200(TestInfo test) throws IOException {
+    TableResourceTest tableResourceTest = new TableResourceTest();
+    CreateTable createTable = tableResourceTest.createRequest(test);
+    Table table = tableResourceTest.createAndCheckEntity(createTable, ADMIN_AUTH_HEADERS);
+    MessageParser.EntityLink entityLink =
+        new MessageParser.EntityLink(Entity.TABLE, table.getFullyQualifiedName());
+
+    CreateSuggestion create = createTierSuggestion(TIER1_TAG_LABEL, entityLink);
+    Suggestion suggestion = createSuggestion(create, USER_AUTH_HEADERS);
+    Assertions.assertEquals(create.getEntityLink(), suggestion.getEntityLink());
+
+    // When accepting the suggestion, we'll get the Tier1 tag applied to the table
+    acceptSuggestion(suggestion.getId(), USER_AUTH_HEADERS);
+    table = tableResourceTest.getEntity(table.getId(), "tags", USER_AUTH_HEADERS);
+    List<TagLabel> expectedTags = new ArrayList<>(table.getTags());
+    expectedTags.addAll(suggestion.getTagLabels());
+    validateAppliedTags(expectedTags, table.getTags());
+
+    // Not, let's try to apply the Tier2 tag, which is mutually exclusive with the Tier1 tag
+    // The table should then only have the Tier2
+    create = createTierSuggestion(TIER2_TAG_LABEL, entityLink);
+    suggestion = createSuggestion(create, USER_AUTH_HEADERS);
+    acceptSuggestion(suggestion.getId(), USER_AUTH_HEADERS);
+    table = tableResourceTest.getEntity(table.getId(), "tags", USER_AUTH_HEADERS);
+    expectedTags = new ArrayList<>(table.getTags());
+    expectedTags.addAll(suggestion.getTagLabels());
+    validateAppliedTags(expectedTags, table.getTags());
+  }
+
   public Suggestion createSuggestion(CreateSuggestion create, Map<String, String> authHeaders)
       throws HttpResponseException {
     return TestUtils.post(getResource("suggestions"), create, Suggestion.class, authHeaders);
@@ -552,6 +585,13 @@ public class SuggestionsResourceTest extends OpenMetadataApplicationTest {
         .withEntityLink(TABLE_LINK);
   }
 
+  public CreateSuggestion createTierSuggestion(TagLabel tier, MessageParser.EntityLink entityLink) {
+    return new CreateSuggestion()
+        .withTagLabels(List.of(tier))
+        .withType(SuggestionType.SuggestTagLabel)
+        .withEntityLink(entityLink.getLinkString());
+  }
+
   public Suggestion getSuggestion(UUID id, Map<String, String> authHeaders)
       throws HttpResponseException {
     WebTarget target = getResource("suggestions/" + id);