diff --git a/src/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php b/src/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
index 7c145e198c..826902a164 100644
--- a/src/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
+++ b/src/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
@@ -405,6 +405,7 @@ class WP_REST_Terms_Controller extends WP_REST_Controller {
 			if ( $term_id = $term->get_error_data( 'term_exists' ) ) {
 				$existing_term = get_term( $term_id, $this->taxonomy );
 				$term->add_data( $existing_term->term_id, 'term_exists' );
+				$term->add_data( array( 'status' => 409 ) );
 			}
 
 			return $term;
diff --git a/tests/phpunit/tests/rest-api/rest-categories-controller.php b/tests/phpunit/tests/rest-api/rest-categories-controller.php
index fbf7d06018..d706e25556 100644
--- a/tests/phpunit/tests/rest-api/rest-categories-controller.php
+++ b/tests/phpunit/tests/rest-api/rest-categories-controller.php
@@ -602,6 +602,21 @@ class WP_Test_REST_Categories_Controller extends WP_Test_REST_Controller_Testcas
 		$this->assertEquals( 'so-awesome', $data['slug'] );
 	}
 
+	/**
+	 * @ticket 41370
+	 */
+	public function test_create_item_term_already_exists() {
+		wp_set_current_user( self::$administrator );
+		$request = new WP_REST_Request( 'POST', '/wp/v2/categories' );
+		$request->set_param( 'name', 'test' );
+		$response = $this->server->dispatch( $request );
+		$this->assertEquals( 201, $response->get_status() );
+		$response = $this->server->dispatch( $request );
+		$this->assertEquals( 409, $response->get_status() );
+		$data = $response->get_data();
+		$this->assertEquals( 'term_exists', $data['code'] );
+	}
+
 	public function test_create_item_invalid_taxonomy() {
 		wp_set_current_user( self::$administrator );
 		$request = new WP_REST_Request( 'POST', '/wp/v2/invalid-taxonomy' );