diff --git a/changelog/pending/20221021--sdk-python--pulumi-automation-create_or_select_stack-attempts-to-select-the-stack-before-attempting-to-create.yaml b/changelog/pending/20221021--sdk-python--pulumi-automation-create_or_select_stack-attempts-to-select-the-stack-before-attempting-to-create.yaml
new file mode 100644
index 000000000000..25d6599a89ff
--- /dev/null
+++ b/changelog/pending/20221021--sdk-python--pulumi-automation-create_or_select_stack-attempts-to-select-the-stack-before-attempting-to-create.yaml
@@ -0,0 +1,4 @@
+changes:
+- type: fix
+  scope: sdk/python
+  description: pulumi.automation.create_or_select_stack() attempts to select the stack before attempting to create
diff --git a/sdk/python/lib/pulumi/automation/_stack.py b/sdk/python/lib/pulumi/automation/_stack.py
index 00b86bc038ad..6c59d64586a0 100644
--- a/sdk/python/lib/pulumi/automation/_stack.py
+++ b/sdk/python/lib/pulumi/automation/_stack.py
@@ -25,7 +25,7 @@
 
 from ._cmd import CommandResult, _run_pulumi_cmd, OnOutput
 from ._config import ConfigValue, ConfigMap
-from .errors import StackAlreadyExistsError
+from .errors import StackAlreadyExistsError, StackNotFoundError
 from .events import OpMap, EngineEvent, SummaryEvent
 from ._output import OutputMap
 from ._server import LanguageServer
@@ -186,9 +186,9 @@ def __init__(self, name: str, workspace: Workspace, mode: StackInitMode) -> None
             workspace.select_stack(name)
         elif mode is StackInitMode.CREATE_OR_SELECT:
             try:
-                workspace.create_stack(name)
-            except StackAlreadyExistsError:
                 workspace.select_stack(name)
+            except StackNotFoundError:
+                workspace.create_stack(name)
 
     def __repr__(self):
         return f"Stack(stack_name={self.name!r}, workspace={self.workspace!r}, mode={self._mode!r})"