diff --git a/app/models/family.rb b/app/models/family.rb
index 948930ff..9c9260f9 100644
--- a/app/models/family.rb
+++ b/app/models/family.rb
@@ -15,8 +15,8 @@ class Family < ApplicationRecord
   scope :with_pending_invitations, -> { includes(family_invitations: :invited_by) }
 
   def can_add_members?
-    # Use counter cache if available, otherwise count
-    member_count < MAX_MEMBERS
+    # Check if family can accept more members (including pending invitations)
+    (member_count + pending_invitations_count) < MAX_MEMBERS
   end
 
   def member_count
@@ -40,7 +40,7 @@ class Family < ApplicationRecord
   end
 
   def full?
-    member_count >= MAX_MEMBERS
+    (member_count + pending_invitations_count) >= MAX_MEMBERS
   end
 
   def active_invitations
diff --git a/app/models/family_invitation.rb b/app/models/family_invitation.rb
index 6b3ff839..1e0d65b2 100644
--- a/app/models/family_invitation.rb
+++ b/app/models/family_invitation.rb
@@ -17,7 +17,8 @@ class FamilyInvitation < ApplicationRecord
 
   before_validation :generate_token, :set_expiry, on: :create
 
-  # Clear family cache when invitation status changes
+  # Clear family cache when invitation status changes or is created/destroyed
+  after_create :clear_family_cache
   after_update :clear_family_cache, if: :saved_change_to_status?
   after_destroy :clear_family_cache
 
diff --git a/app/views/families/show.html.erb b/app/views/families/show.html.erb
index 4a44f6d5..b4060867 100644
--- a/app/views/families/show.html.erb
+++ b/app/views/families/show.html.erb
@@ -121,7 +121,7 @@
         <% end %>
 
         <!-- Invite New Member -->
-        <% if policy(@family).invite? %>
+        <% if policy(@family).invite? && @family.can_add_members? %>
           <div class="border-t pt-4">
             <h3 class="text-lg font-medium text-gray-900 dark:text-gray-100 mb-3">
               <%= t('families.show.invite_member', default: 'Invite New Member') %>
@@ -141,6 +141,30 @@
               </div>
             <% end %>
           </div>
+        <% elsif policy(@family).invite? %>
+          <!-- Family at capacity message -->
+          <div class="border-t pt-4">
+            <div class="bg-amber-50 dark:bg-amber-900/30 border border-amber-200 dark:border-amber-700 rounded-md p-4">
+              <div class="flex">
+                <div class="flex-shrink-0">
+                  <svg class="h-5 w-5 text-amber-400" fill="currentColor" viewBox="0 0 20 20">
+                    <path fill-rule="evenodd" d="M8.257 3.099c.765-1.36 2.722-1.36 3.486 0l5.58 9.92c.75 1.334-.213 2.98-1.742 2.98H4.42c-1.53 0-2.493-1.646-1.743-2.98l5.58-9.92zM11 13a1 1 0 11-2 0 1 1 0 012 0zm-1-8a1 1 0 00-1 1v3a1 1 0 002 0V6a1 1 0 00-1-1z" clip-rule="evenodd" />
+                  </svg>
+                </div>
+                <div class="ml-3">
+                  <h3 class="text-sm font-medium text-amber-800 dark:text-amber-200">
+                    Family at Capacity
+                  </h3>
+                  <div class="mt-2 text-sm text-amber-700 dark:text-amber-300">
+                    <p>
+                      Your family has reached the maximum of <%= @family.class::MAX_MEMBERS %> members (including pending invitations).
+                      Cancel existing invitations or wait for them to expire to invite new members.
+                    </p>
+                  </div>
+                </div>
+              </div>
+            </div>
+          </div>
         <% end %>
       </div>
     </div>