diff --git a/integration-tests/http/__tests__/cart/store/cart.spec.ts b/integration-tests/http/__tests__/cart/store/cart.spec.ts
index 6ed7f34f33..666933bdc9 100644
--- a/integration-tests/http/__tests__/cart/store/cart.spec.ts
+++ b/integration-tests/http/__tests__/cart/store/cart.spec.ts
@@ -9,6 +9,7 @@ import {
   PromotionStatus,
   PromotionType,
 } from "@medusajs/utils"
+import { setTimeout } from "timers/promises"
 import {
   createAdminUser,
   generatePublishableKey,
@@ -17,7 +18,6 @@ import {
 import { setupTaxStructure } from "../../../../modules/__tests__/fixtures"
 import { createAuthenticatedCustomer } from "../../../../modules/helpers/create-authenticated-customer"
 import { medusaTshirtProduct } from "../../../__fixtures__/product"
-import { setTimeout } from "timers/promises"
 
 jest.setTimeout(100000)
 
@@ -4987,6 +4987,315 @@ medusaIntegrationTestRunner({
               )
             })
           })
+
+          describe("ONCE allocation promotions", () => {
+            it("should apply fixed promotion to lowest priced items first and respect max_quantity across cart", async () => {
+              // Create two products with different prices
+              const expensiveProduct = (
+                await api.post(
+                  "/admin/products",
+                  {
+                    title: "Expensive Product",
+                    status: ProductStatus.PUBLISHED,
+                    options: [{ title: "Size", values: ["L"] }],
+                    variants: [
+                      {
+                        title: "Large",
+                        sku: "expensive-l",
+                        options: { Size: "L" },
+                        manage_inventory: false,
+                        prices: [{ amount: 10000, currency_code: "usd" }], // $100
+                      },
+                    ],
+                    shipping_profile_id: shippingProfile.id,
+                  },
+                  adminHeaders
+                )
+              ).data.product
+
+              const cheapProduct = (
+                await api.post(
+                  "/admin/products",
+                  {
+                    title: "Cheap Product",
+                    status: ProductStatus.PUBLISHED,
+                    options: [{ title: "Size", values: ["M"] }],
+                    variants: [
+                      {
+                        title: "Medium",
+                        sku: "cheap-m",
+                        options: { Size: "M" },
+                        manage_inventory: false,
+                        prices: [{ amount: 5000, currency_code: "usd" }], // $50
+                      },
+                    ],
+                    shipping_profile_id: shippingProfile.id,
+                  },
+                  adminHeaders
+                )
+              ).data.product
+
+              const oncePromotion = (
+                await api.post(
+                  `/admin/promotions`,
+                  {
+                    code: "ONCE_PROMO_FIXED",
+                    type: PromotionType.STANDARD,
+                    status: PromotionStatus.ACTIVE,
+                    is_automatic: false,
+                    application_method: {
+                      type: "fixed",
+                      target_type: "items",
+                      allocation: "once",
+                      value: 1000, // $10 off
+                      max_quantity: 2,
+                      currency_code: "usd",
+                      target_rules: [],
+                    },
+                  },
+                  adminHeaders
+                )
+              ).data.promotion
+
+              cart = (
+                await api.post(
+                  `/store/carts`,
+                  {
+                    currency_code: "usd",
+                    sales_channel_id: salesChannel.id,
+                    region_id: region.id,
+                    shipping_address: shippingAddressData,
+                    items: [
+                      {
+                        variant_id: expensiveProduct.variants[0].id,
+                        quantity: 3,
+                      },
+                      { variant_id: cheapProduct.variants[0].id, quantity: 5 },
+                    ],
+                    promo_codes: [oncePromotion.code],
+                  },
+                  storeHeadersWithCustomer
+                )
+              ).data.cart
+
+              // Should apply $10 discount twice to the cheap product only (lowest price)
+              const cheapItem = cart.items.find(
+                (i) => i.variant_id === cheapProduct.variants[0].id
+              )
+              const expensiveItem = cart.items.find(
+                (i) => i.variant_id === expensiveProduct.variants[0].id
+              )
+
+              expect(cheapItem.adjustments).toHaveLength(1)
+              expect(cheapItem.adjustments[0].amount).toBe(2000) // 2 * $10
+              expect(cheapItem.adjustments[0].code).toBe(oncePromotion.code)
+
+              expect(expensiveItem.adjustments).toHaveLength(0)
+            })
+
+            it("should distribute promotion across multiple items when max_quantity exceeds first item quantity", async () => {
+              const product1 = (
+                await api.post(
+                  "/admin/products",
+                  {
+                    title: "Product 1",
+                    status: ProductStatus.PUBLISHED,
+                    options: [{ title: "Size", values: ["S"] }],
+                    variants: [
+                      {
+                        title: "Small",
+                        sku: "prod1-s",
+                        options: { Size: "S" },
+                        manage_inventory: false,
+                        prices: [{ amount: 5000, currency_code: "usd" }], // $50
+                      },
+                    ],
+                    shipping_profile_id: shippingProfile.id,
+                  },
+                  adminHeaders
+                )
+              ).data.product
+
+              const product2 = (
+                await api.post(
+                  "/admin/products",
+                  {
+                    title: "Product 2",
+                    status: ProductStatus.PUBLISHED,
+                    options: [{ title: "Size", values: ["M"] }],
+                    variants: [
+                      {
+                        title: "Medium",
+                        sku: "prod2-m",
+                        options: { Size: "M" },
+                        manage_inventory: false,
+                        prices: [{ amount: 6000, currency_code: "usd" }], // $60
+                      },
+                    ],
+                    shipping_profile_id: shippingProfile.id,
+                  },
+                  adminHeaders
+                )
+              ).data.product
+
+              const oncePromotion = (
+                await api.post(
+                  `/admin/promotions`,
+                  {
+                    code: "ONCE_PROMO_DISTRIBUTE",
+                    type: PromotionType.STANDARD,
+                    status: PromotionStatus.ACTIVE,
+                    is_automatic: false,
+                    application_method: {
+                      type: "fixed",
+                      target_type: "items",
+                      allocation: "once",
+                      value: 500, // $5 off
+                      max_quantity: 4,
+                      currency_code: "usd",
+                      target_rules: [],
+                    },
+                  },
+                  adminHeaders
+                )
+              ).data.promotion
+
+              cart = (
+                await api.post(
+                  `/store/carts`,
+                  {
+                    currency_code: "usd",
+                    sales_channel_id: salesChannel.id,
+                    region_id: region.id,
+                    shipping_address: shippingAddressData,
+                    items: [
+                      { variant_id: product1.variants[0].id, quantity: 2 },
+                      { variant_id: product2.variants[0].id, quantity: 3 },
+                    ],
+                    promo_codes: [oncePromotion.code],
+                  },
+                  storeHeadersWithCustomer
+                )
+              ).data.cart
+
+              // Should apply: 2 units to product1 ($50), 2 units to product2 ($60)
+              const item1 = cart.items.find(
+                (i) => i.variant_id === product1.variants[0].id
+              )
+              const item2 = cart.items.find(
+                (i) => i.variant_id === product2.variants[0].id
+              )
+
+              expect(item1.adjustments).toHaveLength(1)
+              expect(item1.adjustments[0].amount).toBe(1000) // 2 * $5
+
+              expect(item2.adjustments).toHaveLength(1)
+              expect(item2.adjustments[0].amount).toBe(1000) // 2 * $5
+            })
+
+            it("should apply percentage promotion with once allocation to lowest priced items", async () => {
+              const product1 = (
+                await api.post(
+                  "/admin/products",
+                  {
+                    title: "Expensive Product",
+                    status: ProductStatus.PUBLISHED,
+                    options: [{ title: "Size", values: ["L"] }],
+                    variants: [
+                      {
+                        title: "Large",
+                        sku: "expensive-prod",
+                        options: { Size: "L" },
+                        manage_inventory: false,
+                        prices: [{ amount: 10000, currency_code: "usd" }], // $100
+                      },
+                    ],
+                    shipping_profile_id: shippingProfile.id,
+                  },
+                  adminHeaders
+                )
+              ).data.product
+
+              const product2 = (
+                await api.post(
+                  "/admin/products",
+                  {
+                    title: "Cheap Product",
+                    status: ProductStatus.PUBLISHED,
+                    options: [{ title: "Size", values: ["S"] }],
+                    variants: [
+                      {
+                        title: "Small",
+                        sku: "cheap-prod",
+                        options: { Size: "S" },
+                        manage_inventory: false,
+                        prices: [{ amount: 5000, currency_code: "usd" }], // $50
+                      },
+                    ],
+                    shipping_profile_id: shippingProfile.id,
+                  },
+                  adminHeaders
+                )
+              ).data.product
+
+              const oncePromotion = (
+                await api.post(
+                  `/admin/promotions`,
+                  {
+                    code: "ONCE_PROMO_PERCENTAGE",
+                    type: PromotionType.STANDARD,
+                    status: PromotionStatus.ACTIVE,
+                    is_automatic: false,
+                    application_method: {
+                      type: "percentage",
+                      target_type: "items",
+                      allocation: "once",
+                      value: 20, // 20% off
+                      max_quantity: 3,
+                      currency_code: "usd",
+                      target_rules: [],
+                    },
+                  },
+                  adminHeaders
+                )
+              ).data.promotion
+
+              cart = (
+                await api.post(
+                  `/store/carts`,
+                  {
+                    currency_code: "usd",
+                    sales_channel_id: salesChannel.id,
+                    region_id: region.id,
+                    shipping_address: shippingAddressData,
+                    items: [
+                      { variant_id: product1.variants[0].id, quantity: 5 },
+                      { variant_id: product2.variants[0].id, quantity: 4 },
+                    ],
+                    promo_codes: [oncePromotion.code],
+                  },
+                  storeHeadersWithCustomer
+                )
+              ).data.cart
+
+              // Should apply 20% to 3 units of the cheap product
+              // Tax-inclusive calculation: (($50 * 1.05) * 3 * 20%) / 1.05 ≈ $28.57 per unit * 3 = ~$2857
+              // The promotion inherits tax_inclusive from the cart's currency settings
+              const cheapItem = cart.items.find(
+                (i) => i.variant_id === product2.variants[0].id
+              )
+              const expensiveItem = cart.items.find(
+                (i) => i.variant_id === product1.variants[0].id
+              )
+
+              expect(cheapItem.adjustments).toHaveLength(1)
+              // Tax-inclusive: 20% of (3 units * $50 tax-inclusive) accounting for 5% tax
+              expect(cheapItem.adjustments[0].amount).toBeCloseTo(2857.14, 0)
+              expect(cheapItem.adjustments[0].code).toBe(oncePromotion.code)
+
+              expect(expensiveItem.adjustments).toHaveLength(0)
+            })
+          })
         })
       })
 
diff --git a/packages/admin/dashboard/src/i18n/translations/$schema.json b/packages/admin/dashboard/src/i18n/translations/$schema.json
index 726e246988..914b0a1a07 100644
--- a/packages/admin/dashboard/src/i18n/translations/$schema.json
+++ b/packages/admin/dashboard/src/i18n/translations/$schema.json
@@ -7569,6 +7569,9 @@
             "allocation": {
               "type": "string"
             },
+            "allocationTooltip": {
+              "type": "string"
+            },
             "addCondition": {
               "type": "string"
             },
@@ -8048,9 +8051,22 @@
                   },
                   "required": ["title", "description"],
                   "additionalProperties": false
+                },
+                "once": {
+                  "type": "object",
+                  "properties": {
+                    "title": {
+                      "type": "string"
+                    },
+                    "description": {
+                      "type": "string"
+                    }
+                  },
+                  "required": ["title", "description"],
+                  "additionalProperties": false
                 }
               },
-              "required": ["each", "across"],
+              "required": ["each", "across", "once"],
               "additionalProperties": false
             },
             "code": {
diff --git a/packages/admin/dashboard/src/i18n/translations/en.json b/packages/admin/dashboard/src/i18n/translations/en.json
index 6eef3ee66c..70db13f6b2 100644
--- a/packages/admin/dashboard/src/i18n/translations/en.json
+++ b/packages/admin/dashboard/src/i18n/translations/en.json
@@ -2021,6 +2021,7 @@
       "campaign": "Campaign",
       "method": "Method",
       "allocation": "Allocation",
+      "allocationTooltip": "Each enforces the quantity limit per item, while Once enforces the quantity limit across the entire cart",
       "addCondition": "Add condition",
       "clearAll": "Clear all",
       "taxInclusive": "Tax Inclusive",
@@ -2162,6 +2163,10 @@
         "across": {
           "title": "Across",
           "description": "Applies value across items"
+        },
+        "once": {
+          "title": "Once",
+          "description": "Applies value to a limited number of items"
         }
       },
       "code": {
diff --git a/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/create-promotion-form.tsx b/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/create-promotion-form.tsx
index ea1dbdfd67..c31e45d739 100644
--- a/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/create-promotion-form.tsx
+++ b/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/create-promotion-form.tsx
@@ -714,7 +714,7 @@ export const CreatePromotionForm = () => {
                               <Form.Control>
                                 <RadioGroup
                                   dir={direction}
-                                className="flex gap-y-3"
+                                  className="flex gap-y-3"
                                   {...field}
                                   onValueChange={field.onChange}
                                 >
@@ -840,7 +840,9 @@ export const CreatePromotionForm = () => {
                     </>
                   )}
 
-                  {((isTypeStandard && watchAllocation === "each") ||
+                  {((isTypeStandard &&
+                    (watchAllocation === "each" ||
+                      watchAllocation === "once")) ||
                     isTypeBuyGet) && (
                     <>
                       {isTypeBuyGet && (
@@ -898,7 +900,9 @@ export const CreatePromotionForm = () => {
                         render={({ field }) => {
                           return (
                             <Form.Item>
-                              <Form.Label>
+                              <Form.Label
+                                tooltip={t("promotions.fields.allocationTooltip")}
+                              >
                                 {t("promotions.fields.allocation")}
                               </Form.Label>
 
@@ -909,27 +913,50 @@ export const CreatePromotionForm = () => {
                                   {...field}
                                   onValueChange={field.onChange}
                                 >
-                                  <RadioGroup.ChoiceBox
-                                    value={"each"}
-                                    label={t(
-                                      "promotions.form.allocation.each.title"
-                                    )}
-                                    description={t(
-                                      "promotions.form.allocation.each.description"
-                                    )}
-                                    className={clx("basis-1/2")}
-                                  />
+                                  {!currentTemplate?.hiddenFields?.includes(
+                                    "application_method.allocation.each"
+                                  ) && (
+                                    <RadioGroup.ChoiceBox
+                                      value={"each"}
+                                      label={t(
+                                        "promotions.form.allocation.each.title"
+                                      )}
+                                      description={t(
+                                        "promotions.form.allocation.each.description"
+                                      )}
+                                      className={clx("basis-1/3")}
+                                    />
+                                  )}
 
-                                  <RadioGroup.ChoiceBox
-                                    value={"across"}
-                                    label={t(
-                                      "promotions.form.allocation.across.title"
-                                    )}
-                                    description={t(
-                                      "promotions.form.allocation.across.description"
-                                    )}
-                                    className={clx("basis-1/2")}
-                                  />
+                                  {!currentTemplate?.hiddenFields?.includes(
+                                    "application_method.allocation.across"
+                                  ) && (
+                                    <RadioGroup.ChoiceBox
+                                      value={"across"}
+                                      label={t(
+                                        "promotions.form.allocation.across.title"
+                                      )}
+                                      description={t(
+                                        "promotions.form.allocation.across.description"
+                                      )}
+                                      className={clx("basis-1/3")}
+                                    />
+                                  )}
+
+                                  {!currentTemplate?.hiddenFields?.includes(
+                                    "application_method.allocation.once"
+                                  ) && (
+                                    <RadioGroup.ChoiceBox
+                                      value={"once"}
+                                      label={t(
+                                        "promotions.form.allocation.once.title"
+                                      )}
+                                      description={t(
+                                        "promotions.form.allocation.once.description"
+                                      )}
+                                      className={clx("basis-1/3")}
+                                    />
+                                  )}
                                 </RadioGroup>
                               </Form.Control>
                               <Form.ErrorMessage />
diff --git a/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/form-schema.ts b/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/form-schema.ts
index 9dbb81bc11..2b4372be45 100644
--- a/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/form-schema.ts
+++ b/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/form-schema.ts
@@ -29,7 +29,7 @@ export const CreatePromotionSchema = z
     rules: RuleSchema,
     is_tax_inclusive: z.boolean().optional(),
     application_method: z.object({
-      allocation: z.enum(["each", "across"]),
+      allocation: z.enum(["each", "across", "once"]),
       value: z.number().min(0).or(z.string().min(1)),
       currency_code: z.string().optional(),
       max_quantity: z.number().optional().nullable(),
@@ -47,7 +47,8 @@ export const CreatePromotionSchema = z
       }
 
       return (
-        data.application_method.allocation === "each" &&
+        (data.application_method.allocation === "each" ||
+          data.application_method.allocation === "once") &&
         typeof data.application_method.max_quantity === "number"
       )
     },
diff --git a/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/templates.ts b/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/templates.ts
index c90a0aa329..c81b87734e 100644
--- a/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/templates.ts
+++ b/packages/admin/dashboard/src/routes/promotions/promotion-create/components/create-promotion-form/templates.ts
@@ -1,30 +1,40 @@
 const commonHiddenFields = [
   "type",
   "application_method.type",
+]
+
+const amountOfOrderHiddenFields = [
+  ...commonHiddenFields,
   "application_method.allocation",
 ]
 
-const amountOfOrderHiddenFields = [...commonHiddenFields]
-const amountOfProductHiddenFields = [...commonHiddenFields]
+const amountOfProductHiddenFields = [
+  ...commonHiddenFields,
+  "application_method.allocation.across",
+]
 
 const percentageOfOrderHiddenFields = [
   ...commonHiddenFields,
+  "application_method.allocation",
   "is_tax_inclusive",
 ]
 const percentageOfProductHiddenFields = [
   ...commonHiddenFields,
+  "application_method.allocation.across",
   "is_tax_inclusive",
 ]
 
 const buyGetHiddenFields = [
   ...commonHiddenFields,
   "application_method.value",
+  "application_method.allocation",
   "is_tax_inclusive",
 ]
 
 const freeShippingHiddenFields = [
   ...commonHiddenFields,
   "application_method.value",
+  "application_method.allocation",
   "is_tax_inclusive",
 ]
 
diff --git a/packages/admin/dashboard/src/routes/promotions/promotion-edit-details/components/edit-promotion-form/edit-promotion-details-form.tsx b/packages/admin/dashboard/src/routes/promotions/promotion-edit-details/components/edit-promotion-form/edit-promotion-details-form.tsx
index 8e207c37ad..5d77c1f72a 100644
--- a/packages/admin/dashboard/src/routes/promotions/promotion-edit-details/components/edit-promotion-form/edit-promotion-details-form.tsx
+++ b/packages/admin/dashboard/src/routes/promotions/promotion-edit-details/components/edit-promotion-form/edit-promotion-details-form.tsx
@@ -29,8 +29,9 @@ const EditPromotionSchema = zod.object({
   status: zod.enum(["active", "inactive", "draft"]),
   value_type: zod.enum(["fixed", "percentage"]),
   value: zod.number().min(0).or(zod.string().min(1)),
-  allocation: zod.enum(["each", "across"]),
+  allocation: zod.enum(["each", "across", "once"]),
   target_type: zod.enum(["order", "shipping_methods", "items"]),
+  max_quantity: zod.number().min(1).optional().nullable(),
 })
 
 export const EditPromotionDetailsForm = ({
@@ -49,6 +50,7 @@ export const EditPromotionDetailsForm = ({
       allocation: promotion.application_method!.allocation,
       value_type: promotion.application_method!.type,
       target_type: promotion.application_method!.target_type,
+      max_quantity: promotion.application_method!.max_quantity,
     },
     resolver: zodResolver(EditPromotionSchema),
   })
@@ -58,7 +60,13 @@ export const EditPromotionDetailsForm = ({
     name: "value_type",
   })
 
+  const watchAllocation = useWatch({
+    control: form.control,
+    name: "allocation",
+  })
+
   const isFixedValueType = watchValueType === "fixed"
+  const originalAllocation = promotion.application_method!.allocation
 
   const { mutateAsync, isPending } = useUpdatePromotion(promotion.id)
 
@@ -80,6 +88,7 @@ export const EditPromotionDetailsForm = ({
           value: parseFloat(data.value),
           type: data.value_type as any,
           allocation: data.allocation as any,
+          max_quantity: data.max_quantity,
         },
       },
       {
@@ -335,7 +344,9 @@ export const EditPromotionDetailsForm = ({
                   render={({ field }) => {
                     return (
                       <Form.Item>
-                        <Form.Label>
+                        <Form.Label
+                          tooltip={t("promotions.fields.allocationTooltip")}
+                        >
                           {t("promotions.fields.allocation")}
                         </Form.Label>
                         <Form.Control>
@@ -351,6 +362,7 @@ export const EditPromotionDetailsForm = ({
                               description={t(
                                 "promotions.form.allocation.each.description"
                               )}
+                              disabled={originalAllocation === "across"}
                             />
 
                             <RadioGroup.ChoiceBox
@@ -361,6 +373,19 @@ export const EditPromotionDetailsForm = ({
                               description={t(
                                 "promotions.form.allocation.across.description"
                               )}
+                              disabled={
+                                originalAllocation === "each" ||
+                                originalAllocation === "once"
+                              }
+                            />
+
+                            <RadioGroup.ChoiceBox
+                              value={"once"}
+                              label={t("promotions.form.allocation.once.title")}
+                              description={t(
+                                "promotions.form.allocation.once.description"
+                              )}
+                              disabled={originalAllocation === "across"}
                             />
                           </RadioGroup>
                         </Form.Control>
@@ -369,6 +394,43 @@ export const EditPromotionDetailsForm = ({
                     )
                   }}
                 />
+                {(watchAllocation === "each" || watchAllocation === "once") && (
+                  <Form.Field
+                    control={form.control}
+                    name="max_quantity"
+                    render={({ field }) => {
+                      return (
+                        <Form.Item>
+                          <Form.Label>
+                            {t("promotions.form.max_quantity.title")}
+                          </Form.Label>
+                          <Form.Control>
+                            <Input
+                              {...form.register("max_quantity", {
+                                valueAsNumber: true,
+                              })}
+                              type="number"
+                              min={1}
+                              placeholder="3"
+                            />
+                          </Form.Control>
+                          <Text
+                            size="small"
+                            leading="compact"
+                            className="text-ui-fg-subtle"
+                          >
+                            <Trans
+                              t={t}
+                              i18nKey="promotions.form.max_quantity.description"
+                              components={[<br key="break" />]}
+                            />
+                          </Text>
+                          <Form.ErrorMessage />
+                        </Form.Item>
+                      )
+                    }}
+                  />
+                )}
               </>
             )}
           </div>
diff --git a/packages/core/utils/src/promotion/index.ts b/packages/core/utils/src/promotion/index.ts
index 362feef3d9..14039a51c4 100644
--- a/packages/core/utils/src/promotion/index.ts
+++ b/packages/core/utils/src/promotion/index.ts
@@ -23,6 +23,7 @@ export enum ApplicationMethodTargetType {
 export enum ApplicationMethodAllocation {
   EACH = "each",
   ACROSS = "across",
+  ONCE = "once",
 }
 
 export enum PromotionRuleOperator {
diff --git a/packages/modules/promotion/integration-tests/__tests__/services/promotion-module/compute-actions.spec.ts b/packages/modules/promotion/integration-tests/__tests__/services/promotion-module/compute-actions.spec.ts
index 570356ddc9..d82ce87551 100644
--- a/packages/modules/promotion/integration-tests/__tests__/services/promotion-module/compute-actions.spec.ts
+++ b/packages/modules/promotion/integration-tests/__tests__/services/promotion-module/compute-actions.spec.ts
@@ -7390,6 +7390,282 @@ moduleIntegrationTestRunner({
           })
         })
       })
+
+      describe("when promotion allocation is once", () => {
+        describe("when application type is fixed", () => {
+          it("should apply promotion to lowest priced items first and respect max_quantity limit across all items", async () => {
+            await createDefaultPromotion(service, {
+              application_method: {
+                type: "fixed",
+                target_type: "items",
+                allocation: "once",
+                value: 10,
+                max_quantity: 2,
+              } as any,
+            })
+
+            const result = await service.computeActions(["PROMOTION_TEST"], {
+              currency_code: "usd",
+              items: [
+                {
+                  id: "item_expensive",
+                  quantity: 3,
+                  subtotal: 300, // $100/unit
+                },
+                {
+                  id: "item_cheap",
+                  quantity: 5,
+                  subtotal: 250, // $50/unit - lowest price, should get discount first
+                },
+                {
+                  id: "item_medium",
+                  quantity: 2,
+                  subtotal: 150, // $75/unit
+                },
+              ],
+            })
+
+            expect(JSON.parse(JSON.stringify(result))).toEqual([
+              {
+                action: "addItemAdjustment",
+                item_id: "item_cheap",
+                amount: 20, // 2 units * $10
+                code: "PROMOTION_TEST",
+                is_tax_inclusive: false,
+              },
+            ])
+          })
+
+          it("should distribute across items when max_quantity exceeds first item quantity", async () => {
+            await createDefaultPromotion(service, {
+              application_method: {
+                type: "fixed",
+                target_type: "items",
+                allocation: "once",
+                value: 5,
+                max_quantity: 4,
+              } as any,
+            })
+
+            const result = await service.computeActions(["PROMOTION_TEST"], {
+              currency_code: "usd",
+              items: [
+                {
+                  id: "item_a",
+                  quantity: 2,
+                  subtotal: 100, // $50/unit
+                },
+                {
+                  id: "item_b",
+                  quantity: 3,
+                  subtotal: 180, // $60/unit
+                },
+              ],
+            })
+
+            expect(JSON.parse(JSON.stringify(result))).toEqual([
+              {
+                action: "addItemAdjustment",
+                item_id: "item_a",
+                amount: 10, // 2 units * $5
+                code: "PROMOTION_TEST",
+                is_tax_inclusive: false,
+              },
+              {
+                action: "addItemAdjustment",
+                item_id: "item_b",
+                amount: 10, // 2 units * $5 (remaining quota)
+                code: "PROMOTION_TEST",
+                is_tax_inclusive: false,
+              },
+            ])
+          })
+
+          it("should apply to only one item when max_quantity is 1", async () => {
+            await createDefaultPromotion(service, {
+              application_method: {
+                type: "fixed",
+                target_type: "items",
+                allocation: "once",
+                value: 10,
+                max_quantity: 1,
+              } as any,
+            })
+
+            const result = await service.computeActions(["PROMOTION_TEST"], {
+              currency_code: "usd",
+              items: [
+                {
+                  id: "item_1",
+                  quantity: 3,
+                  subtotal: 90, // $30/unit - lowest
+                },
+                {
+                  id: "item_2",
+                  quantity: 2,
+                  subtotal: 100, // $50/unit
+                },
+              ],
+            })
+
+            expect(JSON.parse(JSON.stringify(result))).toEqual([
+              {
+                action: "addItemAdjustment",
+                item_id: "item_1",
+                amount: 10, // 1 unit * $10
+                code: "PROMOTION_TEST",
+                is_tax_inclusive: false,
+              },
+            ])
+          })
+        })
+
+        describe("when application type is percentage", () => {
+          it("should apply percentage discount to lowest priced items first", async () => {
+            await createDefaultPromotion(service, {
+              application_method: {
+                type: "percentage",
+                target_type: "items",
+                allocation: "once",
+                value: 20,
+                max_quantity: 3,
+              } as any,
+            })
+
+            const result = await service.computeActions(["PROMOTION_TEST"], {
+              currency_code: "usd",
+              items: [
+                {
+                  id: "item_expensive",
+                  quantity: 5,
+                  subtotal: 500, // $100/unit
+                },
+                {
+                  id: "item_cheap",
+                  quantity: 4,
+                  subtotal: 200, // $50/unit - lowest price
+                },
+              ],
+            })
+
+            expect(JSON.parse(JSON.stringify(result))).toEqual([
+              {
+                action: "addItemAdjustment",
+                item_id: "item_cheap",
+                amount: 30, // 3 units * $50 * 20% = $30
+                code: "PROMOTION_TEST",
+                is_tax_inclusive: false,
+              },
+            ])
+          })
+
+          it("should distribute percentage discount across multiple items when max_quantity exceeds first item quantity", async () => {
+            await createDefaultPromotion(service, {
+              application_method: {
+                type: "percentage",
+                target_type: "items",
+                allocation: "once",
+                value: 25,
+                max_quantity: 5,
+              } as any,
+            })
+
+            const result = await service.computeActions(["PROMOTION_TEST"], {
+              currency_code: "usd",
+              items: [
+                {
+                  id: "item_a",
+                  quantity: 2,
+                  subtotal: 100, // $50/unit - cheapest
+                },
+                {
+                  id: "item_b",
+                  quantity: 3,
+                  subtotal: 180, // $60/unit - second cheapest
+                },
+                {
+                  id: "item_c",
+                  quantity: 4,
+                  subtotal: 400, // $100/unit - most expensive
+                },
+              ],
+            })
+
+            expect(JSON.parse(JSON.stringify(result))).toEqual([
+              {
+                action: "addItemAdjustment",
+                item_id: "item_a",
+                amount: 25, // 2 units * $50 * 25% = $25
+                code: "PROMOTION_TEST",
+                is_tax_inclusive: false,
+              },
+              {
+                action: "addItemAdjustment",
+                item_id: "item_b",
+                amount: 45, // 3 units * $60 * 25% = $45 (remaining quota)
+                code: "PROMOTION_TEST",
+                is_tax_inclusive: false,
+              },
+            ])
+          })
+        })
+
+        describe("with target rules", () => {
+          it("should only apply to items matching target rules and respect once allocation", async () => {
+            await createDefaultPromotion(service, {
+              application_method: {
+                type: "fixed",
+                target_type: "items",
+                allocation: "once",
+                value: 15,
+                max_quantity: 2,
+                target_rules: [
+                  {
+                    attribute: "items.product_category.id",
+                    operator: "eq",
+                    values: ["catg_electronics"],
+                  },
+                ],
+              } as any,
+            })
+
+            const result = await service.computeActions(["PROMOTION_TEST"], {
+              currency_code: "usd",
+              items: [
+                {
+                  id: "item_phone",
+                  quantity: 3,
+                  subtotal: 3000,
+                  product_category: { id: "catg_electronics" },
+                },
+                {
+                  id: "item_book",
+                  quantity: 5,
+                  subtotal: 50, // Cheaper but doesn't match rules
+                  product_category: { id: "catg_books" },
+                },
+                {
+                  id: "item_tablet",
+                  quantity: 2,
+                  subtotal: 1000,
+                  product_category: { id: "catg_electronics" },
+                },
+              ],
+            })
+
+            // Should only consider electronics items, and apply to cheapest one (tablet at $500/unit vs phone at $1000/unit)
+            expect(JSON.parse(JSON.stringify(result))).toEqual([
+              {
+                action: "addItemAdjustment",
+                item_id: "item_tablet",
+                amount: 30, // 2 units * $15
+                code: "PROMOTION_TEST",
+                is_tax_inclusive: false,
+              },
+            ])
+          })
+        })
+      })
     })
   },
 })
diff --git a/packages/modules/promotion/integration-tests/__tests__/services/promotion-module/promotion.spec.ts b/packages/modules/promotion/integration-tests/__tests__/services/promotion-module/promotion.spec.ts
index c8ad3cc9e3..6c51d406dc 100644
--- a/packages/modules/promotion/integration-tests/__tests__/services/promotion-module/promotion.spec.ts
+++ b/packages/modules/promotion/integration-tests/__tests__/services/promotion-module/promotion.spec.ts
@@ -226,7 +226,7 @@ moduleIntegrationTestRunner({
           }).catch((e) => e)
 
           expect(error.message).toContain(
-            "application_method.allocation should be either 'across OR each' when application_method.target_type is either 'shipping_methods OR items'"
+            "application_method.allocation should be either 'across OR each OR once' when application_method.target_type is either 'shipping_methods OR items'"
           )
         })
 
@@ -239,7 +239,7 @@ moduleIntegrationTestRunner({
           }).catch((e) => e)
 
           expect(error.message).toContain(
-            "application_method.max_quantity is required when application_method.allocation is 'each'"
+            "application_method.max_quantity is required when application_method.allocation is 'each OR once'"
           )
         })
 
diff --git a/packages/modules/promotion/src/migrations/Migration20251006000000.ts b/packages/modules/promotion/src/migrations/Migration20251006000000.ts
new file mode 100644
index 0000000000..2123f53adc
--- /dev/null
+++ b/packages/modules/promotion/src/migrations/Migration20251006000000.ts
@@ -0,0 +1,15 @@
+import { Migration } from '@mikro-orm/migrations';
+
+export class Migration20251006000000 extends Migration {
+
+  override async up(): Promise<void> {
+    this.addSql(`ALTER TABLE "promotion_application_method" DROP CONSTRAINT IF EXISTS "promotion_application_method_allocation_check";`);
+    this.addSql(`ALTER TABLE "promotion_application_method" ADD CONSTRAINT "promotion_application_method_allocation_check" CHECK ("allocation" IN ('each', 'across', 'once'));`);
+  }
+
+  override async down(): Promise<void> {
+    this.addSql(`ALTER TABLE "promotion_application_method" DROP CONSTRAINT IF EXISTS "promotion_application_method_allocation_check";`);
+    this.addSql(`ALTER TABLE "promotion_application_method" ADD CONSTRAINT "promotion_application_method_allocation_check" CHECK ("allocation" IN ('each', 'across'));`);
+  }
+
+}
diff --git a/packages/modules/promotion/src/schema/index.ts b/packages/modules/promotion/src/schema/index.ts
index ecaa60b4de..3d26104783 100644
--- a/packages/modules/promotion/src/schema/index.ts
+++ b/packages/modules/promotion/src/schema/index.ts
@@ -33,6 +33,7 @@ enum ApplicationMethodTargetTypeValues {
 enum ApplicationMethodAllocationValues {
   each
   across
+  once
 }
 
 type Promotion {
diff --git a/packages/modules/promotion/src/utils/compute-actions/line-items.ts b/packages/modules/promotion/src/utils/compute-actions/line-items.ts
index ca43dccfbb..69736577c3 100644
--- a/packages/modules/promotion/src/utils/compute-actions/line-items.ts
+++ b/packages/modules/promotion/src/utils/compute-actions/line-items.ts
@@ -7,15 +7,16 @@ import {
 import {
   ApplicationMethodAllocation,
   ApplicationMethodTargetType,
-  ApplicationMethodTargetType as TargetType,
   calculateAdjustmentAmountFromPromotion,
   ComputedActions,
   MathBN,
   MedusaError,
+  ApplicationMethodTargetType as TargetType,
 } from "@medusajs/framework/utils"
-import { areRulesValidForContext } from "../validations"
-import { computeActionForBudgetExceeded } from "./usage"
 import { Promotion } from "@models"
+import { areRulesValidForContext } from "../validations"
+import { sortLineItemByPriceAscending } from "./sort-by-price"
+import { computeActionForBudgetExceeded } from "./usage"
 
 function validateContext(
   contextKey: string,
@@ -66,16 +67,24 @@ function applyPromotionToItems(
 
   const computedActions: PromotionTypes.ComputeActions[] = []
 
-  const applicableItems = getValidItemsForPromotion(items, promotion)
+  let applicableItems = getValidItemsForPromotion(
+    items,
+    promotion
+  ) as PromotionTypes.ComputeActionItemLine[]
 
   if (!applicableItems.length) {
     return computedActions
   }
 
+  if (allocation === ApplicationMethodAllocation.ONCE) {
+    applicableItems = applicableItems.sort(sortLineItemByPriceAscending)
+  }
+
   const isTargetLineItems = target === TargetType.ITEMS
   const isTargetOrder = target === TargetType.ORDER
   const promotionValue = applicationMethod?.value ?? 0
   const maxQuantity = applicationMethod?.max_quantity!
+  let remainingQuota = maxQuantity ?? 0
 
   let lineItemsAmount = MathBN.convert(0)
   if (allocation === ApplicationMethodAllocation.ACROSS) {
@@ -97,6 +106,12 @@ function applyPromotionToItems(
   }
 
   for (const item of applicableItems) {
+    if (
+      allocation === ApplicationMethodAllocation.ONCE &&
+      remainingQuota <= 0
+    ) {
+      break
+    }
     if (
       MathBN.lte(
         promotion.is_tax_inclusive ? item.original_total : item.subtotal,
@@ -108,15 +123,26 @@ function applyPromotionToItems(
 
     const appliedPromoValue = appliedPromotionsMap.get(item.id) ?? 0
 
+    const effectiveMaxQuantity =
+      allocation === ApplicationMethodAllocation.ONCE
+        ? Math.min(remainingQuota ?? 0, Number(item.quantity))
+        : maxQuantity
+
+    // If the allocation is once, we rely on the existing logic for each allocation, as the calculate is the same: apply the promotion value to the line item
+    const effectiveAllocation =
+      allocation === ApplicationMethodAllocation.ONCE
+        ? ApplicationMethodAllocation.EACH
+        : allocation
+
     const amount = calculateAdjustmentAmountFromPromotion(
       item,
       {
         value: promotionValue,
         applied_value: appliedPromoValue,
         is_tax_inclusive: promotion.is_tax_inclusive,
-        max_quantity: maxQuantity,
+        max_quantity: effectiveMaxQuantity,
         type: applicationMethod?.type!,
-        allocation,
+        allocation: effectiveAllocation,
       },
       lineItemsAmount
     )
@@ -137,6 +163,15 @@ function applyPromotionToItems(
 
     appliedPromotionsMap.set(item.id, MathBN.add(appliedPromoValue, amount))
 
+    if (allocation === ApplicationMethodAllocation.ONCE) {
+      // We already know exactly how many units we applied via effectiveMaxQuantity
+      const quantityApplied = Math.min(
+        effectiveMaxQuantity,
+        Number(item.quantity)
+      )
+      remainingQuota -= quantityApplied
+    }
+
     if (isTargetLineItems || isTargetOrder) {
       computedActions.push({
         action: ComputedActions.ADD_ITEM_ADJUSTMENT,
diff --git a/packages/modules/promotion/src/utils/compute-actions/shipping-methods.ts b/packages/modules/promotion/src/utils/compute-actions/shipping-methods.ts
index 999faa341b..cd5579bba6 100644
--- a/packages/modules/promotion/src/utils/compute-actions/shipping-methods.ts
+++ b/packages/modules/promotion/src/utils/compute-actions/shipping-methods.ts
@@ -11,16 +11,17 @@ import {
   MathBN,
   MedusaError,
 } from "@medusajs/framework/utils"
-import { areRulesValidForContext } from "../validations"
-import { computeActionForBudgetExceeded } from "./usage"
 import { Promotion } from "@models"
+import { areRulesValidForContext } from "../validations"
+import { sortShippingLineByPriceAscending } from "./sort-by-price"
+import { computeActionForBudgetExceeded } from "./usage"
 
 export function getComputedActionsForShippingMethods(
   promotion: PromotionTypes.PromotionDTO | InferEntityType<typeof Promotion>,
   shippingMethodApplicationContext: PromotionTypes.ComputeActionContext[ApplicationMethodTargetType.SHIPPING_METHODS],
   methodIdPromoValueMap: Map<string, number>
 ): PromotionTypes.ComputeActions[] {
-  const applicableShippingItems: PromotionTypes.ComputeActionContext[ApplicationMethodTargetType.SHIPPING_METHODS] =
+  let applicableShippingItems: PromotionTypes.ComputeActionContext[ApplicationMethodTargetType.SHIPPING_METHODS] =
     []
 
   if (!shippingMethodApplicationContext) {
@@ -44,6 +45,13 @@ export function getComputedActionsForShippingMethods(
     applicableShippingItems.push(shippingMethodContext)
   }
 
+  const allocation = promotion.application_method?.allocation!
+  if (allocation === ApplicationMethodAllocation.ONCE) {
+    applicableShippingItems = applicableShippingItems.sort(
+      sortShippingLineByPriceAscending
+    )
+  }
+
   return applyPromotionToShippingMethods(
     promotion,
     applicableShippingItems,
@@ -59,9 +67,20 @@ export function applyPromotionToShippingMethods(
   const { application_method: applicationMethod } = promotion
   const allocation = applicationMethod?.allocation!
   const computedActions: PromotionTypes.ComputeActions[] = []
+  const maxQuantity = applicationMethod?.max_quantity ?? 0
+  let remainingQuota = maxQuantity
 
-  if (allocation === ApplicationMethodAllocation.EACH) {
+  if (
+    allocation === ApplicationMethodAllocation.EACH ||
+    allocation === ApplicationMethodAllocation.ONCE
+  ) {
     for (const method of shippingMethods!) {
+      if (
+        allocation === ApplicationMethodAllocation.ONCE &&
+        remainingQuota <= 0
+      ) {
+        break
+      }
       if (!method.subtotal) {
         continue
       }
@@ -99,6 +118,10 @@ export function applyPromotionToShippingMethods(
         MathBN.add(appliedPromoValue, amount)
       )
 
+      if (allocation === ApplicationMethodAllocation.ONCE) {
+        remainingQuota -= 1
+      }
+
       computedActions.push({
         action: ComputedActions.ADD_SHIPPING_METHOD_ADJUSTMENT,
         shipping_method_id: method.id,
diff --git a/packages/modules/promotion/src/utils/compute-actions/sort-by-price.ts b/packages/modules/promotion/src/utils/compute-actions/sort-by-price.ts
new file mode 100644
index 0000000000..e996141caa
--- /dev/null
+++ b/packages/modules/promotion/src/utils/compute-actions/sort-by-price.ts
@@ -0,0 +1,23 @@
+import { MathBN } from "@medusajs/framework/utils"
+import {
+    ComputeActionItemLine,
+    ComputeActionShippingLine,
+} from "@medusajs/types"
+
+export function sortLineItemByPriceAscending(
+  a: ComputeActionItemLine,
+  b: ComputeActionItemLine
+) {
+  const priceA = MathBN.div(a.subtotal, a.quantity)
+  const priceB = MathBN.div(b.subtotal, b.quantity)
+  return MathBN.lt(priceA, priceB) ? -1 : 1
+}
+
+export function sortShippingLineByPriceAscending(
+  a: ComputeActionShippingLine,
+  b: ComputeActionShippingLine
+) {
+  const priceA = a.subtotal ?? 0
+  const priceB = b.subtotal ?? 0
+  return MathBN.lt(priceA, priceB) ? -1 : 1
+}
diff --git a/packages/modules/promotion/src/utils/validations/application-method.ts b/packages/modules/promotion/src/utils/validations/application-method.ts
index c8dfb04911..3f71fd7376 100644
--- a/packages/modules/promotion/src/utils/validations/application-method.ts
+++ b/packages/modules/promotion/src/utils/validations/application-method.ts
@@ -21,10 +21,12 @@ export const allowedAllocationTargetTypes: string[] = [
 export const allowedAllocationTypes: string[] = [
   ApplicationMethodAllocation.ACROSS,
   ApplicationMethodAllocation.EACH,
+  ApplicationMethodAllocation.ONCE,
 ]
 
 export const allowedAllocationForQuantity: string[] = [
   ApplicationMethodAllocation.EACH,
+  ApplicationMethodAllocation.ONCE,
 ]
 
 export function validateApplicationMethodAttributes(
@@ -158,4 +160,14 @@ export function validateApplicationMethodAttributes(
       )}'`
     )
   }
+
+  if (
+    allocation === ApplicationMethodAllocation.ONCE &&
+    targetType === ApplicationMethodTargetType.ORDER
+  ) {
+    throw new MedusaError(
+      MedusaError.Types.INVALID_DATA,
+      `application_method.allocation 'once' is not compatible with target_type 'order'`
+    )
+  }
 }