diff --git a/src/compute/src/observer/observer_manager.rs b/src/compute/src/observer/observer_manager.rs
index 8b707df73c71f..19c273f9bd4f2 100644
--- a/src/compute/src/observer/observer_manager.rs
+++ b/src/compute/src/observer/observer_manager.rs
@@ -61,7 +61,7 @@ impl ObserverState for ComputeObserverNode {
             unreachable!();
         };
         LocalSecretManager::global().init_secrets(snapshot.secrets);
-        LicenseManager::get().update_cpu_core_count(snapshot.cluster_cpu_core_count as _);
+        LicenseManager::get().update_cpu_core_count(snapshot.compute_node_total_cpu_count as _);
     }
 }
 
diff --git a/src/tests/simulation/tests/integration_tests/license_cpu_limit.rs b/src/tests/simulation/tests/integration_tests/license_cpu_limit.rs
new file mode 100644
index 0000000000000..ee49152cf9dba
--- /dev/null
+++ b/src/tests/simulation/tests/integration_tests/license_cpu_limit.rs
@@ -0,0 +1,67 @@
+// Copyright 2025 RisingWave Labs
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+use anyhow::Result;
+use risingwave_common::error::AsReport;
+use risingwave_simulation::cluster::{Cluster, Configuration};
+use risingwave_simulation::utils::AssertResult;
+
+const KEY_20: &str = "eyJhbGciOiJSUzUxMiIsInR5cCI6IkpXVCJ9.eyJzdWIiOiJwYWlkLXRlc3QtMzIiLCJpc3MiOiJ0ZXN0LnJpc2luZ3dhdmUuY29tIiwidGllciI6InBhaWQiLCJleHAiOjIxNTA0OTU5OTksImlhdCI6MTczNzYxNTI2NywiY3B1X2NvcmVfbGltaXQiOjIwfQ.V8546BDZydv1aNk8IlVaSVlCriDtMC_75nq8CIaRPKlrltcwRJYKfK-Ru3WbKj-MDFebmW_3CqA4jR77BBtmmmtj-lPHa4qrdgrMItxm9RC_qoSU1YbI8Kb_ClYkrnFug5MAbK3wGlO8CrrjqOOt-Q5ggKChtl0uFj4zgI-S80d8Hse5LYSKHv8cU-ECKvEFe451kXE9x7nN_f8MqTSOqBwfY5o17gTD8oU3XH2k1mpesdci18kDmJPK5DeLPDYht_nRt7WGbVQvx7iiol1nzj5OBjdH_eVbX7pfk9M-JNwqZKaqfOmBbwV2F-Sf7-tK33O-XqSfXjnLAzflfjkoLQ";
+const KEY_100: &str = "eyJhbGciOiJSUzUxMiIsInR5cCI6IkpXVCJ9.eyJzdWIiOiJwYWlkLXRlc3QtMzIiLCJpc3MiOiJ0ZXN0LnJpc2luZ3dhdmUuY29tIiwidGllciI6InBhaWQiLCJleHAiOjIxNTA0OTU5OTksImlhdCI6MTczNzYyMzc2MywiY3B1X2NvcmVfbGltaXQiOjEwMH0.ZGQjZa6t3va5MHMHKvgMgOXVLymEvvy1Yvd6teRUgCIF7en5BYaKXWuXwwtWLpLxr7LXyIQ3LQeDXag4k_fQOUTwV4oYTLTFVF8GcJ8JvGdTjBfjnM_2helLEhjZFgXSnhEy-xTOj5yM0BbqKCwanYlSODXQtp5owalt7a0JDwpId9_O8Pl24CjImZzPZLevJ_wSu4wv2IhVjK5QhkfBKBeaOxCeJaKfMVT5AzDQ-WwtJwahr1Dk0H2BxD6Hmp4KKBFRlVwGxq9-8uKBpbrmlClSuxPreBJ_xhP3SHtBFbVfcr38uaT_Bdh-gPRPgi-59tKOWPCY2FytO-Ls1U2l7w";
+
+#[tokio::test]
+async fn test_license_cpu_limit() -> Result<()> {
+    let mut cluster = Cluster::start(Configuration {
+        compute_nodes: 3,
+        compute_node_cores: 8,
+        ..Default::default()
+    })
+    .await?;
+
+    let mut session = cluster.start_session();
+
+    macro_rules! set_license_key {
+        ($key:expr) => {
+            session
+                .run(format!("ALTER SYSTEM SET license_key TO '{}';", $key))
+                .await?;
+        };
+    }
+
+    macro_rules! test_paid_tier {
+        () => {
+            session.run("SELECT rw_test_paid_tier();").await
+        };
+    }
+
+    set_license_key!("");
+    let error = test_paid_tier!().unwrap_err().to_report_string();
+    assert!(error.contains("feature TestPaid is only available for tier Paid and above, while the current tier is Free"), "{error}");
+
+    set_license_key!(KEY_100);
+    test_paid_tier!().unwrap().assert_result_eq("true");
+
+    set_license_key!(KEY_20);
+    let error = test_paid_tier!().unwrap_err().to_report_string();
+    assert!(
+        error.contains("the license key is currently not effective"),
+        "{error}"
+    );
+
+    cluster.simple_kill_nodes(["compute-2"]).await;
+    tokio::time::sleep(std::time::Duration::from_secs(100)).await;
+    test_paid_tier!().unwrap().assert_result_eq("true");
+
+    Ok(())
+}
diff --git a/src/tests/simulation/tests/integration_tests/main.rs b/src/tests/simulation/tests/integration_tests/main.rs
index ad8e854a30e5f..1bb58688192c8 100644
--- a/src/tests/simulation/tests/integration_tests/main.rs
+++ b/src/tests/simulation/tests/integration_tests/main.rs
@@ -22,12 +22,12 @@
 
 mod backfill_tests;
 mod batch;
+mod compaction;
+mod default_parallelism;
+mod license_cpu_limit;
 mod recovery;
 mod scale;
 mod sink;
 mod storage;
 mod throttle;
-
-mod compaction;
-mod default_parallelism;
 mod utils;