diff --git a/browser_use/agent/service.py b/browser_use/agent/service.py
index ba1361921..5ee89c9fb 100644
--- a/browser_use/agent/service.py
+++ b/browser_use/agent/service.py
@@ -760,9 +760,6 @@ class Agent(Generic[Context, AgentStructuredOutput]):
 		# Check again for paused/stopped state after getting model output
 		await self._raise_if_stopped_or_paused()
 
-		# Increment step counter at the end of each step
-		self.state.n_steps += 1
-
 		# Handle callbacks and conversation saving
 		await self._handle_post_llm_processing(browser_state_summary, input_messages)
 
@@ -879,6 +876,9 @@ class Agent(Generic[Context, AgentStructuredOutput]):
 			)
 			self.eventbus.dispatch(step_event)
 
+		# Increment step counter after step is fully completed
+		self.state.n_steps += 1
+
 	async def _handle_final_step(self, step_info: AgentStepInfo | None = None) -> None:
 		"""Handle special processing for the last step"""
 		if step_info and step_info.is_last_step():