diff --git a/.changeset/tangy-sides-crash.md b/.changeset/tangy-sides-crash.md
new file mode 100644
index 00000000000..318a91808ce
--- /dev/null
+++ b/.changeset/tangy-sides-crash.md
@@ -0,0 +1,5 @@
+---
+'@clerk/nextjs': patch
+---
+
+Updates middleware location check to account for proxy.ts in next 16+ applications.
diff --git a/integration/tests/middleware-placement.test.ts b/integration/tests/middleware-placement.test.ts
index 42bc1b7227f..c756d83374a 100644
--- a/integration/tests/middleware-placement.test.ts
+++ b/integration/tests/middleware-placement.test.ts
@@ -71,10 +71,16 @@ test.describe('next start - missing middleware @quickstart', () => {
   });
 
   test('Display error for missing middleware', async ({ page, context }) => {
+    const { version } = await detectNext(app);
+    const major = parseSemverMajor(version) ?? 0;
     const u = createTestUtils({ app, page, context });
     await u.page.goToAppHome();
 
-    expect(app.serveOutput).toContain('Your Middleware exists at ./src/middleware.(ts|js)');
+    const expectedMessage =
+      major >= 16
+        ? 'Your Middleware exists at ./src/middleware.(ts|js) or proxy.(ts|js)'
+        : 'Your Middleware exists at ./src/middleware.(ts|js)';
+    expect(app.serveOutput).toContain(expectedMessage);
   });
 });
 
@@ -105,10 +111,16 @@ test.describe('next start - invalid middleware at root on src/ @quickstart', ()
     const u = createTestUtils({ app, page, context });
     await u.page.goToAppHome();
 
-    expect(app.serveOutput).not.toContain('Your Middleware exists at ./src/middleware.(ts|js)');
-    expect(app.serveOutput).toContain(
-      'Clerk: clerkMiddleware() was not run, your middleware file might be misplaced. Move your middleware file to ./src/middleware.ts. Currently located at ./middleware.ts',
-    );
+    const expectedMessage =
+      major >= 16
+        ? 'Your Middleware exists at ./src/middleware.(ts|js) or proxy.(ts|js)'
+        : 'Your Middleware exists at ./src/middleware.(ts|js)';
+    expect(app.serveOutput).not.toContain(expectedMessage);
+    const expectedError =
+      major >= 16
+        ? 'Clerk: clerkMiddleware() was not run, your middleware or proxy file might be misplaced. Move your middleware or proxy file to ./src/middleware.ts. Currently located at ./middleware.ts'
+        : 'Clerk: clerkMiddleware() was not run, your middleware file might be misplaced. Move your middleware file to ./src/middleware.ts. Currently located at ./middleware.ts';
+    expect(app.serveOutput).toContain(expectedError);
   });
 
   test('Does not display misplaced middleware error on Next 16+', async ({ page, context }) => {
@@ -142,11 +154,19 @@ test.describe('next start - invalid middleware inside app on src/ @quickstart',
     page,
     context,
   }) => {
+    const { version } = await detectNext(app);
+    const major = parseSemverMajor(version) ?? 0;
     const u = createTestUtils({ app, page, context });
     await u.page.goToAppHome();
-    expect(app.serveOutput).not.toContain('Your Middleware exists at ./src/middleware.(ts|js)');
-    expect(app.serveOutput).toContain(
-      'Clerk: clerkMiddleware() was not run, your middleware file might be misplaced. Move your middleware file to ./src/middleware.ts. Currently located at ./src/app/middleware.ts',
-    );
+    const expectedMessage =
+      major >= 16
+        ? 'Your Middleware exists at ./src/middleware.(ts|js) or proxy.(ts|js)'
+        : 'Your Middleware exists at ./src/middleware.(ts|js)';
+    expect(app.serveOutput).not.toContain(expectedMessage);
+    const expectedError =
+      major >= 16
+        ? 'Clerk: clerkMiddleware() was not run, your middleware or proxy file might be misplaced. Move your middleware or proxy file to ./src/middleware.ts. Currently located at ./src/app/middleware.ts'
+        : 'Clerk: clerkMiddleware() was not run, your middleware file might be misplaced. Move your middleware file to ./src/middleware.ts. Currently located at ./src/app/middleware.ts';
+    expect(app.serveOutput).toContain(expectedError);
   });
 });
diff --git a/packages/nextjs/src/app-router/server/auth.ts b/packages/nextjs/src/app-router/server/auth.ts
index 3a4f0efd544..2a332e44162 100644
--- a/packages/nextjs/src/app-router/server/auth.ts
+++ b/packages/nextjs/src/app-router/server/auth.ts
@@ -11,7 +11,7 @@ import { unauthorized } from '../../server/nextErrors';
 import type { AuthProtect } from '../../server/protect';
 import { createProtect } from '../../server/protect';
 import { decryptClerkRequestData } from '../../server/utils';
-import { isNextWithUnstableServerActions } from '../../utils/sdk-versions';
+import { isNext16OrHigher, isNextWithUnstableServerActions } from '../../utils/sdk-versions';
 import { buildRequestLike } from './utils';
 
 /**
@@ -81,7 +81,8 @@ export const auth: AuthFn = (async (options?: AuthOptions) => {
 
     try {
       const isSrcAppDir = await import('../../server/fs/middleware-location.js').then(m => m.hasSrcAppDir());
-      return [`Your Middleware exists at ./${isSrcAppDir ? 'src/' : ''}middleware.(ts|js)`];
+      const fileName = isNext16OrHigher ? 'middleware.(ts|js) or proxy.(ts|js)' : 'middleware.(ts|js)';
+      return [`Your Middleware exists at ./${isSrcAppDir ? 'src/' : ''}${fileName}`];
     } catch {
       return [];
     }
diff --git a/packages/nextjs/src/server/fs/middleware-location.ts b/packages/nextjs/src/server/fs/middleware-location.ts
index 3586d4a1ae2..67a7393e20d 100644
--- a/packages/nextjs/src/server/fs/middleware-location.ts
+++ b/packages/nextjs/src/server/fs/middleware-location.ts
@@ -1,3 +1,4 @@
+import { isNext16OrHigher } from '../../utils/sdk-versions';
 import { nodeCwdOrThrow, nodeFsOrThrow, nodePathOrThrow } from './utils';
 
 function hasSrcAppDir() {
@@ -12,12 +13,17 @@ function hasSrcAppDir() {
 
 function suggestMiddlewareLocation() {
   const fileExtensions = ['ts', 'js'] as const;
+  // Next.js 16+ supports both middleware.ts (Edge runtime) and proxy.ts (Node.js runtime)
+  const fileNames = isNext16OrHigher ? ['middleware', 'proxy'] : ['middleware'];
+  const fileNameDisplay = isNext16OrHigher ? 'middleware or proxy' : 'middleware';
+
   const suggestionMessage = (
+    fileName: string,
     extension: (typeof fileExtensions)[number],
     to: 'src/' | '',
     from: 'src/app/' | 'app/' | '',
   ) =>
-    `Clerk: clerkMiddleware() was not run, your middleware file might be misplaced. Move your middleware file to ./${to}middleware.${extension}. Currently located at ./${from}middleware.${extension}`;
+    `Clerk: clerkMiddleware() was not run, your ${fileNameDisplay} file might be misplaced. Move your ${fileNameDisplay} file to ./${to}${fileName}.${extension}. Currently located at ./${from}${fileName}.${extension}`;
 
   const { existsSync } = nodeFsOrThrow();
   const path = nodePathOrThrow();
@@ -31,9 +37,11 @@ function suggestMiddlewareLocation() {
     to: 'src/' | '',
     from: 'src/app/' | 'app/' | '',
   ): string | undefined => {
-    for (const fileExtension of fileExtensions) {
-      if (existsSync(path.join(basePath, `middleware.${fileExtension}`))) {
-        return suggestionMessage(fileExtension, to, from);
+    for (const fileName of fileNames) {
+      for (const fileExtension of fileExtensions) {
+        if (existsSync(path.join(basePath, `${fileName}.${fileExtension}`))) {
+          return suggestionMessage(fileName, fileExtension, to, from);
+        }
       }
     }
     return undefined;
diff --git a/packages/nextjs/src/utils/__tests__/sdk-versions.test.ts b/packages/nextjs/src/utils/__tests__/sdk-versions.test.ts
new file mode 100644
index 00000000000..c37be227534
--- /dev/null
+++ b/packages/nextjs/src/utils/__tests__/sdk-versions.test.ts
@@ -0,0 +1,165 @@
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+
+describe('sdk-versions', () => {
+  beforeEach(() => {
+    // Clear module cache to allow re-importing with different mocks
+    vi.resetModules();
+  });
+
+  describe('meetsNextMinimumVersion', () => {
+    it('should return true when version meets minimum major version', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '16.0.0' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(true);
+    });
+
+    it('should return true when version exceeds minimum major version', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '17.0.0' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(true);
+    });
+
+    it('should return false when version is below minimum major version', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '15.9.9' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+
+    it('should return false when version is exactly one below minimum', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '15.0.0' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+
+    it('should handle patch versions correctly', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '16.5.3' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(true);
+    });
+
+    it('should handle beta/prerelease versions correctly', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '16.0.0-beta.1' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(true);
+    });
+
+    it('should return false when version is missing', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: {},
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+
+    it('should return false when version is null', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: null },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+
+    it('should return false when version is undefined', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: undefined },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+
+    it('should return false when version is an empty string', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+
+    it('should return false when version cannot be parsed as a number', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: 'invalid-version' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+
+    it('should handle single-digit major versions', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '9.0.0' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+
+    it('should handle double-digit major versions', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '20.0.0' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(true);
+    });
+
+    it('should handle version strings with leading zeros', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '016.0.0' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(true);
+    });
+  });
+
+  describe('isNext16OrHigher', () => {
+    it('should be a boolean value', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '16.0.0' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(typeof isNext16OrHigher).toBe('boolean');
+    });
+
+    it('should correctly identify Next.js 16', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '16.0.0' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(true);
+    });
+
+    it('should correctly identify Next.js 15 as not 16+', async () => {
+      vi.doMock('next/package.json', () => ({
+        default: { version: '15.2.3' },
+      }));
+
+      const { isNext16OrHigher } = await import('../sdk-versions.js');
+      expect(isNext16OrHigher).toBe(false);
+    });
+  });
+});
diff --git a/packages/nextjs/src/utils/sdk-versions.ts b/packages/nextjs/src/utils/sdk-versions.ts
index 729a096a6f9..2dc49c1698e 100644
--- a/packages/nextjs/src/utils/sdk-versions.ts
+++ b/packages/nextjs/src/utils/sdk-versions.ts
@@ -1,11 +1,25 @@
 import nextPkg from 'next/package.json';
 
-const isNext13 = nextPkg.version.startsWith('13.');
+function meetsNextMinimumVersion(minimumMajorVersion: number) {
+  if (!nextPkg?.version) {
+    return false;
+  }
+
+  const majorVersion = parseInt(nextPkg.version.split('.')[0], 10);
+  return !isNaN(majorVersion) && majorVersion >= minimumMajorVersion;
+}
+
+const isNext13 = nextPkg?.version?.startsWith('13.') ?? false;
 
 /**
  * Those versions are affected by a bundling issue that will break the application if `node:fs` is used inside a server function.
  * The affected versions are >=next@13.5.4 and <=next@14.0.4
  */
-const isNextWithUnstableServerActions = isNext13 || nextPkg.version.startsWith('14.0');
+const isNextWithUnstableServerActions = isNext13 || (nextPkg?.version?.startsWith('14.0') ?? false);
+
+/**
+ * Next.js 16+ renamed middleware.ts to proxy.ts
+ */
+const isNext16OrHigher = meetsNextMinimumVersion(16);
 
-export { isNext13, isNextWithUnstableServerActions };
+export { isNext13, isNextWithUnstableServerActions, isNext16OrHigher };