You can file a Form I-130 Petition and Form I-485 Adjustment of Status at the same time if your spouse qualifies to stay and adjust inside the U.S.

If you’re a U.S. citizen not just a green card holder, your spouse may be able to adjust status inside the U.S., even with an overstay

USCIS allows spouses of U.S. citizens to apply for a green card through adjustment of status even if they overstayed a visa, as long as they entered the U.S. legally e.g., with a tourist, student, or work visa.

If your spouse is inadmissible for other reasons like a criminal record or prior removal, you might need to file a waiver Form I-601 or I-601A.