diff --git a/packages/trpc/server/routers/viewer/teams/update.handler.test.ts b/packages/trpc/server/routers/viewer/teams/update.handler.test.ts
new file mode 100644
index 0000000000..59cabfd4dc
--- /dev/null
+++ b/packages/trpc/server/routers/viewer/teams/update.handler.test.ts
@@ -0,0 +1,215 @@
+import { describe, it, expect, vi, beforeEach } from "vitest";
+
+import { TeamRepository } from "@calcom/features/ee/teams/repositories/TeamRepository";
+import { PermissionCheckService } from "@calcom/features/pbac/services/permission-check.service";
+import { prisma } from "@calcom/prisma";
+import { RRTimestampBasis } from "@calcom/prisma/enums";
+
+import type { TrpcSessionUser } from "../../../types";
+import { updateHandler } from "./update.handler";
+import type { TUpdateInputSchema } from "./update.schema";
+
+vi.mock("@calcom/prisma", () => ({
+  prisma: {
+    team: {
+      findUnique: vi.fn(),
+      update: vi.fn(),
+      updateMany: vi.fn(),
+    },
+    eventType: {
+      updateMany: vi.fn(),
+    },
+    tempOrgRedirect: {
+      updateMany: vi.fn(),
+    },
+  },
+}));
+
+vi.mock("@calcom/features/pbac/services/permission-check.service", () => ({
+  PermissionCheckService: vi.fn().mockImplementation(() => ({
+    checkPermission: vi.fn(),
+  })),
+}));
+
+vi.mock("@calcom/features/ee/teams/repositories/TeamRepository", () => ({
+  TeamRepository: vi.fn().mockImplementation(() => ({
+    isSlugAvailableForUpdate: vi.fn().mockResolvedValue(true),
+  })),
+}));
+
+vi.mock("@calcom/lib/server/avatar", () => ({
+  uploadLogo: vi.fn().mockResolvedValue("https://example.com/logo.png"),
+}));
+
+vi.mock("@calcom/lib/intervalLimits/validateIntervalLimitOrder", () => ({
+  validateIntervalLimitOrder: vi.fn().mockReturnValue(true),
+}));
+
+vi.mock("@calcom/lib/constants", () => ({
+  IS_TEAM_BILLING_ENABLED: false,
+}));
+
+vi.mock("@calcom/ee/organizations/lib/orgDomains", () => ({
+  getOrgFullOrigin: vi.fn((slug: string) => `https://${slug}.cal.com`),
+}));
+
+describe("updateHandler - Permission Check Tests", () => {
+  const mockPermissionCheckService = {
+    checkPermission: vi.fn(),
+  };
+
+  const mockTeamRepository = {
+    isSlugAvailableForUpdate: vi.fn().mockResolvedValue(true),
+  };
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    vi.mocked(PermissionCheckService).mockImplementation(
+      () => mockPermissionCheckService as unknown as InstanceType<typeof PermissionCheckService>
+    );
+    vi.mocked(TeamRepository).mockImplementation(
+      () => mockTeamRepository as unknown as InstanceType<typeof TeamRepository>
+    );
+  });
+
+  describe("Permission Check Service", () => {
+    const user: NonNullable<TrpcSessionUser> = {
+      id: 1,
+      organizationId: 100,
+    } as NonNullable<TrpcSessionUser>;
+
+    it("should use permission check service for all users", async () => {
+      const input: TUpdateInputSchema = {
+        id: 50,
+        name: "Updated Team",
+      };
+
+      mockPermissionCheckService.checkPermission.mockResolvedValue(true);
+
+      vi.mocked(prisma.team.findUnique).mockResolvedValue({
+        id: 50,
+        parentId: 100,
+        slug: "test-team",
+        metadata: {},
+        rrTimestampBasis: RRTimestampBasis.CREATED_AT,
+      } as any);
+
+      vi.mocked(prisma.team.update).mockResolvedValue({
+        id: 50,
+        name: "Updated Team",
+        bio: null,
+        slug: "test-team",
+        theme: null,
+        brandColor: null,
+        darkBrandColor: null,
+        logoUrl: null,
+        bookingLimits: null,
+        includeManagedEventsInLimits: null,
+        rrResetInterval: null,
+        rrTimestampBasis: RRTimestampBasis.CREATED_AT,
+      } as any);
+
+      await updateHandler({
+        ctx: { user },
+        input,
+      });
+
+      expect(mockPermissionCheckService.checkPermission).toHaveBeenCalledWith({
+        userId: user.id,
+        teamId: input.id,
+        permission: "team.update",
+        fallbackRoles: expect.any(Array),
+      });
+      expect(prisma.team.update).toHaveBeenCalled();
+    });
+
+    it("should throw UNAUTHORIZED when permission check fails", async () => {
+      const input: TUpdateInputSchema = {
+        id: 50,
+        name: "Unauthorized Update",
+      };
+
+      mockPermissionCheckService.checkPermission.mockResolvedValue(false);
+
+      vi.mocked(prisma.team.findUnique).mockResolvedValue({
+        id: 50,
+        parentId: 100,
+        slug: "test-team",
+        metadata: {},
+        rrTimestampBasis: RRTimestampBasis.CREATED_AT,
+      } as any);
+
+      await expect(
+        updateHandler({
+          ctx: { user },
+          input,
+        })
+      ).rejects.toMatchObject({
+        code: "UNAUTHORIZED",
+      });
+
+      expect(prisma.team.update).not.toHaveBeenCalled();
+    });
+
+    it("should throw UNAUTHORIZED when user has no id", async () => {
+      const userWithoutId = {
+        id: undefined,
+        organizationId: 100,
+      } as unknown as NonNullable<TrpcSessionUser>;
+
+      const input: TUpdateInputSchema = {
+        id: 50,
+        name: "Updated Team",
+      };
+
+      vi.mocked(prisma.team.findUnique).mockResolvedValue({
+        id: 50,
+        parentId: 100,
+        slug: "test-team",
+        metadata: {},
+        rrTimestampBasis: RRTimestampBasis.CREATED_AT,
+      } as any);
+
+      await expect(
+        updateHandler({
+          ctx: { user: userWithoutId },
+          input,
+        })
+      ).rejects.toMatchObject({
+        code: "UNAUTHORIZED",
+      });
+
+      expect(mockPermissionCheckService.checkPermission).not.toHaveBeenCalled();
+      expect(prisma.team.update).not.toHaveBeenCalled();
+    });
+  });
+
+  describe("Team Not Found", () => {
+    const user: NonNullable<TrpcSessionUser> = {
+      id: 1,
+      organizationId: 100,
+    } as NonNullable<TrpcSessionUser>;
+
+    it("should throw NOT_FOUND when team does not exist", async () => {
+      const input: TUpdateInputSchema = {
+        id: 999,
+        name: "Non-existent Team",
+      };
+
+      vi.mocked(prisma.team.findUnique).mockResolvedValue(null);
+
+      await expect(
+        updateHandler({
+          ctx: { user },
+          input,
+        })
+      ).rejects.toMatchObject({
+        code: "NOT_FOUND",
+        message: "Team not found.",
+      });
+
+      // Should not check permissions if team doesn't exist
+      expect(mockPermissionCheckService.checkPermission).not.toHaveBeenCalled();
+    });
+  });
+});
diff --git a/packages/trpc/server/routers/viewer/teams/update.handler.ts b/packages/trpc/server/routers/viewer/teams/update.handler.ts
index 55022aad5a..43fa385994 100644
--- a/packages/trpc/server/routers/viewer/teams/update.handler.ts
+++ b/packages/trpc/server/routers/viewer/teams/update.handler.ts
@@ -23,20 +23,35 @@ type UpdateOptions = {
 };
 
 export const updateHandler = async ({ ctx, input }: UpdateOptions) => {
-  const isOrgAdmin = ctx.user?.organization?.isOrgAdmin;
+  const prevTeam = await prisma.team.findUnique({
+    where: {
+      id: input.id,
+    },
+    select: {
+      id: true,
+      parentId: true,
+      slug: true,
+      metadata: true,
+      rrTimestampBasis: true,
+    },
+  });
 
-  if (!isOrgAdmin) {
-    const permissionCheckService = new PermissionCheckService();
-    const hasTeamUpdatePermission = await permissionCheckService.checkPermission({
-      userId: ctx.user?.id || 0,
-      teamId: input.id,
-      permission: "team.update",
-      fallbackRoles: [MembershipRole.OWNER, MembershipRole.ADMIN],
-    });
+  if (!prevTeam) throw new TRPCError({ code: "NOT_FOUND", message: "Team not found." });
 
-    if (!hasTeamUpdatePermission) {
-      throw new TRPCError({ code: "UNAUTHORIZED" });
-    }
+  if (!ctx.user?.id) {
+    throw new TRPCError({ code: "UNAUTHORIZED" });
+  }
+
+  const permissionCheckService = new PermissionCheckService();
+  const hasTeamUpdatePermission = await permissionCheckService.checkPermission({
+    userId: ctx.user.id,
+    teamId: input.id,
+    permission: "team.update",
+    fallbackRoles: [MembershipRole.OWNER, MembershipRole.ADMIN],
+  });
+
+  if (!hasTeamUpdatePermission) {
+    throw new TRPCError({ code: "UNAUTHORIZED" });
   }
 
   if (input.slug) {
@@ -52,14 +67,6 @@ export const updateHandler = async ({ ctx, input }: UpdateOptions) => {
     }
   }
 
-  const prevTeam = await prisma.team.findUnique({
-    where: {
-      id: input.id,
-    },
-  });
-
-  if (!prevTeam) throw new TRPCError({ code: "NOT_FOUND", message: "Team not found." });
-
   if (input.bookingLimits) {
     const isValid = validateIntervalLimitOrder(input.bookingLimits);
     if (!isValid)