diff --git a/packages/features/ee/teams/lib/payments.test.ts b/packages/features/ee/teams/lib/payments.test.ts
index c4961ff245..71ea365f7e 100644
--- a/packages/features/ee/teams/lib/payments.test.ts
+++ b/packages/features/ee/teams/lib/payments.test.ts
@@ -1,19 +1,32 @@
 import prismock from "../../../../../tests/libs/__mocks__/prisma";
 
-import { describe, expect, it, vi, beforeAll, afterAll } from "vitest";
+import { describe, expect, it, vi, beforeEach, afterEach } from "vitest";
 
 import stripe from "@calcom/app-store/stripepayment/lib/server";
 
-import { purchaseTeamOrOrgSubscription } from "./payments";
+import {
+  getTeamWithPaymentMetadata,
+  purchaseTeamOrOrgSubscription,
+  updateQuantitySubscriptionFromStripe,
+} from "./payments";
 
-beforeAll(() => {
+beforeEach(async () => {
   vi.stubEnv("STRIPE_ORG_MONTHLY_PRICE_ID", "STRIPE_ORG_MONTHLY_PRICE_ID");
   vi.stubEnv("STRIPE_TEAM_MONTHLY_PRICE_ID", "STRIPE_TEAM_MONTHLY_PRICE_ID");
+  vi.resetAllMocks();
+  // eslint-disable-next-line @typescript-eslint/ban-ts-comment
+  // @ts-ignore
+  await prismock.reset();
 });
 
-afterAll(() => {
+afterEach(async () => {
   vi.unstubAllEnvs();
+  vi.resetAllMocks();
+  // eslint-disable-next-line @typescript-eslint/ban-ts-comment
+  // @ts-ignore
+  await prismock.reset();
 });
+
 vi.mock("@calcom/app-store/stripepayment/lib/customer", () => {
   return {
     getStripeCustomerIdFromUserId: function () {
@@ -22,6 +35,12 @@ vi.mock("@calcom/app-store/stripepayment/lib/customer", () => {
   };
 });
 
+vi.mock("@calcom/lib/constant", () => {
+  return {
+    MINIMUM_NUMBER_OF_ORG_SEATS: 30,
+  };
+});
+
 vi.mock("@calcom/app-store/stripepayment/lib/server", () => {
   return {
     default: {
@@ -35,12 +54,18 @@ vi.mock("@calcom/app-store/stripepayment/lib/server", () => {
         retrieve: vi.fn(),
         create: vi.fn(),
       },
+      subscriptions: {
+        retrieve: vi.fn(),
+        update: vi.fn(),
+        create: vi.fn(),
+      },
     },
   };
 });
 
 describe("purchaseTeamOrOrgSubscription", () => {
   it("should use `seatsToChargeFor` to create price", async () => {
+    const FAKE_PAYMENT_ID = "FAKE_PAYMENT_ID";
     const user = await prismock.user.create({
       data: {
         name: "test",
@@ -52,12 +77,15 @@ describe("purchaseTeamOrOrgSubscription", () => {
       url: "SESSION_URL",
     });
 
-    mockStripeCheckoutSessionRetrieve({
-      currency: "USD",
-      product: {
-        id: "PRODUCT_ID",
+    mockStripeCheckoutSessionRetrieve(
+      {
+        currency: "USD",
+        product: {
+          id: "PRODUCT_ID",
+        },
       },
-    });
+      [FAKE_PAYMENT_ID]
+    );
 
     mockStripeCheckoutPricesRetrieve({
       id: "PRICE_ID",
@@ -73,6 +101,9 @@ describe("purchaseTeamOrOrgSubscription", () => {
     const team = await prismock.team.create({
       data: {
         name: "test",
+        metadata: {
+          paymentId: FAKE_PAYMENT_ID,
+        },
       },
     });
 
@@ -101,6 +132,331 @@ describe("purchaseTeamOrOrgSubscription", () => {
   });
 });
 
+describe("updateQuantitySubscriptionFromStripe", () => {
+  describe("For an organization", () => {
+    it("should not update subscription when team members are less than metadata.orgSeats", async () => {
+      const FAKE_PAYMENT_ID = "FAKE_PAYMENT_ID";
+      const FAKE_SUBITEM_ID = "FAKE_SUBITEM_ID";
+      const FAKE_SUB_ID = "FAKE_SUB_ID";
+      const FAKE_SUBSCRIPTION_QTY_IN_STRIPE = 1000;
+      const consoleInfoSpy = vi.spyOn(console, "info");
+
+      const organization = await createOrgWithMembersAndPaymentData({
+        paymentId: FAKE_PAYMENT_ID,
+        subscriptionId: FAKE_SUB_ID,
+        subscriptionItemId: FAKE_SUBITEM_ID,
+        membersInTeam: 2,
+        orgSeats: 5,
+      });
+
+      mockStripeCheckoutSessionRetrieve(
+        {
+          payment_status: "paid",
+        },
+        [FAKE_PAYMENT_ID]
+      );
+
+      mockStripeSubscriptionsRetrieve(
+        {
+          items: {
+            data: [
+              {
+                id: "FAKE_SUBITEM_ID",
+                quantity: FAKE_SUBSCRIPTION_QTY_IN_STRIPE,
+              },
+            ],
+          },
+        },
+        [FAKE_SUB_ID]
+      );
+
+      const mockedSubscriptionsUpdate = mockStripeSubscriptionsUpdate(null);
+
+      await updateQuantitySubscriptionFromStripe(organization.id);
+      // Ensure that we reached the flow we are expecting to
+      expect(consoleInfoSpy.mock.calls[0][0]).toContain("has less members");
+
+      // orgSeats is more than the current number of members - So, no update in stripe
+      expect(mockedSubscriptionsUpdate).not.toHaveBeenCalled();
+    });
+
+    it("should update subscription when team members are more than metadata.orgSeats", async () => {
+      const FAKE_PAYMENT_ID = "FAKE_PAYMENT_ID";
+      const FAKE_SUB_ID = "FAKE_SUB_ID";
+      const FAKE_SUBITEM_ID = "FAKE_SUBITEM_ID";
+      const FAKE_SUBSCRIPTION_QTY_IN_STRIPE = 1000;
+      const membersInTeam = 4;
+      const organization = await createOrgWithMembersAndPaymentData({
+        paymentId: FAKE_PAYMENT_ID,
+        subscriptionId: FAKE_SUB_ID,
+        subscriptionItemId: FAKE_SUBITEM_ID,
+        membersInTeam,
+        orgSeats: 3,
+      });
+
+      mockStripeCheckoutSessionRetrieve(
+        {
+          payment_status: "paid",
+        },
+        [FAKE_PAYMENT_ID]
+      );
+
+      mockStripeSubscriptionsRetrieve(
+        {
+          items: {
+            data: [
+              {
+                id: FAKE_SUBITEM_ID,
+                quantity: FAKE_SUBSCRIPTION_QTY_IN_STRIPE,
+              },
+            ],
+          },
+        },
+        [FAKE_SUB_ID]
+      );
+
+      const mockedSubscriptionsUpdate = mockStripeSubscriptionsUpdate(null);
+
+      await updateQuantitySubscriptionFromStripe(organization.id);
+
+      // orgSeats is more than the current number of members - So, no update in stripe
+      expect(mockedSubscriptionsUpdate).toHaveBeenCalledWith(FAKE_SUB_ID, {
+        items: [
+          {
+            quantity: membersInTeam,
+            id: FAKE_SUBITEM_ID,
+          },
+        ],
+      });
+    });
+
+    it("should not update subscription when team members are less than MINIMUM_NUMBER_OF_ORG_SEATS(if metadata.orgSeats is null)", async () => {
+      const FAKE_PAYMENT_ID = "FAKE_PAYMENT_ID";
+      const FAKE_SUBITEM_ID = "FAKE_SUBITEM_ID";
+      const FAKE_SUB_ID = "FAKE_SUB_ID";
+      const FAKE_SUBSCRIPTION_QTY_IN_STRIPE = 1000;
+      const membersInTeam = 2;
+      const consoleInfoSpy = vi.spyOn(console, "info");
+
+      const organization = await createOrgWithMembersAndPaymentData({
+        paymentId: FAKE_PAYMENT_ID,
+        subscriptionId: FAKE_SUB_ID,
+        subscriptionItemId: FAKE_SUBITEM_ID,
+        membersInTeam,
+        orgSeats: null,
+      });
+
+      mockStripeSubscriptionsRetrieve(
+        {
+          items: {
+            data: [
+              {
+                id: "FAKE_SUBITEM_ID",
+                quantity: FAKE_SUBSCRIPTION_QTY_IN_STRIPE,
+              },
+            ],
+          },
+        },
+        [FAKE_SUB_ID]
+      );
+
+      mockStripeCheckoutSessionRetrieve(
+        {
+          payment_status: "paid",
+        },
+        [FAKE_PAYMENT_ID]
+      );
+
+      const mockedSubscriptionsUpdate = mockStripeSubscriptionsUpdate(null);
+
+      await updateQuantitySubscriptionFromStripe(organization.id);
+      // Ensure that we reached the flow we are expecting to
+      expect(consoleInfoSpy.mock.calls[0][0]).toContain("has less members");
+      // orgSeats is more than the current number of members - So, no update in stripe
+      expect(mockedSubscriptionsUpdate).not.toHaveBeenCalled();
+    });
+
+    it("should update subscription when team members are more than MINIMUM_NUMBER_OF_ORG_SEATS(if metadata.orgSeats is null)", async () => {
+      const FAKE_PAYMENT_ID = "FAKE_PAYMENT_ID";
+      const FAKE_SUB_ID = "FAKE_SUB_ID";
+      const FAKE_SUBITEM_ID = "FAKE_SUBITEM_ID";
+      const FAKE_SUBSCRIPTION_QTY_IN_STRIPE = 1000;
+      const membersInTeam = 35;
+      const organization = await createOrgWithMembersAndPaymentData({
+        paymentId: FAKE_PAYMENT_ID,
+        subscriptionId: FAKE_SUB_ID,
+        subscriptionItemId: FAKE_SUBITEM_ID,
+        membersInTeam,
+        orgSeats: null,
+      });
+
+      mockStripeCheckoutSessionRetrieve(
+        {
+          payment_status: "paid",
+        },
+        [FAKE_PAYMENT_ID]
+      );
+
+      mockStripeSubscriptionsRetrieve(
+        {
+          items: {
+            data: [
+              {
+                id: FAKE_SUBITEM_ID,
+                quantity: FAKE_SUBSCRIPTION_QTY_IN_STRIPE,
+              },
+            ],
+          },
+        },
+        [FAKE_SUB_ID]
+      );
+
+      const mockedSubscriptionsUpdate = mockStripeSubscriptionsUpdate(null);
+
+      await updateQuantitySubscriptionFromStripe(organization.id);
+
+      // orgSeats is more than the current number of members - So, no update in stripe
+      expect(mockedSubscriptionsUpdate).toHaveBeenCalledWith(FAKE_SUB_ID, {
+        items: [
+          {
+            quantity: membersInTeam,
+            id: FAKE_SUBITEM_ID,
+          },
+        ],
+      });
+    });
+  });
+});
+
+describe("getTeamWithPaymentMetadata", () => {
+  it("should error if paymentId is not set", async () => {
+    const team = await prismock.team.create({
+      data: {
+        isOrganization: true,
+        name: "TestTeam",
+        metadata: {
+          subscriptionId: "FAKE_SUB_ID",
+          subscriptionItemId: "FAKE_SUB_ITEM_ID",
+        },
+      },
+    });
+    expect(() => getTeamWithPaymentMetadata(team.id)).rejects.toThrow();
+  });
+
+  it("should error if subscriptionId is not set", async () => {
+    const team = await prismock.team.create({
+      data: {
+        isOrganization: true,
+        name: "TestTeam",
+        metadata: {
+          paymentId: "FAKE_PAY_ID",
+          subscriptionItemId: "FAKE_SUB_ITEM_ID",
+        },
+      },
+    });
+    expect(() => getTeamWithPaymentMetadata(team.id)).rejects.toThrow();
+  });
+
+  it("should error if subscriptionItemId is not set", async () => {
+    const team = await prismock.team.create({
+      data: {
+        isOrganization: true,
+        name: "TestTeam",
+        metadata: {
+          paymentId: "FAKE_PAY_ID",
+          subscriptionId: "FAKE_SUB_ID",
+        },
+      },
+    });
+    expect(() => getTeamWithPaymentMetadata(team.id)).rejects.toThrow();
+  });
+
+  it("should parse successfully if orgSeats is not set in metadata", async () => {
+    const team = await prismock.team.create({
+      data: {
+        isOrganization: true,
+        name: "TestTeam",
+        metadata: {
+          paymentId: "FAKE_PAY_ID",
+          subscriptionId: "FAKE_SUB_ID",
+          subscriptionItemId: "FAKE_SUB_ITEM_ID",
+        },
+      },
+    });
+    const teamWithPaymentData = await getTeamWithPaymentMetadata(team.id);
+    expect(teamWithPaymentData.metadata.orgSeats).toBeUndefined();
+  });
+
+  it("should parse successfully if orgSeats is set in metadata", async () => {
+    const team = await prismock.team.create({
+      data: {
+        isOrganization: true,
+        name: "TestTeam",
+        metadata: {
+          orgSeats: 5,
+          paymentId: "FAKE_PAY_ID",
+          subscriptionId: "FAKE_SUB_ID",
+          subscriptionItemId: "FAKE_SUB_ITEM_ID",
+        },
+      },
+    });
+    const teamWithPaymentData = await getTeamWithPaymentMetadata(team.id);
+    expect(teamWithPaymentData.metadata.orgSeats).toEqual(5);
+  });
+});
+
+async function createOrgWithMembersAndPaymentData({
+  paymentId,
+  subscriptionId,
+  subscriptionItemId,
+  orgSeats,
+  membersInTeam,
+}: {
+  paymentId: string;
+  subscriptionId: string;
+  subscriptionItemId: string;
+  orgSeats?: number | null;
+  membersInTeam: number;
+}) {
+  const organization = await prismock.team.create({
+    data: {
+      isOrganization: true,
+      name: "TestTeam",
+      metadata: {
+        // Make sure that payment is already done
+        paymentId,
+        orgSeats,
+        subscriptionId,
+        subscriptionItemId,
+      },
+    },
+  });
+
+  await Promise.all([
+    Array(membersInTeam)
+      .fill(0)
+      .map(async (_, index) => {
+        return await prismock.membership.create({
+          data: {
+            team: {
+              connect: {
+                id: organization.id,
+              },
+            },
+            user: {
+              create: {
+                name: "ABC",
+                email: `test-${index}@example.com`,
+              },
+            },
+            role: "MEMBER",
+          },
+        });
+      }),
+  ]);
+  return organization;
+}
+
 function mockStripePricesCreate(data) {
   // eslint-disable-next-line @typescript-eslint/ban-ts-comment
   //@ts-ignore
@@ -118,12 +474,14 @@ function mockStripeCheckoutPricesRetrieve(data) {
   );
 }
 
-function mockStripeCheckoutSessionRetrieve(data) {
-  return vi.mocked(stripe.checkout.sessions.retrieve).mockImplementation(
-    async () =>
-      // eslint-disable-next-line @typescript-eslint/ban-ts-comment
-      //@ts-ignore
-      new Promise((resolve) => resolve(data))
+function mockStripeCheckoutSessionRetrieve(data, expectedArgs) {
+  return vi.mocked(stripe.checkout.sessions.retrieve).mockImplementation(async (sessionId) =>
+    // eslint-disable-next-line @typescript-eslint/ban-ts-comment
+    //@ts-ignore
+    {
+      const conditionMatched = expectedArgs[0] === sessionId;
+      return new Promise((resolve) => resolve(conditionMatched ? data : null));
+    }
   );
 }
 
@@ -134,3 +492,22 @@ function mockStripeCheckoutSessionsCreate(data) {
     async () => new Promise((resolve) => resolve(data))
   );
 }
+
+function mockStripeSubscriptionsRetrieve(data, expectedArgs) {
+  return vi.mocked(stripe.subscriptions.retrieve).mockImplementation(
+    // eslint-disable-next-line @typescript-eslint/ban-ts-comment
+    //@ts-ignore
+    async (subscriptionId) => {
+      const conditionMatched = expectedArgs ? expectedArgs[0] === subscriptionId : true;
+      return new Promise((resolve) => resolve(conditionMatched ? data : undefined));
+    }
+  );
+}
+
+function mockStripeSubscriptionsUpdate(data) {
+  return vi.mocked(stripe.subscriptions.update).mockImplementation(
+    // eslint-disable-next-line @typescript-eslint/ban-ts-comment
+    //@ts-ignore
+    async () => new Promise((resolve) => resolve(data))
+  );
+}
diff --git a/packages/features/ee/teams/lib/payments.ts b/packages/features/ee/teams/lib/payments.ts
index afebfe98c6..125e05e82f 100644
--- a/packages/features/ee/teams/lib/payments.ts
+++ b/packages/features/ee/teams/lib/payments.ts
@@ -4,7 +4,6 @@ import { getStripeCustomerIdFromUserId } from "@calcom/app-store/stripepayment/l
 import stripe from "@calcom/app-store/stripepayment/lib/server";
 import { IS_PRODUCTION } from "@calcom/lib/constants";
 import { MINIMUM_NUMBER_OF_ORG_SEATS, WEBAPP_URL } from "@calcom/lib/constants";
-import { ORGANIZATION_MIN_SEATS } from "@calcom/lib/constants";
 import logger from "@calcom/lib/logger";
 import { safeStringify } from "@calcom/lib/safeStringify";
 import prisma from "@calcom/prisma";
@@ -12,9 +11,11 @@ import { teamMetadataSchema } from "@calcom/prisma/zod-utils";
 
 const log = logger.getSubLogger({ prefix: ["teams/lib/payments"] });
 const teamPaymentMetadataSchema = z.object({
+  // Redefine paymentId, subscriptionId and subscriptionItemId to ensure that they are present and nonNullable
   paymentId: z.string(),
   subscriptionId: z.string(),
   subscriptionItemId: z.string(),
+  orgSeats: teamMetadataSchema.unwrap().shape.orgSeats,
 });
 
 /** Used to prevent double charges for the same team */
@@ -180,7 +181,7 @@ export const purchaseTeamOrOrgSubscription = async (input: {
   }
 };
 
-const getTeamWithPaymentMetadata = async (teamId: number) => {
+export const getTeamWithPaymentMetadata = async (teamId: number) => {
   const team = await prisma.team.findUniqueOrThrow({
     where: { id: teamId },
     select: { metadata: true, members: true, isOrganization: true },
@@ -211,7 +212,10 @@ export const updateQuantitySubscriptionFromStripe = async (teamId: number) => {
      **/
     if (!url) return;
     const team = await getTeamWithPaymentMetadata(teamId);
-    const { subscriptionId, subscriptionItemId } = team.metadata;
+    const { subscriptionId, subscriptionItemId, orgSeats } = team.metadata;
+    // Either it would be custom pricing where minimum number of seats are changed(available in orgSeats) or it would be default MINIMUM_NUMBER_OF_ORG_SEATS
+    // We can't go below this quantity for subscription
+    const orgMinimumSubscriptionQuantity = orgSeats || MINIMUM_NUMBER_OF_ORG_SEATS;
     const membershipCount = team.members.length;
     const subscription = await stripe.subscriptions.retrieve(subscriptionId);
     const subscriptionQuantity = subscription.items.data.find(
@@ -219,9 +223,9 @@ export const updateQuantitySubscriptionFromStripe = async (teamId: number) => {
     )?.quantity;
     if (!subscriptionQuantity) throw new Error("Subscription not found");
 
-    if (team.isOrganization && membershipCount < ORGANIZATION_MIN_SEATS) {
+    if (team.isOrganization && membershipCount < orgMinimumSubscriptionQuantity) {
       console.info(
-        `Org ${teamId} has less members than the min ${ORGANIZATION_MIN_SEATS}, skipping updating subscription.`
+        `Org ${teamId} has less members than the min required ${orgMinimumSubscriptionQuantity}, skipping updating subscription.`
       );
       return;
     }