diff --git a/apps/web/public/static/locales/en/common.json b/apps/web/public/static/locales/en/common.json
index a2a087712d..a5b86beebf 100644
--- a/apps/web/public/static/locales/en/common.json
+++ b/apps/web/public/static/locales/en/common.json
@@ -3253,5 +3253,6 @@
   "booker_limit_exceeded_error_reschedule": "You already have a booking for this event on {{date}}. Would you like to reschedule to the new selected time?",
   "duration_min_error": "Duration must be at least {{min}} minute(s)",
   "duration_max_error": "Duration cannot exceed {{max}} minutes (24 hours)",
+  "converted_image_size_limit_exceed": "Image size limit exceeded, please use a smaller image preferably in JPEG format",
   "ADD_NEW_STRINGS_ABOVE_THIS_LINE_TO_PREVENT_MERGE_CONFLICTS": "↑↑↑↑↑↑↑↑↑↑↑↑↑ Add your new strings above here ↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑↑"
 }
diff --git a/packages/features/ee/organizations/pages/settings/profile.tsx b/packages/features/ee/organizations/pages/settings/profile.tsx
index acf241e301..a9ba9880c2 100644
--- a/packages/features/ee/organizations/pages/settings/profile.tsx
+++ b/packages/features/ee/organizations/pages/settings/profile.tsx
@@ -183,6 +183,11 @@ const OrgProfileForm = ({ defaultValues }: { defaultValues: FormValues }) => {
 
   const mutation = trpc.viewer.organizations.update.useMutation({
     onError: (err) => {
+      // Handle JSON parsing errors from body size limit exceeded
+      if (err.message.includes("Unexpected token") && err.message.includes("Body excee")) {
+        showToast(t("converted_image_size_limit_exceed"), "error");
+        return;
+      }
       showToast(err.message, "error");
     },
     onSuccess: async (res) => {
diff --git a/packages/trpc/server/routers/viewer/organizations/update.handler.ts b/packages/trpc/server/routers/viewer/organizations/update.handler.ts
index 4d36c08175..5f1beff0e0 100644
--- a/packages/trpc/server/routers/viewer/organizations/update.handler.ts
+++ b/packages/trpc/server/routers/viewer/organizations/update.handler.ts
@@ -161,7 +161,12 @@ export const updateHandler = async ({ ctx, input }: UpdateOptions) => {
     metadata: mergeMetadata({ ...input.metadata }),
   };
 
-  if (input.banner && input.banner.startsWith("data:image/png;base64,")) {
+  if (
+    input.banner &&
+    (input.banner.startsWith("data:image/png;base64,") ||
+      input.banner.startsWith("data:image/jpeg;base64,") ||
+      input.banner.startsWith("data:image/jpg;base64,"))
+  ) {
     const banner = await resizeBase64Image(input.banner, { maxSize: 1500 });
     data.bannerUrl = await uploadLogo({
       logo: banner,
@@ -172,7 +177,12 @@ export const updateHandler = async ({ ctx, input }: UpdateOptions) => {
     data.bannerUrl = null;
   }
 
-  if (input.logoUrl && input.logoUrl.startsWith("data:image/png;base64,")) {
+  if (
+    input.logoUrl &&
+    (input.logoUrl.startsWith("data:image/png;base64,") ||
+      input.logoUrl.startsWith("data:image/jpeg;base64,") ||
+      input.logoUrl.startsWith("data:image/jpg;base64,"))
+  ) {
     data.logoUrl = await uploadLogo({
       logo: await resizeBase64Image(input.logoUrl),
       teamId: currentOrgId,
diff --git a/packages/ui/components/image-uploader/BannerUploader.tsx b/packages/ui/components/image-uploader/BannerUploader.tsx
index a1ec88df4e..458ae8e94d 100644
--- a/packages/ui/components/image-uploader/BannerUploader.tsx
+++ b/packages/ui/components/image-uploader/BannerUploader.tsx
@@ -209,6 +209,12 @@ async function getCroppedImg(
   const ctx = canvas.getContext("2d");
   if (!ctx) throw new Error("Context is null, this should never happen.");
 
+  // Detect original image format from data URL
+  const originalFormat =
+    imageSrc.startsWith("data:image/jpeg") || imageSrc.startsWith("data:image/jpg")
+      ? "image/jpeg"
+      : "image/png";
+
   canvas.width = width;
   canvas.height = height;
 
@@ -224,5 +230,6 @@ async function getCroppedImg(
     canvas.height
   );
 
-  return canvas.toDataURL("image/png");
+  // Use original format with quality setting for JPEG
+  return canvas.toDataURL(originalFormat, originalFormat === "image/jpeg" ? 0.6 : undefined);
 }
diff --git a/packages/ui/components/image-uploader/ImageUploader.tsx b/packages/ui/components/image-uploader/ImageUploader.tsx
index ba6a637110..12ab7e0c67 100644
--- a/packages/ui/components/image-uploader/ImageUploader.tsx
+++ b/packages/ui/components/image-uploader/ImageUploader.tsx
@@ -192,6 +192,12 @@ async function getCroppedImg(imageSrc: string, pixelCrop: Area): Promise<string>
   const ctx = canvas.getContext("2d");
   if (!ctx) throw new Error("Context is null, this should never happen.");
 
+  // Detect original image format from data URL
+  const originalFormat =
+    imageSrc.startsWith("data:image/jpeg") || imageSrc.startsWith("data:image/jpg")
+      ? "image/jpeg"
+      : "image/png";
+
   const maxSize = Math.max(image.naturalWidth, image.naturalHeight);
   const resizeRatio = MAX_IMAGE_SIZE / maxSize < 1 ? Math.max(MAX_IMAGE_SIZE / maxSize, 0.75) : 1;
 
@@ -216,7 +222,7 @@ async function getCroppedImg(imageSrc: string, pixelCrop: Area): Promise<string>
   // on very low ratios, the quality of the resize becomes awful. For this reason the resizeRatio is limited to 0.75
   if (resizeRatio <= 0.75) {
     // With a smaller image, thus improved ratio. Keep doing this until the resizeRatio > 0.75.
-    return getCroppedImg(canvas.toDataURL("image/png"), {
+    return getCroppedImg(canvas.toDataURL(originalFormat), {
       width: canvas.width,
       height: canvas.height,
       x: 0,
@@ -224,5 +230,6 @@ async function getCroppedImg(imageSrc: string, pixelCrop: Area): Promise<string>
     });
   }
 
-  return canvas.toDataURL("image/png");
+  // Use original format with quality setting for JPEG
+  return canvas.toDataURL(originalFormat, originalFormat === "image/jpeg" ? 0.9 : undefined);
 }