diff --git a/apps/api/src/services/WorkflowExecutionService.ts b/apps/api/src/services/WorkflowExecutionService.ts
index a418c81..ca34026 100644
--- a/apps/api/src/services/WorkflowExecutionService.ts
+++ b/apps/api/src/services/WorkflowExecutionService.ts
@@ -979,7 +979,7 @@ export class WorkflowExecutionService {
     _stepExecution: WorkflowStepExecution,
     config: StepConfig,
   ): Promise<StepResult> {
-    const {updates} = WorkflowStepConfigSchemas.updateContact.parse(config);
+    const {updates, subscriptionAction} = WorkflowStepConfigSchemas.updateContact.parse(config);
 
     const contact = execution.contact;
     const currentData =
@@ -987,24 +987,43 @@ export class WorkflowExecutionService {
         ? (contact.data as Record<string, unknown>)
         : {};
 
-    // Merge updates with current data
-    const newData = {
-      ...currentData,
-      ...updates,
-    };
+    const hasDataUpdates = updates && Object.keys(updates).length > 0;
+    const newData = hasDataUpdates ? {...currentData, ...updates} : currentData;
 
-    // Update contact in database
-    await prisma.contact.update({
-      where: {id: contact.id},
-      data: {
-        data: newData ? toPrismaJson(newData) : undefined,
-      },
-    });
+    const desiredSubscribed =
+      subscriptionAction === 'subscribe' ? true : subscriptionAction === 'unsubscribe' ? false : undefined;
+    const subscriptionChanging = desiredSubscribed !== undefined && desiredSubscribed !== contact.subscribed;
+
+    const updateData: Prisma.ContactUpdateInput = {};
+    if (hasDataUpdates) {
+      updateData.data = toPrismaJson(newData);
+    }
+    if (subscriptionChanging) {
+      updateData.subscribed = desiredSubscribed;
+    }
+
+    if (Object.keys(updateData).length > 0) {
+      await prisma.contact.update({
+        where: {id: contact.id},
+        data: updateData,
+      });
+    }
+
+    if (subscriptionChanging) {
+      const {EventService} = await import('./EventService.js');
+      await EventService.trackEvent(
+        execution.workflow.projectId,
+        desiredSubscribed ? 'contact.subscribed' : 'contact.unsubscribed',
+        contact.id,
+      );
+    }
 
     return {
-      updated: true,
+      updated: hasDataUpdates || subscriptionChanging,
       updates,
       newData,
+      subscriptionAction,
+      subscribed: desiredSubscribed ?? contact.subscribed,
     };
   }
 
diff --git a/apps/web/src/components/workflow-steps/UpdateContactStepDialog.tsx b/apps/web/src/components/workflow-steps/UpdateContactStepDialog.tsx
index 897efde..f2559d4 100644
--- a/apps/web/src/components/workflow-steps/UpdateContactStepDialog.tsx
+++ b/apps/web/src/components/workflow-steps/UpdateContactStepDialog.tsx
@@ -1,3 +1,4 @@
+import {Label, RadioGroup, RadioGroupItem} from '@plunk/ui';
 import {useState} from 'react';
 import {toast} from 'sonner';
 
@@ -5,31 +6,50 @@ import {KeyValueEditor} from '../KeyValueEditor';
 
 import {type EditStepDialogProps, getStepConfig, StepDialogShell, useStepUpdate} from './shared';
 
+type SubscriptionAction = 'none' | 'subscribe' | 'unsubscribe';
+
+const SUBSCRIPTION_OPTIONS: Array<{value: SubscriptionAction; label: string; description: string}> = [
+  {value: 'none', label: 'Leave as is', description: "Don't change the contact's subscription state."},
+  {value: 'subscribe', label: 'Subscribe', description: 'Mark the contact as subscribed.'},
+  {value: 'unsubscribe', label: 'Unsubscribe', description: 'Mark the contact as unsubscribed.'},
+];
+
 export function UpdateContactStepDialog({step, workflowId, open, onOpenChange, onSuccess}: EditStepDialogProps) {
   const config = getStepConfig(step);
   const initialUpdates =
     config.updates && typeof config.updates === 'object'
       ? (config.updates as Record<string, string | number | boolean>)
       : null;
+  const initialSubscriptionAction: SubscriptionAction =
+    config.subscriptionAction === 'subscribe' || config.subscriptionAction === 'unsubscribe'
+      ? config.subscriptionAction
+      : 'none';
 
   const [name, setName] = useState(step.name);
   const [contactUpdateData, setContactUpdateData] = useState<Record<string, string | number | boolean> | null>(
     initialUpdates,
   );
+  const [subscriptionAction, setSubscriptionAction] = useState<SubscriptionAction>(initialSubscriptionAction);
 
   const {update, isSubmitting} = useStepUpdate(workflowId, step.id);
 
   const handleSubmit = async (e: React.FormEvent) => {
     e.preventDefault();
 
-    if (!contactUpdateData || Object.keys(contactUpdateData).length === 0) {
-      toast.error('At least one field to update is required');
+    const hasUpdates = contactUpdateData && Object.keys(contactUpdateData).length > 0;
+    const hasSubscriptionAction = subscriptionAction !== 'none';
+
+    if (!hasUpdates && !hasSubscriptionAction) {
+      toast.error('Add at least one field to update or choose a subscription action');
       return;
     }
 
     const ok = await update({
       name,
-      config: {updates: contactUpdateData},
+      config: {
+        updates: hasUpdates ? contactUpdateData : {},
+        subscriptionAction,
+      },
     });
 
     if (ok) {
@@ -48,7 +68,32 @@ export function UpdateContactStepDialog({step, workflowId, open, onOpenChange, o
       onSubmit={handleSubmit}
       isSubmitting={isSubmitting}
     >
-      <KeyValueEditor key={`edit-${step.id}`} initialData={contactUpdateData} onChange={setContactUpdateData} />
+      <div className="space-y-2">
+        <Label>Subscription state</Label>
+        <RadioGroup
+          value={subscriptionAction}
+          onValueChange={value => setSubscriptionAction(value as SubscriptionAction)}
+          className="gap-2"
+        >
+          {SUBSCRIPTION_OPTIONS.map(option => (
+            <label
+              key={option.value}
+              htmlFor={`subscriptionAction-${option.value}`}
+              className="flex items-start gap-3 rounded-md border border-neutral-200 p-3 cursor-pointer hover:bg-neutral-50"
+            >
+              <RadioGroupItem id={`subscriptionAction-${option.value}`} value={option.value} className="mt-0.5" />
+              <div className="space-y-0.5">
+                <div className="text-sm font-medium text-neutral-900">{option.label}</div>
+                <div className="text-xs text-neutral-500">{option.description}</div>
+              </div>
+            </label>
+          ))}
+        </RadioGroup>
+      </div>
+
+      <div className="space-y-2">
+        <KeyValueEditor key={`edit-${step.id}`} initialData={contactUpdateData} onChange={setContactUpdateData} />
+      </div>
     </StepDialogShell>
   );
 }
diff --git a/apps/web/src/pages/workflows/[id].tsx b/apps/web/src/pages/workflows/[id].tsx
index 5698e93..fd970f2 100644
--- a/apps/web/src/pages/workflows/[id].tsx
+++ b/apps/web/src/pages/workflows/[id].tsx
@@ -206,11 +206,18 @@ export default function WorkflowEditorPage() {
           }
           break;
 
-        case 'UPDATE_CONTACT':
-          if (!config.updates || (typeof config.updates === 'object' && Object.keys(config.updates).length === 0)) {
-            errors.push(`"${step.name}" step is missing contact updates`);
+        case 'UPDATE_CONTACT': {
+          const hasUpdates =
+            config.updates && typeof config.updates === 'object' && Object.keys(config.updates).length > 0;
+          const hasSubscriptionAction =
+            typeof config.subscriptionAction === 'string' &&
+            config.subscriptionAction !== 'none' &&
+            config.subscriptionAction !== '';
+          if (!hasUpdates && !hasSubscriptionAction) {
+            errors.push(`"${step.name}" step is missing contact updates or a subscription action`);
           }
           break;
+        }
       }
     });
 
diff --git a/packages/shared/src/schemas/index.ts b/packages/shared/src/schemas/index.ts
index f9ec863..bbe2cb1 100644
--- a/packages/shared/src/schemas/index.ts
+++ b/packages/shared/src/schemas/index.ts
@@ -334,9 +334,17 @@ export const WorkflowStepConfigSchemas = {
     headers: z.record(z.string()).optional(),
     body: jsonSchema.optional(),
   }),
-  updateContact: z.object({
-    updates: z.record(z.any()),
-  }),
+  updateContact: z
+    .object({
+      updates: z.record(z.any()).optional(),
+      subscriptionAction: z.enum(['none', 'subscribe', 'unsubscribe']).optional(),
+    })
+    .refine(
+      value =>
+        (value.updates && Object.keys(value.updates).length > 0) ||
+        (value.subscriptionAction && value.subscriptionAction !== 'none'),
+      {message: 'Provide at least one field to update or a subscription action'},
+    ),
 };
 
 export const DomainSchemas = {