diff --git a/apps/sim/app/api/organizations/[id]/route.ts b/apps/sim/app/api/organizations/[id]/route.ts
index eada8c6aa1..65e9743942 100644
--- a/apps/sim/app/api/organizations/[id]/route.ts
+++ b/apps/sim/app/api/organizations/[id]/route.ts
@@ -7,7 +7,6 @@ import { getSession } from '@/lib/auth'
 import {
   getOrganizationSeatAnalytics,
   getOrganizationSeatInfo,
-  updateOrganizationSeats,
 } from '@/lib/billing/validation/seat-management'
 import { createLogger } from '@/lib/logs/console/logger'
 
@@ -25,7 +24,6 @@ const updateOrganizationSchema = z.object({
     )
     .optional(),
   logo: z.string().nullable().optional(),
-  seats: z.number().int().min(1, 'Invalid seat count').optional(),
 })
 
 /**
@@ -116,7 +114,8 @@ export async function GET(request: NextRequest, { params }: { params: Promise<{
 
 /**
  * PUT /api/organizations/[id]
- * Update organization settings or seat count
+ * Update organization settings (name, slug, logo)
+ * Note: For seat updates, use PUT /api/organizations/[id]/seats instead
  */
 export async function PUT(request: NextRequest, { params }: { params: Promise<{ id: string }> }) {
   try {
@@ -135,7 +134,7 @@ export async function PUT(request: NextRequest, { params }: { params: Promise<{
       return NextResponse.json({ error: firstError.message }, { status: 400 })
     }
 
-    const { name, slug, logo, seats } = validation.data
+    const { name, slug, logo } = validation.data
 
     // Verify user has admin access
     const memberEntry = await db
@@ -155,31 +154,6 @@ export async function PUT(request: NextRequest, { params }: { params: Promise<{
       return NextResponse.json({ error: 'Forbidden - Admin access required' }, { status: 403 })
     }
 
-    // Handle seat count update
-    if (seats !== undefined) {
-      const result = await updateOrganizationSeats(organizationId, seats, session.user.id)
-
-      if (!result.success) {
-        return NextResponse.json({ error: result.error }, { status: 400 })
-      }
-
-      logger.info('Organization seat count updated', {
-        organizationId,
-        newSeatCount: seats,
-        updatedBy: session.user.id,
-      })
-
-      return NextResponse.json({
-        success: true,
-        message: 'Seat count updated successfully',
-        data: {
-          seats: seats,
-          updatedBy: session.user.id,
-          updatedAt: new Date().toISOString(),
-        },
-      })
-    }
-
     // Handle settings update
     if (name !== undefined || slug !== undefined || logo !== undefined) {
       // Check if slug is already taken by another organization
diff --git a/apps/sim/app/api/organizations/[id]/seats/route.ts b/apps/sim/app/api/organizations/[id]/seats/route.ts
new file mode 100644
index 0000000000..8812b3673f
--- /dev/null
+++ b/apps/sim/app/api/organizations/[id]/seats/route.ts
@@ -0,0 +1,297 @@
+import { db } from '@sim/db'
+import { member, subscription } from '@sim/db/schema'
+import { and, eq } from 'drizzle-orm'
+import { type NextRequest, NextResponse } from 'next/server'
+import { z } from 'zod'
+import { getSession } from '@/lib/auth'
+import { requireStripeClient } from '@/lib/billing/stripe-client'
+import { isBillingEnabled } from '@/lib/environment'
+import { createLogger } from '@/lib/logs/console/logger'
+
+const logger = createLogger('OrganizationSeatsAPI')
+
+const updateSeatsSchema = z.object({
+  seats: z.number().int().min(1, 'Minimum 1 seat required').max(50, 'Maximum 50 seats allowed'),
+})
+
+/**
+ * PUT /api/organizations/[id]/seats
+ * Update organization seat count using Stripe's subscription.update API.
+ * This is the recommended approach for per-seat billing changes.
+ */
+export async function PUT(request: NextRequest, { params }: { params: Promise<{ id: string }> }) {
+  try {
+    const session = await getSession()
+
+    if (!session?.user?.id) {
+      return NextResponse.json({ error: 'Unauthorized' }, { status: 401 })
+    }
+
+    if (!isBillingEnabled) {
+      return NextResponse.json({ error: 'Billing is not enabled' }, { status: 400 })
+    }
+
+    const { id: organizationId } = await params
+    const body = await request.json()
+
+    const validation = updateSeatsSchema.safeParse(body)
+    if (!validation.success) {
+      const firstError = validation.error.errors[0]
+      return NextResponse.json({ error: firstError.message }, { status: 400 })
+    }
+
+    const { seats: newSeatCount } = validation.data
+
+    // Verify user has admin access to this organization
+    const memberEntry = await db
+      .select()
+      .from(member)
+      .where(and(eq(member.organizationId, organizationId), eq(member.userId, session.user.id)))
+      .limit(1)
+
+    if (memberEntry.length === 0) {
+      return NextResponse.json(
+        { error: 'Forbidden - Not a member of this organization' },
+        { status: 403 }
+      )
+    }
+
+    if (!['owner', 'admin'].includes(memberEntry[0].role)) {
+      return NextResponse.json({ error: 'Forbidden - Admin access required' }, { status: 403 })
+    }
+
+    // Get the organization's subscription
+    const subscriptionRecord = await db
+      .select()
+      .from(subscription)
+      .where(and(eq(subscription.referenceId, organizationId), eq(subscription.status, 'active')))
+      .limit(1)
+
+    if (subscriptionRecord.length === 0) {
+      return NextResponse.json({ error: 'No active subscription found' }, { status: 404 })
+    }
+
+    const orgSubscription = subscriptionRecord[0]
+
+    // Only team plans support seat changes (not enterprise - those are handled manually)
+    if (orgSubscription.plan !== 'team') {
+      return NextResponse.json(
+        { error: 'Seat changes are only available for Team plans' },
+        { status: 400 }
+      )
+    }
+
+    if (!orgSubscription.stripeSubscriptionId) {
+      return NextResponse.json(
+        { error: 'No Stripe subscription found for this organization' },
+        { status: 400 }
+      )
+    }
+
+    // Validate that we're not reducing below current member count
+    const memberCount = await db
+      .select({ userId: member.userId })
+      .from(member)
+      .where(eq(member.organizationId, organizationId))
+
+    if (newSeatCount < memberCount.length) {
+      return NextResponse.json(
+        {
+          error: `Cannot reduce seats below current member count (${memberCount.length})`,
+          currentMembers: memberCount.length,
+        },
+        { status: 400 }
+      )
+    }
+
+    const currentSeats = orgSubscription.seats || 1
+
+    // If no change, return early
+    if (newSeatCount === currentSeats) {
+      return NextResponse.json({
+        success: true,
+        message: 'No change in seat count',
+        data: {
+          seats: currentSeats,
+          stripeSubscriptionId: orgSubscription.stripeSubscriptionId,
+        },
+      })
+    }
+
+    const stripe = requireStripeClient()
+
+    // Get the Stripe subscription to find the subscription item ID
+    const stripeSubscription = await stripe.subscriptions.retrieve(
+      orgSubscription.stripeSubscriptionId
+    )
+
+    if (stripeSubscription.status !== 'active') {
+      return NextResponse.json({ error: 'Stripe subscription is not active' }, { status: 400 })
+    }
+
+    // Find the subscription item (there should be only one for team plans)
+    const subscriptionItem = stripeSubscription.items.data[0]
+
+    if (!subscriptionItem) {
+      return NextResponse.json(
+        { error: 'No subscription item found in Stripe subscription' },
+        { status: 500 }
+      )
+    }
+
+    logger.info('Updating Stripe subscription quantity', {
+      organizationId,
+      stripeSubscriptionId: orgSubscription.stripeSubscriptionId,
+      subscriptionItemId: subscriptionItem.id,
+      currentSeats,
+      newSeatCount,
+      userId: session.user.id,
+    })
+
+    // Update the subscription item quantity using Stripe's recommended approach
+    // This will automatically prorate the billing
+    const updatedSubscription = await stripe.subscriptions.update(
+      orgSubscription.stripeSubscriptionId,
+      {
+        items: [
+          {
+            id: subscriptionItem.id,
+            quantity: newSeatCount,
+          },
+        ],
+        proration_behavior: 'create_prorations', // Stripe's default - charge/credit immediately
+      }
+    )
+
+    // Update our local database to reflect the change
+    // Note: This will also be updated via webhook, but we update immediately for UX
+    await db
+      .update(subscription)
+      .set({
+        seats: newSeatCount,
+      })
+      .where(eq(subscription.id, orgSubscription.id))
+
+    logger.info('Successfully updated seat count', {
+      organizationId,
+      stripeSubscriptionId: orgSubscription.stripeSubscriptionId,
+      oldSeats: currentSeats,
+      newSeats: newSeatCount,
+      updatedBy: session.user.id,
+      prorationBehavior: 'create_prorations',
+    })
+
+    return NextResponse.json({
+      success: true,
+      message:
+        newSeatCount > currentSeats
+          ? `Added ${newSeatCount - currentSeats} seat(s). Your billing has been adjusted.`
+          : `Removed ${currentSeats - newSeatCount} seat(s). You'll receive a prorated credit.`,
+      data: {
+        seats: newSeatCount,
+        previousSeats: currentSeats,
+        stripeSubscriptionId: updatedSubscription.id,
+        stripeStatus: updatedSubscription.status,
+      },
+    })
+  } catch (error) {
+    const { id: organizationId } = await params
+
+    // Handle Stripe-specific errors
+    if (error instanceof Error && 'type' in error) {
+      const stripeError = error as any
+      logger.error('Stripe error updating seats', {
+        organizationId,
+        type: stripeError.type,
+        code: stripeError.code,
+        message: stripeError.message,
+      })
+
+      return NextResponse.json(
+        {
+          error: stripeError.message || 'Failed to update seats in Stripe',
+          code: stripeError.code,
+        },
+        { status: 400 }
+      )
+    }
+
+    logger.error('Failed to update organization seats', {
+      organizationId,
+      error,
+    })
+
+    return NextResponse.json({ error: 'Internal server error' }, { status: 500 })
+  }
+}
+
+/**
+ * GET /api/organizations/[id]/seats
+ * Get current seat information for an organization
+ */
+export async function GET(request: NextRequest, { params }: { params: Promise<{ id: string }> }) {
+  try {
+    const session = await getSession()
+
+    if (!session?.user?.id) {
+      return NextResponse.json({ error: 'Unauthorized' }, { status: 401 })
+    }
+
+    const { id: organizationId } = await params
+
+    // Verify user has access to this organization
+    const memberEntry = await db
+      .select()
+      .from(member)
+      .where(and(eq(member.organizationId, organizationId), eq(member.userId, session.user.id)))
+      .limit(1)
+
+    if (memberEntry.length === 0) {
+      return NextResponse.json(
+        { error: 'Forbidden - Not a member of this organization' },
+        { status: 403 }
+      )
+    }
+
+    // Get subscription data
+    const subscriptionRecord = await db
+      .select()
+      .from(subscription)
+      .where(and(eq(subscription.referenceId, organizationId), eq(subscription.status, 'active')))
+      .limit(1)
+
+    if (subscriptionRecord.length === 0) {
+      return NextResponse.json({ error: 'No active subscription found' }, { status: 404 })
+    }
+
+    // Get member count
+    const memberCount = await db
+      .select({ userId: member.userId })
+      .from(member)
+      .where(eq(member.organizationId, organizationId))
+
+    const orgSubscription = subscriptionRecord[0]
+    const maxSeats = orgSubscription.seats || 1
+    const usedSeats = memberCount.length
+    const availableSeats = Math.max(0, maxSeats - usedSeats)
+
+    return NextResponse.json({
+      success: true,
+      data: {
+        maxSeats,
+        usedSeats,
+        availableSeats,
+        plan: orgSubscription.plan,
+        canModifySeats: orgSubscription.plan === 'team',
+      },
+    })
+  } catch (error) {
+    const { id: organizationId } = await params
+    logger.error('Failed to get organization seats', {
+      organizationId,
+      error,
+    })
+
+    return NextResponse.json({ error: 'Internal server error' }, { status: 500 })
+  }
+}
diff --git a/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components-new/settings-modal/components/team-management/team-management.tsx b/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components-new/settings-modal/components/team-management/team-management.tsx
index 5ca0bb837b..d0e38f80a1 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components-new/settings-modal/components/team-management/team-management.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components-new/settings-modal/components/team-management/team-management.tsx
@@ -233,7 +233,6 @@ export function TeamManagement() {
       await updateSeatsMutation.mutateAsync({
         orgId: activeOrganization?.id,
         seats: currentSeats - 1,
-        subscriptionId: subscriptionData.id,
       })
     } catch (error) {
       logger.error('Failed to reduce seats', error)
@@ -258,7 +257,6 @@ export function TeamManagement() {
         await updateSeatsMutation.mutateAsync({
           orgId: activeOrganization?.id,
           seats: seatsToUse,
-          subscriptionId: subscriptionData.id,
         })
         setIsAddSeatDialogOpen(false)
       } catch (error) {
diff --git a/apps/sim/hooks/queries/organization.ts b/apps/sim/hooks/queries/organization.ts
index 74897c7cd3..f77273152b 100644
--- a/apps/sim/hooks/queries/organization.ts
+++ b/apps/sim/hooks/queries/organization.ts
@@ -1,5 +1,8 @@
 import { keepPreviousData, useMutation, useQuery, useQueryClient } from '@tanstack/react-query'
 import { client } from '@/lib/auth-client'
+import { createLogger } from '@/lib/logs/console/logger'
+
+const logger = createLogger('OrganizationQueries')
 
 /**
  * Query key factories for organization-related queries
@@ -79,7 +82,7 @@ async function fetchOrganizationSubscription(orgId: string) {
   })
 
   if (response.error) {
-    console.error('Error fetching organization subscription:', response.error)
+    logger.error('Error fetching organization subscription', { error: response.error })
     return null
   }
 
@@ -367,28 +370,25 @@ export function useCancelInvitation() {
 interface UpdateSeatsParams {
   orgId: string
   seats: number
-  subscriptionId: string
 }
 
 export function useUpdateSeats() {
   const queryClient = useQueryClient()
 
   return useMutation({
-    mutationFn: async ({ seats, orgId, subscriptionId }: UpdateSeatsParams) => {
-      const response = await client.subscription.upgrade({
-        plan: 'team',
-        referenceId: orgId,
-        subscriptionId,
-        seats,
-        successUrl: window.location.href,
-        cancelUrl: window.location.href,
+    mutationFn: async ({ seats, orgId }: UpdateSeatsParams) => {
+      const response = await fetch(`/api/organizations/${orgId}/seats`, {
+        method: 'PUT',
+        headers: { 'Content-Type': 'application/json' },
+        body: JSON.stringify({ seats }),
       })
 
-      if (response.error) {
-        throw new Error(response.error.message || 'Failed to update seats')
+      if (!response.ok) {
+        const error = await response.json()
+        throw new Error(error.error || 'Failed to update seats')
       }
 
-      return response.data
+      return response.json()
     },
     onSuccess: (_data, variables) => {
       queryClient.invalidateQueries({ queryKey: organizationKeys.detail(variables.orgId) })
diff --git a/apps/sim/lib/auth.ts b/apps/sim/lib/auth.ts
index e3d7f544ef..48982d432a 100644
--- a/apps/sim/lib/auth.ts
+++ b/apps/sim/lib/auth.ts
@@ -27,6 +27,7 @@ import { authorizeSubscriptionReference } from '@/lib/billing/authorization'
 import { handleNewUser } from '@/lib/billing/core/usage'
 import { syncSubscriptionUsageLimits } from '@/lib/billing/organization'
 import { getPlans } from '@/lib/billing/plans'
+import { syncSeatsFromStripeQuantity } from '@/lib/billing/validation/seat-management'
 import { handleManualEnterpriseSubscription } from '@/lib/billing/webhooks/enterprise'
 import {
   handleInvoiceFinalized,
@@ -1654,6 +1655,7 @@ export const auth = betterAuth({
                 await sendPlanWelcomeEmail(subscription)
               },
               onSubscriptionUpdate: async ({
+                event,
                 subscription,
               }: {
                 event: Stripe.Event
@@ -1674,6 +1676,35 @@ export const auth = betterAuth({
                     error,
                   })
                 }
+
+                // Sync seat count from Stripe subscription quantity for team plans
+                if (subscription.plan === 'team') {
+                  try {
+                    const stripeSubscription = event.data.object as Stripe.Subscription
+                    const quantity = stripeSubscription.items?.data?.[0]?.quantity || 1
+
+                    const result = await syncSeatsFromStripeQuantity(
+                      subscription.id,
+                      subscription.seats,
+                      quantity
+                    )
+
+                    if (result.synced) {
+                      logger.info('[onSubscriptionUpdate] Synced seat count from Stripe', {
+                        subscriptionId: subscription.id,
+                        referenceId: subscription.referenceId,
+                        previousSeats: result.previousSeats,
+                        newSeats: result.newSeats,
+                      })
+                    }
+                  } catch (error) {
+                    logger.error('[onSubscriptionUpdate] Failed to sync seat count', {
+                      subscriptionId: subscription.id,
+                      referenceId: subscription.referenceId,
+                      error,
+                    })
+                  }
+                }
               },
               onSubscriptionDeleted: async ({
                 subscription,
diff --git a/apps/sim/lib/billing/validation/seat-management.ts b/apps/sim/lib/billing/validation/seat-management.ts
index f7588af1db..bc4791f51b 100644
--- a/apps/sim/lib/billing/validation/seat-management.ts
+++ b/apps/sim/lib/billing/validation/seat-management.ts
@@ -405,3 +405,50 @@ export async function getOrganizationSeatAnalytics(organizationId: string) {
     return null
   }
 }
+
+/**
+ * Sync seat count from Stripe subscription quantity.
+ * Used by webhook handlers to keep local DB in sync with Stripe.
+ */
+export async function syncSeatsFromStripeQuantity(
+  subscriptionId: string,
+  currentSeats: number | null,
+  stripeQuantity: number
+): Promise<{ synced: boolean; previousSeats: number | null; newSeats: number }> {
+  const effectiveCurrentSeats = currentSeats ?? 0
+
+  // Only update if quantity differs
+  if (stripeQuantity === effectiveCurrentSeats) {
+    return {
+      synced: false,
+      previousSeats: effectiveCurrentSeats,
+      newSeats: stripeQuantity,
+    }
+  }
+
+  try {
+    await db
+      .update(subscription)
+      .set({ seats: stripeQuantity })
+      .where(eq(subscription.id, subscriptionId))
+
+    logger.info('Synced seat count from Stripe', {
+      subscriptionId,
+      previousSeats: effectiveCurrentSeats,
+      newSeats: stripeQuantity,
+    })
+
+    return {
+      synced: true,
+      previousSeats: effectiveCurrentSeats,
+      newSeats: stripeQuantity,
+    }
+  } catch (error) {
+    logger.error('Failed to sync seat count from Stripe', {
+      subscriptionId,
+      stripeQuantity,
+      error,
+    })
+    throw error
+  }
+}