diff --git a/packages/better-auth/src/plugins/organization/has-permission.ts b/packages/better-auth/src/plugins/organization/has-permission.ts
index 0a4f771bbe..e2b58d2dab 100644
--- a/packages/better-auth/src/plugins/organization/has-permission.ts
+++ b/packages/better-auth/src/plugins/organization/has-permission.ts
@@ -18,13 +18,22 @@ export const hasPermission = (
 	input: {
 		role: string;
 		options: OrganizationOptions;
+		allowCreatorAllPermissions?: boolean;
 	} & PermissionExclusive,
 ) => {
 	if (!input.permissions && !input.permission) {
 		return false;
 	}
+
 	const roles = input.role.split(",");
 	const acRoles = input.options.roles || defaultRoles;
+
+	const creatorRole = input.options.creatorRole || "owner";
+	const isCreator = roles.includes(creatorRole);
+
+	const allowCreatorsAllPermissions = input.allowCreatorAllPermissions || false;
+	if (isCreator && allowCreatorsAllPermissions) return true;
+
 	for (const role of roles) {
 		const _role = acRoles[role as keyof typeof acRoles];
 		const result = _role?.authorize(input.permissions ?? input.permission);
diff --git a/packages/better-auth/src/plugins/organization/organization.test.ts b/packages/better-auth/src/plugins/organization/organization.test.ts
index 63a0170823..6b127cf651 100644
--- a/packages/better-auth/src/plugins/organization/organization.test.ts
+++ b/packages/better-auth/src/plugins/organization/organization.test.ts
@@ -6,6 +6,8 @@ import { organizationClient } from "./client";
 import { createAccessControl } from "../access";
 import { ORGANIZATION_ERROR_CODES } from "./error-codes";
 import { APIError } from "better-call";
+import { admin } from "../admin";
+import { ownerAc } from "./access";
 
 describe("organization", async (it) => {
 	const { auth, signInWithTestUser, signInWithUser, cookieSetter } =
@@ -1028,6 +1030,176 @@ describe("cancel pending invitations on re-invite", async () => {
 	});
 });
 
+describe("owner can update roles", async () => {
+	const statement = {
+		custom: ["custom"],
+	} as const;
+
+	const ac = createAccessControl(statement);
+
+	const custom = ac.newRole({
+		custom: ["custom"],
+	});
+
+	const { auth } = await getTestInstance({
+		emailAndPassword: {
+			enabled: true,
+		},
+		plugins: [
+			admin(),
+			organization({
+				ac,
+				roles: {
+					custom,
+					owner: ownerAc,
+				},
+			}),
+		],
+	});
+
+	const adminEmail = "admin@email.com";
+	const adminPassword = "adminpassword";
+
+	await auth.api.createUser({
+		body: {
+			email: adminEmail,
+			password: adminPassword,
+			name: "Admin",
+			role: "admin",
+		},
+	});
+
+	const { headers } = await auth.api.signInEmail({
+		returnHeaders: true,
+		body: {
+			email: adminEmail,
+			password: adminPassword,
+		},
+	});
+
+	const adminCookie = headers.getSetCookie()[0];
+
+	const org = await auth.api.createOrganization({
+		headers: { cookie: adminCookie },
+		body: {
+			name: "Org",
+			slug: "org",
+		},
+	});
+
+	if (!org) {
+		throw new Error("couldn't create an organization");
+	}
+
+	const ownerId = org.members.at(0)?.id;
+	if (!ownerId) {
+		throw new Error("couldn't get the owner id");
+	}
+
+	it("allows setting custom role to a user", async () => {
+		const userEmail = "user@email.com";
+		const userPassword = "userpassword";
+
+		const { user } = await auth.api.createUser({
+			headers: { cookie: adminCookie },
+			body: {
+				name: "user",
+				email: userEmail,
+				password: userPassword,
+			},
+		});
+
+		const addMemberRes = await auth.api.addMember({
+			headers: { cookie: adminCookie },
+			body: {
+				organizationId: org.id,
+				userId: user.id,
+				role: [],
+			},
+		});
+
+		if (!addMemberRes) {
+			throw new Error("couldn't add user as a member to a repo");
+		}
+
+		await auth.api.updateMemberRole({
+			headers: { cookie: adminCookie },
+			body: {
+				organizationId: org.id,
+				memberId: addMemberRes.id,
+				role: ["custom"],
+			},
+		});
+
+		const signInRes = await auth.api.signInEmail({
+			returnHeaders: true,
+			body: {
+				email: userEmail,
+				password: userPassword,
+			},
+		});
+
+		const userCookie = signInRes.headers.getSetCookie()[0];
+
+		const permissionRes = await auth.api.hasPermission({
+			headers: { cookie: userCookie },
+			body: {
+				organizationId: org.id,
+				permissions: {
+					custom: ["custom"],
+				},
+			},
+		});
+
+		expect(permissionRes.success).toBe(true);
+		expect(permissionRes.error).toBeNull();
+	});
+
+	it("allows org owner to set a custom role for themselves", async () => {
+		await auth.api.updateMemberRole({
+			headers: { cookie: adminCookie },
+			body: {
+				organizationId: org.id,
+				memberId: ownerId,
+				role: ["owner", "custom"],
+			},
+		});
+
+		const permissionRes = await auth.api.hasPermission({
+			headers: { cookie: adminCookie },
+			body: {
+				organizationId: org.id,
+				permissions: {
+					custom: ["custom"],
+				},
+			},
+		});
+
+		expect(permissionRes.success).toBe(true);
+		expect(permissionRes.error).toBeNull();
+	});
+
+	// TODO: We might not want to allow this.
+	it("allows an org owner to remove their own creator role", async () => {
+		await auth.api.updateMemberRole({
+			headers: { cookie: adminCookie },
+			body: {
+				organizationId: org.id,
+				memberId: ownerId,
+				role: [],
+			},
+		});
+
+		const member = await auth.api.getActiveMember({
+			headers: { cookie: adminCookie },
+		});
+
+		console.log({ member });
+
+		expect(member?.role).toBe("");
+	});
+});
+
 describe("types", async (it) => {
 	const { auth } = await getTestInstance({
 		plugins: [organization({})],
diff --git a/packages/better-auth/src/plugins/organization/routes/crud-members.ts b/packages/better-auth/src/plugins/organization/routes/crud-members.ts
index 37a5d5c7df..a2442d3228 100644
--- a/packages/better-auth/src/plugins/organization/routes/crud-members.ts
+++ b/packages/better-auth/src/plugins/organization/routes/crud-members.ts
@@ -381,15 +381,19 @@ export const updateMemberRole = <O extends OrganizationOptions>(option: O) =>
 				});
 			}
 
-			const toBeUpdatedMemberRoles = toBeUpdatedMember.role.split(",");
-			const updatingMemberRoles = member.role.split(",");
 			const creatorRole = ctx.context.orgOptions?.creatorRole || "owner";
 
+			const updatingMemberRoles = member.role.split(",");
+			const toBeUpdatedMemberRoles = toBeUpdatedMember.role.split(",");
+
+			const isUpdatingCreator = toBeUpdatedMemberRoles.includes(creatorRole);
+			const updaterIsCreator = updatingMemberRoles.includes(creatorRole);
+
+			const isSettingCreatorRole = roleToSet.includes(creatorRole);
+
 			if (
-				(toBeUpdatedMemberRoles.includes(creatorRole) &&
-					!updatingMemberRoles.includes(creatorRole)) ||
-				(roleToSet.includes(creatorRole) &&
-					!updatingMemberRoles.includes(creatorRole))
+				(isUpdatingCreator && !updaterIsCreator) ||
+				(isSettingCreatorRole && !updaterIsCreator)
 			) {
 				throw new APIError("FORBIDDEN", {
 					message:
@@ -403,6 +407,7 @@ export const updateMemberRole = <O extends OrganizationOptions>(option: O) =>
 				permissions: {
 					member: ["update"],
 				},
+				allowCreatorAllPermissions: true,
 			});
 
 			if (!canUpdateMember) {