diff --git a/api4/scheme_test.go b/api4/scheme_test.go
index 50e114d1af..e492bed539 100644
--- a/api4/scheme_test.go
+++ b/api4/scheme_test.go
@@ -4,6 +4,7 @@
 package api4
 
 import (
+	"context"
 	"strings"
 	"testing"
 
@@ -760,3 +761,36 @@ func TestDeleteScheme(t *testing.T) {
 		CheckNotImplementedStatus(t, r6)
 	})
 }
+
+func TestUpdateTeamSchemeWithTeamMembers(t *testing.T) {
+	th := Setup(t).InitBasic()
+	defer th.TearDown()
+
+	t.Run("Correctly invalidates team member cache", func(t *testing.T) {
+		th.App.SetPhase2PermissionsMigrationStatus(true)
+
+		team := th.CreateTeam()
+		_, _, err := th.App.AddUserToTeam(team.Id, th.BasicUser.Id, th.SystemAdminUser.Id)
+		require.Nil(t, err)
+
+		teamScheme := th.SetupTeamScheme()
+
+		teamUserRole, err := th.App.GetRoleByName(context.Background(), teamScheme.DefaultTeamUserRole)
+		require.Nil(t, err)
+		teamUserRole.Permissions = []string{}
+		_, err = th.App.UpdateRole(teamUserRole)
+		require.Nil(t, err)
+
+		th.LoginBasic()
+
+		_, resp := th.Client.CreateChannel(&model.Channel{DisplayName: "Test API Name", Name: GenerateTestChannelName(), Type: model.CHANNEL_OPEN, TeamId: team.Id})
+		require.Nil(t, resp.Error)
+
+		team.SchemeId = &teamScheme.Id
+		team, err = th.App.UpdateTeamScheme(team)
+		require.Nil(t, err)
+
+		_, resp = th.Client.CreateChannel(&model.Channel{DisplayName: "Test API Name", Name: GenerateTestChannelName(), Type: model.CHANNEL_OPEN, TeamId: team.Id})
+		require.NotNil(t, resp.Error)
+	})
+}
diff --git a/app/team.go b/app/team.go
index ac498383e3..9740fa2714 100644
--- a/app/team.go
+++ b/app/team.go
@@ -233,6 +233,8 @@ func (a *App) UpdateTeamScheme(team *model.Team) (*model.Team, *model.AppError)
 		}
 	}
 
+	a.ClearTeamMembersCache(team.Id)
+
 	a.sendTeamEvent(oldTeam, model.WEBSOCKET_EVENT_UPDATE_TEAM_SCHEME)
 
 	return oldTeam, nil