diff --git a/server/channels/api4/team.go b/server/channels/api4/team.go
index 92ffa5b965..ce7580b2bc 100644
--- a/server/channels/api4/team.go
+++ b/server/channels/api4/team.go
@@ -222,6 +222,20 @@ func updateTeam(c *Context, w http.ResponseWriter, r *http.Request) {
 		return
 	}
 
+	oldTeam, err := c.App.GetTeam(c.Params.TeamId)
+	if err != nil {
+		c.Err = err
+		return
+	}
+
+	// Updating AllowOpenInvite or AllowedDomains requires InviteUser permission
+	if (team.AllowOpenInvite != oldTeam.AllowOpenInvite || team.AllowedDomains != oldTeam.AllowedDomains) && !c.App.SessionHasPermissionToTeam(*c.AppContext.Session(), c.Params.TeamId, model.PermissionInviteUser) {
+		c.SetPermissionError(model.PermissionInviteUser)
+		return
+	}
+
+	auditRec.AddEventPriorState(oldTeam)
+
 	updatedTeam, err := c.App.UpdateTeam(&team)
 	if err != nil {
 		c.Err = err
diff --git a/server/channels/api4/team_test.go b/server/channels/api4/team_test.go
index ddf599a6dd..d8b34049dc 100644
--- a/server/channels/api4/team_test.go
+++ b/server/channels/api4/team_test.go
@@ -503,6 +503,115 @@ func TestUpdateTeam(t *testing.T) {
 	})
 }
 
+func TestUpdateTeamInviteUserPermission(t *testing.T) {
+	th := Setup(t).InitBasic()
+	defer th.TearDown()
+
+	// Create a team with AllowOpenInvite=false
+	team := &model.Team{
+		DisplayName:     "Test Team",
+		Name:            GenerateTestTeamName(),
+		Email:           th.GenerateTestEmail(),
+		Type:            model.TeamOpen,
+		AllowOpenInvite: false,
+	}
+	team, _, err := th.Client.CreateTeam(context.Background(), team)
+	require.NoError(t, err)
+
+	defaultRolePermissions := th.SaveDefaultRolePermissions()
+	defer th.RestoreDefaultRolePermissions(defaultRolePermissions)
+
+	t.Run("user with InviteUser permission can change AllowOpenInvite", func(t *testing.T) {
+		th.AddPermissionToRole(model.PermissionInviteUser.Id, model.TeamUserRoleId)
+
+		team.AllowOpenInvite = true
+		var updatedTeam *model.Team
+		updatedTeam, _, err = th.Client.UpdateTeam(context.Background(), team)
+		require.NoError(t, err)
+		require.True(t, updatedTeam.AllowOpenInvite)
+
+		// Reset for next test
+		team.AllowOpenInvite = false
+		updatedTeam, _, err = th.Client.UpdateTeam(context.Background(), team)
+		require.NoError(t, err)
+		require.False(t, updatedTeam.AllowOpenInvite)
+	})
+
+	t.Run("user without InviteUser permission cannot change AllowOpenInvite", func(t *testing.T) {
+		// Remove InviteUser permission from team user and admin roles
+		th.RemovePermissionFromRole(model.PermissionInviteUser.Id, model.TeamUserRoleId)
+		th.RemovePermissionFromRole(model.PermissionInviteUser.Id, model.TeamAdminRoleId)
+
+		// Attempt to change AllowOpenInvite to true
+		team.AllowOpenInvite = true
+		var resp *model.Response
+		_, resp, err = th.Client.UpdateTeam(context.Background(), team)
+		require.Error(t, err)
+		CheckForbiddenStatus(t, resp)
+
+		// Verify the team's AllowOpenInvite didn't change
+		var fetchedTeam *model.Team
+		fetchedTeam, _, err = th.SystemAdminClient.GetTeam(context.Background(), team.Id, "")
+		require.NoError(t, err)
+		require.False(t, fetchedTeam.AllowOpenInvite, "AllowOpenInvite should still be false")
+	})
+
+	t.Run("user without InviteUser permission cannot change AllowedDomains", func(t *testing.T) {
+		// Remove InviteUser permission from team user and admin roles
+		th.RemovePermissionFromRole(model.PermissionInviteUser.Id, model.TeamUserRoleId)
+		th.RemovePermissionFromRole(model.PermissionInviteUser.Id, model.TeamAdminRoleId)
+
+		// Attempt to change AllowedDomains
+		team.AllowedDomains = "example.com"
+		var resp *model.Response
+		_, resp, err = th.Client.UpdateTeam(context.Background(), team)
+		require.Error(t, err)
+		CheckForbiddenStatus(t, resp)
+
+		// Verify the team's AllowedDomains didn't change
+		var fetchedTeam *model.Team
+		fetchedTeam, _, err = th.SystemAdminClient.GetTeam(context.Background(), team.Id, "")
+		require.NoError(t, err)
+		require.Empty(t, fetchedTeam.AllowedDomains, "AllowedDomains should still be empty")
+	})
+
+	t.Run("user without InviteUser permission can change other fields", func(t *testing.T) {
+		// Remove InviteUser permission
+		th.RemovePermissionFromRole(model.PermissionInviteUser.Id, model.TeamUserRoleId)
+		th.RemovePermissionFromRole(model.PermissionInviteUser.Id, model.TeamAdminRoleId)
+
+		// Refetch the team to get clean state
+		team, _, err = th.SystemAdminClient.GetTeam(context.Background(), team.Id, "")
+		require.NoError(t, err)
+
+		// Change DisplayName and Description (should succeed)
+		team.DisplayName = "Updated Display Name"
+		team.Description = "Updated Description"
+		var updatedTeam *model.Team
+		updatedTeam, _, err = th.Client.UpdateTeam(context.Background(), team)
+		require.NoError(t, err)
+		require.Equal(t, "Updated Display Name", updatedTeam.DisplayName)
+		require.Equal(t, "Updated Description", updatedTeam.Description)
+	})
+
+	t.Run("system admin can change AllowOpenInvite regardless of permissions", func(t *testing.T) {
+		// Remove InviteUser permission for regular roles
+		th.RemovePermissionFromRole(model.PermissionInviteUser.Id, model.TeamUserRoleId)
+		th.RemovePermissionFromRole(model.PermissionInviteUser.Id, model.TeamAdminRoleId)
+
+		// Refetch the team
+		team, _, err = th.SystemAdminClient.GetTeam(context.Background(), team.Id, "")
+		require.NoError(t, err)
+
+		// System admin should be able to change AllowOpenInvite
+		team.AllowOpenInvite = true
+		var updatedTeam *model.Team
+		updatedTeam, _, err = th.SystemAdminClient.UpdateTeam(context.Background(), team)
+		require.NoError(t, err)
+		require.True(t, updatedTeam.AllowOpenInvite)
+	})
+}
+
 func TestUpdateTeamPrivacyInvitePermissions(t *testing.T) {
 	th := Setup(t).InitBasic()
 	defer th.TearDown()