diff --git a/packages/features/ee/billing/credit-service.ts b/packages/features/ee/billing/credit-service.ts
index 4a62918c6c05fc..b1663cc3b63d96 100644
--- a/packages/features/ee/billing/credit-service.ts
+++ b/packages/features/ee/billing/credit-service.ts
@@ -792,6 +792,54 @@ export class CreditService {
     };
   }
 
+    async moveCreditsFromTeamToUser({teamId , userId} : {teamId : number; userId : number})  {
+    return await prisma.$transaction(async (tx) => {
+      const teamCreditBalance = await CreditsRepository.findCreditBalance({teamId}, tx);
+
+      if(!teamCreditBalance || teamCreditBalance.additionalCredits <= 0) {
+        return ; 
+      }
+
+      let userCreditBalance = await CreditsRepository.findCreditBalance({userId}, tx);
+
+      if(!userCreditBalance) {
+        userCreditBalance = await CreditsRepository.createCreditBalance(
+          {userId},
+          tx
+        );
+      }
+
+      const creditsToTransfer = teamCreditBalance.additionalCredits;
+
+      logger.info("Moving credits from team to owner" , {
+        teamId,
+        userId,
+        creditsToTransfer,
+      })
+
+      await CreditsRepository.updateCreditBalance (
+        {
+          teamId,
+          data : {additionalCredits : 0},
+        },
+        tx
+      );
+
+      await CreditsRepository.updateCreditBalance(
+        {
+          userId ,
+          data : {
+            additionalCredits : {
+              increment : creditsToTransfer,
+            },
+          },
+        },
+        tx
+      );
+      return { creditsTransferred : creditsToTransfer };
+    });
+  }
+
   async moveCreditsFromTeamToOrg({ teamId, orgId }: { teamId: number; orgId: number }) {
     return await prisma.$transaction(async (tx) => {
       // Get team's credit balance
diff --git a/packages/features/ee/billing/service/teams/TeamBillingService.ts b/packages/features/ee/billing/service/teams/TeamBillingService.ts
index bb6979d459cef6..8a3254403048d6 100644
--- a/packages/features/ee/billing/service/teams/TeamBillingService.ts
+++ b/packages/features/ee/billing/service/teams/TeamBillingService.ts
@@ -22,6 +22,8 @@ import {
   type TeamBillingInput,
   TeamBillingPublishResponseStatus,
 } from "./ITeamBillingService";
+import { MembershipRole } from "@calcom/prisma/enums";
+import { CreditService } from "../../credit-service"
 
 const log = logger.getSubLogger({ prefix: ["TeamBilling"] });
 
@@ -133,6 +135,25 @@ export class TeamBillingService implements ITeamBillingService {
   }
   async downgrade() {
     try {
+       const creditService = new CreditService();
+
+      const owner = await prisma.membership.findFirst({
+        where : {
+           teamId : this.team.id,
+           role : MembershipRole.OWNER
+        },
+      });
+
+      if(!owner) {
+        throw new Error(`No owner found for team ${this.team.id}`);
+      }
+
+      await creditService.moveCreditsFromTeamToUser({
+        teamId : this.team.id,
+        userId : owner.userId,
+      });
+      
+
       const { mergeMetadata } = getMetadataHelpers(teamPaymentMetadataSchema, this.team.metadata);
       const metadata = mergeMetadata({
         paymentId: undefined,