diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/OrganizationServiceCEImpl.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/OrganizationServiceCEImpl.java
index e7728f337d..3f5d803bb8 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/OrganizationServiceCEImpl.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/services/ce/OrganizationServiceCEImpl.java
@@ -1,5 +1,6 @@
 package com.appsmith.server.services.ce;
 
+import com.appsmith.external.helpers.AppsmithBeanUtils;
 import com.appsmith.server.acl.AclPermission;
 import com.appsmith.server.acl.AppsmithRole;
 import com.appsmith.server.acl.RoleGraph;
@@ -216,7 +217,22 @@ public class OrganizationServiceCEImpl extends BaseService<OrganizationRepositor
 
     @Override
     public Mono<Organization> update(String id, Organization resource) {
-        return repository.updateById(id, resource, MANAGE_ORGANIZATIONS)
+        Mono<Organization> findOrganizationMono = repository.findById(id, MANAGE_ORGANIZATIONS)
+                .switchIfEmpty(Mono.error(new AppsmithException(AppsmithError.NO_RESOURCE_FOUND, FieldName.ORGANIZATION, id)));
+
+        // In case the update is not used to update the policies, then set the policies to null to ensure that the
+        // existing policies are not overwritten.
+        if (resource.getPolicies().isEmpty()) {
+            resource.setPolicies(null);
+        }
+
+        return findOrganizationMono
+                .map(existingOrganization -> {
+                    AppsmithBeanUtils.copyNewFieldValuesIntoOldObject(resource, existingOrganization);
+                    return existingOrganization;
+                })
+                .flatMap(this::validateObject)
+                .flatMap(repository::save)
                 .flatMap(analyticsService::sendUpdateEvent);
     }
 
diff --git a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/OrganizationServiceTest.java b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/OrganizationServiceTest.java
index 4c907aeedc..ad35ad57d3 100644
--- a/app/server/appsmith-server/src/test/java/com/appsmith/server/services/OrganizationServiceTest.java
+++ b/app/server/appsmith-server/src/test/java/com/appsmith/server/services/OrganizationServiceTest.java
@@ -262,12 +262,11 @@ public class OrganizationServiceTest {
 
         Mono<Organization> createOrganization = organizationService.create(organization);
         Mono<Organization> updateOrganization = createOrganization
-                .map(t -> {
-                    t.setDomain("abc.com");
-                    return t;
-                })
-                .flatMap(t -> organizationService.update(t.getId(), t))
-                .flatMap(t -> organizationService.getById(t.getId()));
+                .flatMap(t -> {
+                    Organization newOrganization = new Organization();
+                    newOrganization.setDomain("abc.com");
+                    return organizationService.update(t.getId(), newOrganization);
+                });
 
         StepVerifier.create(updateOrganization)
                 .assertNext(t -> {
@@ -280,6 +279,40 @@ public class OrganizationServiceTest {
                 .verifyComplete();
     }
 
+    /**
+     * This test tests for updating the organization with an empty name.
+     * The organization name should not be empty.
+     */
+    @Test
+    @WithUserDetails(value = "api_user")
+    public void inValidUpdateOrganizationEmptyName() {
+        Policy manageOrgAppPolicy = Policy.builder().permission(ORGANIZATION_MANAGE_APPLICATIONS.getValue())
+                .users(Set.of("api_user"))
+                .build();
+
+        Policy manageOrgPolicy = Policy.builder().permission(MANAGE_ORGANIZATIONS.getValue())
+                .users(Set.of("api_user"))
+                .build();
+
+        Organization organization = new Organization();
+        organization.setName("Test Update Name");
+        organization.setDomain("example.com");
+        organization.setWebsite("https://example.com");
+        organization.setSlug("test-update-name");
+        Mono<Organization> createOrganization = organizationService.create(organization);
+        Mono<Organization> updateOrganization = createOrganization
+                .flatMap(t -> {
+                    Organization newOrganization = new Organization();
+                    newOrganization.setName("");
+                    return organizationService.update(t.getId(), newOrganization);
+                });
+
+        StepVerifier.create(updateOrganization)
+                .expectErrorMatches(throwable -> throwable instanceof AppsmithException &&
+                        throwable.getMessage().equals(AppsmithError.INVALID_PARAMETER.getMessage(FieldName.NAME)))
+                .verify();
+    }
+
     @Test
     @WithUserDetails(value = "api_user")
     public void uniqueSlugs() {