diff --git a/apps/web/modules/settings/organizations/new/_components/AddNewTeamsForm.tsx b/apps/web/modules/settings/organizations/new/_components/AddNewTeamsForm.tsx
index d8af291603..8adb8ce9a8 100644
--- a/apps/web/modules/settings/organizations/new/_components/AddNewTeamsForm.tsx
+++ b/apps/web/modules/settings/organizations/new/_components/AddNewTeamsForm.tsx
@@ -7,9 +7,10 @@ import { z } from "zod";
 
 import { useOnboarding } from "@calcom/features/ee/organizations/lib/onboardingStore";
 import { useLocale } from "@calcom/lib/hooks/useLocale";
+import slugify from "@calcom/lib/slugify";
 import { trpc } from "@calcom/trpc/react";
-import { Button } from "@calcom/ui/components/button";
 import classNames from "@calcom/ui/classNames";
+import { Button } from "@calcom/ui/components/button";
 import { CheckboxField } from "@calcom/ui/components/form";
 import { Form } from "@calcom/ui/components/form";
 import { TextField } from "@calcom/ui/components/form";
@@ -102,7 +103,7 @@ const AddNewTeamsFormChild = ({ teams }: { teams: { id: number; name: string; sl
       }
     },
   });
-  const { register, control, watch, getValues } = form;
+  const { register, control, watch, getValues, setValue } = form;
   const { fields, append, remove } = useFieldArray({
     control,
     name: "teams",
@@ -177,6 +178,10 @@ const AddNewTeamsFormChild = ({ teams }: { teams: { id: number; name: string; sl
                         placeholder="New Slug"
                         defaultValue={teams.find((t) => t.id === team.id)?.slug ?? ""}
                         {...register(`moveTeams.${index}.newSlug`)}
+                        onChange={(e) => {
+                          const slug = slugify(e.target.value, true);
+                          setValue(`moveTeams.${index}.newSlug`, slug);
+                        }}
                         className="mt-2"
                         label=""
                       />
diff --git a/packages/features/ee/organizations/lib/server/createOrganizationFromOnboarding.test.ts b/packages/features/ee/organizations/lib/server/createOrganizationFromOnboarding.test.ts
index de7b1f91a9..94724870ea 100644
--- a/packages/features/ee/organizations/lib/server/createOrganizationFromOnboarding.test.ts
+++ b/packages/features/ee/organizations/lib/server/createOrganizationFromOnboarding.test.ts
@@ -313,6 +313,39 @@ describe("createOrganizationFromOnboarding", () => {
     ).rejects.toThrow("organization_url_taken");
   });
 
+  it("should create team with slugified slug", async () => {
+    const teamToMove = await createTestTeam({
+      name: "Sales",
+      slug: "Company Sales",
+    });
+
+    const { organizationOnboarding } = await createOnboardingEligibleUserAndOnboarding({
+      user: {
+        email: "test@example.com",
+      },
+      organizationOnboarding: {
+        slug: "UPPERCASE-SLUG",
+        teams: [{ id: teamToMove.id, name: "Sales", isBeingMigrated: true, slug: "sales-team" }],
+      },
+    });
+
+    const { organization } = await createOrganizationFromOnboarding({
+      organizationOnboarding,
+      paymentSubscriptionId: "mock_subscription_id",
+      paymentSubscriptionItemId: "mock_subscription_item_id",
+    });
+
+    expect(createTeamsHandler).toHaveBeenCalledWith(
+      expect.objectContaining({
+        input: expect.objectContaining({
+          orgId: organization.id,
+          teamNames: [],
+          moveTeams: expect.arrayContaining([expect.objectContaining({ id: 1, newSlug: "sales-team" })]),
+        }),
+      })
+    );
+  });
+
   it("should update stripe customer ID for existing user", async () => {
     const { user: existingUser, organizationOnboarding } = await createOnboardingEligibleUserAndOnboarding({
       user: {
diff --git a/packages/features/ee/organizations/lib/server/createOrganizationFromOnboarding.ts b/packages/features/ee/organizations/lib/server/createOrganizationFromOnboarding.ts
index c65acc0e99..55bbb35561 100644
--- a/packages/features/ee/organizations/lib/server/createOrganizationFromOnboarding.ts
+++ b/packages/features/ee/organizations/lib/server/createOrganizationFromOnboarding.ts
@@ -16,6 +16,7 @@ import { getTranslation } from "@calcom/lib/server/i18n";
 import { OrganizationRepository } from "@calcom/lib/server/repository/organization";
 import { OrganizationOnboardingRepository } from "@calcom/lib/server/repository/organizationOnboarding";
 import { UserRepository } from "@calcom/lib/server/repository/user";
+import slugify from "@calcom/lib/slugify";
 import { prisma } from "@calcom/prisma";
 import type { Prisma } from "@calcom/prisma/client";
 import type { Team, User } from "@calcom/prisma/client";
@@ -254,7 +255,7 @@ async function createOrMoveTeamsToOrganization(teams: TeamData[], owner: User, o
     .filter((team) => team.isBeingMigrated)
     .map((team) => ({
       id: team.id,
-      newSlug: team.slug,
+      newSlug: team.slug ? slugify(team.slug) : team.slug,
       shouldMove: true,
     }));
 
diff --git a/packages/trpc/server/routers/viewer/organizations/createTeams.handler.ts b/packages/trpc/server/routers/viewer/organizations/createTeams.handler.ts
index edcf5dfd80..77ee3573af 100644
--- a/packages/trpc/server/routers/viewer/organizations/createTeams.handler.ts
+++ b/packages/trpc/server/routers/viewer/organizations/createTeams.handler.ts
@@ -10,11 +10,11 @@ import { prisma } from "@calcom/prisma";
 import type { CreationSource } from "@calcom/prisma/enums";
 import { MembershipRole, RedirectType } from "@calcom/prisma/enums";
 import { teamMetadataSchema } from "@calcom/prisma/zod-utils";
+
 import { TRPCError } from "@trpc/server";
 
-import type { TCreateTeamsSchema } from "./createTeams.schema";
-import type { TrpcSessionUser } from "../../../types";
 import { inviteMembersWithNoInviterPermissionCheck } from "../teams/inviteMember/inviteMember.handler";
+import type { TCreateTeamsSchema } from "./createTeams.schema";
 
 const log = logger.getSubLogger({ prefix: ["viewer/organizations/createTeams.handler"] });
 type CreateTeamsOptions = {