diff --git a/pallets/admin-utils/src/lib.rs b/pallets/admin-utils/src/lib.rs
index 2b41539816..bbd916cfb4 100644
--- a/pallets/admin-utils/src/lib.rs
+++ b/pallets/admin-utils/src/lib.rs
@@ -97,6 +97,8 @@ pub mod pallet {
         MaxAllowedUIdsLessThanCurrentUIds,
         /// The maximum value for bonds moving average is reached
         BondsMovingAverageMaxReached,
+        /// The maximum value for adjustment alpha is reached
+        AdjustmentAlphaMaxReached,
     }
     /// Enum for specifying the type of precompile operation.
     #[derive(Encode, Decode, TypeInfo, Clone, PartialEq, Eq, Debug, Copy)]
@@ -381,7 +383,14 @@ pub mod pallet {
             netuid: u16,
             adjustment_alpha: u64,
         ) -> DispatchResult {
-            pallet_subtensor::Pallet::<T>::ensure_subnet_owner_or_root(origin, netuid)?;
+            pallet_subtensor::Pallet::<T>::ensure_subnet_owner_or_root(origin.clone(), netuid)?;
+
+            if pallet_subtensor::Pallet::<T>::ensure_subnet_owner(origin, netuid).is_ok() {
+                ensure!(
+                    adjustment_alpha <= (u64::MAX.saturating_div(100).saturating_mul(97)), // 0.97
+                    Error::<T>::AdjustmentAlphaMaxReached
+                )
+            }
 
             ensure!(
                 pallet_subtensor::Pallet::<T>::if_subnet_exist(netuid),
diff --git a/pallets/admin-utils/src/tests/mod.rs b/pallets/admin-utils/src/tests/mod.rs
index bb813ce117..a2105b2c48 100644
--- a/pallets/admin-utils/src/tests/mod.rs
+++ b/pallets/admin-utils/src/tests/mod.rs
@@ -339,12 +339,14 @@ fn test_sudo_set_adjustment_interval() {
 fn test_sudo_set_adjustment_alpha() {
     new_test_ext().execute_with(|| {
         let netuid: u16 = 1;
-        let to_be_set: u64 = 10;
+        let coldkey: U256 = U256::from(1);
+        let to_be_set: u64 = u64::MAX / 3;
         add_network(netuid, 10);
         let init_value: u64 = SubtensorModule::get_adjustment_alpha(netuid);
+        pallet_subtensor::SubnetOwner::<Test>::insert(netuid, coldkey);
         assert_eq!(
             AdminUtils::sudo_set_adjustment_alpha(
-                <<Test as Config>::RuntimeOrigin>::signed(U256::from(1)),
+                <<Test as Config>::RuntimeOrigin>::signed(U256::from(100)),
                 netuid,
                 to_be_set
             ),
@@ -358,9 +360,17 @@ fn test_sudo_set_adjustment_alpha() {
             ),
             Err(Error::<Test>::SubnetDoesNotExist.into())
         );
+        assert_eq!(
+            AdminUtils::sudo_set_adjustment_alpha(
+                <<Test as Config>::RuntimeOrigin>::signed(coldkey),
+                netuid,
+                u64::MAX
+            ),
+            Err(Error::<Test>::AdjustmentAlphaMaxReached.into())
+        );
         assert_eq!(SubtensorModule::get_adjustment_alpha(netuid), init_value);
         assert_ok!(AdminUtils::sudo_set_adjustment_alpha(
-            <<Test as Config>::RuntimeOrigin>::root(),
+            <<Test as Config>::RuntimeOrigin>::signed(coldkey),
             netuid,
             to_be_set
         ));
diff --git a/pallets/subtensor/src/macros/hooks.rs b/pallets/subtensor/src/macros/hooks.rs
index a0e2fc6e72..29b5eeeaff 100644
--- a/pallets/subtensor/src/macros/hooks.rs
+++ b/pallets/subtensor/src/macros/hooks.rs
@@ -115,7 +115,9 @@ mod hooks {
                 // Reset max burn
                 .saturating_add(migrations::migrate_reset_max_burn::migrate_reset_max_burn::<T>())
                 // Migrate ColdkeySwapScheduled structure to new format
-                .saturating_add(migrations::migrate_coldkey_swap_scheduled::migrate_coldkey_swap_scheduled::<T>());
+                .saturating_add(migrations::migrate_coldkey_swap_scheduled::migrate_coldkey_swap_scheduled::<T>())
+                // Reset adjustment alpha
+                .saturating_add(migrations::migrate_reset_adjustment_alpha::migrate_reset_adjustment_alpha::<T>());
             weight
         }
 
diff --git a/pallets/subtensor/src/migrations/migrate_reset_adjustment_alpha.rs b/pallets/subtensor/src/migrations/migrate_reset_adjustment_alpha.rs
new file mode 100644
index 0000000000..ab4e5975e8
--- /dev/null
+++ b/pallets/subtensor/src/migrations/migrate_reset_adjustment_alpha.rs
@@ -0,0 +1,59 @@
+use super::*;
+use frame_support::{traits::Get, weights::Weight};
+use log;
+use scale_info::prelude::string::String;
+
+pub fn migrate_reset_adjustment_alpha<T: Config>() -> Weight {
+    let migration_name = b"migrate_reset_adjustment_alpha".to_vec();
+    let mut weight = T::DbWeight::get().reads(1);
+
+    // ------------------------------
+    // Step 0: Check if already run
+    // ------------------------------
+    if HasMigrationRun::<T>::get(&migration_name) {
+        log::info!(
+            "Migration '{:?}' has already run. Skipping.",
+            migration_name
+        );
+        return weight;
+    }
+
+    log::info!(
+        "Running migration '{}'",
+        String::from_utf8_lossy(&migration_name)
+    );
+
+    // ------------------------------
+    // Step 1: Reset all subnet's adjustment alpha to 0.97 if the value exceeds 0.97
+    // ------------------------------
+
+    let mut reset_entries_count = 0u64;
+
+    for netuid in AdjustmentAlpha::<T>::iter_keys() {
+        AdjustmentAlpha::<T>::mutate(netuid, |adjustment| {
+            *adjustment = (*adjustment).min(u64::MAX.saturating_div(100).saturating_mul(97)); // 0.97
+        });
+        reset_entries_count = reset_entries_count.saturating_add(1);
+    }
+
+    weight = weight
+        .saturating_add(T::DbWeight::get().reads_writes(reset_entries_count, reset_entries_count));
+
+    log::info!(
+        "Reset {} subnets from AdjustmentAlpha.",
+        reset_entries_count
+    );
+
+    // ------------------------------
+    // Step 2: Mark Migration as Completed
+    // ------------------------------
+    HasMigrationRun::<T>::insert(&migration_name, true);
+    weight = weight.saturating_add(T::DbWeight::get().writes(1));
+
+    log::info!(
+        "Migration '{:?}' completed successfully.",
+        String::from_utf8_lossy(&migration_name)
+    );
+
+    weight
+}
diff --git a/pallets/subtensor/src/migrations/mod.rs b/pallets/subtensor/src/migrations/mod.rs
index 5c6347034f..5f7f17ca68 100644
--- a/pallets/subtensor/src/migrations/mod.rs
+++ b/pallets/subtensor/src/migrations/mod.rs
@@ -20,6 +20,7 @@ pub mod migrate_remove_stake_map;
 pub mod migrate_remove_total_hotkey_coldkey_stakes_this_interval;
 pub mod migrate_remove_unused_maps_and_values;
 pub mod migrate_remove_zero_total_hotkey_alpha;
+pub mod migrate_reset_adjustment_alpha;
 pub mod migrate_reset_bonds_moving_average;
 pub mod migrate_reset_max_burn;
 pub mod migrate_set_first_emission_block_number;