diff --git a/app/namespace.go b/app/namespace.go
index dd5c041f..d48bdb8c 100644
--- a/app/namespace.go
+++ b/app/namespace.go
@@ -46,6 +46,12 @@ const (
 	disableFailoverFlagName          = "disable-auto-failover"
 	enableDeleteProtectionFlagName   = "enable-delete-protection"
 	tagFlagName                      = "tag"
+
+	capacityModeFlagName  = "capacity-mode"
+	capacityValueFlagName = "capacity-value"
+
+	provisionedCapacityMode = "provisioned"
+	onDemandCapacityMode    = "on_demand"
 )
 
 const (
@@ -166,6 +172,28 @@ var (
 		Aliases:  []string{"ids"},
 		Required: false,
 	}
+
+	capacityModeFlag = &cli.StringFlag{
+		Name:     capacityModeFlagName,
+		Usage:    fmt.Sprintf("The capacity mode to use for the namespace. Valid values are '%s' and '%s'", onDemandCapacityMode, provisionedCapacityMode),
+		Aliases:  []string{"cm"},
+		Required: false,
+		Action: func(_ *cli.Context, s string) error {
+			switch s {
+			case "", onDemandCapacityMode, provisionedCapacityMode:
+				return nil
+			default:
+				return fmt.Errorf("invalid capacity mode %s, valid values are 'on_demand' and 'provisioned'", s)
+			}
+		},
+	}
+
+	capacityValueFlag = &cli.Float64Flag{
+		Name:     capacityValueFlagName,
+		Usage:    "The capacity value to use for the namespace. Required if capacity mode is 'provisioned', ignored otherwise",
+		Aliases:  []string{"cv"},
+		Required: false,
+	}
 )
 
 type NamespaceClient struct {
@@ -377,6 +405,28 @@ func (c *NamespaceClient) updateNamespace(ctx *cli.Context, n *namespace.Namespa
 	return PrintProto(res)
 }
 
+func (c *NamespaceClient) updateNamespaceCloudApi(ctx *cli.Context, n *cloudNamespace.Namespace) error {
+	resourceVersion := n.ResourceVersion
+	if v := ctx.String(ResourceVersionFlagName); v != "" {
+		resourceVersion = v
+	}
+
+	res, err := c.cloudAPIClient.UpdateNamespace(c.ctx, &cloudservice.UpdateNamespaceRequest{
+		AsyncOperationId: ctx.String(RequestIDFlagName),
+		Namespace:        n.Namespace,
+		ResourceVersion:  resourceVersion,
+		Spec:             n.Spec,
+	})
+	if err != nil {
+		if isNothingChangedErr(ctx, err) {
+			return nil
+		}
+		return err
+	}
+
+	return PrintProto(res)
+}
+
 func (c *NamespaceClient) updateNamespaceTags(ctx *cli.Context, tagsToUpsert map[string]string, tagsToRemove []string) error {
 	namespace := ctx.String(NamespaceFlagName)
 	if len(namespace) == 0 {
@@ -1847,6 +1897,56 @@ func NewNamespaceCommand(getNamespaceClientFn GetNamespaceClientFn) (CommandOut,
 						return PrintProto(n.GetCapacity())
 					},
 				},
+				{
+					Name:    "update",
+					Usage:   "Set the capacity of a given namespace.",
+					Aliases: []string{"u"},
+					Flags: []cli.Flag{
+						NamespaceFlag,
+						capacityModeFlag,
+						capacityValueFlag,
+						RequestIDFlag,
+						ResourceVersionFlag,
+					},
+					Action: func(ctx *cli.Context) error {
+						nsID := ctx.String(NamespaceFlagName)
+						mode := ctx.String(capacityModeFlagName)
+						value := ctx.Float64(capacityValueFlagName)
+						if mode == "" {
+							return fmt.Errorf("capacity mode must be specified (either '%s' or '%s')", onDemandCapacityMode, provisionedCapacityMode)
+						}
+						if mode == provisionedCapacityMode && value <= 0 {
+							return fmt.Errorf("capacity value must be greater than 0 when capacity mode is '%s'", provisionedCapacityMode)
+						}
+						var capacitySpec *cloudNamespace.CapacitySpec
+						switch mode {
+						case onDemandCapacityMode:
+							capacitySpec = &cloudNamespace.CapacitySpec{
+								Spec: &cloudNamespace.CapacitySpec_OnDemand_{
+									OnDemand: &cloudNamespace.CapacitySpec_OnDemand{},
+								},
+							}
+						case provisionedCapacityMode:
+							capacitySpec = &cloudNamespace.CapacitySpec{
+								Spec: &cloudNamespace.CapacitySpec_Provisioned_{
+									Provisioned: &cloudNamespace.CapacitySpec_Provisioned{
+										Value: value,
+									},
+								},
+							}
+						}
+						ns, err := c.getNamespaceCloudApi(nsID)
+						if err != nil {
+							return err
+						}
+
+						if ns != nil && ns.Spec == nil {
+							ns.Spec = &cloudNamespace.NamespaceSpec{}
+						}
+						ns.Spec.CapacitySpec = capacitySpec
+						return c.updateNamespaceCloudApi(ctx, ns)
+					},
+				},
 			},
 		},
 	}
diff --git a/app/namespace_test.go b/app/namespace_test.go
index 910b30fa..7fe9be00 100644
--- a/app/namespace_test.go
+++ b/app/namespace_test.go
@@ -3321,3 +3321,101 @@ func (s *NamespaceTestSuite) TestGetNamespaceCapacity() {
 		})
 	}
 }
+
+func (s *NamespaceTestSuite) TestUpdateNamespaceCapacity() {
+	tests := []struct {
+		name      string
+		args      []string
+		mock      func()
+		expectErr bool
+	}{
+		{
+			name: "update namespace capacity - success",
+			args: []string{"namespace", "capacity", "update", "--namespace", "ns1", "--capacity-mode", "provisioned", "--capacity-value", "16"},
+			mock: func() {
+				s.mockCloudApiClient.EXPECT().
+					GetNamespace(gomock.Any(), &cloudservice.GetNamespaceRequest{
+						Namespace: "ns1",
+					}).Return(&cloudservice.GetNamespaceResponse{
+					Namespace: &cloudNamespace.Namespace{
+						Namespace: "ns1",
+						Capacity: &cloudNamespace.Capacity{
+							CurrentMode: &cloudNamespace.Capacity_OnDemand_{
+								OnDemand: &cloudNamespace.Capacity_OnDemand{},
+							},
+						},
+					},
+				}, nil).Times(1)
+
+				s.mockCloudApiClient.EXPECT().
+					UpdateNamespace(gomock.Any(), &cloudservice.UpdateNamespaceRequest{
+						Namespace: "ns1",
+						Spec: &cloudNamespace.NamespaceSpec{
+							CapacitySpec: &cloudNamespace.CapacitySpec{
+								Spec: &cloudNamespace.CapacitySpec_Provisioned_{
+									Provisioned: &cloudNamespace.CapacitySpec_Provisioned{
+										Value: 16.0,
+									},
+								},
+							},
+						},
+					}).
+					Return(&cloudservice.UpdateNamespaceResponse{
+						AsyncOperation: &operation.AsyncOperation{
+							Id: "op-123",
+						},
+					}, nil)
+
+			},
+		},
+		{
+			name: "update namespace capacity - failure",
+			args: []string{"namespace", "capacity", "update", "--namespace", "ns1", "--capacity-mode", "provisioned", "--capacity-value", "16"},
+			mock: func() {
+				s.mockCloudApiClient.EXPECT().
+					GetNamespace(gomock.Any(), &cloudservice.GetNamespaceRequest{
+						Namespace: "ns1",
+					}).Return(&cloudservice.GetNamespaceResponse{
+					Namespace: &cloudNamespace.Namespace{
+						Namespace: "ns1",
+						Capacity: &cloudNamespace.Capacity{
+							CurrentMode: &cloudNamespace.Capacity_OnDemand_{
+								OnDemand: &cloudNamespace.Capacity_OnDemand{},
+							},
+						},
+					},
+				}, nil).Times(1)
+
+				s.mockCloudApiClient.EXPECT().
+					UpdateNamespace(gomock.Any(), &cloudservice.UpdateNamespaceRequest{
+						Namespace: "ns1",
+						Spec: &cloudNamespace.NamespaceSpec{
+							CapacitySpec: &cloudNamespace.CapacitySpec{
+								Spec: &cloudNamespace.CapacitySpec_Provisioned_{
+									Provisioned: &cloudNamespace.CapacitySpec_Provisioned{
+										Value: 16.0,
+									},
+								},
+							},
+						},
+					}).
+					Return(nil, errors.New("some error"))
+			},
+			expectErr: true,
+		},
+	}
+
+	for _, tc := range tests {
+		s.Run(tc.name, func() {
+			if tc.mock != nil {
+				tc.mock()
+			}
+			err := s.RunCmd(tc.args...)
+			if tc.expectErr {
+				s.Error(err)
+			} else {
+				s.NoError(err)
+			}
+		})
+	}
+}