diff --git a/netlify/functions/updateWorkspaceMember.js b/netlify/functions/updateWorkspaceMember.js
new file mode 100644
index 0000000..e81606a
--- /dev/null
+++ b/netlify/functions/updateWorkspaceMember.js
@@ -0,0 +1,5 @@
+'use strict';
+
+const extrovert = require('extrovert');
+
+module.exports = extrovert.toNetlifyFunction(require('../../src/actions/updateWorkspaceMember'));
diff --git a/src/actions/updateWorkspaceMember.js b/src/actions/updateWorkspaceMember.js
new file mode 100644
index 0000000..2886782
--- /dev/null
+++ b/src/actions/updateWorkspaceMember.js
@@ -0,0 +1,61 @@
+'use strict';
+
+const Archetype = require('archetype');
+const connect = require('../../src/db');
+const mongoose = require('mongoose');
+const stripe = require('../integrations/stripe');
+
+const UpdateWorkspaceMemberParams = new Archetype({
+  authorization: {
+    $type: 'string',
+    $required: true
+  },
+  workspaceId: {
+    $type: mongoose.Types.ObjectId,
+    $required: true
+  },
+  userId: {
+    $type: mongoose.Types.ObjectId,
+    $required: true
+  },
+  role: {
+    $type: 'string',
+    $required: true,
+    $enum: ['admin', 'member', 'readonly', 'dashboards']
+  }
+}).compile('UpdateWorkspaceMemberParams');
+
+module.exports = async function updateWorkspaceMember(params) {
+  const db = await connect();
+  const { AccessToken, User, Workspace } = db.models;
+
+  const { authorization, workspaceId, userId, role } = new UpdateWorkspaceMemberParams(params);
+
+  const accessToken = await AccessToken.findById(authorization).orFail(new Error('Invalid or expired access token'));
+  if (accessToken.expiresAt < new Date()) {
+    throw new Error('Access token has expired');
+  }
+  const initiatedByUserId = accessToken.userId;
+
+  const workspace = await Workspace.findById(workspaceId).orFail(new Error('Workspace not found'));
+  const initiatedByUserRoles = workspace.members.find(member => member.userId.toString() === initiatedByUserId.toString())?.roles;
+  if (initiatedByUserRoles == null || (!initiatedByUserRoles.includes('admin') && !initiatedByUserRoles.includes('owner'))) {
+    throw new Error('Forbidden');
+  }
+
+  const member = workspace.members.find(currentMember => currentMember.userId.toString() === userId.toString());
+  if (member == null) {
+    throw new Error('Member not found in the workspace');
+  }
+
+  member.roles = [role];
+  await workspace.save();
+
+  const users = await User.find({ _id: { $in: workspace.members.map(currentMember => currentMember.userId) } });
+  if (workspace.stripeSubscriptionId) {
+    const seats = users.filter(user => !user.isFreeUser).length;
+    await stripe.updateSubscriptionSeats(workspace.stripeSubscriptionId, seats);
+  }
+
+  return { workspace, users };
+};
diff --git a/test/updateWorkspaceMember.test.js b/test/updateWorkspaceMember.test.js
new file mode 100644
index 0000000..6cdd19f
--- /dev/null
+++ b/test/updateWorkspaceMember.test.js
@@ -0,0 +1,75 @@
+'use strict';
+
+const { afterEach, beforeEach, describe, it } = require('mocha');
+const assert = require('assert');
+const connect = require('../src/db');
+const updateWorkspaceMember = require('../src/actions/updateWorkspaceMember');
+
+describe('updateWorkspaceMember', function() {
+  let db, AccessToken, User, Workspace;
+  let user, workspace, accessToken, memberUser;
+
+  beforeEach(async function() {
+    db = await connect();
+    ({ AccessToken, User, Workspace } = db.models);
+
+    await AccessToken.deleteMany({});
+    await User.deleteMany({});
+    await Workspace.deleteMany({});
+
+    user = await User.create({
+      name: 'John Doe',
+      email: 'johndoe@example.com',
+      githubUsername: 'johndoe',
+      githubUserId: '1234'
+    });
+
+    memberUser = await User.create({
+      name: 'Jane Smith',
+      email: 'janesmith@example.com',
+      githubUsername: 'janesmith',
+      githubUserId: '5678'
+    });
+
+    accessToken = await AccessToken.create({
+      userId: user._id,
+      expiresAt: new Date(Date.now() + 1000 * 60 * 60 * 24 * 30)
+    });
+
+    workspace = await Workspace.create({
+      name: 'Test Workspace',
+      ownerId: user._id,
+      apiKey: 'test-api-key',
+      baseUrl: 'https://example.com',
+      members: [
+        { userId: user._id, roles: ['owner'] },
+        { userId: memberUser._id, roles: ['member'] }
+      ],
+      subscriptionTier: 'pro'
+    });
+  });
+
+  afterEach(async function() {
+    await AccessToken.deleteMany({});
+    await User.deleteMany({});
+    await Workspace.deleteMany({});
+  });
+
+  it('updates the role of a workspace member', async function() {
+    const result = await updateWorkspaceMember({
+      authorization: accessToken._id.toString(),
+      workspaceId: workspace._id,
+      userId: memberUser._id,
+      role: 'admin'
+    });
+
+    assert.ok(result.workspace);
+
+    const updatedMember = result.workspace.members.find(member => member.userId.toString() === memberUser._id.toString());
+    assert.deepStrictEqual(updatedMember.roles, ['admin']);
+
+    const workspaceInDb = await Workspace.findById(workspace._id);
+    const updatedMemberInDb = workspaceInDb.members.find(member => member.userId.toString() === memberUser._id.toString());
+    assert.deepStrictEqual(updatedMemberInDb.roles, ['admin']);
+  });
+});