diff --git a/docs/data-sources/org.md b/docs/data-sources/org.md
index 10527a93..6e1d65d0 100644
--- a/docs/data-sources/org.md
+++ b/docs/data-sources/org.md
@@ -30,6 +30,7 @@ output "org" {
 
 ### Read-Only
 
+- `is_default` (Boolean) Indicates whether the org is the default org of the instance.
 - `name` (String) Name of the org.
 - `primary_domain` (String) Primary domain of the org
 - `state` (String) State of the org, supported values: ORG_STATE_UNSPECIFIED, ORG_STATE_ACTIVE, ORG_STATE_INACTIVE, ORG_STATE_REMOVED
\ No newline at end of file
diff --git a/docs/resources/org.md b/docs/resources/org.md
index 0cebcd7e..269837de 100644
--- a/docs/resources/org.md
+++ b/docs/resources/org.md
@@ -24,6 +24,10 @@ resource "zitadel_org" "default" {
 
 - `name` (String) Name of the org
 
+### Optional
+
+- `is_default` (Boolean) True sets the org as default org for the instance. Only one org can be default org. Nothing happens if you set it to false until you set another org as default org.
+
 ### Read-Only
 
 - `id` (String) The ID of this resource.
diff --git a/zitadel/org/const.go b/zitadel/org/const.go
index 450075aa..42f7f0cc 100644
--- a/zitadel/org/const.go
+++ b/zitadel/org/const.go
@@ -4,6 +4,7 @@ const (
 	OrgIDVar         = "id"
 	orgIDsVar        = "ids"
 	NameVar          = "name"
+	IsDefaultVar     = "is_default"
 	nameMethodVar    = "name_method"
 	DomainVar        = "domain"
 	domainMethodVar  = "domain_method"
diff --git a/zitadel/org/datasource.go b/zitadel/org/datasource.go
index 80fcf297..b3cfc6c4 100644
--- a/zitadel/org/datasource.go
+++ b/zitadel/org/datasource.go
@@ -28,6 +28,11 @@ func GetDatasource() *schema.Resource {
 				Computed:    true,
 				Description: "Name of the org.",
 			},
+			IsDefaultVar: {
+				Type:        schema.TypeBool,
+				Computed:    true,
+				Description: "Indicates whether the org is the default org of the instance.",
+			},
 			stateVar: {
 				Type:        schema.TypeString,
 				Computed:    true,
diff --git a/zitadel/org/funcs.go b/zitadel/org/funcs.go
index b089c6ff..cd96505c 100644
--- a/zitadel/org/funcs.go
+++ b/zitadel/org/funcs.go
@@ -50,7 +50,20 @@ func create(ctx context.Context, d *schema.ResourceData, m interface{}) diag.Dia
 	if err != nil {
 		return diag.FromErr(err)
 	}
-	d.SetId(resp.GetId())
+	orgId := resp.GetId()
+	d.SetId(orgId)
+	if val, ok := d.GetOk(IsDefaultVar); ok && val.(bool) {
+		adminClient, err := helper.GetAdminClient(clientinfo)
+		if err != nil {
+			return diag.FromErr(err)
+		}
+		_, err = adminClient.SetDefaultOrg(ctx, &admin.SetDefaultOrgRequest{
+			OrgId: orgId,
+		})
+		if err != nil {
+			return diag.Errorf("error while setting default org id %s: %v", orgId, err)
+		}
+	}
 	return nil
 }
 
@@ -60,16 +73,32 @@ func update(ctx context.Context, d *schema.ResourceData, m interface{}) diag.Dia
 	if !ok {
 		return diag.Errorf("failed to get client")
 	}
-	client, err := helper.GetManagementClient(clientinfo)
-	if err != nil {
-		return diag.FromErr(err)
-	}
+	// If try updating the name to the same value API will return an error.
+	if d.HasChange(NameVar) {
+		client, err := helper.GetManagementClient(clientinfo)
+		if err != nil {
+			return diag.FromErr(err)
+		}
 
-	_, err = client.UpdateOrg(helper.CtxSetOrgID(ctx, d.Id()), &management.UpdateOrgRequest{
-		Name: d.Get(NameVar).(string),
-	})
-	if err != nil {
-		return diag.Errorf("failed to update org: %v", err)
+		_, err = client.UpdateOrg(helper.CtxSetOrgID(ctx, d.Id()), &management.UpdateOrgRequest{
+			Name: d.Get(NameVar).(string),
+		})
+		if err != nil {
+			return diag.Errorf("failed to update org: %v", err)
+		}
+	}
+	// To unset the default org, we need to set another org as default org.
+	if isDefault, ok := d.GetOk(IsDefaultVar); ok && isDefault.(bool) && d.HasChange(IsDefaultVar) {
+		adminClient, err := helper.GetAdminClient(clientinfo)
+		if err != nil {
+			return diag.FromErr(err)
+		}
+		_, err = adminClient.SetDefaultOrg(ctx, &admin.SetDefaultOrgRequest{
+			OrgId: d.Id(),
+		})
+		if err != nil {
+			return diag.Errorf("error while setting default org id %s: %v", d.Id(), err)
+		}
 	}
 	return nil
 }
@@ -103,6 +132,19 @@ func get(ctx context.Context, d *schema.ResourceData, m interface{}) diag.Diagno
 	if err := d.Set(stateVar, state); err != nil {
 		return diag.Errorf("error while setting org state %s: %v", state, err)
 	}
+	adminClient, err := helper.GetAdminClient(clientinfo)
+	if err != nil {
+		return diag.FromErr(err)
+	}
+	defaultOrg, err := adminClient.GetDefaultOrg(ctx, &admin.GetDefaultOrgRequest{})
+	if err != nil {
+		return diag.Errorf("error while getting default instance org: %v", err)
+	}
+	if defaultOrg.Org.Id == remoteOrg.Id {
+		if err := d.Set(IsDefaultVar, true); err != nil {
+			return diag.Errorf("error while setting org is_default: %v", err)
+		}
+	}
 	return nil
 }
 
diff --git a/zitadel/org/resource.go b/zitadel/org/resource.go
index d43da0cf..d2293a2c 100644
--- a/zitadel/org/resource.go
+++ b/zitadel/org/resource.go
@@ -15,6 +15,17 @@ func GetResource() *schema.Resource {
 				Required:    true,
 				Description: "Name of the org",
 			},
+			IsDefaultVar: {
+				Type:                  schema.TypeBool,
+				Optional:              true,
+				DiffSuppressOnRefresh: true,
+				DiffSuppressFunc: func(k, old, new string, d *schema.ResourceData) bool {
+					// Need to avoid forever pending changes when trying to set this to false
+					// since setting to false will not actually unmark the org as default.
+					return new != "true"
+				},
+				Description: "True sets the org as default org for the instance. Only one org can be default org. Nothing happens if you set it to false until you set another org as default org.",
+			},
 			primaryDomainVar: {
 				Type:        schema.TypeString,
 				Computed:    true,