diff --git a/README.md b/README.md
index 873b220..900d040 100644
--- a/README.md
+++ b/README.md
@@ -376,7 +376,7 @@ make dev-serve  # Start development servers
 
 | Plan | Price | Features |
 |------|-------|----------|
-| **Free** | $0/mo | 20 agents/month, Core features |
+| **Free** | $0/mo | 10 agents/month, Core features |
 | **Pro** | $9/mo | Unlimited agents, Priority support |
 | **Enterprise** | [Contact Us](https://cal.com/ishaan-sehgal-8kc22w/omnara-demo) | Teams, SSO, Custom integrations |
 
diff --git a/backend/api/mobile_billing.py b/backend/api/mobile_billing.py
index a809b57..4dbcb2a 100644
--- a/backend/api/mobile_billing.py
+++ b/backend/api/mobile_billing.py
@@ -221,7 +221,7 @@ def sync_subscription_status(subscriber_data: dict, db: Session) -> bool:
             # No active subscription - revert to free
             logger.info("No active Pro entitlement found, downgrading to free")
             subscription.plan_type = "free"
-            subscription.agent_limit = 20
+            subscription.agent_limit = 10
             subscription.provider = None  # Clear provider when going to free
             subscription.provider_subscription_id = None  # Clear subscription reference
 
diff --git a/shared/alembic/versions/f903f2e200c9_update_free_tier_agent_limit_from_20_to_.py b/shared/alembic/versions/f903f2e200c9_update_free_tier_agent_limit_from_20_to_.py
new file mode 100644
index 0000000..2bc57ab
--- /dev/null
+++ b/shared/alembic/versions/f903f2e200c9_update_free_tier_agent_limit_from_20_to_.py
@@ -0,0 +1,36 @@
+"""Update free tier agent limit from 20 to 10
+
+Revision ID: f903f2e200c9
+Revises: 20de0aa419ca
+Create Date: 2025-08-09 13:41:40.430740
+
+"""
+
+from typing import Sequence, Union
+
+from alembic import op
+
+
+# revision identifiers, used by Alembic.
+revision: str = "f903f2e200c9"
+down_revision: Union[str, None] = "20de0aa419ca"
+branch_labels: Union[str, Sequence[str], None] = None
+depends_on: Union[str, Sequence[str], None] = None
+
+
+def upgrade() -> None:
+    # Update all existing free tier subscriptions from 20 to 10 agents
+    op.execute("""
+        UPDATE subscriptions
+        SET agent_limit = 10
+        WHERE plan_type = 'free' AND agent_limit = 20
+    """)
+
+
+def downgrade() -> None:
+    # Revert free tier subscriptions back to 20 agents
+    op.execute("""
+        UPDATE subscriptions
+        SET agent_limit = 20
+        WHERE plan_type = 'free' AND agent_limit = 10
+    """)
diff --git a/shared/config/settings.py b/shared/config/settings.py
index 3d9fafc..c01646c 100644
--- a/shared/config/settings.py
+++ b/shared/config/settings.py
@@ -99,7 +99,7 @@ class Settings(BaseSettings):
     )
 
     # Plan Configuration - used when enforce_limits is True
-    free_plan_agent_limit: int = 20  # 20 total agents per month
+    free_plan_agent_limit: int = 10  # 10 total agents per month
     pro_plan_agent_limit: int = -1  # Unlimited
     pro_plan_price: float = 9
     enterprise_plan_agent_limit: int = -1  # Unlimited
diff --git a/shared/database/billing_operations.py b/shared/database/billing_operations.py
index 5e36269..e9ba198 100644
--- a/shared/database/billing_operations.py
+++ b/shared/database/billing_operations.py
@@ -85,7 +85,7 @@ def get_or_create_subscription(user_id: UUID, db: Session) -> Subscription:
     """Get existing subscription or create a default free one."""
     subscription = db.query(Subscription).filter_by(user_id=user_id).first()
     if not subscription:
-        # Create with defaults from model (plan_type="free", agent_limit=20)
+        # Create with defaults from model (plan_type="free", agent_limit=10)
         subscription = Subscription(user_id=user_id)
         db.add(subscription)
         db.commit()
diff --git a/shared/database/subscription_models.py b/shared/database/subscription_models.py
index e85f0c1..756eece 100644
--- a/shared/database/subscription_models.py
+++ b/shared/database/subscription_models.py
@@ -36,8 +36,8 @@ class Subscription(Base):
 
     # Limits - -1 means unlimited (default to free plan limits)
     agent_limit: Mapped[int] = mapped_column(
-        Integer, default=20
-    )  # Free plan: 20 agents/month
+        Integer, default=10
+    )  # Free plan: 10 agents/month
 
     # Payment provider information - minimal needed for operations
     provider: Mapped[str | None] = mapped_column(