diff --git a/src/budgetchain/Budget.cairo b/src/budgetchain/Budget.cairo
index 1f1cd67..13b53e9 100644
--- a/src/budgetchain/Budget.cairo
+++ b/src/budgetchain/Budget.cairo
@@ -83,6 +83,7 @@ pub mod Budget {
         #[flat]
         SRC5Event: SRC5Component::Event,
         FundsRequested: FundsRequested,
+        OrganizationRemoved: OrganizationRemoved,
         FundsReturned: FundsReturned,
     }
 
@@ -156,6 +157,11 @@ pub mod Budget {
         pub milestone_id: u64,
     }
 
+    #[derive(Drop, starknet::Event)]
+    pub struct OrganizationRemoved {
+        pub org_id: u256,
+    }
+
     #[constructor]
     fn constructor(ref self: ContractState, default_admin: ContractAddress) {
         assert(default_admin != contract_address_const::<0>(), ERROR_ZERO_ADDRESS);
@@ -735,7 +741,16 @@ pub mod Budget {
         fn is_paused(self: @ContractState) -> bool {
             self.is_paused.read()
         }
+        fn remove_organization(ref self: ContractState, org_id: u256) {
+            let caller = get_caller_address();
+            assert(caller == self.admin.read(), ERROR_ONLY_ADMIN);
+
+            let mut org = self.organizations.read(org_id);
+            org.is_active = false;
+            self.organizations.write(org_id, org);
 
+            self.emit(OrganizationRemoved { org_id: org_id });
+        }
         fn request_funds(
             ref self: ContractState,
             requester: ContractAddress,
diff --git a/src/interfaces/IBudget.cairo b/src/interfaces/IBudget.cairo
index 7e5314c..f4da138 100644
--- a/src/interfaces/IBudget.cairo
+++ b/src/interfaces/IBudget.cairo
@@ -42,6 +42,7 @@ pub trait IBudget<TContractState> {
     ) -> u256;
     fn get_organization(self: @TContractState, org_id: u256) -> Organization;
     fn is_authorized_organization(self: @TContractState, org: ContractAddress) -> bool;
+    fn remove_organization(ref self: TContractState, org_id: u256);
 
     // Fund Request Management
     fn get_fund_request(self: @TContractState, project_id: u64, request_id: u64) -> FundRequest;
diff --git a/tests/test_budgetchain.cairo b/tests/test_budgetchain.cairo
index aa1ece9..a60fbb0 100644
--- a/tests/test_budgetchain.cairo
+++ b/tests/test_budgetchain.cairo
@@ -1440,3 +1440,90 @@ fn test_project_transaction_count_and_storage() {
     assert(txs.get(1).unwrap().id == 1_u64, 'Second tx id should be 1');
     assert(txs.get(2).unwrap().id == 2_u64, 'Third tx id should be 2');
 }
+
+#[test]
+fn test_remove_organization_success() {
+    let (contract_address, admin_address) = setup();
+    let dispatcher = IBudgetDispatcher { contract_address };
+
+    // Create an organization first
+    let org_name = 'Test Org';
+    let org_address = contract_address_const::<'Organization'>();
+    let org_mission = 'Testing Budget Chain';
+
+    // Set admin as caller to create organization
+    cheat_caller_address(contract_address, admin_address, CheatSpan::Indefinite);
+    let org_id = dispatcher.create_organization(org_name, org_address, org_mission);
+    stop_cheat_caller_address(admin_address);
+
+    // Verify organization is active before removal
+    let org_before = dispatcher.get_organization(org_id);
+    assert(org_before.is_active == true, 'be active before removal');
+
+    // Remove organization as admin
+    cheat_caller_address(contract_address, admin_address, CheatSpan::Indefinite);
+    dispatcher.remove_organization(org_id);
+    stop_cheat_caller_address(admin_address);
+
+    // Verify organization is inactive after removal
+    let org_after = dispatcher.get_organization(org_id);
+    assert(org_after.is_active == false, 'be inactive after removal');
+}
+
+#[test]
+#[should_panic(expected: 'ONLY ADMIN')]
+fn test_remove_organization_not_admin() {
+    let (contract_address, admin_address) = setup();
+    let dispatcher = IBudgetDispatcher { contract_address };
+
+    // Create an organization first
+    let org_name = 'Test Org';
+    let org_address = contract_address_const::<'Organization'>();
+    let org_mission = 'Testing Budget Chain';
+
+    // Set admin as caller to create organization
+    cheat_caller_address(contract_address, admin_address, CheatSpan::Indefinite);
+    let org_id = dispatcher.create_organization(org_name, org_address, org_mission);
+    stop_cheat_caller_address(admin_address);
+
+    // Try to remove organization as non-admin
+    let non_admin = contract_address_const::<'non_admin'>();
+    cheat_caller_address(contract_address, non_admin, CheatSpan::Indefinite);
+    dispatcher.remove_organization(org_id);
+    stop_cheat_caller_address(non_admin);
+}
+
+#[test]
+fn test_remove_organization_event_emission() {
+    let (contract_address, admin_address) = setup();
+    let dispatcher = IBudgetDispatcher { contract_address };
+    let mut spy = spy_events();
+
+    // Create an organization first
+    let org_name = 'Test Org';
+    let org_address = contract_address_const::<'Organization'>();
+    let org_mission = 'Testing Budget Chain';
+
+    // Set admin as caller to create organization
+    cheat_caller_address(contract_address, admin_address, CheatSpan::Indefinite);
+    let org_id = dispatcher.create_organization(org_name, org_address, org_mission);
+    stop_cheat_caller_address(admin_address);
+
+    // Remove organization as admin
+    cheat_caller_address(contract_address, admin_address, CheatSpan::Indefinite);
+    dispatcher.remove_organization(org_id);
+    stop_cheat_caller_address(admin_address);
+
+    // Verify event emission
+    spy
+        .assert_emitted(
+            @array![
+                (
+                    contract_address,
+                    Budget::Budget::Event::OrganizationRemoved(
+                        Budget::Budget::OrganizationRemoved { org_id: org_id },
+                    ),
+                ),
+            ],
+        );
+}