diff --git a/cmd/podman/common/create.go b/cmd/podman/common/create.go
index e054d1bdb4..63a9b4bcdd 100644
--- a/cmd/podman/common/create.go
+++ b/cmd/podman/common/create.go
@@ -440,14 +440,6 @@ func DefineCreateFlags(cmd *cobra.Command, cf *entities.ContainerCreateOptions,
 		)
 		_ = cmd.RegisterFlagCompletionFunc(umaskFlagName, completion.AutocompleteNone)
 
-		ulimitFlagName := "ulimit"
-		createFlags.StringSliceVar(
-			&cf.Ulimit,
-			ulimitFlagName, cf.Ulimit,
-			"Ulimit options",
-		)
-		_ = cmd.RegisterFlagCompletionFunc(ulimitFlagName, completion.AutocompleteNone)
-
 		userFlagName := "user"
 		createFlags.StringVarP(
 			&cf.User,
@@ -559,6 +551,14 @@ func DefineCreateFlags(cmd *cobra.Command, cf *entities.ContainerCreateOptions,
 		)
 		_ = cmd.RegisterFlagCompletionFunc(unsetenvFlagName, completion.AutocompleteNone)
 
+		ulimitFlagName := "ulimit"
+		createFlags.StringSliceVar(
+			&cf.Ulimit,
+			ulimitFlagName, cf.Ulimit,
+			"Ulimit options",
+		)
+		_ = cmd.RegisterFlagCompletionFunc(ulimitFlagName, completion.AutocompleteNone)
+
 		healthCmdFlagName := "health-cmd"
 		createFlags.StringVar(
 			&cf.HealthCmd,
diff --git a/cmd/podman/containers/update.go b/cmd/podman/containers/update.go
index 6f6ed362c4..6ac1f9dab8 100644
--- a/cmd/podman/containers/update.go
+++ b/cmd/podman/containers/update.go
@@ -179,6 +179,18 @@ func update(cmd *cobra.Command, args []string) error {
 		opts.UnsetEnv = env
 	}
 
+	if cmd.Flags().Changed("ulimit") {
+		ulimits, err := cmd.Flags().GetStringSlice("ulimit")
+		if err != nil {
+			return err
+		}
+		rlimits, err := specgenutil.GenRlimits(ulimits)
+		if err != nil {
+			return err
+		}
+		opts.Rlimits = rlimits
+	}
+
 	rep, err := registry.ContainerEngine().ContainerUpdate(context.Background(), opts)
 	if err != nil {
 		return err
diff --git a/docs/source/markdown/options/ulimit.md b/docs/source/markdown/options/ulimit.md
index a387b2f02a..82507d480f 100644
--- a/docs/source/markdown/options/ulimit.md
+++ b/docs/source/markdown/options/ulimit.md
@@ -1,5 +1,5 @@
 ####> This option file is used in:
-####>   podman create, run
+####>   podman create, run, update
 ####> If file is edited, make sure the changes
 ####> are applicable to all of those.
 #### **--ulimit**=*option*
diff --git a/docs/source/markdown/podman-update.1.md.in b/docs/source/markdown/podman-update.1.md.in
index 4bfced600f..152c71f9ad 100644
--- a/docs/source/markdown/podman-update.1.md.in
+++ b/docs/source/markdown/podman-update.1.md.in
@@ -92,6 +92,8 @@ Changing this setting resets the timer, depending on the state of the container.
 
 @@option restart
 
+@@option ulimit
+
 @@option unsetenv.update
 
 
@@ -102,6 +104,11 @@ Update a container with a new cpu quota and period:
 podman update --cpus=0.5 ctrID
 ```
 
+Update a container's ulimit:
+```
+podman update --ulimit nofile=1024:1024 myCtr
+```
+
 Update a container with multiple options at ones:
 ```
 podman update --cpus 5 --cpuset-cpus 0 --cpu-shares 123 --cpuset-mems 0 \\
diff --git a/libpod/container_internal.go b/libpod/container_internal.go
index 2968d2d48c..4a2de39a65 100644
--- a/libpod/container_internal.go
+++ b/libpod/container_internal.go
@@ -2810,6 +2810,7 @@ func (c *Container) update(updateOptions *entities.ContainerUpdateOptions) error
 	}
 	oldRestart := c.config.RestartPolicy
 	oldRetries := c.config.RestartRetries
+	oldRlimits := c.config.Spec.Process.Rlimits
 
 	if updateOptions.RestartPolicy != nil {
 		if err := define.ValidateRestartPolicy(*updateOptions.RestartPolicy); err != nil {
@@ -2857,16 +2858,21 @@ func (c *Container) update(updateOptions *entities.ContainerUpdateOptions) error
 		c.config.Spec.Process.Env = envLib.Slice(envMap)
 	}
 
+	if updateOptions.Rlimits != nil {
+		c.config.Spec.Process.Rlimits = updateOptions.Rlimits
+	}
+
 	if err := c.runtime.state.SafeRewriteContainerConfig(c, "", "", c.config); err != nil {
 		// Assume DB write failed, revert to old resources block
 		c.config.Spec.Linux.Resources = oldResources
 		c.config.RestartPolicy = oldRestart
 		c.config.RestartRetries = oldRetries
+		c.config.Spec.Process.Rlimits = oldRlimits
 		return err
 	}
 
 	if c.ensureState(define.ContainerStateCreated, define.ContainerStateRunning, define.ContainerStatePaused) &&
-		(updateOptions.Resources != nil || updateOptions.Env != nil || updateOptions.UnsetEnv != nil) {
+		(updateOptions.Resources != nil || updateOptions.Env != nil || updateOptions.UnsetEnv != nil || updateOptions.Rlimits != nil) {
 		// So `podman inspect` on running containers sources its OCI spec from disk.
 		// To keep inspect accurate we need to update the on-disk OCI spec.
 		onDiskSpec, err := c.specFromState()
@@ -2882,6 +2888,9 @@ func (c *Container) update(updateOptions *entities.ContainerUpdateOptions) error
 		if len(updateOptions.Env) != 0 || len(updateOptions.UnsetEnv) != 0 {
 			onDiskSpec.Process.Env = c.config.Spec.Process.Env
 		}
+		if updateOptions.Rlimits != nil {
+			onDiskSpec.Process.Rlimits = updateOptions.Rlimits
+		}
 		if err := c.saveSpec(onDiskSpec); err != nil {
 			logrus.Errorf("Unable to update container %s OCI spec - `podman inspect` may not be accurate until container is restarted: %v", c.ID(), err)
 		}
diff --git a/pkg/api/handlers/compat/containers.go b/pkg/api/handlers/compat/containers.go
index 596248e43b..660a1b37bc 100644
--- a/pkg/api/handlers/compat/containers.go
+++ b/pkg/api/handlers/compat/containers.go
@@ -822,11 +822,25 @@ func UpdateContainer(w http.ResponseWriter, r *http.Request) {
 		restartRetries = &localRetries
 	}
 
+	// Rlimits
+	var rlimits []spec.POSIXRlimit
+	if len(options.Ulimits) > 0 {
+		for _, ulimit := range options.Ulimits {
+			rlimit := spec.POSIXRlimit{
+				Type: ulimit.Name,
+				Hard: uint64(ulimit.Hard),
+				Soft: uint64(ulimit.Soft),
+			}
+			rlimits = append(rlimits, rlimit)
+		}
+	}
+
 	updateOptions := &entities.ContainerUpdateOptions{
 		Resources:                       resources,
 		ChangedHealthCheckConfiguration: &define.UpdateHealthCheckConfig{},
 		RestartPolicy:                   restartPolicy,
 		RestartRetries:                  restartRetries,
+		Rlimits:                         rlimits,
 	}
 
 	if err := ctr.Update(updateOptions); err != nil {
diff --git a/pkg/api/handlers/libpod/containers.go b/pkg/api/handlers/libpod/containers.go
index a7ed9283b3..250cafde93 100644
--- a/pkg/api/handlers/libpod/containers.go
+++ b/pkg/api/handlers/libpod/containers.go
@@ -462,6 +462,7 @@ func UpdateContainer(w http.ResponseWriter, r *http.Request) {
 		RestartRetries:                  restartRetries,
 		Env:                             options.Env,
 		UnsetEnv:                        options.UnsetEnv,
+		Rlimits:                         options.Rlimits,
 	}
 
 	err = ctr.Update(updateOptions)
diff --git a/pkg/api/handlers/types.go b/pkg/api/handlers/types.go
index 2d85470854..1302af6ce7 100644
--- a/pkg/api/handlers/types.go
+++ b/pkg/api/handlers/types.go
@@ -81,6 +81,7 @@ type UpdateEntities struct {
 	define.UpdateContainerDevicesLimits
 	Env      []string
 	UnsetEnv []string
+	Rlimits  []specs.POSIXRlimit
 }
 
 type Info struct {
diff --git a/pkg/bindings/containers/update.go b/pkg/bindings/containers/update.go
index 574d602b34..fd9b6388c9 100644
--- a/pkg/bindings/containers/update.go
+++ b/pkg/bindings/containers/update.go
@@ -40,6 +40,9 @@ func Update(ctx context.Context, options *types.ContainerUpdateOptions) (string,
 	if options.DevicesLimits != nil {
 		updateEntities.UpdateContainerDevicesLimits = *options.DevicesLimits
 	}
+	if options.Rlimits != nil {
+		updateEntities.Rlimits = options.Rlimits
+	}
 
 	requestData, err := jsoniter.MarshalToString(updateEntities)
 	if err != nil {
diff --git a/pkg/domain/entities/types/containers.go b/pkg/domain/entities/types/containers.go
index 2a85a70eac..d87ada57f3 100644
--- a/pkg/domain/entities/types/containers.go
+++ b/pkg/domain/entities/types/containers.go
@@ -53,6 +53,7 @@ type ContainerUpdateOptions struct {
 	// - RestartRetries to change restart retries
 	// - Env to change the environment variables.
 	// - UntsetEnv to unset the environment variables.
+	// - Rlimits to change POSIX resource limits.
 	Specgen                         *specgen.SpecGenerator
 	Resources                       *specs.LinuxResources
 	DevicesLimits                   *define.UpdateContainerDevicesLimits
@@ -61,6 +62,7 @@ type ContainerUpdateOptions struct {
 	RestartRetries                  *uint
 	Env                             []string
 	UnsetEnv                        []string
+	Rlimits                         []specs.POSIXRlimit
 }
 
 func (u *ContainerUpdateOptions) ProcessSpecgen() {
@@ -87,4 +89,8 @@ func (u *ContainerUpdateOptions) ProcessSpecgen() {
 	if u.RestartRetries == nil {
 		u.RestartRetries = u.Specgen.RestartRetries
 	}
+
+	if u.Rlimits == nil {
+		u.Rlimits = u.Specgen.Rlimits
+	}
 }
diff --git a/pkg/domain/infra/abi/containers.go b/pkg/domain/infra/abi/containers.go
index e7111dc5ba..fd0c2cb601 100644
--- a/pkg/domain/infra/abi/containers.go
+++ b/pkg/domain/infra/abi/containers.go
@@ -1811,15 +1811,15 @@ func (ic *ContainerEngine) ContainerUpdate(ctx context.Context, updateOptions *e
 	if len(containers) != 1 {
 		return "", fmt.Errorf("container not found")
 	}
-	container := containers[0].Container
+	ctr := containers[0]
 
 	updateOptions.Resources, err = specgenutil.UpdateMajorAndMinorNumbers(updateOptions.Resources, updateOptions.DevicesLimits)
 	if err != nil {
 		return "", err
 	}
 
-	if err = container.Update(updateOptions); err != nil {
+	if err = ctr.Container.Update(updateOptions); err != nil {
 		return "", err
 	}
-	return containers[0].ID(), nil
+	return ctr.ID(), nil
 }
diff --git a/test/e2e/update_test.go b/test/e2e/update_test.go
index e442b7b36d..160132acd3 100644
--- a/test/e2e/update_test.go
+++ b/test/e2e/update_test.go
@@ -306,4 +306,48 @@ var _ = Describe("Podman update", func() {
 		Expect(env).ToNot(ContainSubstring("FOO"))
 		Expect(env).To(ContainSubstring("PATH="))
 	})
+
+	It("podman update sets ulimits", func() {
+		session := podmanTest.PodmanExitCleanly("run", "-dt", ALPINE)
+		ctrID := session.OutputToString()
+
+		// Get initial ulimit value
+		initialUlimit := podmanTest.PodmanExitCleanly("exec", ctrID, "sh", "-c", "ulimit -n")
+		Expect(initialUlimit.OutputToString()).ToNot(BeEmpty())
+
+		// Update with a single ulimit
+		podmanTest.PodmanExitCleanly("update", "--ulimit", "nofile=1024:1024", ctrID)
+
+		// Verify ulimit was updated
+		ulimit := podmanTest.PodmanExitCleanly("exec", ctrID, "sh", "-c", "ulimit -n")
+		Expect(ulimit.OutputToString()).To(Equal("1024"))
+
+		// Update with multiple ulimits
+		podmanTest.PodmanExitCleanly("update", "--ulimit", "nofile=2048:2048", "--ulimit", "nproc=512:512", ctrID)
+
+		// Verify nofile ulimit was updated
+		ulimit = podmanTest.PodmanExitCleanly("exec", ctrID, "sh", "-c", "ulimit -n")
+		Expect(ulimit.OutputToString()).To(Equal("2048"))
+
+		// Verify nproc ulimit was updated
+		ulimit = podmanTest.PodmanExitCleanly("exec", ctrID, "sh", "-c", "ulimit -u")
+		Expect(ulimit.OutputToString()).To(Equal("512"))
+	})
+
+	It("podman update with invalid ulimit fails", func() {
+		session := podmanTest.PodmanExitCleanly("run", "-dt", ALPINE)
+		ctrID := session.OutputToString()
+
+		// Try with invalid ulimit syntax (missing =)
+		update := podmanTest.Podman([]string{"update", "--ulimit", "nofile:1024:1024", ctrID})
+		update.WaitWithDefaultTimeout()
+		Expect(update).Should(Exit(125))
+		Expect(update.ErrorToString()).To(ContainSubstring("error"))
+
+		// Try with invalid ulimit value (soft > hard)
+		update = podmanTest.Podman([]string{"update", "--ulimit", "nofile=2048:1024", ctrID})
+		update.WaitWithDefaultTimeout()
+		Expect(update).Should(Exit(125))
+		Expect(update.ErrorToString()).To(ContainSubstring("error"))
+	})
 })
diff --git a/test/system/280-update.bats b/test/system/280-update.bats
index 0c87332900..7c509eca25 100644
--- a/test/system/280-update.bats
+++ b/test/system/280-update.bats
@@ -349,4 +349,54 @@ function nrand() {
 
     run_podman rm -t 0 -f "$cid"
 }
+
+# bats test_tags=ci:parallel
+@test "podman update - set ulimits" {
+    local ctrname="c-h-$(safename)"
+    run_podman run -d --name $ctrname $IMAGE sleep 600
+
+    # Get initial nofile ulimit
+    run_podman exec $ctrname sh -c "ulimit -n"
+    initial_nofile="$output"
+
+    # Update with single ulimit
+    run_podman update --ulimit nofile=1024:1024 $ctrname
+
+    # Verify the nofile ulimit was updated
+    run_podman exec $ctrname sh -c "ulimit -n"
+    assert "$output" == "1024" "nofile ulimit updated to 1024"
+    assert "$output" != "$initial_nofile" "nofile ulimit should have changed"
+
+    # Update with multiple ulimits
+    run_podman update --ulimit nofile=2048:2048 --ulimit nproc=512:512 $ctrname
+
+    # Verify the nofile ulimit was updated again
+    run_podman exec $ctrname sh -c "ulimit -n"
+    assert "$output" == "2048" "nofile ulimit updated to 2048"
+
+    # Verify the nproc ulimit was updated
+    run_podman exec $ctrname sh -c "ulimit -u"
+    assert "$output" == "512" "nproc ulimit updated to 512"
+
+    # Test persists across container restart
+    run_podman restart $ctrname
+
+    # Verify the ulimits persist after restart
+    run_podman exec $ctrname sh -c "ulimit -n"
+    assert "$output" == "2048" "nofile ulimit persists after restart"
+
+    run_podman exec $ctrname sh -c "ulimit -u"
+    assert "$output" == "512" "nproc ulimit persists after restart"
+
+    # Error cases
+    run_podman 125 update --ulimit nofile:1024:1024 $ctrname
+    assert "$output" =~ "error" "Invalid ulimit syntax should fail"
+
+    run_podman 125 update --ulimit nofile=2048:1024 $ctrname
+    assert "$output" =~ "error" "Invalid ulimit values should fail"
+
+    # Clean up
+    run_podman rm -t 0 -f $ctrname
+}
+
 # vim: filetype=sh