diff --git a/NEXT_CHANGELOG.md b/NEXT_CHANGELOG.md
index 8dda24d61d..035a43823d 100644
--- a/NEXT_CHANGELOG.md
+++ b/NEXT_CHANGELOG.md
@@ -11,6 +11,8 @@
 
 ### Bug Fixes
 
+* Fix `databricks_catalog` name update using NewName field ([#5205](https://github.com/databricks/terraform-provider-databricks/pull/5205))
+
 ### Documentation
 
 ### Exporter
diff --git a/catalog/resource_catalog.go b/catalog/resource_catalog.go
index eaf705fa8e..722c3dacb8 100644
--- a/catalog/resource_catalog.go
+++ b/catalog/resource_catalog.go
@@ -136,10 +136,15 @@ func ResourceCatalog() common.Resource {
 			common.DataToStructPointer(d, catalogSchema, &updateCatalogRequest)
 			updateCatalogRequest.Name = d.Id()
 
+			if d.HasChange("name") {
+				updateCatalogRequest.NewName = d.Get("name").(string)
+			}
+
 			if d.HasChange("owner") {
 				_, err = w.Catalogs.Update(ctx, catalog.UpdateCatalog{
-					Name:  updateCatalogRequest.Name,
-					Owner: updateCatalogRequest.Owner,
+					Name:    updateCatalogRequest.Name,
+					NewName: updateCatalogRequest.NewName,
+					Owner:   updateCatalogRequest.Owner,
 				})
 				if err != nil {
 					return err
@@ -164,7 +169,6 @@ func ResourceCatalog() common.Resource {
 				}
 			}
 			ci, err := w.Catalogs.Update(ctx, updateCatalogRequest)
-
 			if err != nil {
 				if d.HasChange("owner") {
 					// Rollback
diff --git a/catalog/resource_catalog_test.go b/catalog/resource_catalog_test.go
index b82f394465..808a7c2ee8 100644
--- a/catalog/resource_catalog_test.go
+++ b/catalog/resource_catalog_test.go
@@ -842,3 +842,41 @@ func TestCatalogSuppressCaseSensitivity(t *testing.T) {
 		`,
 	}.ApplyNoError(t)
 }
+
+func TestUpdateCatalogName(t *testing.T) {
+	qa.ResourceFixture{
+		MockWorkspaceClientFunc: func(w *mocks.MockWorkspaceClient) {
+			w.GetMockMetastoresAPI().EXPECT().Current(mock.Anything).Return(&catalog.MetastoreAssignment{
+				MetastoreId: "d",
+			}, nil)
+			e := w.GetMockCatalogsAPI().EXPECT()
+			e.Update(mock.Anything, catalog.UpdateCatalog{
+				Name:    "old_catalog_name",
+				NewName: "new_catalog_name",
+				Comment: "c",
+			}).Return(&catalog.CatalogInfo{
+				Name:    "new_catalog_name",
+				Comment: "c",
+			}, nil)
+			e.GetByName(mock.Anything, "new_catalog_name").Return(&catalog.CatalogInfo{
+				Name:    "new_catalog_name",
+				Comment: "c",
+			}, nil)
+		},
+		Resource: ResourceCatalog(),
+		Update:   true,
+		ID:       "old_catalog_name",
+		InstanceState: map[string]string{
+			"metastore_id": "d",
+			"name":         "old_catalog_name",
+			"comment":      "c",
+		},
+		HCL: `
+		name = "new_catalog_name"
+		comment = "c"
+		`,
+	}.ApplyAndExpectData(t, map[string]any{
+		"name":    "new_catalog_name",
+		"comment": "c",
+	})
+}