diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7315f287c7..38ae575ceb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,8 @@ This is the log of notable changes to EAS CLI and related packages.
 
 ### 🐛 Bug fixes
 
+- [eas-cli] Fix capability sync failing for App Clip targets with the on-demand install entitlement. ([#4617](https://github.com/expo/eas-cli/pull/4617) by [@janicduplessis](https://github.com/janicduplessis))
+
 ### 🧹 Chores
 
 - [build-tools] Disable the Argent video watermark in `eas/start_argent_remote_session`. ([#4574](https://github.com/expo/eas-cli/pull/4574) by [@szdziedzic](https://github.com/szdziedzic))
diff --git a/packages/eas-cli/src/credentials/ios/appstore/__tests__/bundleIdCapabilities-test.ts b/packages/eas-cli/src/credentials/ios/appstore/__tests__/bundleIdCapabilities-test.ts
index d4c3a9345b..f2ebdff713 100644
--- a/packages/eas-cli/src/credentials/ios/appstore/__tests__/bundleIdCapabilities-test.ts
+++ b/packages/eas-cli/src/credentials/ios/appstore/__tests__/bundleIdCapabilities-test.ts
@@ -67,6 +67,46 @@ describe(syncCapabilitiesForEntitlementsAsync, () => {
     ]);
   });
 
+  it('does not re-enable the on-demand install capability of an App Clip', async () => {
+    const capabilities = [
+      {
+        id: 'QQT5Y8UUW9_ON_DEMAND_INSTALL_CAPABLE',
+        attributes: { settings: null, capabilityType: 'ON_DEMAND_INSTALL_CAPABLE' },
+      },
+    ].map(({ id, attributes }) => new BundleIdCapability(ctx, id, attributes as any));
+    const bundleId = createMockBundleId('QQT5Y8UUW9', capabilities);
+
+    const result = await syncCapabilitiesForEntitlementsAsync(
+      bundleId,
+      { 'com.apple.developer.on-demand-install-capable': true },
+      noBroadcastNotificationOption
+    );
+
+    expect(result).toStrictEqual({ enabled: [], disabled: [] });
+    expect(bundleId.updateBundleIdCapabilityAsync).not.toHaveBeenCalled();
+  });
+
+  it('does not disable the on-demand install capability of an App Clip when the entitlement is absent', async () => {
+    const capabilities = [
+      {
+        id: 'QQT5Y8UUW9_ON_DEMAND_INSTALL_CAPABLE',
+        attributes: { settings: null, capabilityType: 'ON_DEMAND_INSTALL_CAPABLE' },
+      },
+    ].map(({ id, attributes }) => new BundleIdCapability(ctx, id, attributes as any));
+    const bundleId = createMockBundleId('QQT5Y8UUW9', capabilities);
+
+    const result = await syncCapabilitiesForEntitlementsAsync(
+      bundleId,
+      {
+        'com.apple.developer.parent-application-identifiers': ['$(AppIdentifierPrefix)com.example'],
+      },
+      noBroadcastNotificationOption
+    );
+
+    expect(result).toStrictEqual({ enabled: [], disabled: [] });
+    expect(bundleId.updateBundleIdCapabilityAsync).not.toHaveBeenCalled();
+  });
+
   it('skips syncing capabilities with settings if they do not contain the expected `enabled` field', async () => {
     const capabilityJson = {
       id: 'U78L9459DG_APPLE_ID_AUTH',
@@ -509,7 +549,7 @@ describe(syncCapabilitiesForEntitlementsAsync, () => {
         option: 'ON',
       },
       {
-        capabilityType: 'ONDEMANDINSTALL_EXTENSIONS',
+        capabilityType: 'ON_DEMAND_INSTALL_CAPABLE',
         option: 'ON',
       },
       {
diff --git a/packages/eas-cli/src/credentials/ios/appstore/bundleIdCapabilities.ts b/packages/eas-cli/src/credentials/ios/appstore/bundleIdCapabilities.ts
index bae4d86736..06b53b9824 100644
--- a/packages/eas-cli/src/credentials/ios/appstore/bundleIdCapabilities.ts
+++ b/packages/eas-cli/src/credentials/ios/appstore/bundleIdCapabilities.ts
@@ -185,9 +185,12 @@ function getCapabilitiesToDisable(
 
   for (const existingCapability of currentCapabilities) {
     // GC and IAP are always enabled in apps by default so we should avoid modifying them.
+    // App Clip bundle IDs are created with ON_DEMAND_INSTALL_CAPABLE, and Xcode adds its
+    // entitlement at signing time, so it is often missing from the local entitlements.
     if (
       existingCapability.isType(CapabilityType.IN_APP_PURCHASE) ||
-      existingCapability.isType(CapabilityType.GAME_CENTER)
+      existingCapability.isType(CapabilityType.GAME_CENTER) ||
+      existingCapability.isType(CapabilityType.ON_DEMAND_INSTALL_CAPABLE)
     ) {
       continue;
     }
diff --git a/packages/eas-cli/src/credentials/ios/appstore/capabilityList.ts b/packages/eas-cli/src/credentials/ios/appstore/capabilityList.ts
index 1e07091678..4f517a4247 100644
--- a/packages/eas-cli/src/credentials/ios/appstore/capabilityList.ts
+++ b/packages/eas-cli/src/credentials/ios/appstore/capabilityList.ts
@@ -539,7 +539,7 @@ export const CapabilityMapping: CapabilityClassifier[] = [
   {
     entitlement: 'com.apple.developer.on-demand-install-capable',
     name: 'On Demand Install Capable for App Clip Extensions',
-    capability: CapabilityType.ON_DEMAND_INSTALL_EXTENSIONS,
+    capability: CapabilityType.ON_DEMAND_INSTALL_CAPABLE,
     validateOptions: validateBooleanOptions,
     getSyncOperation: getBooleanSyncOperation,
   },