diff --git a/components/org.wso2.carbon.identity.oauth/src/main/java/org/wso2/carbon/identity/oauth/config/OAuthServerConfiguration.java b/components/org.wso2.carbon.identity.oauth/src/main/java/org/wso2/carbon/identity/oauth/config/OAuthServerConfiguration.java
index 6ccffbb41e..d4a94097c1 100644
--- a/components/org.wso2.carbon.identity.oauth/src/main/java/org/wso2/carbon/identity/oauth/config/OAuthServerConfiguration.java
+++ b/components/org.wso2.carbon.identity.oauth/src/main/java/org/wso2/carbon/identity/oauth/config/OAuthServerConfiguration.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2013-2024, WSO2 LLC. (http://www.wso2.com).
+ * Copyright (c) 2013-2025, WSO2 LLC. (http://www.wso2.com).
  *
  * WSO2 LLC. licenses this file to you under the Apache License,
  * Version 2.0 (the "License"); you may not use this file except
@@ -233,6 +233,8 @@ public class OAuthServerConfiguration {
     private List<String> supportedIdTokenEncryptionMethods = new ArrayList<>();
     private String userInfoJWTSignatureAlgorithm = "SHA256withRSA";
     private boolean userInfoMultiValueSupportEnabled = true;
+    private boolean userInfoInternalPrefixedRolesClaimAllowed = true;
+
     private String authContextTTL = "15L";
     // property added to fix IDENTITY-4551 in backward compatible manner
     private boolean useMultiValueSeparatorForAuthContextToken = true;
@@ -1575,6 +1577,16 @@ public boolean getUserInfoMultiValueSupportEnabled() {
         return userInfoMultiValueSupportEnabled;
     }
 
+    /**
+     * Returns whether Internal prefix should be appended for roles claim of the userinfo response.
+     *
+     * @return True if Internal prefix value should be appended for the role claim of userinfo response.
+     */
+    public boolean getUserInfoInternalPrefixedRolesClaimAllowed() {
+
+        return userInfoInternalPrefixedRolesClaimAllowed;
+    }
+
     public String getConsumerDialectURI() {
         return consumerDialectURI;
     }
@@ -3503,6 +3515,15 @@ private void parseOpenIDConnectConfig(OMElement oauthConfigElem) {
                 userInfoMultiValueSupportEnabled = Boolean.parseBoolean(
                         userInfoMultiValueSupportEnabledElem.getText().trim());
             }
+
+            OMElement userInfoInternalPrefixedRolesClaim = openIDConnectConfigElem
+                    .getFirstChildWithName(getQNameWithIdentityNS(ConfigElements
+                            .OPENID_CONNECT_USERINFO_INTERNAL_PREFIXED_ROLE_CLAIM_ALLOWED));
+            if (userInfoInternalPrefixedRolesClaim != null) {
+                userInfoInternalPrefixedRolesClaimAllowed =
+                        Boolean.parseBoolean(userInfoInternalPrefixedRolesClaim.getText().trim());
+            }
+
             if (openIDConnectConfigElem.getFirstChildWithName(
                     getQNameWithIdentityNS(ConfigElements.OPENID_CONNECT_SIGN_JWT_WITH_SP_KEY)) != null) {
                 isJWTSignedWithSPKey = Boolean.parseBoolean(openIDConnectConfigElem.getFirstChildWithName(
@@ -4132,6 +4153,8 @@ private class ConfigElements {
         public static final String OPENID_CONNECT_USERINFO_JWT_SIGNATURE_ALGORITHM = "UserInfoJWTSignatureAlgorithm";
         public static final String OPENID_CONNECT_USERINFO_MULTI_VALUE_SUPPORT_ENABLED =
                 "UserInfoMultiValueSupportEnabled";
+        public static final String OPENID_CONNECT_USERINFO_INTERNAL_PREFIXED_ROLE_CLAIM_ALLOWED =
+                "UserInfoInternalPrefixedRolesClaimAllowed";
         public static final String OPENID_CONNECT_SIGN_JWT_WITH_SP_KEY = "SignJWTWithSPKey";
         public static final String OPENID_CONNECT_IDTOKEN_CUSTOM_CLAIM_CALLBACK_HANDLER =
                 "IDTokenCustomClaimsCallBackHandler";
diff --git a/components/org.wso2.carbon.identity.oauth/src/main/java/org/wso2/carbon/identity/openidconnect/AbstractUserInfoResponseBuilder.java b/components/org.wso2.carbon.identity.oauth/src/main/java/org/wso2/carbon/identity/openidconnect/AbstractUserInfoResponseBuilder.java
index b3dcf43013..26bffdfb83 100644
--- a/components/org.wso2.carbon.identity.oauth/src/main/java/org/wso2/carbon/identity/openidconnect/AbstractUserInfoResponseBuilder.java
+++ b/components/org.wso2.carbon.identity.oauth/src/main/java/org/wso2/carbon/identity/openidconnect/AbstractUserInfoResponseBuilder.java
@@ -25,10 +25,12 @@
 import org.wso2.carbon.identity.application.common.model.ServiceProvider;
 import org.wso2.carbon.identity.application.common.util.IdentityApplicationConstants;
 import org.wso2.carbon.identity.application.mgt.ApplicationManagementService;
+import org.wso2.carbon.identity.core.util.IdentityUtil;
 import org.wso2.carbon.identity.oauth.cache.AuthorizationGrantCache;
 import org.wso2.carbon.identity.oauth.cache.AuthorizationGrantCacheEntry;
 import org.wso2.carbon.identity.oauth.cache.AuthorizationGrantCacheKey;
 import org.wso2.carbon.identity.oauth.common.exception.InvalidOAuthClientException;
+import org.wso2.carbon.identity.oauth.config.OAuthServerConfiguration;
 import org.wso2.carbon.identity.oauth.dao.OAuthAppDO;
 import org.wso2.carbon.identity.oauth.user.UserInfoEndpointException;
 import org.wso2.carbon.identity.oauth.user.UserInfoResponseBuilder;
@@ -40,6 +42,8 @@
 import org.wso2.carbon.identity.oauth2.util.OAuth2Util;
 import org.wso2.carbon.identity.openidconnect.internal.OpenIDConnectServiceComponentHolder;
 import org.wso2.carbon.identity.openidconnect.model.RequestedClaim;
+import org.wso2.carbon.user.core.UserCoreConstants;
+import org.wso2.carbon.user.core.util.UserCoreUtil;
 
 import java.util.ArrayList;
 import java.util.HashMap;
@@ -50,6 +54,7 @@
 import static org.apache.commons.collections.CollectionUtils.isNotEmpty;
 import static org.apache.commons.lang.StringUtils.isNotEmpty;
 import static org.wso2.carbon.identity.oauth.common.OAuthConstants.OAuth20Params.USERINFO;
+import static org.wso2.carbon.identity.oauth.common.OAuthConstants.OIDCClaims.ROLES;
 
 /**
  * Abstract user info response builder.
@@ -76,6 +81,9 @@ public String getResponseString(OAuth2TokenValidationResponseDTO tokenResponse)
         Map<String, Object> userClaims = retrieveUserClaims(tokenResponse);
         Map<String, Object> filteredUserClaims = filterOIDCClaims(tokenResponse, clientId, spTenantDomain, userClaims);
 
+        // Handle roles claim.
+        handleRolesClaim(filteredUserClaims);
+
         // Handle subject claim.
         String subjectClaim = getSubjectClaim(userClaims, clientId, spTenantDomain, tokenResponse);
         subjectClaim = getOIDCSubjectClaim(clientId, spTenantDomain, subjectClaim);
@@ -84,6 +92,29 @@ public String getResponseString(OAuth2TokenValidationResponseDTO tokenResponse)
         return buildResponse(tokenResponse, spTenantDomain, filteredUserClaims);
     }
 
+    private void handleRolesClaim(Map<String, Object> filteredUserClaims) {
+
+        // This check is added for the backward compatibility of userinfo response.
+        if (OAuthServerConfiguration.getInstance().getUserInfoInternalPrefixedRolesClaimAllowed()) {
+            return;
+        }
+
+        if (!(filteredUserClaims.get(ROLES) instanceof String[])) {
+            return;
+        }
+        String[] roles = (String[]) filteredUserClaims.get(ROLES);
+        if (roles == null) {
+            return;
+        }
+        for (int i = 0; i < roles.length; i++) {
+            String role = roles[i];
+            if (UserCoreConstants.INTERNAL_DOMAIN.equalsIgnoreCase(IdentityUtil.extractDomainFromName(role))) {
+                String domainRemovedRole = UserCoreUtil.removeDomainFromName(role);
+                roles[i] = domainRemovedRole;
+            }
+        }
+    }
+
     private String getOIDCSubjectClaim(String clientId, String spTenantDomain, String subjectClaim)
             throws UserInfoEndpointException {