diff --git a/.changelog/2029.txt b/.changelog/2029.txt
new file mode 100644
index 0000000000..c864419eba
--- /dev/null
+++ b/.changelog/2029.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+api-gateway: fix ACL issue where when adminPartitions and ACLs are enabled, API Gateway Controller is unable to create a new namespace in Consul
+```
\ No newline at end of file
diff --git a/control-plane/subcommand/server-acl-init/rules.go b/control-plane/subcommand/server-acl-init/rules.go
index ee6ae41e40..02831dc4de 100644
--- a/control-plane/subcommand/server-acl-init/rules.go
+++ b/control-plane/subcommand/server-acl-init/rules.go
@@ -151,8 +151,10 @@ partition "{{ .PartitionName }}" {
 operator = "write"
 acl = "write"
 {{- end }}
+
 {{- if .EnableNamespaces }}
 namespace_prefix "" {
+  policy = "write"
 {{- end }}
   service_prefix "" {
     policy = "write"
@@ -167,7 +169,7 @@ namespace_prefix "" {
 {{- if .EnablePartitions }}
 }
 {{- end }}
-  `
+`
 
 	return c.renderRules(apiGatewayRulesTpl)
 }
diff --git a/control-plane/subcommand/server-acl-init/rules_test.go b/control-plane/subcommand/server-acl-init/rules_test.go
index 22e63ed0ce..622ed341a8 100644
--- a/control-plane/subcommand/server-acl-init/rules_test.go
+++ b/control-plane/subcommand/server-acl-init/rules_test.go
@@ -143,6 +143,7 @@ func TestAPIGatewayControllerRules(t *testing.T) {
 	cases := []struct {
 		Name             string
 		EnableNamespaces bool
+		Partition        string
 		Expected         string
 	}{
 		{
@@ -165,6 +166,7 @@ acl = "write"
 operator = "write"
 acl = "write"
 namespace_prefix "" {
+  policy = "write"
   service_prefix "" {
     policy = "write"
     intentions = "write"
@@ -172,6 +174,26 @@ namespace_prefix "" {
   node_prefix "" {
     policy = "read"
   }
+}`,
+		},
+		{
+			Name:             "Namespaces are enabled, partitions enabled",
+			EnableNamespaces: true,
+			Partition:        "Default",
+			Expected: `
+partition "Default" {
+  mesh = "write"
+  acl = "write"
+namespace_prefix "" {
+  policy = "write"
+  service_prefix "" {
+    policy = "write"
+    intentions = "write"
+  }
+  node_prefix "" {
+    policy = "read"
+  }
+}
 }`,
 		},
 	}
@@ -180,7 +202,9 @@ namespace_prefix "" {
 		t.Run(tt.Name, func(t *testing.T) {
 			cmd := Command{
 				flagEnableNamespaces: tt.EnableNamespaces,
-				consulFlags:          &flags.ConsulFlags{},
+				consulFlags: &flags.ConsulFlags{
+					Partition: tt.Partition,
+				},
 			}
 
 			meshGatewayRules, err := cmd.apiGatewayControllerRules()