diff --git a/pkg/service/server.go b/pkg/service/server.go
index bfdd5d4e5..0c298467e 100644
--- a/pkg/service/server.go
+++ b/pkg/service/server.go
@@ -107,18 +107,17 @@ func NewLivekitServer(conf *config.Config,
 		middlewares = append(middlewares, NewAPIKeyAuthMiddleware(keyProvider))
 	}
 
-	twirpLoggingHook := TwirpLogger()
-	twirpRequestStatusHook := TwirpRequestStatusReporter()
-	roomServer := livekit.NewRoomServiceServer(roomService, twirpLoggingHook)
-	agentDispatchServer := livekit.NewAgentDispatchServiceServer(agentDispatchService, twirpLoggingHook)
-	egressServer := livekit.NewEgressServer(egressService, twirp.WithServerHooks(
-		twirp.ChainHooks(
-			twirpLoggingHook,
-			twirpRequestStatusHook,
-		),
-	))
-	ingressServer := livekit.NewIngressServer(ingressService, twirpLoggingHook)
-	sipServer := livekit.NewSIPServer(sipService, twirpLoggingHook)
+	serverOptions := []interface{}{
+		twirp.WithServerHooks(twirp.ChainHooks(
+			TwirpLogger(),
+			TwirpRequestStatusReporter(),
+		)),
+	}
+	roomServer := livekit.NewRoomServiceServer(roomService, serverOptions...)
+	agentDispatchServer := livekit.NewAgentDispatchServiceServer(agentDispatchService, serverOptions...)
+	egressServer := livekit.NewEgressServer(egressService, serverOptions...)
+	ingressServer := livekit.NewIngressServer(ingressService, serverOptions...)
+	sipServer := livekit.NewSIPServer(sipService, serverOptions...)
 
 	mux := http.NewServeMux()
 	if conf.Development {
diff --git a/pkg/service/twirp_test.go b/pkg/service/twirp_test.go
new file mode 100644
index 000000000..103baad1a
--- /dev/null
+++ b/pkg/service/twirp_test.go
@@ -0,0 +1,34 @@
+/*
+ * Copyright 2024 LiveKit, Inc
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package service
+
+import (
+	"errors"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+	"github.com/twitchtv/twirp"
+)
+
+func TestConvertErrToTwirp(t *testing.T) {
+	t.Run("handles not found", func(t *testing.T) {
+		err := ErrRoomNotFound
+		var tErr twirp.Error
+		require.True(t, errors.As(err, &tErr))
+		require.Equal(t, twirp.NotFound, tErr.Code())
+	})
+}
diff --git a/test/singlenode_test.go b/test/singlenode_test.go
index e136a8e68..9512b92b1 100644
--- a/test/singlenode_test.go
+++ b/test/singlenode_test.go
@@ -16,6 +16,7 @@ package test
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"net/http"
 	"strings"
@@ -26,6 +27,7 @@ import (
 	"github.com/pion/webrtc/v3"
 	"github.com/stretchr/testify/require"
 	"github.com/thoas/go-funk"
+	"github.com/twitchtv/twirp"
 
 	"github.com/livekit/protocol/auth"
 	"github.com/livekit/protocol/livekit"
@@ -330,6 +332,32 @@ func TestSingleNodeRoomList(t *testing.T) {
 	roomServiceListRoom(t)
 }
 
+func TestSingleNodeUpdateParticipant(t *testing.T) {
+	if testing.Short() {
+		t.SkipNow()
+		return
+	}
+	_, finish := setupSingleNodeTest("TestSingleNodeRoomList")
+	defer finish()
+
+	adminCtx := contextWithToken(adminRoomToken(testRoom))
+	t.Run("update nonexistent participant", func(t *testing.T) {
+		_, err := roomClient.UpdateParticipant(adminCtx, &livekit.UpdateParticipantRequest{
+			Room:     testRoom,
+			Identity: "nonexistent",
+			Permission: &livekit.ParticipantPermission{
+				CanPublish: true,
+			},
+		})
+		require.Error(t, err)
+		var twErr twirp.Error
+		require.True(t, errors.As(err, &twErr))
+		// Note: for Cloud this would return 404, currently we are not able to differentiate between
+		// non-existent participant vs server being unavailable in OSS
+		require.Equal(t, twirp.Unavailable, twErr.Code())
+	})
+}
+
 // Ensure that CORS headers are returned
 func TestSingleNodeCORS(t *testing.T) {
 	if testing.Short() {