diff --git a/src/components/ProjectInfo/ProjectInfo.jsx b/src/components/ProjectInfo/ProjectInfo.jsx
index c4dd07453..319e8ffd2 100644
--- a/src/components/ProjectInfo/ProjectInfo.jsx
+++ b/src/components/ProjectInfo/ProjectInfo.jsx
@@ -10,7 +10,7 @@ import ProjectDirectLinks from '../../projects/list/components/Projects/ProjectD
 import MobileExpandable from '../MobileExpandable/MobileExpandable'
 import ProjectProgress from '../../projects/detail/components/ProjectProgress'
 import MediaQuery from 'react-responsive'
-import { SCREEN_BREAKPOINT_MD, PHASE_STATUS_ACTIVE, PROJECT_ROLE_OWNER, PROJECT_ROLE_CUSTOMER } from '../../config/constants'
+import { SCREEN_BREAKPOINT_MD, PROJECT_STATUS_ACTIVE, PHASE_STATUS_ACTIVE, PHASE_STATUS_REVIEWED, PROJECT_ROLE_OWNER, PROJECT_ROLE_CUSTOMER } from '../../config/constants'
 import ReviewProjectButton from '../../projects/detail/components/ReviewProjectButton'
 
 import { formatProjectProgressProps, formatOldProjectProgressProps } from '../../helpers/projectHelper'
@@ -52,6 +52,9 @@ class ProjectInfo extends Component {
     )
 
     const activePhases = phases ? phases.filter((phase) => phase.status === PHASE_STATUS_ACTIVE) : []
+    const hasReviewedOrActivePhases = !!_.find(phases, (phase) => _.includes([PHASE_STATUS_REVIEWED, PHASE_STATUS_ACTIVE], phase.status))
+    const projectCanBeActive = (project.status !== PROJECT_STATUS_ACTIVE && hasReviewedOrActivePhases) || project.status === PROJECT_STATUS_ACTIVE
+
 
     // prepare review button
     const showReviewBtn = project.status === 'draft' &&
@@ -60,10 +63,10 @@ class ProjectInfo extends Component {
     const reviewButtonSection = (
       <div className="project-info-review">
         <p>
-          Your project "{_.unescape(project.name)}" has been drafted. 
-          If you have your requirements documented, just verify it against our checklist and then upload it on the <Link to={`/projects/${project.id}/scope`}>Scope</Link> section. 
-          Once you've finalized your scope, select the "Submit for Review" button. 
-          Topcoder will then review your drafted project and will assign a manager to get your delivery in-progress! 
+          Your project "{_.unescape(project.name)}" has been drafted.
+          If you have your requirements documented, just verify it against our checklist and then upload it on the <Link to={`/projects/${project.id}/scope`}>Scope</Link> section.
+          Once you've finalized your scope, select the "Submit for Review" button.
+          Topcoder will then review your drafted project and will assign a manager to get your delivery in-progress!
           Get stuck or need help? Email us at <a href="mailto:support@topcoder.com">support@topcoder.com</a>.
         </p>
         <ReviewProjectButton project={project} onClick={onSubmitForReview} disabled={isProjectProcessing} />
@@ -108,6 +111,7 @@ class ProjectInfo extends Component {
               {(matches) => (
                 <ProjectCardBody
                   project={project}
+                  projectCanBeActive={projectCanBeActive}
                   currentMemberRole={currentMemberRole}
                   duration={duration}
                   descLinesCount={
diff --git a/src/components/ProjectStatus/ProjectStatus.scss b/src/components/ProjectStatus/ProjectStatus.scss
index 253f44d8e..b0cebe28b 100644
--- a/src/components/ProjectStatus/ProjectStatus.scss
+++ b/src/components/ProjectStatus/ProjectStatus.scss
@@ -160,6 +160,22 @@
         &.active {
           background: $tc-gray-10;
         }
+
+        &.disabled  {
+          cursor: default;
+
+          svg {
+            filter: grayscale(1);
+          }
+
+          span {
+            color: $tc-gray-30;
+          }
+
+          &:hover {
+            background: transparent;
+          }
+        }
   
         svg {
           margin-top: 7px;
diff --git a/src/components/ProjectStatus/editableProjectStatus.js b/src/components/ProjectStatus/editableProjectStatus.js
index 4cfbdac0b..339956bed 100644
--- a/src/components/ProjectStatus/editableProjectStatus.js
+++ b/src/components/ProjectStatus/editableProjectStatus.js
@@ -4,15 +4,18 @@ import ProjectStatusChangeConfirmation from './ProjectStatusChangeConfirmation'
 import cn from 'classnames'
 import _ from 'lodash'
 import enhanceDropdown from 'appirio-tech-react-components/components/Dropdown/enhanceDropdown'
+import Tooltip from 'appirio-tech-react-components/components/Tooltip/Tooltip'
 import {
   PROJECT_STATUS,
+  PROJECT_STATUS_ACTIVE,
   PROJECT_STATUS_COMPLETED,
-  PROJECT_STATUS_CANCELLED
+  PROJECT_STATUS_CANCELLED,
+  TOOLTIP_DEFAULT_DELAY
 } from '../../config/constants'
 import CarretDownNormal9px from '../../assets/icons/arrow-9px-carret-down-normal.svg'
 
 
-const hocStatusDropdown = (CompositeComponent, statusList) => {
+const hocStatusDropdown = (CompositeComponent, statusList, projectCanBeActive) => {
   class StatusDropdown extends Component {
     shouldDropdownUp() {
       if (this.refs.dropdown) {
@@ -32,6 +35,12 @@ const hocStatusDropdown = (CompositeComponent, statusList) => {
         return null
       }
 
+      const activestatusList = statusList.map((status) => ({
+        ...status,
+        disabled: !projectCanBeActive && status.value === PROJECT_STATUS_ACTIVE,
+        toolTipMessage: (!projectCanBeActive && status.value === PROJECT_STATUS_ACTIVE) ? 'To activate project there should be at least one phase in "Planned" status. Please, check "Project Plan" tab.' : null,
+      }))
+
       this.shouldDropdownUp()
       return (
         <div className="project-status-dropdown" ref="dropdown">
@@ -46,7 +55,7 @@ const hocStatusDropdown = (CompositeComponent, statusList) => {
               unifiedHeader={unifiedHeader}
             />
             { canEdit && <i className="caret" >
-              <CarretDownNormal9px className="icon-carret-down-normal"/>
+              <CarretDownNormal9px className="icon-carret-down-normal" />
             </i> }
           </div>
           { isOpen && canEdit &&
@@ -54,18 +63,43 @@ const hocStatusDropdown = (CompositeComponent, statusList) => {
               <div className="status-header">Project Status</div>
               <ul>
                 {
-                  statusList.sort((a, b) => a.dropDownOrder > b.dropDownOrder).map((item) =>
-                    (<li key={item.value}>
-                      <a
-                        href="javascript:"
-                        className={cn('status-option', 'status-' + item.value, { active: item.value === status })}
-                        onClick={(e) => {
-                          onItemSelect(item.value, e)
-                        }}
-                      >
-                        <CompositeComponent status={item} showText />
-                      </a>
-                    </li>)
+                  activestatusList.sort((a, b) => a.dropDownOrder > b.dropDownOrder).map((item) =>
+                    item.toolTipMessage ? (
+                      <Tooltip key={item.value} theme="light" tooltipDelay={TOOLTIP_DEFAULT_DELAY}>
+                        <div className="tooltip-target">
+                          <li>
+                            <a
+                              href="javascript:"
+                              className={cn('status-option', 'status-' + item.value, { active: item.value === status, disabled: item.disabled })}
+                              onClick={(e) => {
+                                if (!item.disabled)
+                                  onItemSelect(item.value, e)
+                              }}
+                            >
+                              <CompositeComponent status={item} showText />
+                            </a>
+                          </li>
+                        </div>
+                        <div className="tooltip-body">
+                          {item.toolTipMessage}
+                        </div>
+                      </Tooltip>
+                    ) : (
+                      <div key={item.value} className="tooltip-target">
+                        <li>
+                          <a
+                            href="javascript:"
+                            className={cn('status-option', 'status-' + item.value, { active: item.value === status, disabled: item.disabled })}
+                            onClick={(e) => {
+                              if (!item.disabled)
+                                onItemSelect(item.value, e)
+                            }}
+                          >
+                            <CompositeComponent status={item} showText />
+                          </a>
+                        </li>
+                      </div>
+                    )
                   )
                 }
               </ul>
@@ -126,10 +160,10 @@ const editableProjectStatus = (CompositeComponent) => class extends Component {
 
   render() {
     const { showStatusChangeDialog, newStatus, statusChangeReason } = this.state
-    const { canEdit } = this.props
+    const { canEdit, projectCanBeActive } = this.props
     const StatusDropdown = canEdit
-      ? enhanceDropdown(hocStatusDropdown(CompositeComponent, PROJECT_STATUS))
-      : hocStatusDropdown(CompositeComponent, PROJECT_STATUS)
+      ? enhanceDropdown(hocStatusDropdown(CompositeComponent, PROJECT_STATUS, projectCanBeActive))
+      : hocStatusDropdown(CompositeComponent, PROJECT_STATUS, projectCanBeActive)
     return (
       <div className={cn('EditableProjectStatus', {'modal-active': showStatusChangeDialog})}>
         <div className="modal-overlay" onClick={ this.hideStatusChangeDialog }/>
@@ -152,7 +186,11 @@ editableProjectStatus.propTypes = {
   /**
    * Boolean flag to control editability of the project status. It does not render the dropdown if it is not editable.
    */
-  canEdit: PropTypes.bool
+  canEdit: PropTypes.bool,
+  /**
+   * Boolean flag to control if project status can be switched to active.
+   */
+  projectCanBeActive: PropTypes.bool
 }
 
 export default editableProjectStatus
diff --git a/src/projects/components/projectsCard/ProjectCardBody.jsx b/src/projects/components/projectsCard/ProjectCardBody.jsx
index 0ae5cd78b..36e85f2a9 100644
--- a/src/projects/components/projectsCard/ProjectCardBody.jsx
+++ b/src/projects/components/projectsCard/ProjectCardBody.jsx
@@ -11,7 +11,7 @@ import _ from 'lodash'
 
 const EnhancedProjectStatus = editableProjectStatus(ProjectStatus)
 
-function ProjectCardBody({ project, duration, currentMemberRole, descLinesCount = 8,
+function ProjectCardBody({ project, projectCanBeActive, duration, currentMemberRole, descLinesCount = 8,
   onChangeStatus, isSuperUser, showLink, showLinkURL, canEditStatus = true }) {
   if (!project) return null
 
@@ -39,6 +39,7 @@ function ProjectCardBody({ project, duration, currentMemberRole, descLinesCount
         {(project.status !== PROJECT_STATUS_ACTIVE || progress === 0) &&
           <EnhancedProjectStatus
             status={project.status}
+            projectCanBeActive={projectCanBeActive}
             showText
             withoutLabel
             currentMemberRole={currentMemberRole}
@@ -59,6 +60,7 @@ function ProjectCardBody({ project, duration, currentMemberRole, descLinesCount
 }
 
 ProjectCardBody.defaultTypes = {
+  projectCanBeActive: true,
   showLink: false,
   showLinkURL: '',
   canEditStatus: true
@@ -66,6 +68,7 @@ ProjectCardBody.defaultTypes = {
 
 ProjectCardBody.propTypes = {
   project: PT.object.isRequired,
+  projectCanBeActive: PT.bool,
   currentMemberRole: PT.string,
   duration: PT.object.isRequired,
   showLink: PT.bool,