diff --git a/src/components/ProjectInfo/ProjectInfo.jsx b/src/components/ProjectInfo/ProjectInfo.jsx
index 7786145a9..8ee0eb1a7 100644
--- a/src/components/ProjectInfo/ProjectInfo.jsx
+++ b/src/components/ProjectInfo/ProjectInfo.jsx
@@ -7,7 +7,7 @@ import DeleteProjectModal from './DeleteProjectModal'
 import ProjectCardBody from '../../projects/components/projectsCard/ProjectCardBody'
 import MobileExpandable from '../MobileExpandable/MobileExpandable'
 import MediaQuery from 'react-responsive'
-import { SCREEN_BREAKPOINT_MD, PROJECT_STATUS_ACTIVE, PHASE_STATUS_ACTIVE, PHASE_STATUS_REVIEWED, PROJECT_ROLE_OWNER, PROJECT_ROLE_CUSTOMER } from '../../config/constants'
+import { SCREEN_BREAKPOINT_MD, PROJECT_ROLE_OWNER, PROJECT_ROLE_CUSTOMER } from '../../config/constants'
 import ReviewProjectButton from '../../projects/detail/components/ReviewProjectButton'
 import Tooltip from 'appirio-tech-react-components/components/Tooltip/Tooltip'
 import { TOOLTIP_DEFAULT_DELAY } from '../../config/constants'
@@ -24,17 +24,11 @@ class ProjectInfo extends Component {
 
   render() {
     const { project, currentMemberRole,
-      onChangeStatus, isSuperUser, phases, onSubmitForReview, isProjectProcessing,
+      onChangeStatus, isSuperUser, onSubmitForReview, isProjectProcessing,
       showDeleteConfirm, toggleProjectDelete, onConfirmDelete, projectTemplates } = this.props
 
     const code = _.get(project, 'details.utm.code', '')
 
-    const hasReviewedOrActivePhases = !!_.find(phases, (phase) => _.includes([PHASE_STATUS_REVIEWED, PHASE_STATUS_ACTIVE], phase.status))
-    const isProjectActive = project.status === PROJECT_STATUS_ACTIVE
-    const isV3Project = project.version === 'v3'
-    const projectCanBeActive =  !isV3Project || (!isProjectActive && hasReviewedOrActivePhases) || isProjectActive
-
-
     // prepare review button
     const showReviewBtn = project.status === 'draft' &&
       _.indexOf([PROJECT_ROLE_OWNER, PROJECT_ROLE_CUSTOMER], currentMemberRole) > -1
@@ -108,7 +102,6 @@ class ProjectInfo extends Component {
               {matches => (
                 <ProjectCardBody
                   project={project}
-                  projectCanBeActive={projectCanBeActive}
                   currentMemberRole={currentMemberRole}
                   descLinesCount={
                     /* has to be not too big value here,
diff --git a/src/components/ProjectStatus/ProjectStatus.scss b/src/components/ProjectStatus/ProjectStatus.scss
index 38ee57c1a..7c54c3dbb 100644
--- a/src/components/ProjectStatus/ProjectStatus.scss
+++ b/src/components/ProjectStatus/ProjectStatus.scss
@@ -171,22 +171,6 @@
         &.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 68347116b..f98964d21 100644
--- a/src/components/ProjectStatus/editableProjectStatus.js
+++ b/src/components/ProjectStatus/editableProjectStatus.js
@@ -4,19 +4,16 @@ 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,
-  TOOLTIP_DEFAULT_DELAY,
   PROJECT_STATUS_DRAFT
 } from '../../config/constants'
 import CarretDownNormal9px from '../../assets/icons/arrow-9px-carret-down-normal.svg'
 
 
-const hocStatusDropdown = (CompositeComponent, statusList, projectCanBeActive) => {
+const hocStatusDropdown = (CompositeComponent, statusList) => {
   class StatusDropdown extends Component {
     shouldDropdownUp() {
       if (this.refs.dropdown) {
@@ -36,12 +33,6 @@ const hocStatusDropdown = (CompositeComponent, statusList, projectCanBeActive) =
         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">
@@ -64,28 +55,8 @@ const hocStatusDropdown = (CompositeComponent, statusList, projectCanBeActive) =
               <div className="status-header">Project Status</div>
               <ul>
                 {
-                  activestatusList.sort((a, b) => a.order - b.order).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>
-                    ) : (
+                  statusList.sort((a, b) => a.order - b.order).map((item) =>
+                    (
                       <div key={item.value} className="tooltip-target">
                         <li>
                           <a
@@ -169,11 +140,11 @@ const editableProjectStatus = (CompositeComponent) => class extends Component {
 
   render() {
     const { showStatusChangeDialog, newStatus, statusChangeReason } = this.state
-    const { canEdit, projectCanBeActive, status } = this.props
+    const { canEdit, status } = this.props
     const PROJECT_STATUS_VALUES = this.getProjectStatusDropdownValues(status)
     const StatusDropdown = canEdit
-      ? enhanceDropdown(hocStatusDropdown(CompositeComponent, PROJECT_STATUS_VALUES, projectCanBeActive))
-      : hocStatusDropdown(CompositeComponent, PROJECT_STATUS_VALUES, projectCanBeActive)
+      ? enhanceDropdown(hocStatusDropdown(CompositeComponent, PROJECT_STATUS_VALUES))
+      : hocStatusDropdown(CompositeComponent, PROJECT_STATUS_VALUES)
     return (
       <div className={cn('EditableProjectStatus', {'modal-active': showStatusChangeDialog})}>
         <div className="modal-overlay" onClick={ this.hideStatusChangeDialog }/>
@@ -197,10 +168,6 @@ 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,
-  /**
-   * Boolean flag to control if project status can be switched to active.
-   */
-  projectCanBeActive: PropTypes.bool,
   /**
    * String representing project status
    */
diff --git a/src/projects/components/projectsCard/ProjectCardBody.jsx b/src/projects/components/projectsCard/ProjectCardBody.jsx
index daf2dcbff..629ec8dc1 100644
--- a/src/projects/components/projectsCard/ProjectCardBody.jsx
+++ b/src/projects/components/projectsCard/ProjectCardBody.jsx
@@ -16,7 +16,7 @@ import _ from 'lodash'
 
 const EnhancedProjectStatus = editableProjectStatus(ProjectStatus)
 
-function ProjectCardBody({ project, projectCanBeActive, currentMemberRole, descLinesCount = 8,
+function ProjectCardBody({ project, currentMemberRole, descLinesCount = 8,
   onChangeStatus, isSuperUser, showLink, showLinkURL, canEditStatus = true, hideStatus, history }) {
   if (!project) return null
 
@@ -57,7 +57,6 @@ function ProjectCardBody({ project, projectCanBeActive, currentMemberRole, descL
         {(project.status !== PROJECT_STATUS_ACTIVE || progress === 0) &&
           <EnhancedProjectStatus
             status={project.status}
-            projectCanBeActive={projectCanBeActive}
             showText
             withoutLabel
             currentMemberRole={currentMemberRole}
@@ -81,7 +80,6 @@ ProjectCardBody.defaultTypes = {
 
 ProjectCardBody.propTypes = {
   project: PT.object.isRequired,
-  projectCanBeActive: PT.bool,
   currentMemberRole: PT.string,
   showLink: PT.bool,
   showLinkURL: PT.string,