diff --git a/src/routes/projects/create.js b/src/routes/projects/create.js
index 1b940c19..893035f4 100644
--- a/src/routes/projects/create.js
+++ b/src/routes/projects/create.js
@@ -409,7 +409,7 @@ module.exports = [
     });
     // override values
     _.assign(project, {
-      status: PROJECT_STATUS.DRAFT,
+      status: PROJECT_STATUS.IN_REVIEW,
       createdBy: req.authUser.userId,
       updatedBy: req.authUser.userId,
       lastActivityAt: new Date(),
@@ -468,7 +468,7 @@ module.exports = [
         // add to project history asynchronously, don't wait for it to complete
         models.ProjectHistory.create({
           projectId: newProject.id,
-          status: PROJECT_STATUS.DRAFT,
+          status: PROJECT_STATUS.IN_REVIEW,
           cancelReason: null,
           updatedBy: req.authUser.userId,
         }).then(() => req.log.debug('project history created for project %d', newProject.id))
diff --git a/src/routes/projects/create.spec.js b/src/routes/projects/create.spec.js
index 670041c9..0c5c9775 100644
--- a/src/routes/projects/create.spec.js
+++ b/src/routes/projects/create.spec.js
@@ -434,7 +434,7 @@ describe('Project create', () => {
             should.exist(resJson.billingAccountId);
             should.exist(resJson.name);
             resJson.directProjectId.should.be.eql(128);
-            resJson.status.should.be.eql('draft');
+            resJson.status.should.be.eql('in_review');
             resJson.type.should.be.eql(body.param.type);
             resJson.version.should.be.eql('v3');
             resJson.members.should.have.lengthOf(1);
@@ -490,7 +490,7 @@ describe('Project create', () => {
             should.exist(resJson.billingAccountId);
             should.exist(resJson.name);
             resJson.directProjectId.should.be.eql(128);
-            resJson.status.should.be.eql('draft');
+            resJson.status.should.be.eql('in_review');
             resJson.type.should.be.eql(body.param.type);
             resJson.version.should.be.eql('v2');
             resJson.members.should.have.lengthOf(1);
@@ -544,7 +544,7 @@ describe('Project create', () => {
             should.exist(resJson.billingAccountId);
             should.exist(resJson.name);
             resJson.directProjectId.should.be.eql(128);
-            resJson.status.should.be.eql('draft');
+            resJson.status.should.be.eql('in_review');
             resJson.type.should.be.eql(body.param.type);
             resJson.members.should.have.lengthOf(1);
             resJson.members[0].role.should.be.eql('customer');
@@ -620,7 +620,7 @@ describe('Project create', () => {
             should.exist(resJson.billingAccountId);
             should.exist(resJson.name);
             resJson.directProjectId.should.be.eql(128);
-            resJson.status.should.be.eql('draft');
+            resJson.status.should.be.eql('in_review');
             resJson.type.should.be.eql(body.param.type);
             resJson.members.should.have.lengthOf(1);
             resJson.members[0].role.should.be.eql('customer');
@@ -754,7 +754,7 @@ describe('Project create', () => {
             should.exist(resJson.billingAccountId);
             should.exist(resJson.name);
             resJson.directProjectId.should.be.eql(128);
-            resJson.status.should.be.eql('draft');
+            resJson.status.should.be.eql('in_review');
             resJson.type.should.be.eql(body.param.type);
             resJson.version.should.be.eql('v3');
             resJson.members.should.have.lengthOf(1);
@@ -843,7 +843,7 @@ describe('Project create', () => {
             should.exist(resJson.billingAccountId);
             should.exist(resJson.name);
             resJson.directProjectId.should.be.eql(128);
-            resJson.status.should.be.eql('draft');
+            resJson.status.should.be.eql('in_review');
             resJson.type.should.be.eql(body.param.type);
             resJson.members.should.have.lengthOf(1);
             resJson.members[0].role.should.be.eql('customer');
diff --git a/src/routes/projects/update.js b/src/routes/projects/update.js
index ddb13a36..4f0ebee5 100644
--- a/src/routes/projects/update.js
+++ b/src/routes/projects/update.js
@@ -149,6 +149,9 @@ const validateUpdates = (existingProject, updatedProps, req) => {
     !util.hasRoles(req, [USER_ROLE.MANAGER, USER_ROLE.TOPCODER_ADMIN])) {
     errors.push('Don\'t have permission to update \'directProjectId\' property');
   }
+  if ((existingProject.status !== PROJECT_STATUS.DRAFT) && (updatedProps.status === PROJECT_STATUS.DRAFT)) {
+    errors.push('cannot update a project status to draft');
+  }
   return errors;
 };