diff --git app/models/issue.rb app/models/issue.rb
index 928dedc..22f2b19 100644
--- app/models/issue.rb
+++ app/models/issue.rb
@@ -259,6 +259,17 @@ class Issue < ActiveRecord::Base
     self.status_id
   end
 
+  # Returns the current status if the workflow allows the status to be unchanged
+  # or the first status from the list of allowed new statuses.
+  def status_id_or_first_allowed
+    user = User.current
+    if new_statuses_allowed_to(user).collect(&:id).include?(status_id.to_i)
+      status_id
+    else
+      new_statuses_allowed_to(user).first(&:id).id
+    end
+  end
+
   # Sets the status.
   def status=(status)
     if status != self.status
@@ -646,6 +657,10 @@ class Issue < ActiveRecord::Base
         end
       end
     end
+
+    unless new_statuses_allowed_to(User.current).collect(&:id).include?(status_id.to_i)
+      errors.add :status_id
+    end
   end
 
   # Validates the issue against additional workflow requirements
@@ -851,7 +866,7 @@ class Issue < ActiveRecord::Base
           assignee_transitions_allowed
           )
       end
-      statuses << initial_status unless statuses.empty?
+      statuses << initial_status if statuses.empty?
       statuses << default_status if include_default
       statuses = statuses.compact.uniq.sort
       if blocked?
diff --git app/views/issues/_attributes.html.erb app/views/issues/_attributes.html.erb
index 3d5f85c..5509074 100644
--- app/views/issues/_attributes.html.erb
+++ app/views/issues/_attributes.html.erb
@@ -3,7 +3,7 @@
 <div class="splitcontent">
 <div class="splitcontentleft">
 <% if @issue.safe_attribute?('status_id') && @allowed_statuses.present? %>
-<p><%= f.select :status_id, (@allowed_statuses.collect {|p| [p.name, p.id]}), {:required => true},
+<p><%= f.select :status_id, (@allowed_statuses.collect {|p| [p.name, p.id]}), {:required => true, :selected => @issue.status_id_or_first_allowed},
                 :onchange => "updateIssueFrom('#{escape_javascript update_issue_form_path(@project, @issue)}')" %></p>
 <%= hidden_field_tag 'was_default_status', @issue.status_id, :id => nil if @issue.status == @issue.default_status %>
 <% else %>