diff --git a/openpype/tools/settings/settings/categories.py b/openpype/tools/settings/settings/categories.py
index c420a8cdc5..be2264340b 100644
--- a/openpype/tools/settings/settings/categories.py
+++ b/openpype/tools/settings/settings/categories.py
@@ -609,14 +609,23 @@ class ProjectWidget(SettingsCategoryWidget):
         self.project_list_widget.refresh()
 
     def _on_reset_crash(self):
-        self.project_list_widget.setEnabled(False)
+        self._set_enabled_project_list(False)
         super(ProjectWidget, self)._on_reset_crash()
 
     def _on_reset_success(self):
-        if not self.project_list_widget.isEnabled():
-            self.project_list_widget.setEnabled(True)
+        self._set_enabled_project_list(True)
         super(ProjectWidget, self)._on_reset_success()
 
+    def _set_enabled_project_list(self, enabled):
+        if (
+            enabled
+            and self.modify_defaults_checkbox
+            and self.modify_defaults_checkbox.isChecked()
+        ):
+            enabled = False
+        if self.project_list_widget.isEnabled() != enabled:
+            self.project_list_widget.setEnabled(enabled)
+
     def _create_root_entity(self):
         self.entity = ProjectSettings(change_state=False)
         self.entity.on_change_callbacks.append(self._on_entity_change)
@@ -637,7 +646,8 @@ class ProjectWidget(SettingsCategoryWidget):
 
             if self.modify_defaults_checkbox:
                 self.modify_defaults_checkbox.setEnabled(True)
-            self.project_list_widget.setEnabled(True)
+
+            self._set_enabled_project_list(True)
 
         except DefaultsNotDefined:
             if not self.modify_defaults_checkbox:
@@ -646,7 +656,7 @@ class ProjectWidget(SettingsCategoryWidget):
             self.entity.set_defaults_state()
             self.modify_defaults_checkbox.setChecked(True)
             self.modify_defaults_checkbox.setEnabled(False)
-            self.project_list_widget.setEnabled(False)
+            self._set_enabled_project_list(False)
 
         except StudioDefaultsNotDefined:
             self.select_default_project()
@@ -666,8 +676,10 @@ class ProjectWidget(SettingsCategoryWidget):
 
     def _on_modify_defaults(self):
         if self.modify_defaults_checkbox.isChecked():
+            self._set_enabled_project_list(False)
             if not self.entity.is_in_defaults_state():
                 self.reset()
         else:
+            self._set_enabled_project_list(True)
             if not self.entity.is_in_studio_state():
                 self.reset()
diff --git a/openpype/tools/settings/settings/style/style.css b/openpype/tools/settings/settings/style/style.css
index d9d85a481e..b77b575204 100644
--- a/openpype/tools/settings/settings/style/style.css
+++ b/openpype/tools/settings/settings/style/style.css
@@ -146,6 +146,15 @@ QSlider::handle:vertical {
     border: 1px solid #464b54;
     background: #21252B;
 }
+
+#ProjectListWidget QListView:disabled {
+    background: #282C34;
+}
+
+#ProjectListWidget QListView::item:disabled {
+    color: #4e5254;
+}
+
 #ProjectListWidget QLabel {
     background: transparent;
     font-weight: bold;
@@ -249,8 +258,6 @@ QTabBar::tab:!selected:hover {
     background: #333840;
 }
 
-
-
 QTabBar::tab:first:selected {
     margin-left: 0;
 }
@@ -405,12 +412,15 @@ QHeaderView::section  {
     font-weight: bold;
 }
 
-QTableView::item:pressed, QListView::item:pressed, QTreeView::item:pressed  {
+QAbstractItemView::item:pressed {
     background: #78879b;
     color: #FFFFFF;
 }
 
-QTableView::item:selected:active, QTreeView::item:selected:active, QListView::item:selected:active  {
+QAbstractItemView::item:selected:active {
+    background: #3d8ec9;
+}
+QAbstractItemView::item:selected:!active {
     background: #3d8ec9;
 }