diff --git a/docs/release-notes/release-notes-5.4.0.rst b/docs/release-notes/release-notes-5.4.0.rst
index d4766e3c..2443fb0a 100644
--- a/docs/release-notes/release-notes-5.4.0.rst
+++ b/docs/release-notes/release-notes-5.4.0.rst
@@ -39,6 +39,7 @@ Fixes
 - Fixed UI visualization issues with long commit messages
 - Fixed masking for some fields in admin settings
 - Fixed issues with caches calculations when passed search fields were empty
+- Fixed observer's ability to change a PR status
 
 Upgrade notes
 ^^^^^^^^^^^^^
diff --git a/rhodecode/apps/repository/views/repo_pull_requests.py b/rhodecode/apps/repository/views/repo_pull_requests.py
index 6df293b5..ee434ec7 100644
--- a/rhodecode/apps/repository/views/repo_pull_requests.py
+++ b/rhodecode/apps/repository/views/repo_pull_requests.py
@@ -487,7 +487,9 @@ class RepoPullRequestsView(RepoAppView, DataGridAppView):
         c.pull_request_set_reviewers_data_json = ext_json.str_json(c.pull_request_set_reviewers_data_json)
 
         # observers
+        observer_ids = []
         for observer_obj, member in pull_request_at_ver.observers():
+            observer_ids.append(observer_obj.user_id)
             member_observer = h.reviewer_as_json(
                 member, reasons=[], mandatory=False,
                 role=observer_obj.role,
@@ -497,6 +499,7 @@ class RepoPullRequestsView(RepoAppView, DataGridAppView):
             c.pull_request_set_observers_data_json['observers'].append(member_observer)
 
         c.pull_request_set_observers_data_json = ext_json.str_json(c.pull_request_set_observers_data_json)
+        c.status_change_disabled = self._rhodecode_user.user_id in observer_ids
 
         general_comments, inline_comments = \
             self.register_comments_vars(c, pull_request_latest, versions)
diff --git a/rhodecode/templates/pullrequests/pullrequest_show.mako b/rhodecode/templates/pullrequests/pullrequest_show.mako
index 64c81f9f..14388051 100644
--- a/rhodecode/templates/pullrequests/pullrequest_show.mako
+++ b/rhodecode/templates/pullrequests/pullrequest_show.mako
@@ -1054,6 +1054,16 @@ $(document).ready(function () {
     new ReviewerPresenceController(channel)
     // register globally so inject comment logic can re-use it.
     window.commentsController = commentsController;
+
+    // hiding status change dropdown for observers
+    const isHidden = ${'true' if c.status_change_disabled else 'false'};
+
+    if (isHidden) {
+      const element = document.getElementById("s2id_change_status_general");
+      if (element) {
+        element.style.display = "none";
+      }
+    }
 })
 </script>