diff --git a/x/ecocredit/base/keeper/features/msg_create_or_update_application.feature b/x/ecocredit/base/keeper/features/msg_create_or_update_application.feature
index bc2877059d..3f5cdf2d07 100644
--- a/x/ecocredit/base/keeper/features/msg_create_or_update_application.feature
+++ b/x/ecocredit/base/keeper/features/msg_create_or_update_application.feature
@@ -61,4 +61,11 @@ Feature: Msg/CreateOrUpdateApplication
       Then expect error contains "unauthorized"
       And expect the application for "P001" to "C01" exists with metadata "abc123"
 
-  Rule: events get emitted
+  Rule: project admins cannot withdraw a project with an accepted enrollment (a credit class issuer must do that)
+    Scenario: project is accepted and admin attempts to withdraw the application
+      Given an application for "P001" to "C01" with metadata "abc123"
+      And the application for "P001" to "C01" is accepted
+      When "Alice" attempts to withdraw the application for "P001" to "C01" with metadata "foobar379"
+      Then expect error contains "cannot withdraw accepted enrollment"
+      And expect the application for "P001" to "C01" exists with metadata "abc123"
+
diff --git a/x/ecocredit/base/keeper/msg_create_or_update_application.go b/x/ecocredit/base/keeper/msg_create_or_update_application.go
index 3e0905ba11..ef8c852321 100644
--- a/x/ecocredit/base/keeper/msg_create_or_update_application.go
+++ b/x/ecocredit/base/keeper/msg_create_or_update_application.go
@@ -51,6 +51,10 @@ func (k Keeper) CreateOrUpdateApplication(ctx context.Context, msg *types.MsgCre
 
 	if msg.Withdraw {
 		action = types.EventUpdateApplication_ACTION_WITHDRAW
+		if enrollment.Status == ecocreditv1.ProjectEnrollmentStatus_PROJECT_ENROLLMENT_STATUS_ACCEPTED {
+			return nil, sdkerrors.ErrInvalidRequest.Wrapf("cannot withdraw accepted enrollment")
+		}
+
 		if err := k.stateStore.ProjectEnrollmentTable().Delete(ctx, enrollment); err != nil {
 			return nil, err
 		}
diff --git a/x/ecocredit/base/keeper/msg_create_or_update_application_test.go b/x/ecocredit/base/keeper/msg_create_or_update_application_test.go
index 91b43749e5..de40e407b0 100644
--- a/x/ecocredit/base/keeper/msg_create_or_update_application_test.go
+++ b/x/ecocredit/base/keeper/msg_create_or_update_application_test.go
@@ -59,6 +59,13 @@ func (s *createOrUpdateApplicationSuite) AnApplicationForToWithMetadata(projId,
 	}))
 }
 
+func (s *createOrUpdateApplicationSuite) TheApplicationForToIsAccepted(projId, clsId string) {
+	enrollment, err := s.getEnrollment(projId, clsId)
+	require.NoError(s.t, err)
+	enrollment.Status = api.ProjectEnrollmentStatus_PROJECT_ENROLLMENT_STATUS_ACCEPTED
+	require.NoError(s.t, s.stateStore.ProjectEnrollmentTable().Save(s.ctx, enrollment))
+}
+
 func (s *createOrUpdateApplicationSuite) AnApplicationForToDoesNotExist(projId, clsId string) {
 	enrollment, err := s.getEnrollment(projId, clsId)
 	if !ormerrors.IsNotFound(err) {