diff --git a/CHANGELOG.md b/CHANGELOG.md
index baca7133..59567da3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,9 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [4.9.0] - 2025-09-25
+- Disables CodeSync group if an invalid project is opened
+
 ## [4.8.0] - 2025-03-11
 - Modified video link in README and plugin.xml
 
diff --git a/build.gradle b/build.gradle
index 5a02fd43..a05aa43d 100644
--- a/build.gradle
+++ b/build.gradle
@@ -9,7 +9,7 @@ plugins {
 }
 
 group 'com.codesync'
-version '4.8.0'
+version '4.9.0'
 
 
 compileJava.options.encoding = "UTF-8"
diff --git a/src/main/java/org/intellij/sdk/codesync/Constants.java b/src/main/java/org/intellij/sdk/codesync/Constants.java
index 19af79b2..8edfacb5 100644
--- a/src/main/java/org/intellij/sdk/codesync/Constants.java
+++ b/src/main/java/org/intellij/sdk/codesync/Constants.java
@@ -262,6 +262,11 @@ private CustomErrorCodes() {
         public static final int IS_FROZEN_REPO = 4000;
         public static final int PRIVATE_REPO_COUNT_LIMIT_REACHED = 4006;
     }
+
+    public static final class StatusBarMessages {
+        public static final String OPEN_FOLDER = "CodeSync notification: CodeSync only works with folders. Please open a folder to start syncing.";
+        public static final String ACCOUNT_DEACTIVATED = "CodeSync notification: Your account is deactivated. In order to use CodeSync’s features, please use an active account.";
+    }
 }
 
 
diff --git a/src/main/java/org/intellij/sdk/codesync/actions/CodeSyncActionGroup.java b/src/main/java/org/intellij/sdk/codesync/actions/CodeSyncActionGroup.java
new file mode 100644
index 00000000..418da314
--- /dev/null
+++ b/src/main/java/org/intellij/sdk/codesync/actions/CodeSyncActionGroup.java
@@ -0,0 +1,88 @@
+package org.intellij.sdk.codesync.actions;
+
+import com.intellij.openapi.actionSystem.DefaultActionGroup;
+import com.intellij.openapi.actionSystem.AnAction;
+import com.intellij.openapi.actionSystem.AnActionEvent;
+import org.intellij.sdk.codesync.state.PluginState;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+import org.intellij.sdk.codesync.state.StateUtils;
+import org.intellij.sdk.codesync.state.PluginState;
+import com.intellij.openapi.project.Project;
+import com.intellij.openapi.vfs.VirtualFile;
+import org.intellij.sdk.codesync.codeSyncSetup.CodeSyncSetupAction;
+import org.intellij.sdk.codesync.utils.ProjectUtils;
+import com.intellij.openapi.actionSystem.CommonDataKeys;
+import org.intellij.sdk.codesync.utils.ProjectUtils;
+import com.intellij.openapi.ui.Messages;
+import org.intellij.sdk.codesync.Constants.*;
+
+import com.intellij.openapi.project.Project;
+import com.intellij.openapi.wm.StatusBar;
+import com.intellij.openapi.wm.WindowManager;
+
+import org.intellij.sdk.codesync.NotificationManager;
+
+public class CodeSyncActionGroup extends DefaultActionGroup {
+
+    PluginState pluginState = StateUtils.getGlobalState();
+    private boolean wasAlertShown = false;
+
+    public void showStatusBarMessage(String alertMessage, Project project) {
+        StatusBar statusBar = WindowManager.getInstance().getStatusBar(project);
+        if (statusBar != null) {
+            statusBar.setInfo(alertMessage);
+        }
+    }
+
+    private VirtualFile getRepoRoot(AnActionEvent anActionEvent, Project project) {
+        VirtualFile[] contentRoots = ProjectUtils.getAllContentRoots(project);
+
+        if (contentRoots.length > 1) {
+            // If more than one module are present in the project then a file must be open to show repo setup action
+            // this is needed because without the file we can not determine the correct repo sync.
+            VirtualFile virtualFile = anActionEvent.getRequiredData(CommonDataKeys.PSI_FILE).getVirtualFile();
+            return ProjectUtils.getRepoRoot(virtualFile, project);
+        } else if (contentRoots.length == 1) {
+            // If there is only one module then we can simply show the repo playback for the only repo present.
+            // Disable the button if repo is not in sync.
+            return contentRoots[0];
+        }
+
+        return null;
+    }
+
+    @Override
+    public void update(@NotNull AnActionEvent e) {
+        Project project = e.getProject();
+
+        boolean visible = true;
+
+        // Hide group if account is deactivated
+        if (StateUtils.getGlobalState().isAccountDeactivated) {
+            visible = false;
+            // Display alert message
+            showStatusBarMessage(StatusBarMessages.ACCOUNT_DEACTIVATED, project);
+        }
+
+        // Hide group if invalid project path
+        if (project == null || (project.getBasePath() != null && project.getBasePath().startsWith("/tmp/"))) {
+            visible = false;
+        }
+
+        VirtualFile repoRoot = this.getRepoRoot(e, project);
+        if (repoRoot == null) {
+            visible = false;
+        }
+
+        // A single file is opened, no need to sync it.
+        if (!repoRoot.isDirectory()) {
+            visible = false;
+            // Display alert message
+            showStatusBarMessage(StatusBarMessages.OPEN_FOLDER, project);
+        }
+
+        e.getPresentation().setVisible(visible);
+        e.getPresentation().setEnabled(visible);
+    }
+}
diff --git a/src/main/resources/META-INF/plugin.xml b/src/main/resources/META-INF/plugin.xml
index 6f656bab..51cadc7a 100644
--- a/src/main/resources/META-INF/plugin.xml
+++ b/src/main/resources/META-INF/plugin.xml
@@ -124,7 +124,10 @@
                   topic="com.intellij.openapi.project.ProjectManagerListener"/>
     </projectListeners>
     <actions>
-        <group id="org.intellij.sdk.action.GroupedActions" text="CodeSync" popup="true"
+        <group id="org.intellij.sdk.action.GroupedActions"
+               class="org.intellij.sdk.codesync.actions.CodeSyncActionGroup"
+               text="CodeSync"
+               popup="true"
                icon="CodeSyncIcons.codeSyncIcon">
             <add-to-group group-id="MainMenu" anchor="after" relative-to-action="ToolsMenu"/>
             <add-to-group group-id="EditorPopupMenu" anchor="last"/>