diff --git a/submit-api/migrations/versions/e77a59c88dac_add_in_progress_status_in_package_model.py b/submit-api/migrations/versions/e77a59c88dac_add_in_progress_status_in_package_model.py
new file mode 100644
index 00000000..acb740d7
--- /dev/null
+++ b/submit-api/migrations/versions/e77a59c88dac_add_in_progress_status_in_package_model.py
@@ -0,0 +1,27 @@
+"""add in_progress status in package model
+
+Revision ID: e77a59c88dac
+Revises: d4ea378228e4
+Create Date: 2026-04-15 17:41:20.993941
+
+"""
+from alembic import op
+import sqlalchemy as sa
+
+
+# revision identifiers, used by Alembic.
+revision = 'e77a59c88dac'
+down_revision = 'd4ea378228e4'
+branch_labels = None
+depends_on = None
+
+
+def upgrade():
+    op.execute("ALTER TYPE packagestatus ADD VALUE IF NOT EXISTS 'IN_PROGRESS';")
+
+
+def downgrade():
+    # Note: PostgreSQL does not support removing enum values directly
+    # This would require recreating the enum type, which is complex and risky
+    # If rollback is needed, it should be done manually or with a new migration
+    pass
diff --git a/submit-api/src/submit_api/models/package.py b/submit-api/src/submit_api/models/package.py
index 5dd06217..365a1172 100644
--- a/submit-api/src/submit_api/models/package.py
+++ b/submit-api/src/submit_api/models/package.py
@@ -44,6 +44,7 @@ class PackageStatus(enum.Enum):
     COMPLETED = 'COMPLETED'
     NEW_SUBMISSION = 'NEW_SUBMISSION'
     NEW = 'NEW'
+    IN_PROGRESS = 'IN_PROGRESS'
     PASSED_CONSULTATION_CHECK = 'PASSED_CONSULTATION_CHECK'
     FAILED_CONSULTATION_CHECK = 'FAILED_CONSULTATION_CHECK'
     UNDER_REVIEW = 'UNDER_REVIEW'
diff --git a/submit-api/src/submit_api/schemas/package.py b/submit-api/src/submit_api/schemas/package.py
index c186786b..d6f976ab 100644
--- a/submit-api/src/submit_api/schemas/package.py
+++ b/submit-api/src/submit_api/schemas/package.py
@@ -267,6 +267,10 @@ def get_package_status(status, user_type, version_obj):
             UserType.PROPONENT: PackageStatus.REVIEWED.value,
             UserType.STAFF: PackageStatus.REVIEWED.value
         },
+        PackageStatus.IN_PROGRESS.value: {
+            UserType.PROPONENT: PackageStatus.IN_PROGRESS.value,
+            UserType.STAFF: PackageStatus.IN_PROGRESS.value
+        },
     }
 
     if status in package_status_mapping:
diff --git a/submit-api/src/submit_api/services/package_service.py b/submit-api/src/submit_api/services/package_service.py
index 46fb4c23..9e91c58c 100644
--- a/submit-api/src/submit_api/services/package_service.py
+++ b/submit-api/src/submit_api/services/package_service.py
@@ -97,6 +97,13 @@ def _create_package(session, account_project_id, request_data, package_type):
         # Use account_project_work_id from request if provided
         if request_data.get("account_project_work_id"):
             package_data["account_project_work_id"] = request_data.get("account_project_work_id")
+            # Set IN_PROGRESS status for work-related packages
+            if not package_data.get("status"):
+                package_data["status"] = [PackageStatus.IN_PROGRESS.value]
+                work_id = request_data.get('account_project_work_id')
+                current_app.logger.info(
+                    f"Setting IN_PROGRESS status for work-related package with work_id: {work_id}"
+                )
             current_app.logger.info(
                 f"Using account_project_work_id from request: {request_data.get('account_project_work_id')}"
             )
@@ -394,6 +401,14 @@ def submit_package(cls, package_id):
     @classmethod
     def _submit_package(cls, package, session):
         """Submit the package by updating its status and items."""
+        # For work-related packages with IN_PROGRESS status, explicitly set to SUBMITTED
+        if package.account_project_work_id and PackageStatus.IN_PROGRESS.value in package.status:
+            package.status = [PackageStatus.SUBMITTED.value]
+            session.add(package)
+            current_app.logger.info(
+                f"Changed status from IN_PROGRESS to SUBMITTED for work-related package {package.id}"
+            )
+
         cls._update_items_status(
             package.items, ItemStatus.SUBMITTED.value, session)
         cls._update_package_status(package.id, session, package)
diff --git a/submit-web/src/components/App/PackageStatusChip/index.tsx b/submit-web/src/components/App/PackageStatusChip/index.tsx
index d101c4ca..830c53c2 100644
--- a/submit-web/src/components/App/PackageStatusChip/index.tsx
+++ b/submit-web/src/components/App/PackageStatusChip/index.tsx
@@ -115,6 +115,15 @@ const statusStyles: Record<
     },
     label: "New",
   },
+  IN_PROGRESS: {
+    sx: {
+      borderRadius: 1,
+      border: `1px solid ${BCDesignTokens.themeBlue100}`,
+      background: BCDesignTokens.themeBlue20,
+      height: "24px",
+    },
+    label: "In Progress",
+  },
   NEW_SUBMISSION: {
     sx: {
       borderRadius: 1,
diff --git a/submit-web/src/models/Package.ts b/submit-web/src/models/Package.ts
index dc7322c1..db219f01 100644
--- a/submit-web/src/models/Package.ts
+++ b/submit-web/src/models/Package.ts
@@ -49,6 +49,7 @@ export type PackageStatus =
   | "PARTIALLY_COMPLETED"
   | "NEW_SUBMISSION"
   | "NEW"
+  | "IN_PROGRESS"
   | "UNDER_CONSULTATION_CHECK"
   | "PASSED_CONSULTATION_CHECK"
   | "AWAITING_MANAGER_APPROVAL"
@@ -96,6 +97,10 @@ export const PACKAGE_STATUS: Record<
     value: "NEW",
     label: "New",
   },
+  IN_PROGRESS: {
+    value: "IN_PROGRESS",
+    label: "In Progress",
+  },
   NEW_SUBMISSION: {
     value: "NEW_SUBMISSION",
     label: "New Submission",