diff --git a/web/components/issues/issue-detail/sidebar.tsx b/web/components/issues/issue-detail/sidebar.tsx
index 854550b0b..eb12250e0 100644
--- a/web/components/issues/issue-detail/sidebar.tsx
+++ b/web/components/issues/issue-detail/sidebar.tsx
@@ -1,7 +1,6 @@
 import React, { useState } from "react";
 import { useRouter } from "next/router";
 import { observer } from "mobx-react-lite";
-import { differenceInCalendarDays } from "date-fns";
 import {
   LinkIcon,
   Signal,
@@ -15,7 +14,7 @@ import {
   CalendarDays,
 } from "lucide-react";
 // hooks
-import { useEstimate, useIssueDetail, useProject, useUser } from "hooks/store";
+import { useEstimate, useIssueDetail, useProject, useProjectState, useUser } from "hooks/store";
 import useToast from "hooks/use-toast";
 // components
 import {
@@ -41,6 +40,7 @@ import { ContrastIcon, DiceIcon, DoubleCircleIcon, RelatedIcon, UserGroupIcon }
 import { renderFormattedPayloadDate } from "helpers/date-time.helper";
 import { copyTextToClipboard } from "helpers/string.helper";
 import { cn } from "helpers/common.helper";
+import { shouldHighlightIssueDueDate } from "helpers/issue.helper";
 // types
 import type { TIssueOperations } from "./root";
 
@@ -65,6 +65,7 @@ export const IssueDetailsSidebar: React.FC<Props> = observer((props) => {
   const {
     issue: { getIssueById },
   } = useIssueDetail();
+  const { getStateById } = useProjectState();
   // states
   const [deleteIssueModal, setDeleteIssueModal] = useState(false);
 
@@ -83,6 +84,7 @@ export const IssueDetailsSidebar: React.FC<Props> = observer((props) => {
   };
 
   const projectDetails = issue ? getProjectById(issue.project_id) : null;
+  const stateDetails = getStateById(issue.state_id);
 
   const minDate = issue.start_date ? new Date(issue.start_date) : null;
   minDate?.setDate(minDate.getDate());
@@ -90,8 +92,6 @@ export const IssueDetailsSidebar: React.FC<Props> = observer((props) => {
   const maxDate = issue.target_date ? new Date(issue.target_date) : null;
   maxDate?.setDate(maxDate.getDate());
 
-  const targetDateDistance = issue.target_date ? differenceInCalendarDays(new Date(issue.target_date), new Date()) : 1;
-
   return (
     <>
       {workspaceSlug && projectId && issue && (
@@ -242,7 +242,7 @@ export const IssueDetailsSidebar: React.FC<Props> = observer((props) => {
                 buttonContainerClassName="w-full text-left"
                 buttonClassName={cn("text-sm", {
                   "text-custom-text-400": !issue.target_date,
-                  "text-red-500": targetDateDistance <= 0,
+                  "text-red-500": shouldHighlightIssueDueDate(issue.target_date, stateDetails?.group),
                 })}
                 hideIcon
                 clearIconClassName="h-3 w-3 hidden group-hover:inline !text-custom-text-100"
diff --git a/web/components/issues/issue-layouts/properties/all-properties.tsx b/web/components/issues/issue-layouts/properties/all-properties.tsx
index 7ef9aace8..7c8f638ff 100644
--- a/web/components/issues/issue-layouts/properties/all-properties.tsx
+++ b/web/components/issues/issue-layouts/properties/all-properties.tsx
@@ -1,11 +1,10 @@
 import { useCallback, useMemo } from "react";
 import { observer } from "mobx-react-lite";
 import { useRouter } from "next/router";
-import { differenceInCalendarDays } from "date-fns";
 import { Layers, Link, Paperclip } from "lucide-react";
 import xor from "lodash/xor";
 // hooks
-import { useEventTracker, useEstimate, useLabel, useIssues } from "hooks/store";
+import { useEventTracker, useEstimate, useLabel, useIssues, useProjectState } from "hooks/store";
 // components
 import { IssuePropertyLabels } from "../properties/labels";
 import { Tooltip } from "@plane/ui";
@@ -21,6 +20,7 @@ import {
 } from "components/dropdowns";
 // helpers
 import { renderFormattedPayloadDate } from "helpers/date-time.helper";
+import { shouldHighlightIssueDueDate } from "helpers/issue.helper";
 import { cn } from "helpers/common.helper";
 // types
 import { TIssue, IIssueDisplayProperties, TIssuePriorities } from "@plane/types";
@@ -48,11 +48,14 @@ export const IssueProperties: React.FC<IIssueProperties> = observer((props) => {
   const {
     issues: { addIssueToCycle, removeIssueFromCycle },
   } = useIssues(EIssuesStoreType.CYCLE);
+  const { areEstimatesEnabledForCurrentProject } = useEstimate();
+  const { getStateById } = useProjectState();
   // router
   const router = useRouter();
   const { workspaceSlug, cycleId, moduleId } = router.query;
-  const { areEstimatesEnabledForCurrentProject } = useEstimate();
   const currentLayout = `${activeLayout} layout`;
+  // derived values
+  const stateDetails = getStateById(issue.state_id);
 
   const issueOperations = useMemo(
     () => ({
@@ -232,8 +235,6 @@ export const IssueProperties: React.FC<IIssueProperties> = observer((props) => {
   const maxDate = issue.target_date ? new Date(issue.target_date) : null;
   maxDate?.setDate(maxDate.getDate());
 
-  const targetDateDistance = issue.target_date ? differenceInCalendarDays(new Date(issue.target_date), new Date()) : 1;
-
   return (
     <div className={className}>
       {/* basic properties */}
@@ -301,7 +302,7 @@ export const IssueProperties: React.FC<IIssueProperties> = observer((props) => {
             minDate={minDate ?? undefined}
             placeholder="Due date"
             buttonVariant={issue.target_date ? "border-with-text" : "border-without-text"}
-            buttonClassName={targetDateDistance <= 0 ? "text-red-500" : ""}
+            buttonClassName={shouldHighlightIssueDueDate(issue.target_date, stateDetails?.group) ? "text-red-500" : ""}
             clearIconClassName="!text-custom-text-100"
             disabled={isReadOnly}
             showTooltip
diff --git a/web/components/issues/issue-layouts/spreadsheet/columns/due-date-column.tsx b/web/components/issues/issue-layouts/spreadsheet/columns/due-date-column.tsx
index e07500c03..ebed73b76 100644
--- a/web/components/issues/issue-layouts/spreadsheet/columns/due-date-column.tsx
+++ b/web/components/issues/issue-layouts/spreadsheet/columns/due-date-column.tsx
@@ -1,13 +1,15 @@
 import React from "react";
 import { observer } from "mobx-react-lite";
-import differenceInCalendarDays from "date-fns/differenceInCalendarDays";
+// hooks
+import { useProjectState } from "hooks/store";
 // components
 import { DateDropdown } from "components/dropdowns";
 // helpers
 import { renderFormattedPayloadDate } from "helpers/date-time.helper";
+import { shouldHighlightIssueDueDate } from "helpers/issue.helper";
+import { cn } from "helpers/common.helper";
 // types
 import { TIssue } from "@plane/types";
-import { cn } from "helpers/common.helper";
 
 type Props = {
   issue: TIssue;
@@ -18,8 +20,10 @@ type Props = {
 
 export const SpreadsheetDueDateColumn: React.FC<Props> = observer((props: Props) => {
   const { issue, onChange, disabled, onClose } = props;
-
-  const targetDateDistance = issue.target_date ? differenceInCalendarDays(new Date(issue.target_date), new Date()) : 1;
+  // store hooks
+  const { getStateById } = useProjectState();
+  // derived values
+  const stateDetails = getStateById(issue.state_id);
 
   return (
     <div className="h-11 border-b-[0.5px] border-custom-border-200">
@@ -42,7 +46,7 @@ export const SpreadsheetDueDateColumn: React.FC<Props> = observer((props: Props)
         buttonVariant="transparent-with-text"
         buttonContainerClassName="w-full"
         buttonClassName={cn("rounded-none text-left", {
-          "text-red-500": targetDateDistance <= 0,
+          "text-red-500": shouldHighlightIssueDueDate(issue.target_date, stateDetails?.group),
         })}
         clearIconClassName="!text-custom-text-100"
         onClose={onClose}
diff --git a/web/components/issues/peek-overview/properties.tsx b/web/components/issues/peek-overview/properties.tsx
index c669c0349..2b428a57b 100644
--- a/web/components/issues/peek-overview/properties.tsx
+++ b/web/components/issues/peek-overview/properties.tsx
@@ -1,9 +1,8 @@
 import { FC } from "react";
 import { observer } from "mobx-react-lite";
-import { differenceInCalendarDays } from "date-fns";
 import { Signal, Tag, Triangle, LayoutPanelTop, CircleDot, CopyPlus, XCircle, CalendarDays } from "lucide-react";
 // hooks
-import { useIssueDetail, useProject } from "hooks/store";
+import { useIssueDetail, useProject, useProjectState } from "hooks/store";
 // ui icons
 import { DiceIcon, DoubleCircleIcon, UserGroupIcon, ContrastIcon, RelatedIcon } from "@plane/ui";
 import {
@@ -26,6 +25,7 @@ import {
 import { renderFormattedPayloadDate } from "helpers/date-time.helper";
 // helpers
 import { cn } from "helpers/common.helper";
+import { shouldHighlightIssueDueDate } from "helpers/issue.helper";
 
 interface IPeekOverviewProperties {
   workspaceSlug: string;
@@ -42,11 +42,13 @@ export const PeekOverviewProperties: FC<IPeekOverviewProperties> = observer((pro
   const {
     issue: { getIssueById },
   } = useIssueDetail();
+  const { getStateById } = useProjectState();
   // derived values
   const issue = getIssueById(issueId);
   if (!issue) return <></>;
   const projectDetails = getProjectById(issue.project_id);
   const isEstimateEnabled = projectDetails?.estimate;
+  const stateDetails = getStateById(issue.state_id);
 
   const minDate = issue.start_date ? new Date(issue.start_date) : null;
   minDate?.setDate(minDate.getDate());
@@ -54,8 +56,6 @@ export const PeekOverviewProperties: FC<IPeekOverviewProperties> = observer((pro
   const maxDate = issue.target_date ? new Date(issue.target_date) : null;
   maxDate?.setDate(maxDate.getDate());
 
-  const targetDateDistance = issue.target_date ? differenceInCalendarDays(new Date(issue.target_date), new Date()) : 1;
-
   return (
     <div className="mt-1">
       <h6 className="text-sm font-medium">Properties</h6>
@@ -169,7 +169,7 @@ export const PeekOverviewProperties: FC<IPeekOverviewProperties> = observer((pro
             buttonContainerClassName="w-full text-left"
             buttonClassName={cn("text-sm", {
               "text-custom-text-400": !issue.target_date,
-              "text-red-500": targetDateDistance <= 0,
+              "text-red-500": shouldHighlightIssueDueDate(issue.target_date, stateDetails?.group),
             })}
             hideIcon
             clearIconClassName="h-3 w-3 hidden group-hover:inline !text-custom-text-100"
diff --git a/web/helpers/issue.helper.ts b/web/helpers/issue.helper.ts
index 789b624e7..831cb321e 100644
--- a/web/helpers/issue.helper.ts
+++ b/web/helpers/issue.helper.ts
@@ -1,11 +1,20 @@
 import { v4 as uuidv4 } from "uuid";
+import differenceInCalendarDays from "date-fns/differenceInCalendarDays";
 // helpers
 import { orderArrayBy } from "helpers/array.helper";
 // types
-import { TIssue, TIssueGroupByOptions, TIssueLayouts, TIssueOrderByOptions, TIssueParams } from "@plane/types";
+import {
+  TIssue,
+  TIssueGroupByOptions,
+  TIssueLayouts,
+  TIssueOrderByOptions,
+  TIssueParams,
+  TStateGroups,
+} from "@plane/types";
 import { IGanttBlock } from "components/gantt-chart";
 // constants
 import { ISSUE_DISPLAY_FILTERS_BY_LAYOUT } from "constants/issue";
+import { STATE_GROUPS } from "constants/state";
 
 type THandleIssuesMutation = (
   formData: Partial<TIssue>,
@@ -134,6 +143,26 @@ export const createIssuePayload: (projectId: string, formData: Partial<TIssue>)
   return payload;
 };
 
+/**
+ * @description check if the issue due date should be highlighted
+ * @param date
+ * @param stateGroup
+ * @returns boolean
+ */
+export const shouldHighlightIssueDueDate = (
+  date: string | Date | null,
+  stateGroup: TStateGroups | undefined
+): boolean => {
+  if (!date || !stateGroup) return false;
+  // if the issue is completed or cancelled, don't highlight the due date
+  if ([STATE_GROUPS.completed.key, STATE_GROUPS.cancelled.key].includes(stateGroup)) return false;
+
+  const parsedDate = new Date(date);
+  const targetDateDistance = differenceInCalendarDays(parsedDate, new Date());
+
+  // if the issue is overdue, highlight the due date
+  return targetDateDistance <= 0;
+};
 export const renderIssueBlocksStructure = (blocks: TIssue[]): IGanttBlock[] =>
   blocks?.map((block) => ({
     data: block,