diff --git a/contracts/src/base/registry/facets/distribution/RewardsDistribution.sol b/contracts/src/base/registry/facets/distribution/RewardsDistribution.sol
index 5e3ec5c76..0b77f3e5f 100644
--- a/contracts/src/base/registry/facets/distribution/RewardsDistribution.sol
+++ b/contracts/src/base/registry/facets/distribution/RewardsDistribution.sol
@@ -266,7 +266,7 @@ contract RewardsDistribution is
       NodeOperatorStatus currentStatus = nos.statusByOperator[operator];
 
       if (
-        currentStatus == NodeOperatorStatus.Approved &&
+        currentStatus == NodeOperatorStatus.Active &&
         _isActiveSinceLastCycle(nos.approvalTimeByOperator[operator])
       ) {
         expectedOperators[i] = operator;
diff --git a/contracts/src/base/registry/facets/operator/NodeOperatorFacet.sol b/contracts/src/base/registry/facets/operator/NodeOperatorFacet.sol
index 496b759ee..819eeaea8 100644
--- a/contracts/src/base/registry/facets/operator/NodeOperatorFacet.sol
+++ b/contracts/src/base/registry/facets/operator/NodeOperatorFacet.sol
@@ -72,7 +72,8 @@ contract NodeOperatorFacet is INodeOperator, OwnableBase, ERC721ABase, Facet {
     // Check for valid newStatus transitions
     // Exiting -> Standby
     // Standby -> Approved
-    // Approved -> Exiting
+    // Approved -> Exiting || Active
+    // Active -> Exiting || Approved
     if (
       currentStatus == NodeOperatorStatus.Exiting &&
       newStatus != NodeOperatorStatus.Standby
@@ -85,7 +86,14 @@ contract NodeOperatorFacet is INodeOperator, OwnableBase, ERC721ABase, Facet {
       revert NodeOperator__InvalidStatusTransition();
     } else if (
       currentStatus == NodeOperatorStatus.Approved &&
-      newStatus != NodeOperatorStatus.Exiting
+      (newStatus != NodeOperatorStatus.Exiting &&
+        newStatus != NodeOperatorStatus.Active)
+    ) {
+      revert NodeOperator__InvalidStatusTransition();
+    } else if (
+      currentStatus == NodeOperatorStatus.Active &&
+      (newStatus != NodeOperatorStatus.Exiting &&
+        newStatus != NodeOperatorStatus.Approved)
     ) {
       revert NodeOperator__InvalidStatusTransition();
     }
diff --git a/contracts/test/base/registry/RewardsDistribution.t.sol b/contracts/test/base/registry/RewardsDistribution.t.sol
index 0b713a7b3..e2b0f7687 100644
--- a/contracts/test/base/registry/RewardsDistribution.t.sol
+++ b/contracts/test/base/registry/RewardsDistribution.t.sol
@@ -433,7 +433,7 @@ contract RewardsDistributionTest is
     internal
     givenOperatorsHaveRegistered(operators)
     givenOperatorsHaveCommissionRates(operators)
-    givenOperatorsHaveBeenApproved(operators)
+    givenOperatorsAreActive(operators)
   {}
 
   function setupUsersAndDelegation(
@@ -1388,14 +1388,16 @@ contract RewardsDistributionTest is
     _;
   }
 
-  modifier givenOperatorHasBeenApproved(address _operator) {
+  modifier givenOperatorIsActive(address _operator) {
     setOperatorStatus(_operator, NodeOperatorStatus.Approved);
+    setOperatorStatus(_operator, NodeOperatorStatus.Active);
     _;
   }
 
-  modifier givenOperatorsHaveBeenApproved(Entity[] memory operators) {
+  modifier givenOperatorsAreActive(Entity[] memory operators) {
     for (uint256 i = 0; i < operators.length; i++) {
       setOperatorStatus(operators[i].addr, NodeOperatorStatus.Approved);
+      setOperatorStatus(operators[i].addr, NodeOperatorStatus.Active);
     }
     _;
   }