diff --git a/ide/che-core-ide-app/src/main/java/org/eclipse/che/ide/core/StandardComponentInitializer.java b/ide/che-core-ide-app/src/main/java/org/eclipse/che/ide/core/StandardComponentInitializer.java
index f9c63488445..2e846e6c739 100644
--- a/ide/che-core-ide-app/src/main/java/org/eclipse/che/ide/core/StandardComponentInitializer.java
+++ b/ide/che-core-ide-app/src/main/java/org/eclipse/che/ide/core/StandardComponentInitializer.java
@@ -165,6 +165,7 @@
 import org.eclipse.che.ide.ui.toolbar.ToolbarPresenter;
 import org.eclipse.che.ide.util.browser.UserAgent;
 import org.eclipse.che.ide.util.input.KeyCodeMap;
+import org.eclipse.che.ide.workspace.EphemeralStateStatusBarItem;
 import org.eclipse.che.ide.workspace.StartWorkspaceAction;
 import org.eclipse.che.ide.workspace.StopWorkspaceAction;
 import org.vectomatic.dom.svg.ui.SVGImage;
@@ -411,6 +412,8 @@ public interface ParserResource extends ClientBundle {
 
   @Inject private FreeDiskSpaceStatusBarAction freeDiskSpaceStatusBarAction;
 
+  @Inject private EphemeralStateStatusBarItem ephemeralStateStatusBarItem;
+
   @Inject
   @Named("XMLFileType")
   private FileType xmlFile;
@@ -884,6 +887,7 @@ public void initialize() {
     DefaultActionGroup rightStatusPanelGroup =
         (DefaultActionGroup) actionManager.getAction(GROUP_RIGHT_STATUS_PANEL);
     rightStatusPanelGroup.add(freeDiskSpaceStatusBarAction);
+    rightStatusPanelGroup.add(ephemeralStateStatusBarItem);
 
     // Define hot-keys
     keyBinding
diff --git a/ide/che-core-ide-app/src/main/java/org/eclipse/che/ide/workspace/EphemeralStateStatusBarItem.java b/ide/che-core-ide-app/src/main/java/org/eclipse/che/ide/workspace/EphemeralStateStatusBarItem.java
new file mode 100644
index 00000000000..90512b11b10
--- /dev/null
+++ b/ide/che-core-ide-app/src/main/java/org/eclipse/che/ide/workspace/EphemeralStateStatusBarItem.java
@@ -0,0 +1,108 @@
+/*
+ * Copyright (c) 2012-2018 Red Hat, Inc.
+ * This program and the accompanying materials are made
+ * available under the terms of the Eclipse Public License 2.0
+ * which is available at https://www.eclipse.org/legal/epl-2.0/
+ *
+ * SPDX-License-Identifier: EPL-2.0
+ *
+ * Contributors:
+ *   Red Hat, Inc. - initial API and implementation
+ */
+package org.eclipse.che.ide.workspace;
+
+import static java.lang.Boolean.parseBoolean;
+
+import com.google.gwt.dom.client.Style;
+import com.google.gwt.i18n.client.Messages;
+import com.google.gwt.user.client.ui.HTML;
+import com.google.gwt.user.client.ui.HorizontalPanel;
+import com.google.gwt.user.client.ui.Label;
+import com.google.gwt.user.client.ui.Widget;
+import com.google.inject.Inject;
+import com.google.inject.Singleton;
+import java.util.Map;
+import org.eclipse.che.ide.FontAwesome;
+import org.eclipse.che.ide.api.action.ActionEvent;
+import org.eclipse.che.ide.api.action.BaseAction;
+import org.eclipse.che.ide.api.action.CustomComponentAction;
+import org.eclipse.che.ide.api.action.Presentation;
+import org.eclipse.che.ide.api.app.AppContext;
+import org.eclipse.che.ide.api.workspace.model.WorkspaceConfigImpl;
+import org.eclipse.che.ide.api.workspace.model.WorkspaceImpl;
+
+/**
+ * Status bar action that indicates ephemeral state of the pvc volume. Ephemeral means that pvc
+ * volume is not persisted after workspace stop.
+ *
+ * @author Vlad Zhukovskyi
+ * @since 7.0.0-beta-3.0
+ */
+@Singleton
+public class EphemeralStateStatusBarItem extends BaseAction implements CustomComponentAction {
+
+  private final AppContext appContext;
+  private final Locale locale;
+  private final HorizontalPanel panel;
+
+  private static final String PERSIST_VOLUMES_ATTRIBUTE = "persistVolumes";
+
+  @Inject
+  public EphemeralStateStatusBarItem(AppContext appContext, Locale locale) {
+    super();
+    this.appContext = appContext;
+    this.locale = locale;
+
+    panel = new HorizontalPanel();
+    panel.ensureDebugId("statusBarEphemeralStatePanel");
+  }
+
+  @Override
+  public void actionPerformed(ActionEvent e) {}
+
+  @Override
+  public Widget createCustomComponent(Presentation presentation) {
+    return panel;
+  }
+
+  @Override
+  public void update(ActionEvent e) {
+    super.update(e);
+    panel.clear();
+
+    WorkspaceImpl workspace = appContext.getWorkspace();
+    if (workspace == null) {
+      return;
+    }
+
+    WorkspaceConfigImpl workspaceConfig = workspace.getConfig();
+    if (workspaceConfig == null) {
+      return;
+    }
+
+    Map<String, String> attributes = workspaceConfig.getAttributes();
+    if (attributes.containsKey(PERSIST_VOLUMES_ATTRIBUTE)
+        && !parseBoolean(attributes.get(PERSIST_VOLUMES_ATTRIBUTE))) {
+      Widget icon = new HTML(FontAwesome.EXCLAMATION_TRIANGLE);
+      icon.getElement().getStyle().setMarginRight(5., Style.Unit.PX);
+      icon.getElement().getStyle().setColor("#fcc13d");
+      panel.add(icon);
+
+      Label ephemeralMode = new Label(locale.label());
+      ephemeralMode.setTitle(locale.description());
+      ephemeralMode.ensureDebugId("statusBarEphemeralStatePanelEphemeralMode");
+      ephemeralMode.getElement().getStyle().setMarginRight(5., Style.Unit.PX);
+      ephemeralMode.getElement().getStyle().setColor("#fcc13d");
+      panel.add(ephemeralMode);
+    }
+  }
+
+  interface Locale extends Messages {
+    @DefaultMessage("Ephemeral Mode")
+    String label();
+
+    @DefaultMessage(
+        "All changes to the source code will be lost when the workspace is stopped unless they are pushed to a source code repository.")
+    String description();
+  }
+}