diff --git a/components/dashboard/src/workspaces/WorkspaceEntry.tsx b/components/dashboard/src/workspaces/WorkspaceEntry.tsx
index 89faa69d7855fb..c69476265e6926 100644
--- a/components/dashboard/src/workspaces/WorkspaceEntry.tsx
+++ b/components/dashboard/src/workspaces/WorkspaceEntry.tsx
@@ -4,7 +4,7 @@
  * See License-AGPL.txt in the project root for license information.
  */
 
-import { CommitContext, Workspace, WorkspaceInfo, WorkspaceInstance, WorkspaceInstancePhase } from '@gitpod/gitpod-protocol';
+import { CommitContext, Workspace, WorkspaceInfo, WorkspaceInstance, WorkspaceInstanceConditions, WorkspaceInstancePhase } from '@gitpod/gitpod-protocol';
 import { GitpodHostUrl } from '@gitpod/gitpod-protocol/lib/util/gitpod-host-url';
 import moment from 'moment';
 import React, { useState } from 'react';
@@ -15,8 +15,11 @@ import PendingChangesDropdown from '../components/PendingChangesDropdown';
 import Tooltip from '../components/Tooltip';
 import { WorkspaceModel } from './workspace-model';
 
-function getLabel(state: WorkspaceInstancePhase) {
-    return state.substr(0,1).toLocaleUpperCase() + state.substr(1);
+function getLabel(state: WorkspaceInstancePhase, conditions?: WorkspaceInstanceConditions) {
+    if (conditions?.failed) {
+        return "Failed";
+    }
+    return state.substr(0, 1).toLocaleUpperCase() + state.substr(1);
 }
 
 interface Props {
@@ -131,6 +134,7 @@ export function getProject(ws: Workspace) {
 
 export function WorkspaceStatusIndicator({instance}: {instance?: WorkspaceInstance}) {
     const state: WorkspaceInstancePhase = instance?.status?.phase || 'stopped';
+    const conditions = instance?.status?.conditions;
     let stateClassName = 'rounded-full w-3 h-3 text-sm align-middle';
     switch (state) {
         case 'running': {
@@ -138,20 +142,28 @@ export function WorkspaceStatusIndicator({instance}: {instance?: WorkspaceInstan
             break;
         }
         case 'stopped': {
-            stateClassName += ' bg-gray-400'
+            if (conditions?.failed) {
+                stateClassName += ' bg-red-400'
+            } else {
+                stateClassName += ' bg-gray-400'
+            }
             break;
         }
         case 'interrupted': {
             stateClassName += ' bg-red-400'
             break;
         }
+        case 'unknown': {
+            stateClassName += ' bg-red-400'
+            break;
+        }
         default: {
             stateClassName += ' bg-gitpod-kumquat animate-pulse'
             break;
         }
     }
     return <div className="m-auto">
-        <Tooltip content={getLabel(state)}>
+        <Tooltip content={getLabel(state, conditions)}>
             <div className={stateClassName} />
         </Tooltip>
     </div>;
diff --git a/components/gitpod-protocol/src/workspace-instance.ts b/components/gitpod-protocol/src/workspace-instance.ts
index af53ed3184184a..7d965dd034ecbb 100644
--- a/components/gitpod-protocol/src/workspace-instance.ts
+++ b/components/gitpod-protocol/src/workspace-instance.ts
@@ -83,7 +83,7 @@ export interface WorkspaceInstanceStatus {
 // WorkspaceInstancePhase describes a high-level state of a workspace instance
 export type WorkspaceInstancePhase =
     // unknown indicates an issue within the system in that it cannot determine the actual phase of
-	// a workspace. This phase is usually accompanied by an error.
+    // a workspace. This phase is usually accompanied by an error.
     "unknown" |
 
     // Preparing means that we haven't actually started the workspace instance just yet, but rather
@@ -91,21 +91,21 @@ export type WorkspaceInstancePhase =
     "preparing" |
 
     // Pending means the workspace does not yet consume resources in the cluster, but rather is looking for
-	// some space within the cluster. If for example the cluster needs to scale up to accomodate the
-	// workspace, the workspace will be in Pending state until that happened.
+    // some space within the cluster. If for example the cluster needs to scale up to accomodate the
+    // workspace, the workspace will be in Pending state until that happened.
     "pending" |
 
     // Creating means the workspace is currently being created. Thati includes downloading the images required
-	// to run the workspace over the network. The time spent in this phase varies widely and depends on the current
-	// network speed, image size and cache states.
+    // to run the workspace over the network. The time spent in this phase varies widely and depends on the current
+    // network speed, image size and cache states.
     "creating" |
 
     // Initializing is the phase in which the workspace is executing the appropriate workspace initializer (e.g. Git
-	// clone or backup download). After this phase one can expect the workspace to either be Running or Failed.
+    // clone or backup download). After this phase one can expect the workspace to either be Running or Failed.
     "initializing" |
 
     // Running means the workspace is able to actively perform work, either by serving a user through Theia,
-	// or as a headless workspace.
+    // or as a headless workspace.
     "running" |
 
     // Interrupted is an exceptional state where the container should be running but is temporarily unavailable.