diff --git a/erpnext/controllers/queries.py b/erpnext/controllers/queries.py
index 3a5e7168034..88a40eb72b1 100644
--- a/erpnext/controllers/queries.py
+++ b/erpnext/controllers/queries.py
@@ -306,7 +306,9 @@ def bom(doctype, txt, searchfield, start, page_len, filters):
 
 @frappe.whitelist()
 @frappe.validate_and_sanitize_search_inputs
-def get_project_name(doctype, txt, searchfield, start, page_len, filters):
+def get_project_name(
+	doctype: str, txt: str, searchfield: str, start: int, page_len: int, filters: dict | None = None
+):
 	proj = qb.DocType("Project")
 	qb_filter_and_conditions = []
 	qb_filter_or_conditions = []
@@ -321,7 +323,7 @@ def get_project_name(doctype, txt, searchfield, start, page_len, filters):
 		if filters.get("company"):
 			qb_filter_and_conditions.append(proj.company == filters.get("company"))
 
-	qb_filter_and_conditions.append(proj.status.notin(["Completed", "Cancelled"]))
+	qb_filter_and_conditions.append(proj.status.notin(["Completed", "Cancelled", "On hold"]))
 
 	q = qb.from_(proj)
 
diff --git a/erpnext/projects/report/project_summary/project_summary.js b/erpnext/projects/report/project_summary/project_summary.js
index 072098d5db5..e9ff05857ae 100644
--- a/erpnext/projects/report/project_summary/project_summary.js
+++ b/erpnext/projects/report/project_summary/project_summary.js
@@ -22,7 +22,7 @@ frappe.query_reports["Project Summary"] = {
 			fieldname: "status",
 			label: __("Status"),
 			fieldtype: "Select",
-			options: "\nOpen\nCompleted\nCancelled",
+			options: "\nOpen\nOn hold\nCompleted\nCancelled",
 			default: "Open",
 		},
 		{