diff --git a/site/src/components/UsersTable/UsersTable.tsx b/site/src/components/UsersTable/UsersTable.tsx
index bd746c65c0265..14ab43418d26a 100644
--- a/site/src/components/UsersTable/UsersTable.tsx
+++ b/site/src/components/UsersTable/UsersTable.tsx
@@ -33,6 +33,7 @@ export interface UsersTableProps {
   canEditUsers?: boolean
   isLoading?: boolean
   onSuspendUser: (user: TypesGen.User) => void
+  onActivateUser: (user: TypesGen.User) => void
   onResetUserPassword: (user: TypesGen.User) => void
   onUpdateUserRoles: (user: TypesGen.User, roles: TypesGen.Role["name"][]) => void
 }
@@ -41,6 +42,7 @@ export const UsersTable: FC<UsersTableProps> = ({
   users,
   roles,
   onSuspendUser,
+  onActivateUser,
   onResetUserPassword,
   onUpdateUserRoles,
   isUpdatingUserRoles,
@@ -115,12 +117,10 @@ export const UsersTable: FC<UsersTableProps> = ({
                               },
                             ]
                           : [
-                              // TODO: Uncomment this and add activate user functionality.
-                              // {
-                              //   label: Language.activateMenuItem,
-                              //   // eslint-disable-next-line @typescript-eslint/no-empty-function
-                              //   onClick: function () {},
-                              // },
+                              {
+                                label: Language.activateMenuItem,
+                                onClick: onActivateUser,
+                              },
                             ]
                         ).concat({
                           label: Language.resetPasswordMenuItem,
diff --git a/site/src/pages/UsersPage/UsersPage.test.tsx b/site/src/pages/UsersPage/UsersPage.test.tsx
index 85ca87b7aced2..3415c8430468f 100644
--- a/site/src/pages/UsersPage/UsersPage.test.tsx
+++ b/site/src/pages/UsersPage/UsersPage.test.tsx
@@ -6,7 +6,7 @@ import { GlobalSnackbar } from "../../components/GlobalSnackbar/GlobalSnackbar"
 import { Language as ResetPasswordDialogLanguage } from "../../components/ResetPasswordDialog/ResetPasswordDialog"
 import { Language as RoleSelectLanguage } from "../../components/RoleSelect/RoleSelect"
 import { Language as UsersTableLanguage } from "../../components/UsersTable/UsersTable"
-import { MockAuditorRole, MockUser, MockUser2, render } from "../../testHelpers/renderHelpers"
+import { MockAuditorRole, MockUser, MockUser2, render, SuspendedMockUser } from "../../testHelpers/renderHelpers"
 import { server } from "../../testHelpers/server"
 import { permissionsToCheck } from "../../xServices/auth/authXService"
 import { Language as usersXServiceLanguage } from "../../xServices/users/usersXService"
@@ -40,6 +40,35 @@ const suspendUser = async (setupActionSpies: () => void) => {
   fireEvent.click(confirmButton)
 }
 
+const activateUser = async (setupActionSpies: () => void) => {
+  // Get the first user in the table
+  const users = await screen.findAllByText(/.*@coder.com/)
+  const firstUserRow = users[2].closest("tr")
+  if (!firstUserRow) {
+    throw new Error("Error on get the first user row")
+  }
+
+  // Click on the "more" button to display the "Activate" option
+  const moreButton = within(firstUserRow).getByLabelText("more")
+  fireEvent.click(moreButton)
+  const menu = screen.getByRole("menu")
+  const activateButton = within(menu).getByText(UsersTableLanguage.activateMenuItem)
+  fireEvent.click(activateButton)
+
+  // Check if the confirm message is displayed
+  const confirmDialog = screen.getByRole("dialog")
+  expect(confirmDialog).toHaveTextContent(
+    `${UsersPageLanguage.activateDialogMessagePrefix} ${SuspendedMockUser.username}?`,
+  )
+
+  // Setup spies to check the actions after
+  setupActionSpies()
+
+  // Click on the "Confirm" button
+  const confirmButton = within(confirmDialog).getByText(UsersPageLanguage.activateDialogAction)
+  fireEvent.click(confirmButton)
+}
+
 const resetUserPassword = async (setupActionSpies: () => void) => {
   // Get the first user in the table
   const users = await screen.findAllByText(/.*@coder.com/)
@@ -99,7 +128,7 @@ describe("Users Page", () => {
   it("shows users", async () => {
     render(<UsersPage />)
     const users = await screen.findAllByText(/.*@coder.com/)
-    expect(users.length).toEqual(2)
+    expect(users.length).toEqual(3)
   })
 
   it("shows 'Create user' button to an authorized user", () => {
@@ -178,6 +207,54 @@ describe("Users Page", () => {
     })
   })
 
+  describe("activate user", () => {
+    describe("when user is successfully activated", () => {
+      it("shows a success message and refreshes the page", async () => {
+        render(
+          <>
+            <UsersPage />
+            <GlobalSnackbar />
+          </>,
+        )
+
+        await activateUser(() => {
+          jest.spyOn(API, "activateUser").mockResolvedValueOnce(SuspendedMockUser)
+          jest
+            .spyOn(API, "getUsers")
+            .mockImplementationOnce(() => Promise.resolve([MockUser, MockUser2, SuspendedMockUser]))
+        })
+
+        // Check if the success message is displayed
+        await screen.findByText(usersXServiceLanguage.activateUserSuccess)
+
+        // Check if the API was called correctly
+        expect(API.activateUser).toBeCalledTimes(1)
+        expect(API.activateUser).toBeCalledWith(SuspendedMockUser.id)
+      })
+    })
+    describe("when activation fails", () => {
+      it("shows an error message", async () => {
+        render(
+          <>
+            <UsersPage />
+            <GlobalSnackbar />
+          </>,
+        )
+
+        await activateUser(() => {
+          jest.spyOn(API, "activateUser").mockRejectedValueOnce({})
+        })
+
+        // Check if the error message is displayed
+        await screen.findByText(usersXServiceLanguage.activateUserError)
+
+        // Check if the API was called correctly
+        expect(API.activateUser).toBeCalledTimes(1)
+        expect(API.activateUser).toBeCalledWith(SuspendedMockUser.id)
+      })
+    })
+  })
+
   describe("reset user password", () => {
     describe("when it is success", () => {
       it("shows a success message", async () => {
diff --git a/site/src/pages/UsersPage/UsersPage.tsx b/site/src/pages/UsersPage/UsersPage.tsx
index 0aa095dc46e98..e379d03bbaa4d 100644
--- a/site/src/pages/UsersPage/UsersPage.tsx
+++ b/site/src/pages/UsersPage/UsersPage.tsx
@@ -13,15 +13,20 @@ export const Language = {
   suspendDialogTitle: "Suspend user",
   suspendDialogAction: "Suspend",
   suspendDialogMessagePrefix: "Do you want to suspend the user",
+  activateDialogTitle: "Activate user",
+  activateDialogAction: "Activate",
+  activateDialogMessagePrefix: "Do you want to activate the user",
 }
 
 export const UsersPage: React.FC = () => {
   const xServices = useContext(XServiceContext)
   const [usersState, usersSend] = useActor(xServices.usersXService)
   const [rolesState, rolesSend] = useActor(xServices.siteRolesXService)
-  const { users, getUsersError, userIdToSuspend, userIdToResetPassword, newUserPassword } = usersState.context
+  const { users, getUsersError, userIdToSuspend, userIdToActivate, userIdToResetPassword, newUserPassword } =
+    usersState.context
   const navigate = useNavigate()
   const userToBeSuspended = users?.find((u) => u.id === userIdToSuspend)
+  const userToBeActivated = users?.find((u) => u.id === userIdToActivate)
   const userToResetPassword = users?.find((u) => u.id === userIdToResetPassword)
   const permissions = useSelector(xServices.authXService, selectPermissions)
   const canEditUsers = permissions && permissions.updateUsers
@@ -62,6 +67,9 @@ export const UsersPage: React.FC = () => {
         onSuspendUser={(user) => {
           usersSend({ type: "SUSPEND_USER", userId: user.id })
         }}
+        onActivateUser={(user) => {
+          usersSend({ type: "ACTIVATE_USER", userId: user.id })
+        }}
         onResetUserPassword={(user) => {
           usersSend({ type: "RESET_USER_PASSWORD", userId: user.id })
         }}
@@ -99,6 +107,26 @@ export const UsersPage: React.FC = () => {
         }
       />
 
+      <ConfirmDialog
+        type="success"
+        hideCancel={false}
+        open={usersState.matches("confirmUserActivation")}
+        confirmLoading={usersState.matches("activatingUser")}
+        title={Language.activateDialogTitle}
+        confirmText={Language.activateDialogAction}
+        onConfirm={() => {
+          usersSend("CONFIRM_USER_ACTIVATION")
+        }}
+        onClose={() => {
+          usersSend("CANCEL_USER_ACTIVATION")
+        }}
+        description={
+          <>
+            {Language.activateDialogMessagePrefix} <strong>{userToBeActivated?.username}</strong>?
+          </>
+        }
+      />
+
       <ResetPasswordDialog
         loading={usersState.matches("resettingUserPassword")}
         user={userToResetPassword}
diff --git a/site/src/pages/UsersPage/UsersPageView.tsx b/site/src/pages/UsersPage/UsersPageView.tsx
index af315017c3462..0cdd61e91219a 100644
--- a/site/src/pages/UsersPage/UsersPageView.tsx
+++ b/site/src/pages/UsersPage/UsersPageView.tsx
@@ -22,6 +22,7 @@ export interface UsersPageViewProps {
   isLoading?: boolean
   openUserCreationDialog: () => void
   onSuspendUser: (user: TypesGen.User) => void
+  onActivateUser: (user: TypesGen.User) => void
   onResetUserPassword: (user: TypesGen.User) => void
   onUpdateUserRoles: (user: TypesGen.User, roles: TypesGen.Role["name"][]) => void
 }
@@ -31,6 +32,7 @@ export const UsersPageView: FC<UsersPageViewProps> = ({
   roles,
   openUserCreationDialog,
   onSuspendUser,
+  onActivateUser,
   onResetUserPassword,
   onUpdateUserRoles,
   error,
@@ -60,6 +62,7 @@ export const UsersPageView: FC<UsersPageViewProps> = ({
           users={users}
           roles={roles}
           onSuspendUser={onSuspendUser}
+          onActivateUser={onActivateUser}
           onResetUserPassword={onResetUserPassword}
           onUpdateUserRoles={onUpdateUserRoles}
           isUpdatingUserRoles={isUpdatingUserRoles}
diff --git a/site/src/testHelpers/entities.ts b/site/src/testHelpers/entities.ts
index b37e038529dbc..871369b7b3fde 100644
--- a/site/src/testHelpers/entities.ts
+++ b/site/src/testHelpers/entities.ts
@@ -51,6 +51,16 @@ export const MockUser2: TypesGen.User = {
   roles: [],
 }
 
+export const SuspendedMockUser: TypesGen.User = {
+  id: "suspended-mock-user",
+  username: "SuspendedMockUser",
+  email: "iamsuspendedsad!@coder.com",
+  created_at: "",
+  status: "suspended",
+  organization_ids: ["fc0774ce-cc9e-48d4-80ae-88f7a4d4a8b0"],
+  roles: [],
+}
+
 export const MockOrganization: TypesGen.Organization = {
   id: "test-org",
   name: "Test Organization",
diff --git a/site/src/testHelpers/handlers.ts b/site/src/testHelpers/handlers.ts
index bfb8e9be0f4ff..f9f130b86b261 100644
--- a/site/src/testHelpers/handlers.ts
+++ b/site/src/testHelpers/handlers.ts
@@ -37,7 +37,7 @@ export const handlers = [
 
   // users
   rest.get("/api/v2/users", async (req, res, ctx) => {
-    return res(ctx.status(200), ctx.json([M.MockUser, M.MockUser2]))
+    return res(ctx.status(200), ctx.json([M.MockUser, M.MockUser2, M.SuspendedMockUser]))
   }),
   rest.post("/api/v2/users", async (req, res, ctx) => {
     return res(ctx.status(200), ctx.json(M.MockUser))
diff --git a/site/src/xServices/users/usersXService.ts b/site/src/xServices/users/usersXService.ts
index 91317d584a488..a7f524dad5af0 100644
--- a/site/src/xServices/users/usersXService.ts
+++ b/site/src/xServices/users/usersXService.ts
@@ -16,7 +16,9 @@ export const Language = {
   createUserSuccess: "Successfully created user.",
   createUserError: "Error on creating the user.",
   suspendUserSuccess: "Successfully suspended the user.",
-  suspendUserError: "Error on suspending the user.",
+  suspendUserError: "Error suspending user.",
+  activateUserSuccess: "Successfully activated the user.",
+  activateUserError: "Error activating user.",
   resetUserPasswordSuccess: "Successfully updated the user password.",
   resetUserPasswordError: "Error on resetting the user password.",
   updateUserRolesSuccess: "Successfully updated the user roles.",
@@ -32,6 +34,9 @@ export interface UsersContext {
   // Suspend user
   userIdToSuspend?: TypesGen.User["id"]
   suspendUserError?: Error | unknown
+  // Activate user
+  userIdToActivate?: TypesGen.User["id"]
+  activateUserError?: Error | unknown
   // Reset user password
   userIdToResetPassword?: TypesGen.User["id"]
   resetUserPasswordError?: Error | unknown
@@ -49,6 +54,10 @@ export type UsersEvent =
   | { type: "SUSPEND_USER"; userId: TypesGen.User["id"] }
   | { type: "CONFIRM_USER_SUSPENSION" }
   | { type: "CANCEL_USER_SUSPENSION" }
+  // Activate events
+  | { type: "ACTIVATE_USER"; userId: TypesGen.User["id"] }
+  | { type: "CONFIRM_USER_ACTIVATION" }
+  | { type: "CANCEL_USER_ACTIVATION" }
   // Reset password events
   | { type: "RESET_USER_PASSWORD"; userId: TypesGen.User["id"] }
   | { type: "CONFIRM_USER_PASSWORD_RESET" }
@@ -72,6 +81,9 @@ export const usersMachine = createMachine(
         suspendUser: {
           data: TypesGen.User
         }
+        activateUser: {
+          data: TypesGen.User
+        }
         updateUserPassword: {
           data: undefined
         }
@@ -92,6 +104,10 @@ export const usersMachine = createMachine(
             target: "confirmUserSuspension",
             actions: ["assignUserIdToSuspend"],
           },
+          ACTIVATE_USER: {
+            target: "confirmUserActivation",
+            actions: ["assignUserIdToActivate"],
+          },
           RESET_USER_PASSWORD: {
             target: "confirmUserPasswordReset",
             actions: ["assignUserIdToResetPassword", "generateRandomPassword"],
@@ -150,6 +166,12 @@ export const usersMachine = createMachine(
           CANCEL_USER_SUSPENSION: "idle",
         },
       },
+      confirmUserActivation: {
+        on: {
+          CONFIRM_USER_ACTIVATION: "activatingUser",
+          CANCEL_USER_ACTIVATION: "idle",
+        },
+      },
       suspendingUser: {
         entry: "clearSuspendUserError",
         invoke: {
@@ -166,6 +188,22 @@ export const usersMachine = createMachine(
           },
         },
       },
+      activatingUser: {
+        entry: "clearActivateUserError",
+        invoke: {
+          src: "activateUser",
+          id: "activateUser",
+          onDone: {
+            // Update users list
+            target: "gettingUsers",
+            actions: ["displayActivateSuccess"],
+          },
+          onError: {
+            target: "idle",
+            actions: ["assignActivateUserError", "displayActivatedErrorMessage"],
+          },
+        },
+      },
       confirmUserPasswordReset: {
         on: {
           CONFIRM_USER_PASSWORD_RESET: "resettingUserPassword",
@@ -223,6 +261,13 @@ export const usersMachine = createMachine(
 
         return API.suspendUser(context.userIdToSuspend)
       },
+      activateUser: (context) => {
+        if (!context.userIdToActivate) {
+          throw new Error("userIdToActivate is undefined")
+        }
+
+        return API.activateUser(context.userIdToActivate)
+      },
       resetUserPassword: (context) => {
         if (!context.userIdToResetPassword) {
           throw new Error("userIdToResetPassword is undefined")
@@ -258,6 +303,9 @@ export const usersMachine = createMachine(
       assignUserIdToSuspend: assign({
         userIdToSuspend: (_, event) => event.userId,
       }),
+      assignUserIdToActivate: assign({
+        userIdToActivate: (_, event) => event.userId,
+      }),
       assignUserIdToResetPassword: assign({
         userIdToResetPassword: (_, event) => event.userId,
       }),
@@ -278,6 +326,9 @@ export const usersMachine = createMachine(
       assignSuspendUserError: assign({
         suspendUserError: (_, event) => event.data,
       }),
+      assignActivateUserError: assign({
+        activateUserError: (_, event) => event.data,
+      }),
       assignResetUserPasswordError: assign({
         resetUserPasswordError: (_, event) => event.data,
       }),
@@ -292,6 +343,9 @@ export const usersMachine = createMachine(
       clearSuspendUserError: assign({
         suspendUserError: (_) => undefined,
       }),
+      clearActivateUserError: assign({
+        activateUserError: (_) => undefined,
+      }),
       clearResetUserPasswordError: assign({
         resetUserPasswordError: (_) => undefined,
       }),
@@ -308,6 +362,13 @@ export const usersMachine = createMachine(
         const message = getErrorMessage(context.suspendUserError, Language.suspendUserError)
         displayError(message)
       },
+      displayActivateSuccess: () => {
+        displaySuccess(Language.activateUserSuccess)
+      },
+      displayActivatedErrorMessage: (context) => {
+        const message = getErrorMessage(context.activateUserError, Language.activateUserError)
+        displayError(message)
+      },
       displayResetPasswordSuccess: () => {
         displaySuccess(Language.resetUserPasswordSuccess)
       },

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