diff --git a/CHANGELOG b/CHANGELOG
index 342fbb7a6d1dd13476736995691281a7da7a8d4a..72e91a1dac144dd02d7d70488e8f7d4f150548e0 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -42,6 +42,7 @@ v 8.6.0 (unreleased)
   - Add main language of a project in the list of projects (Tiago Botelho)
   - Add ability to show archived projects on dashboard, explore and group pages
   - Move group activity to separate page
+  - Create external users which are excluded of internal and private projects unless access was explicitly granted
   - Continue parameters are checked to ensure redirection goes to the same instance
   - User deletion is now done in the background so the request can not time out
 
diff --git a/app/controllers/admin/users_controller.rb b/app/controllers/admin/users_controller.rb
index 3063d299b1a3c194ba90c4aa0d79c2c897e4ff5d..9abf08d0e19a462d5b8f1c5664964ac300f82f40 100644
--- a/app/controllers/admin/users_controller.rb
+++ b/app/controllers/admin/users_controller.rb
@@ -150,7 +150,7 @@ class Admin::UsersController < Admin::ApplicationController
       :email, :remember_me, :bio, :name, :username,
       :skype, :linkedin, :twitter, :website_url, :color_scheme_id, :theme_id, :force_random_password,
       :extern_uid, :provider, :password_expires_at, :avatar, :hide_no_ssh_key, :hide_no_password,
-      :projects_limit, :can_create_group, :admin, :key_id
+      :projects_limit, :can_create_group, :admin, :key_id, :external
     )
   end
 
diff --git a/app/finders/projects_finder.rb b/app/finders/projects_finder.rb
index 2c55f088594624760914482d803814e3fe6b482d..3a5fc5b5907089e3ef6304bbcb8dba49e39b9863 100644
--- a/app/finders/projects_finder.rb
+++ b/app/finders/projects_finder.rb
@@ -40,25 +40,26 @@ class ProjectsFinder
   private
 
   def group_projects(current_user, group)
-    if current_user
-      [
-        group_projects_for_user(current_user, group),
-        group.projects.public_and_internal_only,
-        group.shared_projects.visible_to_user(current_user)
-      ]
+    return [group.projects.public_only] unless current_user
+
+    user_group_projects = [
+       group_projects_for_user(current_user, group),
+       group.shared_projects.visible_to_user(current_user)
+    ]
+    if current_user.external?
+      user_group_projects << group.projects.public_only
     else
-      [group.projects.public_only]
+      user_group_projects << group.projects.public_and_internal_only
     end
   end
 
   def all_projects(current_user)
-    if current_user
-      [
-        current_user.authorized_projects,
-        public_and_internal_projects
-      ]
+    return [public_projects] unless current_user
+
+    if current_user.external?
+      [current_user.authorized_projects, public_projects]
     else
-      [Project.public_only]
+      [current_user.authorized_projects, public_and_internal_projects]
     end
   end
 
diff --git a/app/models/ability.rb b/app/models/ability.rb
index fe9e0aab71732052f451ece80c425aaa4ad16736..ccac08b7d3f1542144b1d73b97dd34d3916f4a32 100644
--- a/app/models/ability.rb
+++ b/app/models/ability.rb
@@ -109,23 +109,10 @@ class Ability
       key = "/user/#{user.id}/project/#{project.id}"
 
       RequestStore.store[key] ||= begin
-        team = project.team
+        # Push abilities on the users team role
+        rules.push(*project_team_rules(project.team, user))
 
-        # Rules based on role in project
-        if team.master?(user)
-          rules.push(*project_master_rules)
-
-        elsif team.developer?(user)
-          rules.push(*project_dev_rules)
-
-        elsif team.reporter?(user)
-          rules.push(*project_report_rules)
-
-        elsif team.guest?(user)
-          rules.push(*project_guest_rules)
-        end
-
-        if project.public? || project.internal?
+        if project.public? || (project.internal? && !user.external?)
           rules.push(*public_project_rules)
 
           # Allow to read builds for internal projects
@@ -148,6 +135,19 @@ class Ability
       end
     end
 
+    def project_team_rules(team, user)
+      # Rules based on role in project
+      if team.master?(user)
+        project_master_rules
+      elsif team.developer?(user)
+        project_dev_rules
+      elsif team.reporter?(user)
+        project_report_rules
+      elsif team.guest?(user)
+        project_guest_rules
+      end
+    end
+
     def public_project_rules
       @public_project_rules ||= project_guest_rules + [
         :download_code,
@@ -356,7 +356,7 @@ class Ability
         ]
       end
 
-      if snippet.public? || snippet.internal?
+      if snippet.public? || (snippet.internal? && !user.external?)
         rules << :read_personal_snippet
       end
 
diff --git a/app/models/project.rb b/app/models/project.rb
index 89a55a510cdfa9c15e041059dea2ac3f16f2a290..ab4913e99a8530425886ebdec3bd74b62ecc279f 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -254,12 +254,6 @@ class Project < ActiveRecord::Base
       where('projects.last_activity_at < ?', 6.months.ago)
     end
 
-    def publicish(user)
-      visibility_levels = [Project::PUBLIC]
-      visibility_levels << Project::INTERNAL if user
-      where(visibility_level: visibility_levels)
-    end
-
     def with_push
       joins(:events).where('events.action = ?', Event::PUSHED)
     end
diff --git a/app/models/user.rb b/app/models/user.rb
index 68b242888aae3d749efed996f48248e64150a21c..c011af03591cdb9a70b46857651b32d86a172067 100644
--- a/app/models/user.rb
+++ b/app/models/user.rb
@@ -59,6 +59,7 @@
 #  hide_project_limit          :boolean          default(FALSE)
 #  unlock_token                :string
 #  otp_grace_period_started_at :datetime
+#  external                    :boolean           default(FALSE)
 #
 
 require 'carrierwave/orm/activerecord'
@@ -77,6 +78,7 @@ class User < ActiveRecord::Base
   add_authentication_token_field :authentication_token
 
   default_value_for :admin, false
+  default_value_for :external, false
   default_value_for :can_create_group, gitlab_config.default_can_create_group
   default_value_for :can_create_team, false
   default_value_for :hide_no_ssh_key, false
@@ -171,6 +173,7 @@ class User < ActiveRecord::Base
 
   after_update :update_emails_with_primary_email, if: ->(user) { user.email_changed? }
   before_save :ensure_authentication_token
+  before_save :ensure_external_user_rights
   after_save :ensure_namespace_correct
   after_initialize :set_projects_limit
   after_create :post_create_hook
@@ -218,6 +221,7 @@ class User < ActiveRecord::Base
   # Scopes
   scope :admins, -> { where(admin: true) }
   scope :blocked, -> { with_states(:blocked, :ldap_blocked) }
+  scope :external, -> { where(external: true) }
   scope :active, -> { with_state(:active) }
   scope :not_in_project, ->(project) { project.users.present? ? where("id not in (:ids)", ids: project.users.map(&:id) ) : all }
   scope :without_projects, -> { where('id NOT IN (SELECT DISTINCT(user_id) FROM members)') }
@@ -273,6 +277,8 @@ class User < ActiveRecord::Base
         self.with_two_factor
       when 'wop'
         self.without_projects
+      when 'external'
+        self.external
       else
         self.active
       end
@@ -841,4 +847,11 @@ class User < ActiveRecord::Base
   def send_devise_notification(notification, *args)
     devise_mailer.send(notification, self, *args).deliver_later
   end
+
+  def ensure_external_user_rights
+    return unless self.external?
+
+    self.can_create_group   = false
+    self.projects_limit     = 0
+  end
 end
diff --git a/app/views/admin/users/_form.html.haml b/app/views/admin/users/_form.html.haml
index e18dd9bc905d455a9d1b1af91d5990306806302b..d2527ede99559ea4980af70ea43239fb9f460889 100644
--- a/app/views/admin/users/_form.html.haml
+++ b/app/views/admin/users/_form.html.haml
@@ -58,9 +58,15 @@
         = f.label :admin, class: 'control-label'
         - if current_user == @user
           .col-sm-10= f.check_box :admin, disabled: true
-          .col-sm-10 You cannot remove your own admin rights
+          .col-sm-10 You cannot remove your own admin rights.
         - else
           .col-sm-10= f.check_box :admin
+
+      .form-group
+        = f.label :external, class: 'control-label'
+        .col-sm-10= f.check_box :external
+        .col-sm-10 External users cannot see internal or private projects unless access is explicitly granted. Also, external users cannot create projects or groups.
+
     %fieldset
       %legend Profile
       .form-group
diff --git a/app/views/admin/users/index.html.haml b/app/views/admin/users/index.html.haml
index b6b1168bd37798174d8e60b7a118ffe3489931c4..0ee8dc962b9dfd28de198ac727dd5328d31c8b59 100644
--- a/app/views/admin/users/index.html.haml
+++ b/app/views/admin/users/index.html.haml
@@ -19,6 +19,10 @@
       = link_to admin_users_path(filter: 'two_factor_disabled') do
         2FA Disabled
         %small.badge= number_with_delimiter(User.without_two_factor.count)
+    %li.filter-external{class: "#{'active' if params[:filter] == 'external'}"}
+      = link_to admin_users_path(filter: 'external') do
+        External
+        %small.badge= number_with_delimiter(User.external.count)
     %li{class: "#{'active' if params[:filter] == "blocked"}"}
       = link_to admin_users_path(filter: "blocked") do
         Blocked
@@ -70,12 +74,14 @@
       %li
         .list-item-name
           - if user.blocked?
-            %i.fa.fa-lock.cred
+            = icon("lock", class: "cred")
           - else
-            %i.fa.fa-user.cgreen
+            = icon("user", class: "cgreen")
           = link_to user.name, [:admin, user]
           - if user.admin?
             %strong.cred (Admin)
+          - if user.external?
+            %strong.cred (External)
           - if user == current_user
             %span.cred It's you!
         .pull-right
diff --git a/app/views/admin/users/show.html.haml b/app/views/admin/users/show.html.haml
index 2bdbae195880edfd7a83c81d57268d24fcd6403a..d37489bebea16cef5a112dc27cd098920787290e 100644
--- a/app/views/admin/users/show.html.haml
+++ b/app/views/admin/users/show.html.haml
@@ -47,6 +47,10 @@
             - else
               Disabled
 
+        %li
+          %span.light External User:
+          %strong
+            = @user.external? ? "Yes" : "No"
         %li
           %span.light Can create groups:
           %strong
diff --git a/app/views/dashboard/projects/_zero_authorized_projects.html.haml b/app/views/dashboard/projects/_zero_authorized_projects.html.haml
index c3efa7727b1c2dc5b412c2f3165e37afaa57bd2e..d54c7cad7be48148d9caccb2d0d010c442f6c014 100644
--- a/app/views/dashboard/projects/_zero_authorized_projects.html.haml
+++ b/app/views/dashboard/projects/_zero_authorized_projects.html.haml
@@ -1,4 +1,4 @@
-- publicish_project_count = Project.publicish(current_user).count
+- publicish_project_count = ProjectsFinder.new.execute(current_user).count
 %h3.page-title Welcome to GitLab!
 %p.light Self hosted Git management application.
 %hr
@@ -18,7 +18,7 @@
     - if current_user.can_create_project?
       .link_holder
         = link_to new_project_path, class: "btn btn-new" do
-          %i.fa.fa-plus
+          = icon('plus')
           New Project
 
 - if current_user.can_create_group?
diff --git a/db/migrate/20160310185910_add_external_flag_to_users.rb b/db/migrate/20160310185910_add_external_flag_to_users.rb
new file mode 100644
index 0000000000000000000000000000000000000000..54937f1eb711f974da2a85f1ea064c46597f8c23
--- /dev/null
+++ b/db/migrate/20160310185910_add_external_flag_to_users.rb
@@ -0,0 +1,5 @@
+class AddExternalFlagToUsers < ActiveRecord::Migration
+  def change
+    add_column :users, :external, :boolean, default: false
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 2c27b228864cd8da9296bc32aeb5c7ef59ea4104..2f075677b308e46dc586eb5416809706db41f1be 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -940,6 +940,7 @@ ActiveRecord::Schema.define(version: 20160316123110) do
     t.string   "unlock_token"
     t.datetime "otp_grace_period_started_at"
     t.boolean  "ldap_email",                  default: false, null: false
+    t.boolean  "external",                    default: false
   end
 
   add_index "users", ["admin"], name: "index_users_on_admin", using: :btree
diff --git a/doc/README.md b/doc/README.md
index 0ca30e4e0f230178d2d15016597036c4097c81fa..db19c3de8d1dd2a00f8b0929320a005b1279c785 100644
--- a/doc/README.md
+++ b/doc/README.md
@@ -8,7 +8,7 @@
 - [Importing to GitLab](workflow/importing/README.md).
 - [Markdown](markdown/markdown.md) GitLab's advanced formatting system.
 - [Migrating from SVN](workflow/importing/migrating_from_svn.md) Convert a SVN repository to Git and GitLab
-- [Permissions](permissions/permissions.md) Learn what each role in a project (guest/reporter/developer/master/owner) can do.
+- [Permissions](permissions/permissions.md) Learn what each role in a project (external/guest/reporter/developer/master/owner) can do.
 - [Profile Settings](profile/README.md)
 - [Project Services](project_services/project_services.md) Integrate a project with external services, such as CI and chat.
 - [Public access](public_access/public_access.md) Learn how you can allow public and internal access to projects.
diff --git a/doc/api/users.md b/doc/api/users.md
index 82c57a2fd43784a2ad95103ae4c3d515e4b89e96..383e7c76ab0e005ca45feb475f5355ccbd0dda7f 100644
--- a/doc/api/users.md
+++ b/doc/api/users.md
@@ -194,6 +194,7 @@ Parameters:
 - `admin` (optional)            - User is admin - true or false (default)
 - `can_create_group` (optional) - User can create groups - true or false
 - `confirm` (optional)          - Require confirmation - true (default) or false
+- `external` (optional)         - Flags the user as external - true or false(default)
 
 ## User modification
 
@@ -219,6 +220,7 @@ Parameters:
 - `bio`                         - User's biography
 - `admin` (optional)            - User is admin - true or false (default)
 - `can_create_group` (optional) - User can create groups - true or false
+- `external` (optional)         - Flags the user as external - true or false(default)
 
 Note, at the moment this method does only return a 404 error,
 even in cases where a 409 (Conflict) would be more appropriate,
@@ -560,7 +562,7 @@ Parameters:
 
 - `uid` (required) - id of specified user
 
-Will return `200 OK` on success, `404 User Not Found` is user cannot be found or 
+Will return `200 OK` on success, `404 User Not Found` is user cannot be found or
 `403 Forbidden` when trying to block an already blocked user by LDAP synchronization.
 
 ## Unblock user
diff --git a/doc/permissions/permissions.md b/doc/permissions/permissions.md
index ac0fd3d175654a12b9853509f11b6c5e747bb7dd..3d375e47c8ec3a810fdcce0cc67641747fc9a202 100644
--- a/doc/permissions/permissions.md
+++ b/doc/permissions/permissions.md
@@ -71,3 +71,24 @@ Any user can remove themselves from a group, unless they are the last Owner of t
 | Create project in group |       |          |           | ✓      | ✓     |
 | Manage group members    |       |          |           |        | ✓     |
 | Remove group            |       |          |           |        | ✓     |
+
+## External Users
+
+In cases where it is desired that a user has access only to some internal or
+private projects, there is the option of creating **External Users**. This
+feature may be useful when for example a contractor is working on a given
+project and should only have access to that project.
+
+External users can only access projects to which they are explicitly granted
+access, thus hiding all other internal or private ones from them. Access can be
+granted by adding the user as member to the project or group.
+
+They will, like usual users, receive a role in the project or group with all
+the abilities that are mentioned in the table above. They cannot however create
+groups or projects, and they have the same access as logged out users in all
+other cases.
+
+An administrator can flag a user as external [through the API](../api/users.md)
+or by checking the checkbox on the admin panel. As an administrator, navigate
+to **Admin > Users** to create a new user or edit an existing one. There, you
+will find the option to flag the user as external.
diff --git a/lib/api/entities.rb b/lib/api/entities.rb
index 9805e53624e3b343d4e37c4c794bb527d36bb5a2..71197205f3433e7f3587cf986c8b82fa1fb029b0 100644
--- a/lib/api/entities.rb
+++ b/lib/api/entities.rb
@@ -31,6 +31,7 @@ module API
       expose :can_create_group?, as: :can_create_group
       expose :can_create_project?, as: :can_create_project
       expose :two_factor_enabled
+      expose :external
     end
 
     class UserLogin < UserFull
diff --git a/lib/api/users.rb b/lib/api/users.rb
index fd2128bd1795b5e13b8b71f79f5db3f28341f44d..13ab17c6904f392faf17328ac4a3a0058321fc38 100644
--- a/lib/api/users.rb
+++ b/lib/api/users.rb
@@ -61,19 +61,20 @@ module API
       #   admin                             - User is admin - true or false (default)
       #   can_create_group                  - User can create groups - true or false
       #   confirm                           - Require user confirmation - true (default) or false
+      #   external                          - Flags the user as external - true or false(default)
       # Example Request:
       #   POST /users
       post do
         authenticated_as_admin!
         required_attributes! [:email, :password, :name, :username]
-        attrs = attributes_for_keys [:email, :name, :password, :skype, :linkedin, :twitter, :projects_limit, :username, :bio, :can_create_group, :admin, :confirm]
+        attrs = attributes_for_keys [:email, :name, :password, :skype, :linkedin, :twitter, :projects_limit, :username, :bio, :can_create_group, :admin, :confirm, :external]
         admin = attrs.delete(:admin)
         confirm = !(attrs.delete(:confirm) =~ (/(false|f|no|0)$/i))
         user = User.build_user(attrs)
         user.admin = admin unless admin.nil?
         user.skip_confirmation! unless confirm
-
         identity_attrs = attributes_for_keys [:provider, :extern_uid]
+
         if identity_attrs.any?
           user.identities.build(identity_attrs)
         end
@@ -107,12 +108,13 @@ module API
       #   bio                               - Bio
       #   admin                             - User is admin - true or false (default)
       #   can_create_group                  - User can create groups - true or false
+      #   external                          - Flags the user as external - true or false(default)
       # Example Request:
       #   PUT /users/:id
       put ":id" do
         authenticated_as_admin!
 
-        attrs = attributes_for_keys [:email, :name, :password, :skype, :linkedin, :twitter, :website_url, :projects_limit, :username, :bio, :can_create_group, :admin]
+        attrs = attributes_for_keys [:email, :name, :password, :skype, :linkedin, :twitter, :website_url, :projects_limit, :username, :bio, :can_create_group, :admin, :external]
         user = User.find(params[:id])
         not_found!('User') unless user
 
diff --git a/spec/features/security/project/internal_access_spec.rb b/spec/features/security/project/internal_access_spec.rb
index 57563add74c2945adf77a4999ab4a9c96fcdb1c0..f88c591d897fa7973295528fc233b2f6e24019d2 100644
--- a/spec/features/security/project/internal_access_spec.rb
+++ b/spec/features/security/project/internal_access_spec.rb
@@ -8,10 +8,12 @@ describe "Internal Project Access", feature: true  do
   let(:master) { create(:user) }
   let(:guest) { create(:user) }
   let(:reporter) { create(:user) }
+  let(:external_team_member) { create(:user, external: true) }
 
   before do
     # full access
     project.team << [master, :master]
+    project.team << [external_team_member, :master]
 
     # readonly
     project.team << [reporter, :reporter]
@@ -34,6 +36,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -45,6 +49,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -56,6 +62,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -67,6 +75,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -78,6 +88,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -89,22 +101,23 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
   describe "GET /:project_path/blob" do
-    before do
-      commit = project.repository.commit
-      path = '.gitignore'
-      @blob_path = namespace_project_blob_path(project.namespace, project, File.join(commit.id, path))
-    end
+    let(:commit) { project.repository.commit }
+    subject { namespace_project_blob_path(project.namespace, project, File.join(commit.id, '.gitignore')) }
 
-    it { expect(@blob_path).to be_allowed_for master }
-    it { expect(@blob_path).to be_allowed_for reporter }
-    it { expect(@blob_path).to be_allowed_for :admin }
-    it { expect(@blob_path).to be_allowed_for guest }
-    it { expect(@blob_path).to be_allowed_for :user }
-    it { expect(@blob_path).to be_denied_for :visitor }
+    it { is_expected.to be_allowed_for master }
+    it { is_expected.to be_allowed_for reporter }
+    it { is_expected.to be_allowed_for :admin }
+    it { is_expected.to be_allowed_for guest }
+    it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
+    it { is_expected.to be_denied_for :visitor }
   end
 
   describe "GET /:project_path/edit" do
@@ -115,6 +128,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -126,6 +141,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -137,6 +154,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -149,6 +168,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -160,6 +181,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -171,6 +194,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -182,6 +207,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -193,6 +220,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -209,6 +238,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -225,6 +256,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -236,6 +269,8 @@ describe "Internal Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 end
diff --git a/spec/features/security/project/private_access_spec.rb b/spec/features/security/project/private_access_spec.rb
index a1e111c6cab84eefefac95b8d60fa0fee52b3033..19f287ce7a47d7e0c5f3a2378654dd0c1b0fec46 100644
--- a/spec/features/security/project/private_access_spec.rb
+++ b/spec/features/security/project/private_access_spec.rb
@@ -8,10 +8,12 @@ describe "Private Project Access", feature: true  do
   let(:master)   { create(:user) }
   let(:guest)    { create(:user) }
   let(:reporter) { create(:user) }
+  let(:external_team_member) { create(:user, external: true) }
 
   before do
     # full access
     project.team << [master, :master]
+    project.team << [external_team_member, :master]
 
     # readonly
     project.team << [reporter, :reporter]
@@ -34,6 +36,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -45,6 +49,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -56,6 +62,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -67,6 +75,7 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -78,6 +87,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -89,22 +100,23 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
   describe "GET /:project_path/blob" do
-    before do
-      commit = project.repository.commit
-      path = '.gitignore'
-      @blob_path = namespace_project_blob_path(project.namespace, project, File.join(commit.id, path))
-    end
+    let(:commit) { project.repository.commit }
+    subject { namespace_project_blob_path(project.namespace, project, File.join(commit.id, '.gitignore'))}
 
-    it { expect(@blob_path).to be_allowed_for master }
-    it { expect(@blob_path).to be_allowed_for reporter }
-    it { expect(@blob_path).to be_allowed_for :admin }
-    it { expect(@blob_path).to be_denied_for guest }
-    it { expect(@blob_path).to be_denied_for :user }
-    it { expect(@blob_path).to be_denied_for :visitor }
+    it { is_expected.to be_allowed_for master }
+    it { is_expected.to be_allowed_for reporter }
+    it { is_expected.to be_allowed_for :admin }
+    it { is_expected.to be_denied_for guest }
+    it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
+    it { is_expected.to be_denied_for :visitor }
   end
 
   describe "GET /:project_path/edit" do
@@ -115,6 +127,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -126,6 +140,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -137,6 +153,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -149,6 +167,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -160,6 +180,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -171,6 +193,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -187,6 +211,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -203,6 +229,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -214,6 +242,8 @@ describe "Private Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
+    it { is_expected.to be_allowed_for external_team_member }
     it { is_expected.to be_denied_for :visitor }
   end
 end
diff --git a/spec/features/security/project/public_access_spec.rb b/spec/features/security/project/public_access_spec.rb
index b98476f854e7d20c6ee65701a01676df2a47cf70..4e13507636751484ff360fcc5733c00217d1351c 100644
--- a/spec/features/security/project/public_access_spec.rb
+++ b/spec/features/security/project/public_access_spec.rb
@@ -38,6 +38,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -49,6 +50,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -60,6 +62,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -71,6 +74,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -82,6 +86,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -93,6 +98,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -107,6 +113,7 @@ describe "Public Project Access", feature: true  do
       it { is_expected.to be_allowed_for :admin }
       it { is_expected.to be_allowed_for guest }
       it { is_expected.to be_allowed_for :user }
+      it { is_expected.to be_allowed_for :external }
       it { is_expected.to be_allowed_for :visitor }
     end
 
@@ -118,6 +125,7 @@ describe "Public Project Access", feature: true  do
       it { is_expected.to be_allowed_for :admin }
       it { is_expected.to be_denied_for guest }
       it { is_expected.to be_denied_for :user }
+      it { is_expected.to be_denied_for :external }
       it { is_expected.to be_denied_for :visitor }
     end
   end
@@ -135,6 +143,7 @@ describe "Public Project Access", feature: true  do
       it { is_expected.to be_allowed_for :admin }
       it { is_expected.to be_allowed_for guest }
       it { is_expected.to be_allowed_for :user }
+      it { is_expected.to be_allowed_for :external }
       it { is_expected.to be_allowed_for :visitor }
     end
 
@@ -146,23 +155,22 @@ describe "Public Project Access", feature: true  do
       it { is_expected.to be_allowed_for :admin }
       it { is_expected.to be_denied_for guest }
       it { is_expected.to be_denied_for :user }
+      it { is_expected.to be_denied_for :external }
       it { is_expected.to be_denied_for :visitor }
     end
   end
 
   describe "GET /:project_path/blob" do
-    before do
-      commit = project.repository.commit
-      path = '.gitignore'
-      @blob_path = namespace_project_blob_path(project.namespace, project, File.join(commit.id, path))
-    end
+    let(:commit) { project.repository.commit }
+
+    subject { namespace_project_blob_path(project.namespace, project, File.join(commit.id, '.gitignore')) }
 
-    it { expect(@blob_path).to be_allowed_for master }
-    it { expect(@blob_path).to be_allowed_for reporter }
-    it { expect(@blob_path).to be_allowed_for :admin }
-    it { expect(@blob_path).to be_allowed_for guest }
-    it { expect(@blob_path).to be_allowed_for :user }
-    it { expect(@blob_path).to be_allowed_for :visitor }
+    it { is_expected.to be_allowed_for master }
+    it { is_expected.to be_allowed_for reporter }
+    it { is_expected.to be_allowed_for :admin }
+    it { is_expected.to be_allowed_for guest }
+    it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :visitor }
   end
 
   describe "GET /:project_path/edit" do
@@ -173,6 +181,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -184,6 +193,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -195,6 +205,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -207,6 +218,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -218,6 +230,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -229,6 +242,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -240,6 +254,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -251,6 +266,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
     it { is_expected.to be_denied_for :visitor }
   end
 
@@ -267,6 +283,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -283,6 +300,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_allowed_for guest }
     it { is_expected.to be_allowed_for :user }
+    it { is_expected.to be_allowed_for :external }
     it { is_expected.to be_allowed_for :visitor }
   end
 
@@ -294,6 +312,7 @@ describe "Public Project Access", feature: true  do
     it { is_expected.to be_allowed_for :admin }
     it { is_expected.to be_denied_for guest }
     it { is_expected.to be_denied_for :user }
+    it { is_expected.to be_denied_for :external }
     it { is_expected.to be_denied_for :visitor }
   end
 end
diff --git a/spec/models/user_spec.rb b/spec/models/user_spec.rb
index 6290ab3ebec21d15a92abae9623f320919ea0884..0ab7fd88ce66b70eb66e8a6a38fd14afe76b01e6 100644
--- a/spec/models/user_spec.rb
+++ b/spec/models/user_spec.rb
@@ -180,6 +180,20 @@ describe User, models: true do
     it { is_expected.to respond_to(:is_admin?) }
     it { is_expected.to respond_to(:name) }
     it { is_expected.to respond_to(:private_token) }
+    it { is_expected.to respond_to(:external?) }
+  end
+
+  describe 'before save hook' do
+    context 'when saving an external user' do
+      let(:user)          { create(:user) }
+      let(:external_user) { create(:user, external: true) }
+
+      it "sets other properties aswell" do
+        expect(external_user.can_create_team).to be_falsey
+        expect(external_user.can_create_group).to be_falsey
+        expect(external_user.projects_limit).to be 0
+      end
+    end
   end
 
   describe '#confirm' do
@@ -404,6 +418,7 @@ describe User, models: true do
         expect(user.projects_limit).to eq(Gitlab.config.gitlab.default_projects_limit)
         expect(user.can_create_group).to eq(Gitlab.config.gitlab.default_can_create_group)
         expect(user.theme_id).to eq(Gitlab.config.gitlab.default_theme)
+        expect(user.external).to be_falsey
       end
     end
 
diff --git a/spec/requests/api/users_spec.rb b/spec/requests/api/users_spec.rb
index 96e8c8c51f86ecd81a12304e20bac518476fa956..679227bf8815f7aa06e0deb14b73355f3a7e225f 100644
--- a/spec/requests/api/users_spec.rb
+++ b/spec/requests/api/users_spec.rb
@@ -120,6 +120,26 @@ describe API::API, api: true  do
       expect(response.status).to eq(201)
     end
 
+    it 'creates non-external users by default' do
+      post api("/users", admin), attributes_for(:user)
+      expect(response.status).to eq(201)
+
+      user_id = json_response['id']
+      new_user = User.find(user_id)
+      expect(new_user).not_to eq nil
+      expect(new_user.external).to be_falsy
+    end
+
+    it 'should allow an external user to be created' do
+      post api("/users", admin), attributes_for(:user, external: true)
+      expect(response.status).to eq(201)
+
+      user_id = json_response['id']
+      new_user = User.find(user_id)
+      expect(new_user).not_to eq nil
+      expect(new_user.external).to be_truthy
+    end
+
     it "should not create user with invalid email" do
       post api('/users', admin),
         email: 'invalid email',
@@ -262,6 +282,13 @@ describe API::API, api: true  do
       expect(user.reload.admin).to eq(true)
     end
 
+    it "should update external status" do
+      put api("/users/#{user.id}", admin), { external: true }
+      expect(response.status).to eq 200
+      expect(json_response['external']).to eq(true)
+      expect(user.reload.external?).to be_truthy
+    end
+
     it "should not update admin status" do
       put api("/users/#{admin_user.id}", admin), { can_create_group: false }
       expect(response.status).to eq(200)
diff --git a/spec/support/matchers/access_matchers.rb b/spec/support/matchers/access_matchers.rb
index 558e8b1612f406c75ebdf6e0f7e7ef962c4225aa..4e007c777e3f5c13b5b2f6082d93ebfb84738743 100644
--- a/spec/support/matchers/access_matchers.rb
+++ b/spec/support/matchers/access_matchers.rb
@@ -15,6 +15,8 @@ module AccessMatchers
       logout
     when :admin
       login_as(create(:admin))
+    when :external
+      login_as(create(:user, external: true))
     when User
       login_as(user)
     else