diff --git a/app/views/shared/groups/_group.html.haml b/app/views/shared/groups/_group.html.haml
index a95020a9be853b9fa0e0d2130f0651bea162e573..09f946f1d88b7bac928dc25d85764b59071faa8b 100644
--- a/app/views/shared/groups/_group.html.haml
+++ b/app/views/shared/groups/_group.html.haml
@@ -17,7 +17,7 @@
   .stats
     %span
       = icon('bookmark')
-      = number_with_delimiter(group.projects.count)
+      = number_with_delimiter(group.projects.non_archived.count)
 
     %span
       = icon('users')
diff --git a/changelogs/unreleased/23862-fix-group-project-count.yml b/changelogs/unreleased/23862-fix-group-project-count.yml
new file mode 100644
index 0000000000000000000000000000000000000000..7b2e9f9bfa61bf698e5e8fdda89d1ac96c57c8dc
--- /dev/null
+++ b/changelogs/unreleased/23862-fix-group-project-count.yml
@@ -0,0 +1,4 @@
+---
+title: Adding non_archived scope for counting projects
+merge_request: 8305
+author: Naveen Kumar
diff --git a/spec/features/explore/groups_list_spec.rb b/spec/features/explore/groups_list_spec.rb
index 773ae4b38bc9faecb8a0afa98cde52c9c3e6fd11..9daaaa8e5555b2c8833b99d720d1c16f3925ec53 100644
--- a/spec/features/explore/groups_list_spec.rb
+++ b/spec/features/explore/groups_list_spec.rb
@@ -7,6 +7,7 @@ describe 'Explore Groups page', js: true, feature: true do
   let!(:group) { create(:group) }
   let!(:public_group) { create(:group, :public) }
   let!(:private_group) { create(:group, :private) }
+  let!(:empty_project) { create(:empty_project, group: public_group) }
 
   before do
     group.add_owner(user)
@@ -43,4 +44,23 @@ describe 'Explore Groups page', js: true, feature: true do
     expect(page).not_to have_content(private_group.full_name)
     expect(page.all('.js-groups-list-holder .content-list li').length).to eq 2
   end
+
+  it 'shows non-archived projects count' do
+    # Initially project is not archived
+    expect(find('.js-groups-list-holder .content-list li:first-child .stats span:first-child')).to have_text("1")
+    
+    # Archive project
+    empty_project.archive!
+    visit explore_groups_path
+
+    # Check project count
+    expect(find('.js-groups-list-holder .content-list li:first-child .stats span:first-child')).to have_text("0")
+  
+    # Unarchive project
+    empty_project.unarchive!
+    visit explore_groups_path
+
+    # Check project count
+    expect(find('.js-groups-list-holder .content-list li:first-child .stats span:first-child')).to have_text("1")    
+  end
 end