diff --git a/app/code/core/Mage/Catalog/Model/Indexer/Url.php b/app/code/core/Mage/Catalog/Model/Indexer/Url.php
index aeda8341a9d2..3d1db33adfca 100644
--- a/app/code/core/Mage/Catalog/Model/Indexer/Url.php
+++ b/app/code/core/Mage/Catalog/Model/Indexer/Url.php
@@ -182,6 +182,7 @@ protected function _registerProductEvent(Mage_Index_Model_Event $event)
     {
         $product = $event->getDataObject();
         $dataChange = $product->dataHasChangedFor('url_key')
+            || $product->dataHasChangedFor('status')
             || $product->getIsChangedCategories()
             || $product->getIsChangedWebsites();
 
@@ -199,7 +200,11 @@ protected function _registerCategoryEvent(Mage_Index_Model_Event $event)
     {
         $category = $event->getDataObject();
         if (!$category->getInitialSetupFlag() && $category->getLevel() > 1) {
-            if ($category->dataHasChangedFor('url_key') || $category->getIsChangedProductList()) {
+            if (
+                $category->dataHasChangedFor('url_key')
+                || $category->getIsChangedProductList()
+                || $category->dataHasChangedFor('is_active')
+            ) {
                 $event->addNewData('rewrite_category_ids', array($category->getId()));
             }
             /**
diff --git a/app/code/core/Mage/Catalog/Model/Resource/Url.php b/app/code/core/Mage/Catalog/Model/Resource/Url.php
index e76055577281..859cca887528 100644
--- a/app/code/core/Mage/Catalog/Model/Resource/Url.php
+++ b/app/code/core/Mage/Catalog/Model/Resource/Url.php
@@ -688,9 +688,10 @@ protected function _prepareStoreRootCategories($stores)
      * @param int|array $categoryIds
      * @param int $storeId
      * @param string $path
+     * @param bool $withDisabled
      * @return array
      */
-    protected function _getCategories($categoryIds, $storeId = null, $path = null)
+    protected function _getCategories($categoryIds, $storeId = null, $path = null, $withDisabled = true)
     {
         $isActiveAttribute = Mage::getSingleton('eav/config')
             ->getAttribute(Mage_Catalog_Model_Category::ENTITY, 'is_active');
@@ -738,6 +739,10 @@ protected function _getCategories($categoryIds, $storeId = null, $path = null)
             $rootCategoryPath = $this->getStores($storeId)->getRootCategoryPath();
             $rootCategoryPathLength = strlen($rootCategoryPath);
         }
+        if (!$withDisabled) {
+            $select->where('IF(c.value_id > 0, c.value, d.value) = 1');
+        }
+
         $bind = array(
             'attribute_id' => (int)$isActiveAttribute->getId(),
             'store_id'     => (int)$storeId
@@ -808,15 +813,16 @@ public function getCategory($categoryId, $storeId)
      *
      * @param int|array $categoryIds
      * @param int $storeId
+     * @param bool $withDisabled
      * @return Mage_Catalog_Model_Category[]|false
      */
-    public function getCategories($categoryIds, $storeId)
+    public function getCategories($categoryIds, $storeId, $withDisabled = true)
     {
         if (!$categoryIds || !$storeId) {
             return false;
         }
 
-        return $this->_getCategories($categoryIds, $storeId);
+        return $this->_getCategories($categoryIds, $storeId, null, $withDisabled);
     }
 
     /**
@@ -939,9 +945,11 @@ public function getProductIdsByCategory($category)
      * @param int $storeId
      * @param int $entityId
      * @param int $lastEntityId
+     * @param bool $withDisabled
      * @return array
+     * @throws Mage_Core_Model_Store_Exception
      */
-    protected function _getProducts($productIds, $storeId, $entityId, &$lastEntityId)
+    protected function _getProducts($productIds, $storeId, $entityId, &$lastEntityId, $withDisabled = true)
     {
         $products   = array();
         $websiteId  = Mage::app()->getStore($storeId)->getWebsiteId();
@@ -969,6 +977,16 @@ protected function _getProducts($productIds, $storeId, $entityId, &$lastEntityId
         if ($productIds !== null) {
             $select->where('e.entity_id IN(?)', $productIds);
         }
+        if (!$withDisabled) {
+            $statusId = Mage::getResourceModel('eav/entity_attribute')
+                ->getIdByCode('catalog_product', 'status');
+            $select->join(
+                ['cpei' => 'catalog_product_entity_int'],
+                'cpei.entity_id = e.entity_id AND cpei.entity_type_id = 4 AND cpei.attribute_id = ' . (int)$statusId,
+                []
+            );
+            $select->where('cpei.value <> 2');
+        }
 
         $rowSet = $adapter->fetchAll($select, $bind);
         foreach ($rowSet as $row) {
@@ -1013,12 +1031,14 @@ protected function _getProducts($productIds, $storeId, $entityId, &$lastEntityId
      *
      * @param int $productId
      * @param int $storeId
+     * @param bool $withDisabled
      * @return Varien_Object|false
+     * @throws Mage_Core_Model_Store_Exception
      */
-    public function getProduct($productId, $storeId)
+    public function getProduct($productId, $storeId, $withDisabled = true)
     {
         $entityId = 0;
-        $products = $this->_getProducts($productId, $storeId, 0, $entityId);
+        $products = $this->_getProducts($productId, $storeId, 0, $entityId, $withDisabled);
         if (isset($products[$productId])) {
             return $products[$productId];
         }
@@ -1030,11 +1050,12 @@ public function getProduct($productId, $storeId)
      *
      * @param int $storeId
      * @param int $lastEntityId
+     * @param bool $withDisabled
      * @return Mage_Catalog_Model_Product[]
      */
-    public function getProductsByStore($storeId, &$lastEntityId)
+    public function getProductsByStore($storeId, &$lastEntityId, $withDisabled = true)
     {
-        return $this->_getProducts(null, $storeId, $lastEntityId, $lastEntityId);
+        return $this->_getProducts(null, $storeId, $lastEntityId, $lastEntityId, $withDisabled);
     }
 
     /**
@@ -1054,32 +1075,87 @@ public function getProductsByCategory(Varien_Object $category, &$lastEntityId)
     }
 
     /**
-     * Find and remove unused products rewrites - a case when products were moved away from the category
-     * (either to other category or deleted), so rewrite "category_id-product_id" is invalid
+     * Unused function. Left for backward compatibility
      *
      * @param int $storeId
      * @return $this
      */
     public function clearCategoryProduct($storeId)
+    {
+        return $this->clearRewrites($storeId);
+    }
+
+    /**
+     * Find and remove unused rewrites a case when
+     * - products were moved away from the category (either to other category or deleted), so rewrite "category_id-product_id" is invalid
+     * - category
+     *
+     * @param int $storeId
+     * @return $this
+     */
+    public function clearRewrites($storeId)
     {
         $adapter = $this->_getWriteAdapter();
+        list($select, $bind) = $this->getSelectToClearRewrites($adapter, $storeId);
 
-        $productUseCategories = Mage::getStoreConfigFlag('catalog/seo/product_use_categories');
+        $rewriteIds = $adapter->fetchCol($select, $bind);
+        if ($rewriteIds) {
+            $where = array($this->getIdFieldName() . ' IN(?)' => $rewriteIds);
+            $adapter->delete($this->getMainTable(), $where);
+        }
+
+        return $this;
+    }
+
+    /**
+     * Find and remove unused category rewrites - a case when category is disabled and in config field
+     * catalog/seo/create_url_for_disabled is set as false
+     *
+     * @param int $categoryId
+     * @param int|null $storeId
+     * @return $this
+     */
+    public function clearDisabledCategory($categoryId, $storeId = null)
+    {
+        if (Mage::getStoreConfigFlag('catalog/seo/create_url_for_disabled')) {
+            return $this;
+        }
+
+        if (is_null($storeId)) {
+            foreach ($this->getStores() as $store) {
+                $this->clearDisabledCategory($categoryId, $store);
+            }
+            return $this;
+        }
+
+        $adapter = $this->_getWriteAdapter();
+
+        $table = $this->getTable(array('catalog/category', 'int'));
         $select = $adapter->select()
             ->from(array('tur' => $this->getMainTable()), $this->getIdFieldName())
             ->joinLeft(
-                array('tcp' => $this->getTable('catalog/category_product')),
-                'tur.category_id = tcp.category_id AND tur.product_id = tcp.product_id',
+                array('ccei1' => $table),
+                'ccei1.attribute_id = :is_active_category_attribute_id AND ccei1.store_id = 0 AND ccei1.entity_id = tur.category_id',
+                array()
+            )
+            ->joinLeft(
+                array('ccei2' => $table),
+                'ccei2.attribute_id = :is_active_category_attribute_id AND ccei2.store_id = :store_id AND ccei2.entity_id = tur.category_id',
                 array()
             )
+            ->where('IF(ccei2.value_id > 0, ccei2.value, ccei1.value) = 0')
             ->where('tur.store_id = :store_id')
-            ->where('tur.category_id IS NOT NULL')
-            ->where('tur.product_id IS NOT NULL');
+            ->where('tur.category_id = :category_id');
 
-        if ($productUseCategories) {
-            $select->where('tcp.category_id IS NULL');
-        }
-        $rewriteIds = $adapter->fetchCol($select, array('store_id' => $storeId));
+        $isActiveCategoryAttribute = Mage::getSingleton('eav/config')
+            ->getAttribute(Mage_Catalog_Model_Category::ENTITY, 'is_active');
+        $bind = [
+            'store_id' => $storeId,
+            'is_active_category_attribute_id' => $isActiveCategoryAttribute->getId(),
+            'category_id' => $categoryId
+        ];
+
+        $rewriteIds = $adapter->fetchCol($select, $bind);
         if ($rewriteIds) {
             $where = array($this->getIdFieldName() . ' IN(?)' => $rewriteIds);
             $adapter->delete($this->getMainTable(), $where);
@@ -1088,6 +1164,93 @@ public function clearCategoryProduct($storeId)
         return $this;
     }
 
+    /**
+     * Prepare select to find unused rewrites
+     * as set in configuration fields catalog/seo/product_use_categories and catalog/seo/create_url_for_disabled
+     *
+     * @param Magento_Db_Adapter_Pdo_Mysql $adapter
+     * @param int $storeId
+     * @return array
+     */
+    protected function getSelectToClearRewrites($adapter, $storeId)
+    {
+        $productUseCategories = Mage::getStoreConfigFlag('catalog/seo/product_use_categories');
+        $createUrlForDisabled = Mage::getStoreConfigFlag('catalog/seo/create_url_for_disabled');
+
+        $bind = ['store_id' => $storeId];
+        $select = $adapter->select()
+            ->from(array('tur' => $this->getMainTable()), $this->getIdFieldName())
+            ->where('tur.store_id = :store_id')
+            ->where('tur.is_system = 1');
+
+        if ($createUrlForDisabled) {
+
+            // Find rewrites for cartegory/product
+            $select->where('tur.category_id IS NOT NULL')
+                ->where('tur.product_id IS NOT NULL');
+
+            // Find unused products rewrites - a case when products were moved away from the category
+            // (either to other category or deleted), so rewrite "category_id-product_id" is invalid
+            if ($productUseCategories) {
+                $select->joinLeft(
+                        array('tcp' => $this->getTable('catalog/category_product')),
+                        'tur.category_id = tcp.category_id AND tur.product_id = tcp.product_id',
+                        array()
+                    )
+                    ->where('tcp.category_id IS NULL');
+            }
+
+        } else {
+            // Find products, cartegories and cartegory/product rewrites for disabled products or cartegories
+            $productTable = $this->getTable(array('catalog/product', 'int'));
+            $categoryTable = $this->getTable(array('catalog/category', 'int'));
+            $select->joinLeft(
+                ['cpei' => $productTable],
+                'cpei.entity_id = tur.product_id AND cpei.attribute_id = :product_status_attribute_id',
+                []
+                )
+                ->joinLeft(
+                    array('ccei1' => $categoryTable),
+                    'ccei1.attribute_id = :is_active_category_attribute_id AND ccei1.store_id = 0 AND ccei1.entity_id = tur.category_id',
+                    array()
+                )
+                ->joinLeft(
+                    array('ccei2' => $categoryTable),
+                    'ccei2.attribute_id = :is_active_category_attribute_id AND ccei2.store_id = :store_id AND ccei2.entity_id = tur.category_id',
+                    array()
+            );
+            $productStatusAttributeId = Mage::getSingleton('eav/config')
+                ->getAttribute(Mage_Catalog_Model_Product::ENTITY, 'status');
+            $bind['product_status_attribute_id'] = $productStatusAttributeId->getId();
+
+                $isActiveCategoryAttribute = Mage::getSingleton('eav/config')
+                    ->getAttribute(Mage_Catalog_Model_Category::ENTITY, 'is_active');
+                $bind['is_active_category_attribute_id'] = $isActiveCategoryAttribute->getId();
+
+            // product_is_disabled OR (category is disabled) OR (cartegory/product rewrite)
+            $where = '(cpei.value = 2 OR (IF(ccei2.value_id > 0, ccei2.value, ccei1.value) = 0) OR (tur.category_id IS NOT NULL AND tur.product_id IS NOT NULL) )';
+
+            // Find products, categories and cartegory/product rewrites for disabled products or categories
+            if ($productUseCategories) {
+                $select
+                    ->joinLeft(
+                        array('tcp' => $this->getTable('catalog/category_product')),
+                        'tcp.category_id = tur.category_id AND tcp.product_id = tur.product_id',
+                        array()
+                    );
+                // product_is_disabled OR (category is disabled) OR (cartegory/product rewrite AND product were moved away from the category)
+                $where ='(cpei.value = 2 OR (IF(ccei2.value_id > 0, ccei2.value, ccei1.value) = 0) OR (tur.category_id IS NOT NULL AND tur.product_id IS NOT NULL AND tcp.category_id IS NULL))';
+            }
+            $select->where($where);
+        }
+        $select->group('url_rewrite_id');
+
+        return [
+            $select,
+            $bind
+        ];
+    }
+
     /**
      * Remove unused rewrites for product - called after we created all needed rewrites for product and know the categories
      * where the product is contained ($excludeCategoryIds), so we can remove all invalid product rewrites that have other category ids
diff --git a/app/code/core/Mage/Catalog/Model/Url.php b/app/code/core/Mage/Catalog/Model/Url.php
index 278b60fae65b..de0fb38fde70 100644
--- a/app/code/core/Mage/Catalog/Model/Url.php
+++ b/app/code/core/Mage/Catalog/Model/Url.php
@@ -116,12 +116,18 @@ class Mage_Catalog_Model_Url
      */
     protected $productUseCategories;
 
+    /**
+     * @var bool
+     */
+    protected $createForDisabled;
+
     /**
      * Neuca_Base_Model_Url constructor.
      */
     public function __construct()
     {
         $this->productUseCategories = Mage::getStoreConfigFlag('catalog/seo/product_use_categories');
+        $this->createForDisabled = Mage::getStoreConfigFlag('catalog/seo/create_url_for_disabled');
     }
 
     /**
@@ -267,7 +273,7 @@ public function refreshRewrites($storeId = null)
         $this->clearStoreInvalidRewrites($storeId);
         $this->refreshCategoryRewrite($this->getStores($storeId)->getRootCategoryId(), $storeId, false);
         $this->refreshProductRewrites($storeId);
-        $this->getResource()->clearCategoryProduct($storeId);
+        $this->getResource()->clearRewrites($storeId);
 
         return $this;
     }
@@ -393,7 +399,7 @@ protected function _refreshProductRewrite(Varien_Object $product, Varien_Object
     }
 
     /**
-     * Refresh products for catwgory
+     * Refresh products for category
      *
      * @param Varien_Object|Mage_Catalog_Model_Category $category
      * @return $this
@@ -448,7 +454,7 @@ protected function _refreshCategoryProductRewrites(Varien_Object $category)
      * @param bool $refreshProducts
      * @return $this
      */
-    public function refreshCategoryRewrite($categoryId, $storeId = null, $refreshProducts = null)
+    public function refreshCategoryRewrite($categoryId, $storeId = null, $refreshProducts = true)
     {
         if (!$refreshProducts) {
             $refreshProducts = $this->productUseCategories;
@@ -465,6 +471,11 @@ public function refreshCategoryRewrite($categoryId, $storeId = null, $refreshPro
             return $this;
         }
 
+        if (!$this->createForDisabled && !$category->getIsActive()) {
+            $this->getResource()->clearDisabledCategory($category->getId());
+            return $this;
+        }
+
         // Load all childs and refresh all categories
         $category = $this->getResource()->loadCategoryChilds($category);
         $categoryIds = array($category->getId());
@@ -497,7 +508,7 @@ public function refreshProductRewrite($productId, $storeId = null)
             return $this;
         }
 
-        $product = $this->getResource()->getProduct($productId, $storeId);
+        $product = $this->getResource()->getProduct($productId, $storeId, $this->createForDisabled);
         if (!$product) {
             // Product doesn't belong to this store - clear all its url rewrites including root one
             $this->getResource()->clearProductRewrites($productId, $storeId, array());
@@ -529,6 +540,11 @@ public function refreshProductRewrite($productId, $storeId = null)
 
         // Remove all other product rewrites created earlier for this store - they're invalid now
         $excludeCategoryIds = array_keys($categories);
+
+        // Product is disabled and in configuration set to not create for disabled - clear all its url rewrites including root one
+        if (!$this->createForDisabled && $product->getStatus() === Mage_Catalog_Model_Product_Status::STATUS_DISABLED) {
+            $excludeCategoryIds = [];
+        }
         $this->getResource()->clearProductRewrites($productId, $storeId, $excludeCategoryIds);
 
         unset($categories);
@@ -554,7 +570,8 @@ public function refreshProductRewrites($storeId)
         $process = true;
 
         while ($process == true) {
-            $products = $this->getResource()->getProductsByStore($storeId, $lastEntityId);
+            $products = $this->getResource()->getProductsByStore($storeId, $lastEntityId, $this->createForDisabled);
+
             if (!$products) {
                 $process = false;
                 break;
@@ -573,7 +590,7 @@ public function refreshProductRewrites($storeId)
                     }
                 }
                 if ($loadCategories) {
-                    foreach ($this->getResource()->getCategories($loadCategories, $storeId) as $category) {
+                    foreach ($this->getResource()->getCategories($loadCategories, $storeId, $this->createForDisabled) as $category) {
                         $this->_categories[$category->getId()] = $category;
                     }
                 }
diff --git a/app/code/core/Mage/Catalog/etc/config.xml b/app/code/core/Mage/Catalog/etc/config.xml
index 4f048020615c..9f3bbe181050 100644
--- a/app/code/core/Mage/Catalog/etc/config.xml
+++ b/app/code/core/Mage/Catalog/etc/config.xml
@@ -814,6 +814,7 @@
                 <product_url_suffix>.html</product_url_suffix>
                 <category_url_suffix>.html</category_url_suffix>
                 <product_use_categories>1</product_use_categories>
+                <create_url_for_disabled>1</create_url_for_disabled>
                 <save_rewrites_history>1</save_rewrites_history>
                 <title_separator>-</title_separator>
                 <category_canonical_tag>0</category_canonical_tag>
diff --git a/app/code/core/Mage/Catalog/etc/system.xml b/app/code/core/Mage/Catalog/etc/system.xml
index 9eac9e58ba6b..effde3b852c5 100644
--- a/app/code/core/Mage/Catalog/etc/system.xml
+++ b/app/code/core/Mage/Catalog/etc/system.xml
@@ -291,6 +291,15 @@
                             <show_in_website>1</show_in_website>
                             <show_in_store>1</show_in_store>
                         </product_use_categories>
+                        <create_url_for_disabled translate="label">
+                            <label>Generate URL rewrites for disabled categories and products</label>
+                            <frontend_type>select</frontend_type>
+                            <source_model>adminhtml/system_config_source_yesno</source_model>
+                            <sort_order>4</sort_order>
+                            <show_in_default>1</show_in_default>
+                            <show_in_website>0</show_in_website>
+                            <show_in_store>1</show_in_store>
+                        </create_url_for_disabled>
                         <save_rewrites_history translate="label">
                             <label>Create Permanent Redirect for URLs if URL Key Changed</label>
                             <frontend_type>select</frontend_type>