diff --git a/CHANGELOG.md b/CHANGELOG.md
index cfff866ca..422870ab6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@
 * Browse refactor: Show instance result in third pane when Number of titles = `1`. Refs UIIN-2186.
 * Optimistic locking error appears when user adds more than 1 tag to "Holdings" record. Fixes UIIN-2242.
 * Fix holdings view bound-with table also displaying directly linked items. Fixes UIIN-2260.  
+* Display "Inactive" by inactive locations on instance view. Fixes UIIN-1970.
 
 ## [9.2.0](https://github.com/folio-org/ui-inventory/tree/v9.2.0) (2022-10-27)
 [Full Changelog](https://github.com/folio-org/ui-inventory/compare/v9.1.0...v9.2.0)
diff --git a/src/Instance/HoldingsList/Holding/HoldingAccordion.js b/src/Instance/HoldingsList/Holding/HoldingAccordion.js
index 927132977..d7c198f60 100644
--- a/src/Instance/HoldingsList/Holding/HoldingAccordion.js
+++ b/src/Instance/HoldingsList/Holding/HoldingAccordion.js
@@ -30,7 +30,8 @@ const HoldingAccordion = ({
   };
 
   const { locationsById } = useContext(DataContext);
-  const labelLocation = locationsById[holding.permanentLocationId]?.name ?? '';
+  const labelLocation = locationsById[holding.permanentLocationId];
+  const labelLocationName = labelLocation?.name ?? '';
   const [open, setOpen] = useState(false);
   const [openFirstTime, setOpenFirstTime] = useState(false);
   const { totalRecords, isFetching } = useHoldingItemsQuery(holding.id, { searchParams, key: 'itemCount' });
@@ -54,6 +55,15 @@ const HoldingAccordion = ({
     isOpen={open}
   />;
 
+  const location = labelLocation?.isActive ?
+    labelLocationName :
+    <FormattedMessage
+      id="ui-inventory.inactive.paneTitle"
+      values={{
+        location: labelLocationName,
+      }}
+    />;
+
   return (
     <Accordion
       id={holding.id}
@@ -64,7 +74,7 @@ const HoldingAccordion = ({
           <FormattedMessage
             id="ui-inventory.holdingsHeader"
             values={{
-              location: labelLocation,
+              location,
               callNumber: callNumberLabel(holding),
               copyNumber: holding.copyNumber,
             }}
diff --git a/src/Instance/HoldingsList/Holding/HoldingAccordion.test.js b/src/Instance/HoldingsList/Holding/HoldingAccordion.test.js
index 72dba6e96..8bc920612 100644
--- a/src/Instance/HoldingsList/Holding/HoldingAccordion.test.js
+++ b/src/Instance/HoldingsList/Holding/HoldingAccordion.test.js
@@ -3,7 +3,7 @@ import { BrowserRouter as Router } from 'react-router-dom';
 import { noop } from 'lodash';
 import userEvent from '@testing-library/user-event';
 import { act } from 'react-dom/test-utils';
-import { screen } from '@testing-library/react';
+import { screen, waitFor } from '@testing-library/react';
 
 import '../../../../test/jest/__mock__';
 
@@ -21,13 +21,23 @@ const HoldingAccordionSetup = () => (
   <Router>
     <DataContext.Provider value={{ locationsById: {} }}>
       <HoldingAccordion
-        holding={{ id: '123' }}
+        holding={{
+          id: '123',
+          permanentLocation: { id: 'inactiveLocation' },
+        }}
         holdings={[]}
+        locationsById={[
+          {
+            id: 'inactiveLocation',
+            name: 'Location 1',
+            isActive: false,
+          },
+        ]}
         onViewHolding={noop}
         onAddItem={noop}
         withMoveDropdown={false}
       >
-        {() => null}
+        <></>
       </HoldingAccordion>
     </DataContext.Provider>
   </Router>
@@ -49,6 +59,13 @@ describe('HoldingAccordion', () => {
     jest.clearAllMocks();
   });
 
+  it('should display "inactive" if applicable in the accordion header', async () => {
+    await waitFor(() => {
+      const accordionSection = document.querySelector('*[data-test-accordion-section=true]').innerHTML;
+      expect(accordionSection).toContain('Inactive');
+    });
+  });
+
   it('should render items counter', () => {
     expect(screen.getByText('3')).toBeInTheDocument();
   });
diff --git a/src/Instance/ItemsList/ItemsList.js b/src/Instance/ItemsList/ItemsList.js
index 4f6561333..0ba7e3424 100644
--- a/src/Instance/ItemsList/ItemsList.js
+++ b/src/Instance/ItemsList/ItemsList.js
@@ -3,6 +3,7 @@ import React, {
   useCallback,
   useState,
   useEffect,
+  useContext,
 } from 'react';
 import PropTypes from 'prop-types';
 import {
@@ -27,8 +28,12 @@ import {
 } from './utils';
 import useBoundWithHoldings from '../../Holding/ViewHolding/HoldingBoundWith/useBoundWithHoldings';
 
+import { DataContext } from '../../contexts';
+
 const getTableAria = (intl) => intl.formatMessage({ id: 'ui-inventory.items' });
 const getFormatter = (
+  intl,
+  locationsById,
   holding,
   holdingsMapById,
   selectItemsForDrag,
@@ -81,7 +86,15 @@ const getFormatter = (
   'copyNumber': ({ copyNumber }) => copyNumber || noValue,
   'materialType': x => x.materialType?.name || noValue,
   'loanType': x => x.temporaryLoanType?.name || x.permanentLoanType?.name || noValue,
-  'effectiveLocation': x => x.effectiveLocation?.name || noValue,
+  'effectiveLocation': x => {
+    const effectiveLocation = locationsById[x.effectiveLocation?.id];
+    return effectiveLocation?.isActive ?
+      effectiveLocation?.name || noValue :
+      intl.formatMessage(
+        { id: 'ui-inventory.inactive.gridCell' },
+        { location: effectiveLocation?.name }
+      );
+  },
   'enumeration': x => x.enumeration || noValue,
   'chronology': x => x.chronology || noValue,
   'volume': x => x.volume || noValue,
@@ -145,6 +158,7 @@ const ItemsList = ({
   });
   const [records, setRecords] = useState([]);
   const [paginatedItems, setPaginatedItems] = useState([]);
+  const { locationsById } = useContext(DataContext);
 
   const ariaLabel = useMemo(() => getTableAria(intl), []);
   const columnMapping = useMemo(
@@ -152,7 +166,7 @@ const ItemsList = ({
     [holding.id, records, isItemsDragSelected, selectItemsForDrag],
   );
   const formatter = useMemo(
-    () => getFormatter(holding, holdingsMapById, selectItemsForDrag, isItemsDragSelected),
+    () => getFormatter(intl, locationsById, holding, holdingsMapById, selectItemsForDrag, isItemsDragSelected),
     [holding, holdingsMapById, selectItemsForDrag, isItemsDragSelected],
   );
   const rowProps = useMemo(() => ({
diff --git a/src/Instance/ItemsList/tests/ItemsList.test.js b/src/Instance/ItemsList/tests/ItemsList.test.js
new file mode 100644
index 000000000..88a8281d3
--- /dev/null
+++ b/src/Instance/ItemsList/tests/ItemsList.test.js
@@ -0,0 +1,73 @@
+import React from 'react';
+import { QueryClient, QueryClientProvider } from 'react-query';
+import { BrowserRouter as Router } from 'react-router-dom';
+import { act } from 'react-dom/test-utils';
+import { screen } from '@testing-library/react';
+
+import '../../../../test/jest/__mock__';
+
+import DataContext from '../../../contexts/DataContext';
+
+import { items as itemsFixture } from '../../../../test/fixtures/items';
+import { holdingsRecords as holdingsRecordsFixture } from '../../../../test/fixtures/holdingsRecords';
+import renderWithIntl from '../../../../test/jest/helpers/renderWithIntl';
+import translations from '../../../../test/jest/helpers/translationsProperties';
+import ItemsList from '../ItemsList';
+import useHoldingItemsQuery from '../../../hooks/useHoldingItemsQuery';
+
+jest.mock('../../../hooks/useHoldingItemsQuery', () => jest.fn());
+
+const queryClient = new QueryClient();
+
+const locations = {
+  'fcd64ce1-6995-48f0-840e-89ffa2288371':
+    {
+      id: 'fcd64ce1-6995-48f0-840e-89ffa2288371',
+      name: 'Main Library',
+      isActive: true,
+    },
+  'fcd64ce1-6995-48f0-840e-89ffa2288372' :
+    {
+      id: 'fcd64ce1-6995-48f0-840e-89ffa2288372',
+      name: 'Annex',
+      isActive: false,
+    },
+};
+
+const ItemsListSetup = () => (
+  <QueryClientProvider client={queryClient}>
+    <Router>
+      <DataContext.Provider value={{ locationsById: locations }}>
+        <ItemsList
+          items={itemsFixture}
+          holding={holdingsRecordsFixture[0]}
+          isItemsDragSelected={(_) => false}
+          selectItemsForDrag={(_) => {}}
+          getDraggingItems={jest.fn()}
+          draggable={false}
+        />
+      </DataContext.Provider>
+    </Router>
+  </QueryClientProvider>
+);
+
+describe('ItemsList', () => {
+  beforeEach(async () => {
+    useHoldingItemsQuery.mockReturnValue({
+      isFetching: false,
+      totalRecords: itemsFixture.length,
+    });
+
+    await act(async () => {
+      await renderWithIntl(<ItemsListSetup />, translations);
+    });
+  });
+
+  afterEach(() => {
+    jest.clearAllMocks();
+  });
+
+  it('should display "inactive" by a location if applicable', () => {
+    expect(screen.queryByText('Inactive')).toBeInTheDocument();
+  });
+});
diff --git a/src/components/InstanceFilters/InstanceFiltersBrowse/instanceFiltersBrowse.test.js b/src/components/InstanceFilters/InstanceFiltersBrowse/instanceFiltersBrowse.test.js
index 2984fcc47..04032cf0d 100644
--- a/src/components/InstanceFilters/InstanceFiltersBrowse/instanceFiltersBrowse.test.js
+++ b/src/components/InstanceFilters/InstanceFiltersBrowse/instanceFiltersBrowse.test.js
@@ -10,6 +10,7 @@ import { ModuleHierarchyProvider } from '@folio/stripes-core/src/components/Modu
 
 import '../../../../test/jest/__mock__';
 import renderWithIntl from '../../../../test/jest/helpers/renderWithIntl';
+import translations from '../../../../test/jest/helpers/translationsProperties';
 
 import InstanceFiltersBrowse from './InstanceFiltersBrowse';
 
@@ -64,15 +65,17 @@ const renderInstanceFilters = (props = {}) => {
           {...props}
         />
       </ModuleHierarchyProvider>
-    </Router>
+    </Router>,
+    translations
   );
 };
 
 describe('InstanceFilters', () => {
   it('Contains a filter for creation date ', () => {
-    renderInstanceFilters();
+    const { debug } = renderInstanceFilters();
 
-    expect(screen.getByText('ui-inventory.filters.effectiveLocation')).toBeInTheDocument();
+    debug();
+    expect(screen.getByText('Effective location (item)')).toBeInTheDocument();
   });
 
   describe('When contributors browseType was selected', () => {
diff --git a/test/fixtures/holdingsRecords.js b/test/fixtures/holdingsRecords.js
new file mode 100644
index 000000000..5bbacfb8f
--- /dev/null
+++ b/test/fixtures/holdingsRecords.js
@@ -0,0 +1,5 @@
+export const holdingsRecords = [
+  {
+    id: '44a21d17-a666-4f34-b24d-644f8ed1537b',
+  }
+];
diff --git a/test/fixtures/items.js b/test/fixtures/items.js
index 6023dbad5..89c104035 100644
--- a/test/fixtures/items.js
+++ b/test/fixtures/items.js
@@ -102,7 +102,8 @@ export const items = [
       id: 'fcd64ce1-6995-48f0-840e-89ffa2288371',
       name: 'Main Library',
     },
-  }, {
+  },
+  {
     id: '6abd8dfe-0234-4256-b2e6-539499999cac',
     status: {
       name: 'Paged',
diff --git a/test/jest/__mock__/index.js b/test/jest/__mock__/index.js
index 76472897b..be8d0d50f 100644
--- a/test/jest/__mock__/index.js
+++ b/test/jest/__mock__/index.js
@@ -9,3 +9,4 @@ import './stripesSmartComponents.mock';
 import './InstancePlugin.mock';
 import './quickMarc.mock';
 import './stripesComponents.mock';
+import './reactBeautifulDnd.mock';
diff --git a/test/jest/__mock__/reactBeautifulDnd.mock.js b/test/jest/__mock__/reactBeautifulDnd.mock.js
new file mode 100644
index 000000000..83eb141e0
--- /dev/null
+++ b/test/jest/__mock__/reactBeautifulDnd.mock.js
@@ -0,0 +1,15 @@
+jest.mock('react-beautiful-dnd', () => ({
+  Droppable: ({ children }) => children({
+    draggableProps: {
+      style: {},
+    },
+    innerRef: jest.fn(),
+  }, {}),
+  Draggable: ({ children }) => children({
+    draggableProps: {
+      style: {},
+    },
+    innerRef: jest.fn(),
+  }, {}),
+  DragDropContext: ({ children }) => children,
+}));
diff --git a/test/jest/helpers/Harness.js b/test/jest/helpers/Harness.js
index f83851c76..6e8649f71 100644
--- a/test/jest/helpers/Harness.js
+++ b/test/jest/helpers/Harness.js
@@ -1,5 +1,6 @@
 import React from 'react';
 import PropTypes from 'prop-types';
+import { noop } from 'lodash';
 import { IntlProvider } from 'react-intl';
 import { CalloutContext } from '@folio/stripes/core';
 
@@ -24,12 +25,21 @@ const Harness = ({
     mockOffsetSize(width, height);
   }
 
+  const defaultRichTextElements = ['b', 'i', 'em', 'strong', 'span', 'div', 'p', 'ul', 'ol', 'li', 'code'].reduce((res, Tag) => {
+    res[Tag] = chunks => <Tag>{chunks}</Tag>;
+
+    return res;
+  }, {});
+
   return (
     <CalloutContext.Provider value={{ sendCallout: () => { } }}>
       <IntlProvider
         locale="en"
         key="en"
         timeZone="UTC"
+        onWarn={noop}
+        onError={noop}
+        defaultRichTextElements={defaultRichTextElements}
         messages={allTranslations}
       >
         {children}
diff --git a/translations/ui-inventory/en.json b/translations/ui-inventory/en.json
index 3cd4650b7..ac9904e8d 100644
--- a/translations/ui-inventory/en.json
+++ b/translations/ui-inventory/en.json
@@ -146,6 +146,7 @@
   "temporary": "Temporary",
   "inactive": "Inactive",
   "inactive.paneTitle": "<em>Inactive</em> {location}",
+  "inactive.gridCell": "<span><em>Inactive</em> {location}</span>",
   "selectPermanenLocation": "Select permanent location",
   "statisticalCodes": "Statistical codes",
   "statisticalCode": "Statistical code",
@@ -359,7 +360,7 @@
   "alternativeTitleType": "Alternative title type",
   "materialType": "Material type",
   "materialTypeRequired": "Material type *",
-  "holdingsHeader": "Holdings: {location} > {callNumber} {copyNumber}",
+  "holdingsHeader": "<span>Holdings: {location} > {callNumber} {copyNumber}</span>",
   "holdingsDetails": "Holdings details",
   "numberOfItems": "Number of items",
   "acquisitions": "Acquisitions",