diff --git a/common/djangoapps/student/models.py b/common/djangoapps/student/models.py
index b2fd02a7ff..64d21af18b 100644
--- a/common/djangoapps/student/models.py
+++ b/common/djangoapps/student/models.py
@@ -504,8 +504,29 @@ class Registration(models.Model):
 
     def activate(self):
         self.user.is_active = True
+        self._track_activation()
         self.user.save()
 
+    def _track_activation(self):
+        """ Update the isActive flag in mailchimp for activated users."""
+        has_segment_key = getattr(settings, 'LMS_SEGMENT_KEY', None)
+        has_mailchimp_id = hasattr(settings, 'MAILCHIMP_NEW_USER_LIST_ID')
+        if has_segment_key and has_mailchimp_id:
+            identity_args = [
+                self.user.id,  # pylint: disable=no-member
+                {
+                    'email': self.user.email,
+                    'username': self.user.username,
+                    'activated': 1,
+                },
+                {
+                    "MailChimp": {
+                        "listId": settings.MAILCHIMP_NEW_USER_LIST_ID
+                    }
+                }
+            ]
+            analytics.identify(*identity_args)
+
 
 class PendingNameChange(models.Model):
     user = models.OneToOneField(User, unique=True, db_index=True)
diff --git a/common/djangoapps/student/tests/test_activate_account.py b/common/djangoapps/student/tests/test_activate_account.py
new file mode 100644
index 0000000000..56f9b052b5
--- /dev/null
+++ b/common/djangoapps/student/tests/test_activate_account.py
@@ -0,0 +1,78 @@
+"""Tests for account activation"""
+from mock import patch
+import unittest
+
+from django.conf import settings
+from django.contrib.auth.models import User
+from django.test import TestCase, override_settings
+
+from student.models import Registration
+
+
+@unittest.skipUnless(settings.ROOT_URLCONF == 'lms.urls', 'Test only valid in lms')
+class TestActivateAccount(TestCase):
+    """Tests for account creation"""
+
+    def setUp(self):
+        super(TestActivateAccount, self).setUp()
+        self.username = "jack"
+        self.email = "jack@fake.edx.org"
+        self.user = User.objects.create(username=self.username, email=self.email, is_active=False)
+
+        # Set Up Registration
+        self.registration = Registration()
+        self.registration.register(self.user)
+        self.registration.save()
+
+    def assert_no_tracking(self, mock_segment_identify):
+        """ Assert that activate sets the flag but does not call segment. """
+        # Ensure that the user starts inactive
+        self.assertFalse(self.user.is_active)
+
+        # Until you explicitly activate it
+        self.registration.activate()
+        self.assertTrue(self.user.is_active)
+        self.assertFalse(mock_segment_identify.called)
+
+    @override_settings(
+        LMS_SEGMENT_KEY="testkey",
+        MAILCHIMP_NEW_USER_LIST_ID="listid"
+    )
+    @patch('student.models.analytics.identify')
+    def test_activation_with_keys(self, mock_segment_identify):
+        expected_segment_payload = {
+            'email': self.email,
+            'username': self.username,
+            'activated': 1,
+        }
+        expected_segment_mailchimp_list = {
+            "MailChimp": {
+                "listId": settings.MAILCHIMP_NEW_USER_LIST_ID
+            }
+        }
+
+        # Ensure that the user starts inactive
+        self.assertFalse(self.user.is_active)
+
+        # Until you explicitly activate it
+        self.registration.activate()
+        self.assertTrue(self.user.is_active)
+        mock_segment_identify.assert_called_with(
+            self.user.id,
+            expected_segment_payload,
+            expected_segment_mailchimp_list
+        )
+
+    @override_settings(LMS_SEGMENT_KEY="testkey")
+    @patch('student.models.analytics.identify')
+    def test_activation_without_mailchimp_key(self, mock_segment_identify):
+        self.assert_no_tracking(mock_segment_identify)
+
+    @override_settings(MAILCHIMP_NEW_USER_LIST_ID="listid")
+    @patch('student.models.analytics.identify')
+    def test_activation_without_segment_key(self, mock_segment_identify):
+        self.assert_no_tracking(mock_segment_identify)
+
+    @patch('student.models.analytics.identify')
+    def test_activation_without_keys(self, mock_segment_identify):
+        self.assert_no_tracking(mock_segment_identify)