diff --git a/app/assets/stylesheets/pages/settings.scss b/app/assets/stylesheets/pages/settings.scss
index 6a58072b0eb7d4fa7e14d873a7a69461435c51c2..4872cf1442bbcf6c9e7f6579328aa4b4ed986ecf 100644
--- a/app/assets/stylesheets/pages/settings.scss
+++ b/app/assets/stylesheets/pages/settings.scss
@@ -23,7 +23,10 @@
 }
 
 .settings {
-  border-bottom: 1px solid $gray-darker;
+  // border-top for each item except the top one
+  + .settings {
+    border-top: 1px solid $border-color;
+  }
 
   &:first-of-type {
     margin-top: 10px;
diff --git a/app/views/projects/settings/operations/_error_tracking.html.haml b/app/views/projects/settings/operations/_error_tracking.html.haml
index 4911e8d37706d6bf6ddb242793f674d4d398dd57..61a3423bd4ad9ecb7ab341007546d35f48be4344 100644
--- a/app/views/projects/settings/operations/_error_tracking.html.haml
+++ b/app/views/projects/settings/operations/_error_tracking.html.haml
@@ -2,7 +2,7 @@
 
 - setting = error_tracking_setting
 
-%section.settings.expanded.border-0.no-animate
+%section.settings.expanded.no-animate
   .settings-header
     %h4
       = _('Error Tracking')
diff --git a/app/views/projects/settings/operations/show.html.haml b/app/views/projects/settings/operations/show.html.haml
index b36fa9a5f5145f68b7b4ca67fe383f2199c4ae54..79b01ad933cd78849ca90217350f6e04845a90cd 100644
--- a/app/views/projects/settings/operations/show.html.haml
+++ b/app/views/projects/settings/operations/show.html.haml
@@ -1,5 +1,6 @@
 - @content_class = 'limit-container-width' unless fluid_layout
 - page_title _('Operations')
 
+= render_if_exists 'projects/settings/operations/incidents'
 = render 'projects/settings/operations/error_tracking', expanded: true
 = render_if_exists 'projects/settings/operations/tracing'
diff --git a/db/schema.rb b/db/schema.rb
index 39a7f9d7e4d74f869bce0b0320be87d229d383bd..0ffd7a2cb0cf110cea0b21fa4976c4dbb17fcd26 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -10,7 +10,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema.define(version: 20190204115450) do
+ActiveRecord::Schema.define(version: 20190226154144) do
 
   # These are extensions that must be enabled in order to support this database
   enable_extension "plpgsql"
@@ -2272,6 +2272,12 @@
     t.index ["project_id"], name: "index_project_import_data_on_project_id", using: :btree
   end
 
+  create_table "project_incident_management_settings", primary_key: "project_id", id: :integer, force: :cascade do |t|
+    t.boolean "create_issue", default: false, null: false
+    t.boolean "send_email", default: false, null: false
+    t.text "issue_template_key"
+  end
+
   create_table "project_mirror_data", force: :cascade do |t|
     t.integer "project_id", null: false
     t.integer "retry_count", default: 0, null: false
@@ -3495,6 +3501,7 @@
   add_foreign_key "project_features", "projects", name: "fk_18513d9b92", on_delete: :cascade
   add_foreign_key "project_group_links", "projects", name: "fk_daa8cee94c", on_delete: :cascade
   add_foreign_key "project_import_data", "projects", name: "fk_ffb9ee3a10", on_delete: :cascade
+  add_foreign_key "project_incident_management_settings", "projects", on_delete: :cascade
   add_foreign_key "project_mirror_data", "projects", name: "fk_d1aad367d7", on_delete: :cascade
   add_foreign_key "project_repositories", "projects", on_delete: :cascade
   add_foreign_key "project_repositories", "shards", on_delete: :restrict
diff --git a/ee/app/controllers/ee/projects/settings/operations_controller.rb b/ee/app/controllers/ee/projects/settings/operations_controller.rb
index 92cb22a134c8d2c54992275bb993c17b83bc39ba..96637b4d5db608dca374d6f8c97757bfbeffee45 100644
--- a/ee/app/controllers/ee/projects/settings/operations_controller.rb
+++ b/ee/app/controllers/ee/projects/settings/operations_controller.rb
@@ -8,6 +8,8 @@ module OperationsController
         extend ActiveSupport::Concern
 
         prepended do
+          include ::Gitlab::Utils::StrongMemoize
+
           before_action :authorize_read_prometheus_alerts!,
             only: [:reset_alerting_token]
 
@@ -25,7 +27,7 @@ def reset_alerting_token
             end
           end
 
-          helper_method :tracing_setting
+          helper_method :tracing_setting, :incident_management_setting
 
           private
 
@@ -34,13 +36,24 @@ def alerting_params
           end
 
           def tracing_setting
-            @tracing_setting ||= project.tracing_setting || project.build_tracing_setting
+            strong_memoize(:tracing_setting) do
+              project.tracing_setting || project.build_tracing_setting
+            end
+          end
+
+          def incident_management_setting
+            strong_memoize(:incident_management_setting) do
+              project.incident_management_setting || project.build_incident_management_setting
+            end
           end
         end
 
         override :permitted_project_params
         def permitted_project_params
-          super.merge(tracing_setting_attributes: [:external_url])
+          super.merge(
+            tracing_setting_attributes: [:external_url],
+            incident_management_setting_attributes: [:create_issue, :send_email, :issue_template_key]
+          )
         end
       end
     end
diff --git a/ee/app/models/ee/project.rb b/ee/app/models/ee/project.rb
index dd1333427a1ad35d29b4b356d6bf5a68be647d4f..3d4489778798f31573811ef1ffd06755e4b74e0b 100644
--- a/ee/app/models/ee/project.rb
+++ b/ee/app/models/ee/project.rb
@@ -41,6 +41,7 @@ module Project
       has_one :gitlab_slack_application_service
       has_one :tracing_setting, class_name: 'ProjectTracingSetting'
       has_one :alerting_setting, inverse_of: :project, class_name: 'Alerting::ProjectAlertingSetting'
+      has_one :incident_management_setting, inverse_of: :project, class_name: 'ProjectIncidentManagementSetting'
       has_one :feature_usage, class_name: 'ProjectFeatureUsage'
 
       has_many :reviews, inverse_of: :project
@@ -120,6 +121,7 @@ module Project
 
       accepts_nested_attributes_for :tracing_setting, update_only: true, allow_destroy: true
       accepts_nested_attributes_for :alerting_setting, update_only: true
+      accepts_nested_attributes_for :incident_management_setting, update_only: true
 
       alias_attribute :fallback_approvals_required, :approvals_before_merge
     end
diff --git a/ee/app/models/project_incident_management_setting.rb b/ee/app/models/project_incident_management_setting.rb
new file mode 100644
index 0000000000000000000000000000000000000000..c1bde661625e897caef9ed4da23a88098c63948a
--- /dev/null
+++ b/ee/app/models/project_incident_management_setting.rb
@@ -0,0 +1,21 @@
+# frozen_string_literal: true
+
+class ProjectIncidentManagementSetting < ApplicationRecord
+  belongs_to :project
+
+  validate :validate_issue_template_path, if: :create_issue?
+
+  def available_issue_templates
+    Gitlab::Template::IssueTemplate.all(project)
+  end
+
+  private
+
+  def validate_issue_template_path
+    return unless issue_template_key_changed?
+
+    Gitlab::Template::IssueTemplate.find(issue_template_key, project)
+  rescue Gitlab::Template::Finders::RepoTemplateFinder::FileNotFoundError
+    errors.add(:issue_template_key, 'not found')
+  end
+end
diff --git a/ee/app/services/ee/projects/operations/update_service.rb b/ee/app/services/ee/projects/operations/update_service.rb
index f8d67c71eb852bf873a7c428f6cf405ba74d1bfd..ef09c57d51aaeda6dba9e12ab0f6ef82b0e10929 100644
--- a/ee/app/services/ee/projects/operations/update_service.rb
+++ b/ee/app/services/ee/projects/operations/update_service.rb
@@ -12,6 +12,7 @@ def project_update_params
           super
             .merge(tracing_setting_params)
             .merge(alerting_setting_params)
+            .merge(incident_management_setting_params)
         end
 
         private
@@ -41,6 +42,10 @@ def alerting_setting_params
 
           { alerting_setting_attributes: attr }
         end
+
+        def incident_management_setting_params
+          params.slice(:incident_management_setting_attributes)
+        end
       end
     end
   end
diff --git a/ee/app/views/projects/settings/operations/_incidents.html.haml b/ee/app/views/projects/settings/operations/_incidents.html.haml
new file mode 100644
index 0000000000000000000000000000000000000000..410bba028e74ff5bcd581c1fec7c2bf641822503
--- /dev/null
+++ b/ee/app/views/projects/settings/operations/_incidents.html.haml
@@ -0,0 +1,28 @@
+- return unless @project.feature_available?(:incident_management, current_user)
+
+- templates =  []
+- setting = incident_management_setting
+- templates = [''] + setting.available_issue_templates.map { |t| [t.name, t.key] }
+
+%section.settings.expanded.no-animate
+  .settings-header
+    %h4= _('Incidents')
+    %p
+      = _('Action to take when receiving an alert.')
+      = link_to help_page_path('administration/monitoring/prometheus/index', anchor: 'create-issues-from-alerts') do
+        = _('More information')
+  .settings-content
+    = form_for @project, url: project_settings_operations_path(@project), method: :patch do |f|
+      = form_errors(@project)
+      .form-group
+        = f.fields_for :incident_management_setting_attributes, setting do |form|
+          .form-check.form-group
+            = form.check_box :create_issue
+            = form.label :create_issue, _('Create an issue. Issues are created for each alert triggered.'), class: 'form-check-label'
+          .form-group
+            = form.label :issue_template_key, _('Issue template')
+            = form.select :issue_template_key, templates, {}, class: 'form-control'
+          .form-check.form-group
+            = form.check_box :send_email
+            = form.label :send_email, _('Send an email notification to Developers.'), class: 'form-check-label'
+      = f.submit _('Save changes'), class: 'btn btn-success'
diff --git a/ee/db/migrate/20190226154144_create_project_incident_management_settings.rb b/ee/db/migrate/20190226154144_create_project_incident_management_settings.rb
new file mode 100644
index 0000000000000000000000000000000000000000..9441552edb3e12ec4a21dd05e845e22fde35d6e7
--- /dev/null
+++ b/ee/db/migrate/20190226154144_create_project_incident_management_settings.rb
@@ -0,0 +1,16 @@
+# frozen_string_literal: true
+
+class CreateProjectIncidentManagementSettings < ActiveRecord::Migration[5.0]
+  include Gitlab::Database::MigrationHelpers
+
+  DOWNTIME = false
+
+  def change
+    create_table :project_incident_management_settings, id: :int, primary_key: :project_id do |t|
+      t.boolean :create_issue, default: false, null: false
+      t.boolean :send_email, default: false, null: false
+      t.text :issue_template_key
+      t.foreign_key :projects, column: :project_id, on_delete: :cascade
+    end
+  end
+end
diff --git a/ee/spec/features/projects/settings/operations_settings_spec.rb b/ee/spec/features/projects/settings/operations_settings_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..3e432b1393cd1b895d239c3989c815e23e6f35e4
--- /dev/null
+++ b/ee/spec/features/projects/settings/operations_settings_spec.rb
@@ -0,0 +1,75 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+
+describe 'Projects > Settings' do
+  let(:user) { create(:user) }
+  let(:project) { create(:project, :repository) }
+  let(:role) { :maintainer }
+  let(:create_issue) { 'Create an issue. Issues are created for each alert triggered.' }
+  let(:send_email) { 'Send an email notification to Developers.' }
+  let(:issue_template_1) { 'Feature:\nReason:' }
+  let(:issue_template_2) { 'Bug Description:\nExpected behavior:\n' }
+
+  before do
+    sign_in(user)
+    project.add_role(user, role)
+  end
+
+  # test
+  # licensed shows section
+  describe 'Incidents' do
+    context 'with license' do
+      before do
+        # stub_licensed_features(incident_alerts: true)
+        visit project_settings_operations_path(project)
+      end
+
+      it 'renders form for incident management' do
+        expect(page).to have_selector('h4', text: 'Incidents')
+      end
+
+      it 'sets correct default values' do
+        expect(find_field(create_issue)).not_to be_checked
+        expect(find_field(send_email)).to be_checked
+      end
+
+      it 'updates form values' do
+        check(create_issue)
+        template_select = find('select[name="project[issue_template_key]"]')
+        template_select.find(:xpath, 'option[1]').select_option
+        check(send_email)
+        save_form
+
+        expect(find_field(create_issue)).to be_checked
+        expect(template_select.selected).to eq(issue_template_2)
+        expect(find_field(send_email)).not_to be_checked
+      end
+
+      # it 'updates issue template' do
+      #   save_form
+      # end
+
+      # it 'updates email notification' do
+      #   save_form
+      # end
+
+      def save_form
+        page.within "#incident_management_edit_project_#{project.id}" do
+          click_on 'Save changes'
+        end
+      end
+    end
+
+    context 'without license' do
+      before do
+        # stub_licensed_features(incident_alerts: false)
+        visit project_settings_operations_path(project)
+      end
+
+      it 'renders form for incident management' do
+        expect(page).not_to have_selector('h4', text: 'Incidents')
+      end
+    end
+  end
+end
\ No newline at end of file