diff --git a/src/stock-physical-inventory-draft/messages_en.json b/src/stock-physical-inventory-draft/messages_en.json
new file mode 100644
index 0000000..750d9e5
--- /dev/null
+++ b/src/stock-physical-inventory-draft/messages_en.json
@@ -0,0 +1,3 @@
+{
+  "stockPhysicalInventoryDraft.unaccountedQuantityError": "Unnacounted quantity must be 0"
+}
\ No newline at end of file
diff --git a/src/stock-physical-inventory-draft/physical-inventory-draft.controller.js b/src/stock-physical-inventory-draft/physical-inventory-draft.controller.js
index f81b9b3..0e895b6 100644
--- a/src/stock-physical-inventory-draft/physical-inventory-draft.controller.js
+++ b/src/stock-physical-inventory-draft/physical-inventory-draft.controller.js
@@ -644,6 +644,28 @@
             return lineItem.quantityInvalid;
         };
 
+        // SELV3-508: Add validation to check unaccounted quantity
+        /**
+         * @ngdoc method
+         * @methodOf stock-adjustment-creation.controller:StockAdjustmentCreationController
+         * @name validateUnaccountedQuantity
+         *
+         * @description
+         * Validate line item quantity and returns self.
+         *
+         * @param {Object} lineItem line item to be validated.
+         */
+        vm.validateUnaccountedQuantity = function(lineItem) {
+            if (lineItem.unaccountedQuantity === 0) {
+                lineItem.unaccountedQuantityInvalid = false;
+            } else {
+                lineItem.unaccountedQuantityInvalid = messageService
+                    .get('stockPhysicalInventoryDraft.unaccountedQuantityError');
+            }
+            return lineItem.unaccountedQuantityInvalid;
+        };
+        // SELV3-508: ends here
+
         function isEmpty(value) {
             return value === '' || value === undefined || value === null;
         }
@@ -655,7 +677,7 @@
                 .each(function(item) {
                     if (!item.active) {
                         activeError = 'stockPhysicalInventoryDraft.submitInvalidActive';
-                    } else if (vm.validateQuantity(item)) {
+                    } else if (vm.validateQuantity(item) || vm.validateUnaccountedQuantity(item)) {
                         qtyError = 'stockPhysicalInventoryDraft.submitInvalid';
                     }
                 });
diff --git a/src/stock-physical-inventory-draft/physical-inventory-draft.controller.spec.js b/src/stock-physical-inventory-draft/physical-inventory-draft.controller.spec.js
index 83b1a18..bdd46d2 100644
--- a/src/stock-physical-inventory-draft/physical-inventory-draft.controller.spec.js
+++ b/src/stock-physical-inventory-draft/physical-inventory-draft.controller.spec.js
@@ -322,13 +322,24 @@ describe('PhysicalInventoryDraftController', function() {
         it('should show modal for occurred date if no quantity missing', function() {
             this.lineItem1.active = true;
             this.lineItem3.active = true;
+            // SELV3-508: Add validation to check unaccounted quantity
+            this.lineItem1.quantity = 1234;
             this.lineItem3.quantity = 123;
+            this.lineItem1.stockAdjustments = [{
+                quantity: 1234,
+                reason: {
+                    reasonType: 'CREDIT'
+                }
+            }];
             this.lineItem3.stockAdjustments = [{
                 quantity: 123,
                 reason: {
                     reasonType: 'CREDIT'
                 }
             }];
+            this.lineItem1.unaccountedQuantity = 0;
+            this.lineItem3.unaccountedQuantity = 0;
+            // SELV3-508: ends here
             var deferred = this.$q.defer();
             deferred.resolve();
             chooseDateModalService.show.andReturn(deferred.promise);
@@ -365,13 +376,24 @@ describe('PhysicalInventoryDraftController', function() {
         beforeEach(function() {
             this.lineItem1.active = true;
             this.lineItem3.active = true;
+            // SELV3-508: Add validation to check unaccounted quantity
+            this.lineItem1.quantity = 1234;
             this.lineItem3.quantity = 123;
+            this.lineItem1.stockAdjustments = [{
+                quantity: 1234,
+                reason: {
+                    reasonType: 'CREDIT'
+                }
+            }];
             this.lineItem3.stockAdjustments = [{
                 quantity: 123,
                 reason: {
                     reasonType: 'CREDIT'
                 }
             }];
+            this.lineItem1.unaccountedQuantity = 0;
+            this.lineItem3.unaccountedQuantity = 0;
+            // SELV3-508: ends here
             spyOn(this.$window, 'open').andCallThrough();
             chooseDateModalService.show.andReturn(this.$q.when({}));
             spyOn(this.accessTokenFactory, 'addAccessToken').andCallThrough();
diff --git a/src/stock-physical-inventory-draft/physical-inventory-draft.html b/src/stock-physical-inventory-draft/physical-inventory-draft.html
new file mode 100644
index 0000000..90860db
--- /dev/null
+++ b/src/stock-physical-inventory-draft/physical-inventory-draft.html
@@ -0,0 +1,120 @@
+<h2>
+  {{'stockPhysicalInventoryDraft.title' | message: {'facilityCode': vm.facility.code, 'facilityName': vm.facility.name, 'program': vm.program.name} }}
+</h2>
+
+<section class="openlmis-table-container">
+  <form ng-submit="vm.search()" openlmis-table-filter>
+      <fieldset class="form-group">
+          <label for="searchFor">{{'stockPhysicalInventoryDraft.keyword' | message}}</label>
+          <input id="searchFor" type="text" ng-model="vm.keyword" maxlength="50"/>
+          <label for="includeInactive">
+              <input id="includeInactive"
+                     type="checkbox"
+                     name="includeInactive"
+                     ng-true-value="'true'"
+                     ng-false-value="'false'"
+                     ng-model="vm.includeInactive"/>
+
+              {{'stockPhysicalInventoryDraft.includeInactiveItems' | message}}
+          </label>
+          <input type="submit" value="{{'stockPhysicalInventoryDraft.search' | message}}"/>
+      </fieldset>
+  </form>
+
+  <openlmis-progressbar class="physical-inventory-draft-progress"
+      value="vm.itemsWithQuantity.length" max="vm.displayLineItemsGroup.length"
+      title="{{'stockPhysicalInventoryDraft.numberOfProductsComplete' | message: {'num': vm.itemsWithQuantity.length, 'total': vm.displayLineItemsGroup.length} }}">
+  </openlmis-progressbar>
+
+  <button class="pull-right add" ng-click="vm.addProducts()">
+      {{'stockPhysicalInventoryDraft.addProduct' | message}}
+  </button>
+
+  <saving-indicator class="draft-indicator" object="vm.dataChanged"/>
+
+  <table>
+      <caption ng-if="!vm.displayLineItemsGroup.length && !vm.stateParams.keyword">
+          {{'stockPhysicalInventoryDraft.noLineItems' | message}}
+      </caption>
+      <caption ng-if="!vm.displayLineItemsGroup.length && vm.stateParams.keyword">
+          {{'stockPhysicalInventoryDraft.noSearchResults' | message}}
+      </caption>
+      <thead>
+          <tr>
+              <th>{{'stockPhysicalInventoryDraft.productCode' | message}}</th>
+              <th>{{'stockPhysicalInventoryDraft.product' | message}}</th>
+              <th>{{'stockPhysicalInventoryDraft.lotCode' | message}}</th>
+              <th>{{'stockPhysicalInventoryDraft.expiryDate' | message}}</th>
+              <th class="col-sticky sticky-right">{{'stockPhysicalInventoryDraft.soh' | message}}</th>
+              <th class="col-sticky sticky-right">{{'stockPhysicalInventoryDraft.currentStock' | message}}</th>
+              <th ng-if="vm.showVVMStatusColumn" class="col-sticky sticky-right">{{'stockPhysicalInventoryDraft.VVMStatus' | message}}</th>
+              <th class="col-sticky sticky-right">{{'stockPhysicalInventoryDraft.reasons' | message}}</th>
+              <th class="col-sticky sticky-right">{{'stockPhysicalInventoryDraft.unaccountedQuantity' | message}}</th>
+              <th ng-if="vm.showHideButtonColumn" >{{'stockPhysicalInventoryDraft.actions' | message}}</th>
+          </tr>
+      </thead>
+      <tbody ng-repeat="(category, groupedLineItems) in vm.groupedCategories"  tbody-title="{{category}}">
+         <tr ng-if="lineItems.length > 1" ng-repeat-start="lineItems in groupedLineItems">
+              <td>{{lineItems[0].orderable.productCode}}</td>
+              <td>{{lineItems[0].orderable | productName}}</td>
+              <td></td>
+              <td></td>
+              <td align="right">{{vm.calculate(lineItems, 'stockOnHand')}}</td>
+              <td align="right">{{vm.calculate(lineItems, 'quantity')}}</td>
+              <td ng-if="vm.showVVMStatusColumn"></td>
+              <td align="right"></td>
+              <td align="right"></td>
+              <td align="right" ng-if="vm.showHideButtonColumn"></td>
+          </tr>
+          <tr ng-repeat="lineItem in lineItems | orderBy:'lot?lot.lotCode:\'\''" ng-repeat-end>
+              <td>{{lineItems.length > 1 ? '' : lineItem.orderable.productCode}}</td>
+              <td>{{lineItems.length > 1 ? '' : (lineItem.orderable | productName)}}</td>
+              <td ng-if="vm.canEditLot(lineItem)">
+                  <button class="edit" ng-click="vm.editLot(lineItem)">
+                      {{lineItem.displayLotMessage}}
+                  </button>
+              </td>
+              <td ng-if="!vm.canEditLot(lineItem)">
+                  {{lineItem.displayLotMessage}}
+              </td>
+              <td>{{lineItem.lot.expirationDate | openlmisDate}}</td>
+              <td align="right">{{lineItem.stockOnHand}}</td>
+              <td class="digit-cell" >
+                  <input
+                      class="form-control" ng-blur="vm.validateQuantity(lineItem)"
+                      ng-change="vm.quantityChanged(lineItem)"
+                      ng-model="lineItem.quantity"
+                      openlmis-invalid="{{lineItem.quantityInvalid ? lineItem.quantityInvalid : ''}}"
+                      positive-integer/>
+              </td>
+              <td ng-if="vm.showVVMStatusColumn" class="digit-cell">
+                  <select ng-if="lineItem.orderable.extraData.useVVM == 'true'"
+                      ng-model="lineItem.vvmStatus"
+                      ng-options="status as vm.getStatusDisplay(status) for status in vm.vvmStatuses"
+                      placeholder="{{'stockPhysicalInventoryDraft.selectStatus' | message}}"
+                      ng-change="vm.cacheDraft()">
+                  </select>
+              </td>
+              <td class="reasons-cell" >
+                <!-- SELV3-508: Add validation to check unaccounted quantity -->
+                  <stock-reasons
+                      ng-model="lineItem.stockAdjustments"
+                      line-item="lineItem"
+                      reasons="vm.reasons"
+                      ng-change="vm.checkUnaccountedStockAdjustments(lineItem); vm.validateUnaccountedQuantity(lineItem)"
+                      />
+              <td align="right" 
+                  openlmis-invalid="{{lineItem.unaccountedQuantityInvalid | message}}">{{lineItem.unaccountedQuantity}}</td>
+              </td>
+              <!-- SELV3-508: ends here -->
+              <td ng-if="vm.showHideButtonColumn">
+                  <button type="button" class="danger" ng-if="lineItem.stockOnHand === 0 && lineItem.active && !lineItem.$isNewItem" ng-disabled="offlineService.isOffline()"
+                  ng-click="vm.hideLineItem(lineItem)">{{'stockPhysicalInventoryDraft.deactivate' | message}}</button>
+              </td>
+          </tr>
+      </tbody>
+  </table>
+  <openlmis-pagination list="vm.displayLineItemsGroup" paged-list="vm.pagedLineItems" on-page-change="vm.saveOnPageChange"></openlmis-pagination>
+</section>
+
+<ng-include src="'stock-physical-inventory-draft/physical-inventory-draft-toolbar.html'"></ng-include>
\ No newline at end of file