FAQ: When I Start Editing, Why Are Most of the Buttons on the Editor Toolbar Inactive?

Answer

After adding a polygon feature to a map document and starting an edit session, the segment and midpoint tools are inactive ('grayed out').
[O-Image] Editor tools grayed out

When using feature templates a qualified template must be selected from the Create Features window for the segment and midpoint buttons to become active. To access the Create Features window click the button on the far right of the Editor toolbar.
[O-Image] Click Create Features tool