diff --git a/src/components/home/ProjectsNavigationItem.vue b/src/components/home/ProjectsNavigationItem.vue
index cb8b49e0..a5fd6866 100644
--- a/src/components/home/ProjectsNavigationItem.vue
+++ b/src/components/home/ProjectsNavigationItem.vue
@@ -42,7 +42,12 @@
 			>
 				<icon :icon="project.isFavorite ? 'star' : ['far', 'star']"/>
 			</BaseButton>
-			<ProjectSettingsDropdown class="menu-list-dropdown" :project="project" v-if="project.id > 0">
+			<ProjectSettingsDropdown
+				v-if="project.id > 0"
+				class="menu-list-dropdown"
+				:project="project"
+				:level="level"
+			>
 				<template #trigger="{toggleOpen}">
 					<BaseButton class="menu-list-dropdown-trigger" @click="toggleOpen">
 						<icon icon="ellipsis-h" class="icon"/>
@@ -73,6 +78,7 @@ import ProjectSettingsDropdown from '@/components/project/project-settings-dropd
 import {getProjectTitle} from '@/helpers/getProjectTitle'
 import ColorBubble from '@/components/misc/colorBubble.vue'
 import ProjectsNavigation from '@/components/home/ProjectsNavigation.vue'
+import {canNestProjectDeeper} from '@/helpers/canNestProjectDeeper'
 
 const props = withDefaults(defineProps<{
 	project: IProject,
@@ -98,13 +104,7 @@ const childProjects = computed(() => {
 		.sort((a, b) => a.position - b.position)
 })
 
-const canNestDeeper = computed(() => {
-	if (props.level < 2) {
-		return true
-	}
-
-	return props.level >= 2 && window.PROJECT_INFINITE_NESTING_ENABLED
-})
+const canNestDeeper = computed(() => canNestProjectDeeper(props.level))
 </script>
 
 <style lang="scss" scoped>
diff --git a/src/components/project/project-settings-dropdown.vue b/src/components/project/project-settings-dropdown.vue
index 8ba552f4..0f237aa2 100644
--- a/src/components/project/project-settings-dropdown.vue
+++ b/src/components/project/project-settings-dropdown.vue
@@ -72,6 +72,13 @@
 				@update:model-value="setSubscriptionInStore"
 				type="dropdown"
 			/>
+			<dropdown-item
+				v-if="level < 2"
+				:to="{ name: 'project.createFromParent', params: { parentProjectId: project.id } }"
+				icon="layer-group"
+			>
+				{{ $t('menu.createProject') }}
+			</dropdown-item>
 			<dropdown-item
 				:to="{ name: 'project.settings.delete', params: { projectId: project.id } }"
 				icon="trash-alt"
@@ -102,6 +109,9 @@ const props = defineProps({
 		type: Object as PropType<IProject>,
 		required: true,
 	},
+	level: {
+		type: Number,
+	},
 })
 
 const projectStore = useProjectStore()
diff --git a/src/helpers/canNestProjectDeeper.ts b/src/helpers/canNestProjectDeeper.ts
new file mode 100644
index 00000000..4f536c93
--- /dev/null
+++ b/src/helpers/canNestProjectDeeper.ts
@@ -0,0 +1,7 @@
+export function canNestProjectDeeper(level: number) {
+	if (level < 2) {
+		return true
+	}
+
+	return level >= 2 && window.PROJECT_INFINITE_NESTING_ENABLED
+}
\ No newline at end of file
diff --git a/src/i18n/lang/en.json b/src/i18n/lang/en.json
index e09154ed..fef60201 100644
--- a/src/i18n/lang/en.json
+++ b/src/i18n/lang/en.json
@@ -864,7 +864,8 @@
     "unarchive": "Un-Archive",
     "setBackground": "Set background",
     "share": "Share",
-    "newProject": "New project"
+    "newProject": "New project",
+    "createProject": "Create project"
   },
   "apiConfig": {
     "url": "Vikunja URL",
diff --git a/src/router/index.ts b/src/router/index.ts
index 977658f1..a685542c 100644
--- a/src/router/index.ts
+++ b/src/router/index.ts
@@ -237,6 +237,15 @@ const router = createRouter({
 				showAsModal: true,
 			},
 		},
+		{
+			path: '/projects/:parentProjectId/new',
+			name: 'project.createFromParent',
+			component: NewProjectComponent,
+			props: route => ({ parentProjectId: Number(route.params.parentProjectId as string) }),
+			meta: {
+				showAsModal: true,
+			},
+		},
 		{
 			path: '/projects/:projectId/settings/edit',
 			name: 'project.settings.edit',
diff --git a/src/views/project/NewProject.vue b/src/views/project/NewProject.vue
index 4507344d..069d4505 100644
--- a/src/views/project/NewProject.vue
+++ b/src/views/project/NewProject.vue
@@ -1,5 +1,9 @@
 <template>
-	<create-edit :title="$t('project.create.header')" @create="createNewProject()" :primary-disabled="project.title === ''">
+	<create-edit
+		:title="$t('project.create.header')"
+		@create="createNewProject()"
+		:primary-disabled="project.title === ''"
+	>
 		<div class="field">
 			<label class="label" for="projectTitle">{{ $t('project.title') }}</label>
 			<div
@@ -31,14 +35,14 @@
 		<div class="field">
 			<label class="label">{{ $t('project.color') }}</label>
 			<div class="control">
-				<color-picker v-model="project.hexColor" />
+				<color-picker v-model="project.hexColor"/>
 			</div>
 		</div>
 	</create-edit>
 </template>
 
 <script setup lang="ts">
-import {ref, reactive, shallowReactive} from 'vue'
+import {ref, reactive, shallowReactive, watch} from 'vue'
 import {useI18n} from 'vue-i18n'
 import {useRouter, useRoute} from 'vue-router'
 
@@ -65,18 +69,28 @@ const projectService = shallowReactive(new ProjectService())
 const projectStore = useProjectStore()
 const parentProject = ref<IProject | null>(null)
 
+const props = defineProps<{
+	parentProjectId?: number,
+}>()
+
+watch(
+	() => props.parentProjectId,
+	() => parentProject.value = projectStore.projects[props.parentProjectId],
+	{immediate: true},
+)
+
 async function createNewProject() {
 	if (project.title === '') {
 		showError.value = true
 		return
 	}
 	showError.value = false
-	
+
 	if (parentProject.value) {
 		project.parentProjectId = parentProject.value.id
 	}
 
 	await projectStore.createProject(project)
-	success({message: t('project.create.createdSuccess') })
+	success({message: t('project.create.createdSuccess')})
 }
 </script>
\ No newline at end of file