diff --git a/digitalocean/resource_digitalocean_project.go b/digitalocean/resource_digitalocean_project.go
index 934db282e..5c273a376 100644
--- a/digitalocean/resource_digitalocean_project.go
+++ b/digitalocean/resource_digitalocean_project.go
@@ -66,8 +66,10 @@ func resourceDigitalOceanProject() *schema.Resource {
 				Description: "the id of the project owner.",
 			},
 			"is_default": {
-				Type:     schema.TypeBool,
-				Computed: true,
+				Type:        schema.TypeBool,
+				Optional:    true,
+				Default:     false,
+				Description: "determine if the project is the default or not.",
 			},
 			"created_at": {
 				Type:        schema.TypeString,
@@ -123,6 +125,21 @@ func resourceDigitalOceanProjectCreate(ctx context.Context, d *schema.ResourceDa
 		d.Set("resources", resources)
 	}
 
+	if v, ok := d.GetOk("is_default"); ok {
+		updateReq := &godo.UpdateProjectRequest{
+			Name:        project.Name,
+			Description: project.Description,
+			Purpose:     project.Purpose,
+			Environment: project.Environment,
+			IsDefault:   v.(bool),
+		}
+
+		_, _, err := client.Projects.Update(context.Background(), project.ID, updateReq)
+		if err != nil {
+			return diag.Errorf("Error setting project as default: %s", err)
+		}
+	}
+
 	d.SetId(project.ID)
 	log.Printf("[INFO] Project created, ID: %s", d.Id())
 
diff --git a/digitalocean/resource_digitalocean_project_test.go b/digitalocean/resource_digitalocean_project_test.go
index 4b74552d5..b5de65a41 100644
--- a/digitalocean/resource_digitalocean_project_test.go
+++ b/digitalocean/resource_digitalocean_project_test.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"testing"
 
+	"github.com/digitalocean/godo"
 	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/acctest"
 	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/resource"
 	"github.com/hashicorp/terraform-plugin-sdk/v2/terraform"
@@ -43,6 +44,75 @@ func TestAccDigitalOceanProject_CreateWithDefaults(t *testing.T) {
 	})
 }
 
+func TestAccDigitalOceanProject_CreateWithIsDefault(t *testing.T) {
+	expectedName := generateProjectName()
+	expectedIsDefault := "true"
+	createConfig := fixtureCreateWithIsDefault(expectedName, expectedIsDefault)
+
+	var (
+		originalDefaultProject = &godo.Project{}
+		client                 = &godo.Client{}
+	)
+
+	resource.ParallelTest(t, resource.TestCase{
+		PreCheck: func() {
+			testAccPreCheck(t)
+
+			// Get an store original default project ID
+			client = testAccProvider.Meta().(*CombinedConfig).godoClient()
+			defaultProject, _, defaultProjErr := client.Projects.GetDefault(context.Background())
+			if defaultProjErr != nil {
+				t.Errorf("Error locating default project %s", defaultProjErr)
+			}
+			originalDefaultProject = defaultProject
+		},
+		ProviderFactories: testAccProviderFactories,
+		CheckDestroy:      testAccCheckDigitalOceanProjectDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config:             createConfig,
+				ExpectNonEmptyPlan: true,
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckDigitalOceanProjectExists("digitalocean_project.myproj"),
+					// Restore original default project. This must happen here
+					// to ensure it runs even if the tests fails.
+					func(*terraform.State) error {
+						t.Logf("Restoring original default project: %s (%s)", originalDefaultProject.Name, originalDefaultProject.ID)
+						originalDefaultProject.IsDefault = true
+						updateReq := &godo.UpdateProjectRequest{
+							Name:        originalDefaultProject.Name,
+							Description: originalDefaultProject.Description,
+							Purpose:     originalDefaultProject.Purpose,
+							Environment: originalDefaultProject.Environment,
+							IsDefault:   true,
+						}
+						_, _, err := client.Projects.Update(context.Background(), originalDefaultProject.ID, updateReq)
+						if err != nil {
+							return fmt.Errorf("Error restoring default project %s", err)
+						}
+						return nil
+					},
+					resource.TestCheckResourceAttr(
+						"digitalocean_project.myproj", "name", expectedName),
+					resource.TestCheckResourceAttr(
+						"digitalocean_project.myproj", "description", ""),
+					resource.TestCheckResourceAttr(
+						"digitalocean_project.myproj", "purpose", "Web Application"),
+					resource.TestCheckResourceAttr(
+						"digitalocean_project.myproj", "environment", ""),
+					resource.TestCheckResourceAttr(
+						"digitalocean_project.myproj", "is_default", expectedIsDefault),
+					resource.TestCheckResourceAttrSet("digitalocean_project.myproj", "id"),
+					resource.TestCheckResourceAttrSet("digitalocean_project.myproj", "owner_uuid"),
+					resource.TestCheckResourceAttrSet("digitalocean_project.myproj", "owner_id"),
+					resource.TestCheckResourceAttrSet("digitalocean_project.myproj", "created_at"),
+					resource.TestCheckResourceAttrSet("digitalocean_project.myproj", "updated_at"),
+				),
+			},
+		},
+	})
+}
+
 func TestAccDigitalOceanProject_CreateWithInitialValues(t *testing.T) {
 
 	expectedName := generateProjectName()
@@ -441,3 +511,11 @@ func fixtureWithManyResources(domainBase string, name string) string {
 			resources = digitalocean_domain.foobar[*].urn
 		}`, domainBase, name)
 }
+
+func fixtureCreateWithIsDefault(name string, is_default string) string {
+	return fmt.Sprintf(`
+		resource "digitalocean_project" "myproj" {
+			name = "%s"
+			is_default = "%s"
+		}`, name, is_default)
+}
diff --git a/docs/resources/project.md b/docs/resources/project.md
index 150c184d0..1cf31efe8 100644
--- a/docs/resources/project.md
+++ b/docs/resources/project.md
@@ -64,6 +64,7 @@ The following arguments are supported:
 * `purpose` - (Optional) the purpose of the project, (Default: "Web Application")
 * `environment` - (Optional) the environment of the project's resources. The possible values are: `Development`, `Staging`, `Production`)
 * `resources` - a list of uniform resource names (URNs) for the resources associated with the project
+* `is_default` - (Optional) a boolean indicating whether or not the project is the default project. (Default: "false")
 
 ## Attributes Reference