diff --git a/apps/dashboard/app/assets/stylesheets/projects.scss b/apps/dashboard/app/assets/stylesheets/projects.scss
index ef3d52e912..dba4c97ecd 100644
--- a/apps/dashboard/app/assets/stylesheets/projects.scss
+++ b/apps/dashboard/app/assets/stylesheets/projects.scss
@@ -1,3 +1,7 @@
+.vertical-align-middle {
+  vertical-align: middle !important;
+}
+
 .project-card {
   width: fit-content;
 }
@@ -66,4 +70,4 @@
   width: 100%;
   margin: .2rem 0px;
   text-wrap:nowrap;
-}
+}
\ No newline at end of file
diff --git a/apps/dashboard/app/controllers/projects_controller.rb b/apps/dashboard/app/controllers/projects_controller.rb
index 72e1723cf3..9dd62c26ea 100644
--- a/apps/dashboard/app/controllers/projects_controller.rb
+++ b/apps/dashboard/app/controllers/projects_controller.rb
@@ -236,7 +236,7 @@ def templates
   def project_params
     params
       .require(:project)
-      .permit(:name, :directory, :description, :icon, :id, :template)
+      .permit(:name, :directory, :description, :icon, :id, :template, :group_owner)
   end
 
   def show_project_params
diff --git a/apps/dashboard/app/models/project.rb b/apps/dashboard/app/models/project.rb
index 3c6d35c4d6..91e114e824 100644
--- a/apps/dashboard/app/models/project.rb
+++ b/apps/dashboard/app/models/project.rb
@@ -111,7 +111,7 @@ def importable_directories
     end
   end
 
-  attr_reader :id, :name, :description, :icon, :directory, :template, :files
+  attr_reader :id, :name, :description, :icon, :directory, :template, :files, :group_owner
 
   validates :name, presence: { message: :required }, on: [:create, :update]
   validates :id, :directory, :icon, presence: { message: :required }, on: [:update]
@@ -128,6 +128,7 @@ def initialize(attributes = {})
     @directory = attributes[:directory]
     @directory = File.expand_path(@directory) unless @directory.blank?
     @template = attributes[:template]
+    @group_owner = attributes[:group_owner] || directory_group_owner
 
     return if new_record?
 
@@ -160,7 +161,7 @@ def save
     @directory = Project.dataroot.join(id.to_s).to_s if directory.blank?
     @icon = 'fas://cog' if icon.blank?
 
-    make_dir && update_permission && sync_template && store_manifest(:save)
+    make_root && update_permission && make_dir && sync_template && store_manifest(:save)
   end
 
   def update(attributes)
@@ -203,6 +204,30 @@ def remove_from_lookup
     false
   end
 
+  def private?
+    project_dataroot.to_s.start_with?(CurrentUser.home)
+  end
+  
+  def directory_group_owner
+    if project_dataroot != Project.dataroot && project_dataroot.grpowned?
+      Etc.getgrgid(project_dataroot.stat.gid).name
+    else
+      nil
+    end
+  end
+
+  def chgrp_directory
+    return true if private? || group_owner == directory_group_owner
+
+    begin
+      group_gid = group_owner.nil? ? nil : Etc.getgrnam(group_owner).gid
+      FileUtils.chown(nil, group_gid, project_dataroot)
+    rescue StandardError => e
+      errors.add(:save, "Unable to set group with error #{e.class}:#{e.message}")
+      false
+    end
+  end
+
   def editable? 
     File.writable?(manifest_path)
   end
@@ -303,8 +328,15 @@ def update_attrs(attributes)
     end
   end
 
+  def make_root
+    project_dataroot.mkpath unless project_dataroot.exist?
+    true
+  rescue StandardError => e
+    errors.add(:save, "Failed to initialize project directory: #{e.message}")
+    false
+  end
+
   def make_dir
-    project_dataroot.mkpath         unless project_dataroot.exist?
     configuration_directory.mkpath  unless configuration_directory.exist?
     workflow_directory = Workflow.workflow_dir(project_dataroot)
     workflow_directory.mkpath unless workflow_directory.exist?
@@ -318,7 +350,7 @@ def make_dir
 
   def update_permission
     project_dataroot.chmod(0750)
-    true
+    chgrp_directory
   rescue StandardError => e
     errors.add(:save, "Failed to update permissions of the directory: #{e.message}")
     false
diff --git a/apps/dashboard/app/views/projects/_form.html.erb b/apps/dashboard/app/views/projects/_form.html.erb
index dec46709da..10b5541b1f 100644
--- a/apps/dashboard/app/views/projects/_form.html.erb
+++ b/apps/dashboard/app/views/projects/_form.html.erb
@@ -53,6 +53,22 @@
           <div class="field">
             <%= form.text_area :description, placeholder: I18n.t('dashboard.jobs_project_description_placeholder') %>
           </div>
+          <% unless @project.private? && edit_project_action %>
+            <div class="field">
+              <% help_html = 
+                  if edit_project_action
+                    '' 
+                  else
+                    "<i class='fa fa-question-circle vertical-align-middle' data-bs-toggle='tooltip' data-bs-placement='right' title='#{I18n.t('dashboard.jobs_project_group_help')}'></i>" 
+                  end
+              %>
+              <%= form.select(:group_owner,
+                              CurrentUser.group_names,
+                              { label: "#{I18n.t('dashboard.jobs_project_group_owner')} #{help_html}".html_safe },
+                              { disabled: edit_project_action })
+              %>
+            </div>
+	        <% end %>
         </div>
       </div>
       </div>
diff --git a/apps/dashboard/config/locales/en.yml b/apps/dashboard/config/locales/en.yml
index f3c5941954..afd7f2d4a6 100644
--- a/apps/dashboard/config/locales/en.yml
+++ b/apps/dashboard/config/locales/en.yml
@@ -175,6 +175,8 @@ en:
     jobs_project_directory_error: Project directory path is not set for this workflow
     jobs_project_directory_placeholder: Project directory absolute path
     jobs_project_generic_error: 'There was an error processing your request: %{error}'
+    jobs_project_group_owner: Group
+    jobs_project_group_help: Make sure to choose the group that includes all intended collaborators. If this is not a collaborative project, the default group is recommended
     jobs_project_invalid_configuration_clusters: An HPC cluster is required. Contact your administrator to add one to the system.
     jobs_project_invalid_configuration_scripts: An executable script is required for your project. Upload a script using the file application.
     jobs_project_job_deleted: Successfully deleted job %{job_id}