diff --git a/apps/dashboard/app/controllers/projects_controller.rb b/apps/dashboard/app/controllers/projects_controller.rb
index f33375ad2..ac9f2157a 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, :group_owner)
+      .permit(:name, :directory, :description, :icon, :id, :template, :group_owner, :setgid)
   end
 
   def show_project_params
diff --git a/apps/dashboard/app/helpers/projects_helper.rb b/apps/dashboard/app/helpers/projects_helper.rb
index 73ce821e3..1d9febe19 100644
--- a/apps/dashboard/app/helpers/projects_helper.rb
+++ b/apps/dashboard/app/helpers/projects_helper.rb
@@ -53,4 +53,8 @@ def button_category(status)
       status
     end
   end
+
+  def form_label_tooltip(content)
+    "<i class='fa fa-question-circle vertical-align-middle' data-bs-toggle='tooltip' data-bs-placement='right' title='#{content}'></i>"
+  end
 end
diff --git a/apps/dashboard/app/models/project.rb b/apps/dashboard/app/models/project.rb
index 5a9c50400..28455868d 100644
--- a/apps/dashboard/app/models/project.rb
+++ b/apps/dashboard/app/models/project.rb
@@ -113,7 +113,7 @@ def importable_directories
     end
   end
 
-  attr_reader :id, :name, :description, :icon, :directory, :template, :files, :group_owner
+  attr_reader :id, :name, :description, :icon, :directory, :template, :files, :group_owner, :setgid
 
   validates :name, presence: { message: :required }, on: [:create, :update]
   validates :id, :directory, :icon, presence: { message: :required }, on: [:update]
@@ -131,6 +131,7 @@ def initialize(attributes = {})
     @directory = File.expand_path(@directory) unless @directory.blank?
     @template = attributes[:template]
     @group_owner = attributes[:group_owner] || directory_group_owner
+    @setgid = attributes[:setgid].to_s == '1'
 
     return if new_record?
 
@@ -351,8 +352,14 @@ def make_dir
   end
 
   def update_permission
-    project_dataroot.chmod(0750)
-    chgrp_directory
+    return false unless chgrp_directory
+
+    root_mode = 0o750
+    unless private? # allow group to edit shared projects
+      root_mode += (setgid ? 0o2020 : 0o020)
+    end
+    project_dataroot.chmod(root_mode)
+    true
   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 10b5541b1..4884b4827 100644
--- a/apps/dashboard/app/views/projects/_form.html.erb
+++ b/apps/dashboard/app/views/projects/_form.html.erb
@@ -55,18 +55,20 @@
           </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
-              %>
+              <% help_html = edit_project_action ? '' : form_label_tooltip(I18n.t('dashboard.jobs_project_group_help')) %>
               <%= form.select(:group_owner,
                               CurrentUser.group_names,
                               { label: "#{I18n.t('dashboard.jobs_project_group_owner')} #{help_html}".html_safe },
                               { disabled: edit_project_action })
               %>
+              <%= form.form_group(:setgid) do
+                    form.check_box(:setgid,
+                                   checked: edit_project_action ? @project.project_dataroot.setgid? : true,
+                                   switch: true,
+                                   label: "Set setgid bit? #{form_label_tooltip(I18n.t('dashboard.jobs_project_setgid_help'))}".html_safe,
+                                   disabled: edit_project_action)
+                  end
+              %>
             </div>
 	        <% end %>
         </div>
diff --git a/apps/dashboard/config/locales/en.yml b/apps/dashboard/config/locales/en.yml
index faba1ad42..1ef063f33 100644
--- a/apps/dashboard/config/locales/en.yml
+++ b/apps/dashboard/config/locales/en.yml
@@ -187,6 +187,7 @@ en:
     jobs_project_name_validation: Project name may only contain letters, digits, dashes, underscores, and spaces
     jobs_project_not_found: Cannot find project %{project_id}
     jobs_project_save_error: Cannot save manifest to %{path}
+    jobs_project_setgid_help: Leaving setgid checked ensures project files are created with the selected group. Does not affect projects in your home directory.
     jobs_project_validation_error: Invalid Request. Please review the errors below
     jobs_select_directory_placeholder: Click on project below to import to your home page (Optional)
     jobs_workflows: Workflows