diff --git a/app/Http/Controllers/TaskController.php b/app/Http/Controllers/TaskController.php
index 412aeb67cec6..860fee6e9a61 100644
--- a/app/Http/Controllers/TaskController.php
+++ b/app/Http/Controllers/TaskController.php
@@ -96,7 +96,7 @@ class TaskController extends BaseController
      */
     public function store(CreateTaskRequest $request)
     {
-        return $this->save();
+        return $this->save($request);
     }
 
     /**
@@ -202,7 +202,7 @@ class TaskController extends BaseController
     {
         $task = $request->entity();
 
-        return $this->save($task->public_id);
+        return $this->save($request, $task->public_id);
     }
 
     /**
@@ -222,7 +222,7 @@ class TaskController extends BaseController
      *
      * @return \Illuminate\Http\RedirectResponse
      */
-    private function save($publicId = null)
+    private function save($request, $publicId = null)
     {
         $action = Input::get('action');
 
@@ -230,7 +230,7 @@ class TaskController extends BaseController
             return self::bulk();
         }
 
-        $task = $this->taskRepo->save($publicId, Input::all());
+        $task = $this->taskRepo->save($publicId, $request->input());
 
         if ($publicId) {
             Session::flash('message', trans('texts.updated_task'));
diff --git a/app/Http/Requests/TaskRequest.php b/app/Http/Requests/TaskRequest.php
index 141bf89f08eb..a9af01ada365 100644
--- a/app/Http/Requests/TaskRequest.php
+++ b/app/Http/Requests/TaskRequest.php
@@ -5,4 +5,22 @@ namespace App\Http\Requests;
 class TaskRequest extends EntityRequest
 {
     protected $entityType = ENTITY_TASK;
+
+    public function sanitize()
+    {
+        $input = $this->all();
+
+        // check if we're creating a new project
+        if ($this->input('project_id') == '-1' && $this->user()->can('create', ENTITY_PROJECT)) {
+            $project = app('App\Services\ProjectService')->save([
+                'name' => $this->input('project_name'),
+                'client_id' => $this->input('client')
+            ]);
+            $input['project_id'] = $project->public_id;
+        }
+
+        $this->replace($input);
+
+        return $this->all();
+    }
 }
diff --git a/resources/lang/en/texts.php b/resources/lang/en/texts.php
index 9997cc2bc2fd..c0166e19cf75 100644
--- a/resources/lang/en/texts.php
+++ b/resources/lang/en/texts.php
@@ -2392,6 +2392,7 @@ $LANG = array(
     'credit_created_by' => 'Credit created by payment :transaction_reference',
     'created_payment_and_credit' => 'Successfully created payment and credit',
     'created_payment_and_credit_emailed_client' => 'Successfully created payment and credit, and emailed client',
+    'create_project' => 'Create project',
 
 );
 
diff --git a/resources/views/tasks/edit.blade.php b/resources/views/tasks/edit.blade.php
index 4486a5c55d0b..67dc549ed71d 100644
--- a/resources/views/tasks/edit.blade.php
+++ b/resources/views/tasks/edit.blade.php
@@ -58,7 +58,9 @@
                 @endif
             @else
                 {!! Former::select('client')->addOption('', '')->addGroupClass('client-select') !!}
-                {!! Former::select('project_id')->addOption('', '')->addGroupClass('project-select')
+                {!! Former::select('project_id')
+                        ->addOption('', '')
+                        ->addGroupClass('project-select')
                         ->label(trans('texts.project')) !!}
             @endif
 
@@ -552,6 +554,7 @@
           $projectCombobox = $('select#project_id');
           $projectCombobox.find('option').remove().end().combobox('refresh');
           $projectCombobox.append(new Option('', ''));
+          $projectCombobox.append(new Option("{{ trans('texts.create_project')}}: $name", '-1'));
           var list = clientId ? (projectsForClientMap.hasOwnProperty(clientId) ? projectsForClientMap[clientId] : []).concat(projectsForAllClients) : projects;
           for (var i=0; i<list.length; i++) {
             var project = list[i];
@@ -561,23 +564,46 @@
         });
 
         var $projectSelect = $('select#project_id').on('change', function(e) {
-          $clientCombobox = $('select#client');
-          var projectId = $('input[name=project_id]').val();
-          if (projectId) {
-            var project = projectMap[projectId];
-            if (project.client) {
-                var client = clientMap[project.client.public_id];
-                if (client) {
-                    project.client = client;
-                    setComboboxValue($('.client-select'), client.public_id, getClientDisplayName(client));
+            $clientCombobox = $('select#client');
+            var projectId = $('input[name=project_id]').val();
+            if (projectId == '-1') {
+                $('input[name=project_name]').val(projectName);
+            } else if (projectId) {
+                // when selecting a project make sure the client is loaded
+                var project = projectMap[projectId];
+                if (project && project.client) {
+                    var client = clientMap[project.client.public_id];
+                    if (client) {
+                        project.client = client;
+                        setComboboxValue($('.client-select'), client.public_id, getClientDisplayName(client));
+                    }
                 }
+            } else {
+                $clientSelect.trigger('change');
             }
-          } else {
-            $clientSelect.trigger('change');
-          }
         });
 
-        $projectSelect.combobox();
+        var projectName = '';
+        $projectSelect.combobox({
+            highlighter: function (item) {
+                if (item.indexOf("{{ trans('texts.create_project') }}") == 0) {
+                    projectName = this.query;
+                    return "{{ trans('texts.create_project') }}: " + this.query;
+                } else {
+                    var query = this.query.replace(/[\-\[\]{}()*+?.,\\\^$|#\s]/g, '\\$&');
+                    return item.replace(new RegExp('(' + query + ')', 'ig'), function ($1, match) {
+                      return '<strong>' + match + '</strong>';
+                    })
+                }
+            },
+            template: '<div class="combobox-container"> <input type="hidden" /> <div class="input-group"> <input type="text" name="project_name" autocomplete="off" /> <span class="input-group-addon dropdown-toggle" data-dropdown="dropdown"> <span class="caret" /> <i class="fa fa-times"></i> </span> </div> </div> ',
+            matcher: function (item) {
+                if (item.indexOf("{{ trans('texts.create_project') }}") == 0) {
+                    return this.query.length;
+                }
+                return ~item.toLowerCase().indexOf(this.query.toLowerCase());
+            }
+        });
 
         if (projectId) {
            var project = projectMap[projectId];