diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.js b/erpnext/accounts/doctype/payment_entry/payment_entry.js
index 8fd5f00b583..4a45007d50a 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.js
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.js
@@ -27,6 +27,18 @@ frappe.ui.form.on("Payment Entry", {
 
 		erpnext.accounts.dimensions.setup_dimension_filters(frm, frm.doctype);
 
+		// project excluded in setup_dimension_filters
+		frm.set_query("project", function (doc) {
+			let filters = {
+				company: doc.company,
+			};
+			if (doc.party_type == "Customer") filters.customer = doc.party;
+			return {
+				query: "erpnext.controllers.queries.get_project_name",
+				filters,
+			};
+		});
+
 		if (frm.is_new()) {
 			set_default_party_type(frm);
 		}
diff --git a/erpnext/controllers/queries.py b/erpnext/controllers/queries.py
index 463cb859970..03852d3739a 100644
--- a/erpnext/controllers/queries.py
+++ b/erpnext/controllers/queries.py
@@ -271,10 +271,14 @@ def get_project_name(doctype, txt, searchfield, start, page_len, filters):
 	qb_filter_or_conditions = []
 	ifelse = CustomFunction("IF", ["condition", "then", "else"])
 
-	if filters and filters.get("customer"):
-		qb_filter_and_conditions.append(
-			(proj.customer == filters.get("customer")) | proj.customer.isnull() | proj.customer == ""
-		)
+	if filters:
+		if filters.get("customer"):
+			qb_filter_and_conditions.append(
+				(proj.customer == filters.get("customer")) | proj.customer.isnull() | proj.customer == ""
+			)
+
+		if filters.get("company"):
+			qb_filter_and_conditions.append(proj.company == filters.get("company"))
 
 	qb_filter_and_conditions.append(proj.status.notin(["Completed", "Cancelled"]))
 
diff --git a/erpnext/public/js/controllers/buying.js b/erpnext/public/js/controllers/buying.js
index 5a8b63f601f..af61d5f0258 100644
--- a/erpnext/public/js/controllers/buying.js
+++ b/erpnext/public/js/controllers/buying.js
@@ -25,6 +25,14 @@ erpnext.buying = {
 					};
 				});
 
+				this.frm.set_query("project", function (doc) {
+					return {
+						filters: {
+							company: doc.company,
+						},
+					};
+				});
+
 				if (this.frm.doc.__islocal
 					&& frappe.meta.has_field(this.frm.doc.doctype, "disable_rounded_total")) {