diff --git a/erpnext/accounts/doctype/payment_entry/test_payment_entry.py b/erpnext/accounts/doctype/payment_entry/test_payment_entry.py
index 9d2890f5e79..f6a23ddf450 100644
--- a/erpnext/accounts/doctype/payment_entry/test_payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/test_payment_entry.py
@@ -2105,6 +2105,37 @@ class TestPaymentEntry(ERPNextTestSuite):
 			self.assertEqual(ref.voucher_no, so.name)
 			self.assertIsNotNone(ref.payment_term)
 
+	def test_project_name_in_exchange_gain_loss_entry(self):
+		si = create_sales_invoice(
+			customer="_Test Customer USD",
+			debit_to="_Test Receivable USD - _TC",
+			currency="USD",
+			conversion_rate=50,
+			do_not_submit=True,
+		)
+		from erpnext.projects.doctype.project.test_project import make_project
+
+		si.project = make_project({"project_name": "_Test Project for Exchange Gain Loss Entry"}).name
+
+		si.submit()
+
+		pe = get_payment_entry("Sales Invoice", si.name)
+
+		pe.source_exchange_rate = 100
+
+		pe.insert()
+		pe.submit()
+
+		rows = frappe.get_all(
+			"Journal Entry Account",
+			or_filters=[{"reference_name": pe.name}, {"reference_name": si.name}],
+			fields=["project"],
+		)
+		self.assertEqual(len(rows), 2)
+
+		self.assertEqual(rows[0].project, si.project)
+		self.assertEqual(rows[1].project, si.project)
+
 
 def create_payment_entry(**args):
 	payment_entry = frappe.new_doc("Payment Entry")
diff --git a/erpnext/accounts/utils.py b/erpnext/accounts/utils.py
index 5139f0192a7..cce6f61cf83 100644
--- a/erpnext/accounts/utils.py
+++ b/erpnext/accounts/utils.py
@@ -2526,6 +2526,7 @@ def create_gain_loss_journal(
 	ref2_detail_no,
 	cost_center,
 	dimensions,
+	project=None,
 ) -> str:
 	journal_entry = frappe.new_doc("Journal Entry")
 	journal_entry.voucher_type = "Exchange Gain Or Loss"
@@ -2552,6 +2553,7 @@ def create_gain_loss_journal(
 			"account_currency": party_account_currency,
 			"exchange_rate": 0,
 			"cost_center": cost_center or erpnext.get_default_cost_center(company),
+			"project": project,
 			"reference_type": ref1_dt,
 			"reference_name": ref1_dn,
 			"reference_detail_no": ref1_detail_no,
@@ -2569,6 +2571,7 @@ def create_gain_loss_journal(
 			"account_currency": gain_loss_account_currency,
 			"exchange_rate": 1,
 			"cost_center": cost_center or erpnext.get_default_cost_center(company),
+			"project": project,
 			"reference_type": ref2_dt,
 			"reference_name": ref2_dn,
 			"reference_detail_no": ref2_detail_no,
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 493ddc76104..2eab035147c 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -1770,6 +1770,7 @@ class AccountsController(TransactionBase):
 									arg.get("referenced_row"),
 									arg.get("cost_center"),
 									dimensions_dict,
+									arg.get("project"),
 								)
 								frappe.msgprint(
 									_("Exchange Gain/Loss amount has been booked through {0}").format(
@@ -1854,6 +1855,7 @@ class AccountsController(TransactionBase):
 							d.idx,
 							self.cost_center,
 							dimensions_dict,
+							self.project,
 						)
 						frappe.msgprint(
 							_("Exchange Gain/Loss amount has been booked through {0}").format(