diff --git a/packages/design-system/src/components/N8nMenuItem/MenuItem.vue b/packages/design-system/src/components/N8nMenuItem/MenuItem.vue
index 03fdb7e182..e9a34c7e04 100644
--- a/packages/design-system/src/components/N8nMenuItem/MenuItem.vue
+++ b/packages/design-system/src/components/N8nMenuItem/MenuItem.vue
@@ -104,7 +104,7 @@ const isItemActive = (item: IMenuItem): boolean => {
 		<N8nTooltip
 			v-else
 			placement="right"
-			:content="item.label"
+			:content="compact ? item.label : ''"
 			:disabled="!compact"
 			:show-after="tooltipDelay"
 		>
diff --git a/packages/editor-ui/src/components/Projects/ProjectNavigation.test.ts b/packages/editor-ui/src/components/Projects/ProjectNavigation.test.ts
new file mode 100644
index 0000000000..5ad62ed8e9
--- /dev/null
+++ b/packages/editor-ui/src/components/Projects/ProjectNavigation.test.ts
@@ -0,0 +1,175 @@
+import { createComponentRenderer } from '@/__tests__/render';
+import { createTestingPinia } from '@pinia/testing';
+import userEvent from '@testing-library/user-event';
+import { createRouter, createMemoryHistory, useRouter } from 'vue-router';
+import { createProjectListItem } from '@/__tests__/data/projects';
+import ProjectsNavigation from '@/components/Projects//ProjectNavigation.vue';
+import { useProjectsStore } from '@/stores/projects.store';
+import { useUIStore } from '@/stores/ui.store';
+import { mockedStore } from '@/__tests__/utils';
+import type { Project } from '@/types/projects.types';
+import { VIEWS } from '@/constants';
+import { useToast } from '@/composables/useToast';
+
+vi.mock('vue-router', async () => {
+	const actual = await vi.importActual('vue-router');
+	const push = vi.fn();
+	return {
+		...actual,
+		useRouter: () => ({
+			push,
+		}),
+		RouterLink: {
+			template: '<a><slot /></a>',
+		},
+	};
+});
+
+vi.mock('@/composables/useToast', () => {
+	const showMessage = vi.fn();
+	const showError = vi.fn();
+	return {
+		useToast: () => ({
+			showMessage,
+			showError,
+		}),
+	};
+});
+
+const renderComponent = createComponentRenderer(ProjectsNavigation, {
+	global: {
+		plugins: [
+			createRouter({
+				history: createMemoryHistory(),
+				routes: [
+					{
+						path: '/',
+						name: 'home',
+						component: { template: '<div>Home</div>' },
+					},
+				],
+			}),
+		],
+	},
+});
+
+let router: ReturnType<typeof useRouter>;
+let toast: ReturnType<typeof useToast>;
+let projectsStore: ReturnType<typeof mockedStore<typeof useProjectsStore>>;
+let uiStore: ReturnType<typeof mockedStore<typeof useUIStore>>;
+
+const personalProjects = Array.from({ length: 3 }, createProjectListItem);
+const teamProjects = Array.from({ length: 3 }, () => createProjectListItem('team'));
+
+describe('ProjectsNavigation', () => {
+	beforeEach(() => {
+		createTestingPinia();
+
+		router = useRouter();
+		toast = useToast();
+
+		projectsStore = mockedStore(useProjectsStore);
+		uiStore = mockedStore(useUIStore);
+	});
+
+	it('should not throw an error', () => {
+		projectsStore.teamProjectsLimit = -1;
+		expect(() => {
+			renderComponent({
+				props: {
+					collapsed: false,
+				},
+			});
+		}).not.toThrow();
+	});
+
+	it('should not show "Add project" button when conditions are not met', async () => {
+		projectsStore.teamProjectsLimit = 0;
+		projectsStore.hasPermissionToCreateProjects = false;
+
+		const { queryByText } = renderComponent({
+			props: {
+				collapsed: false,
+			},
+		});
+
+		expect(queryByText('Add project')).not.toBeInTheDocument();
+	});
+
+	it('should show "Add project" button when conditions met', async () => {
+		projectsStore.teamProjectsLimit = -1;
+		projectsStore.hasPermissionToCreateProjects = true;
+		projectsStore.createProject.mockResolvedValue({
+			id: '1',
+			name: 'My project 1',
+		} as Project);
+
+		const { getByText } = renderComponent({
+			props: {
+				collapsed: false,
+			},
+		});
+
+		expect(getByText('Add project')).toBeVisible();
+		await userEvent.click(getByText('Add project'));
+
+		expect(projectsStore.createProject).toHaveBeenCalledWith({
+			name: 'My project',
+		});
+		expect(router.push).toHaveBeenCalledWith({
+			name: VIEWS.PROJECT_SETTINGS,
+			params: { projectId: '1' },
+		});
+		expect(toast.showMessage).toHaveBeenCalledWith({
+			title: 'Project My project 1 saved successfully',
+			type: 'success',
+		});
+	});
+
+	it('should show "Add project" button tooltip when project creation limit reached', async () => {
+		projectsStore.teamProjectsLimit = 3;
+		projectsStore.hasPermissionToCreateProjects = true;
+		projectsStore.canCreateProjects = false;
+
+		const { getByText } = renderComponent({
+			props: {
+				collapsed: false,
+				planName: 'Free',
+			},
+		});
+
+		expect(getByText('Add project')).toBeVisible();
+		await userEvent.hover(getByText('Add project'));
+
+		expect(getByText(/You have reached the Free plan limit of 3/)).toBeVisible();
+		await userEvent.click(getByText('View plans'));
+
+		expect(uiStore.goToUpgrade).toHaveBeenCalledWith('rbac', 'upgrade-rbac');
+	});
+
+	it('should show "Projects" title and projects if the user has access to any team project', async () => {
+		projectsStore.myProjects = [...personalProjects, ...teamProjects];
+
+		const { getByRole, getAllByTestId, getByTestId } = renderComponent({
+			props: {
+				collapsed: false,
+			},
+		});
+
+		expect(getByRole('heading', { level: 3, name: 'Projects' })).toBeVisible();
+		expect(getByTestId('project-personal-menu-item')).toBeVisible();
+		expect(getAllByTestId('project-menu-item')).toHaveLength(teamProjects.length);
+	});
+
+	it('should not show "Projects" title when the menu is collapsed', async () => {
+		projectsStore.myProjects = [...personalProjects, ...teamProjects];
+
+		const { queryByRole } = renderComponent({
+			props: {
+				collapsed: true,
+			},
+		});
+
+		expect(queryByRole('heading', { level: 3, name: 'Projects' })).not.toBeInTheDocument();
+	});
+});
diff --git a/packages/editor-ui/src/components/Projects/ProjectNavigation.vue b/packages/editor-ui/src/components/Projects/ProjectNavigation.vue
index 2b4909e0f2..e14328b01e 100644
--- a/packages/editor-ui/src/components/Projects/ProjectNavigation.vue
+++ b/packages/editor-ui/src/components/Projects/ProjectNavigation.vue
@@ -44,6 +44,7 @@ const addProject = computed<IMenuItem>(() => ({
 const getProjectMenuItem = (project: ProjectListItem) => ({
 	id: project.id,
 	label: project.name,
+	icon: 'layer-group',
 	route: {
 		to: {
 			name: VIEWS.PROJECTS_WORKFLOWS,
@@ -52,8 +53,18 @@ const getProjectMenuItem = (project: ProjectListItem) => ({
 	},
 });
 
-const homeClicked = () => {};
-const projectClicked = () => {};
+const personalProject = computed<IMenuItem>(() => ({
+	id: projectsStore.personalProject?.id ?? '',
+	label: locale.baseText('projects.menu.personal'),
+	icon: 'user',
+	route: {
+		to: {
+			name: VIEWS.PROJECTS_WORKFLOWS,
+			params: { projectId: projectsStore.personalProject?.id },
+		},
+	},
+}));
+
 const addProjectClicked = async () => {
 	isCreatingProject.value = true;
 
@@ -107,7 +118,6 @@ onMounted(async () => {
 			<N8nMenuItem
 				:item="home"
 				:compact="props.collapsed"
-				:handle-select="homeClicked"
 				:active-tab="projectsStore.projectNavActiveId"
 				mode="tabs"
 				data-test-id="project-home-menu-item"
@@ -120,7 +130,17 @@ onMounted(async () => {
 			"
 			class="mt-m mb-m"
 		/>
+		<N8nText v-if="!props.collapsed" :class="$style.projectsLabel" tag="h3" bold>
+			<span>{{ locale.baseText('projects.menu.title') }}</span>
+		</N8nText>
 		<ElMenu v-if="displayProjects.length" :collapse="props.collapsed" :class="$style.projectItems">
+			<N8nMenuItem
+				:item="personalProject"
+				:compact="props.collapsed"
+				:active-tab="projectsStore.projectNavActiveId"
+				mode="tabs"
+				data-test-id="project-personal-menu-item"
+			/>
 			<N8nMenuItem
 				v-for="project in displayProjects"
 				:key="project.id"
@@ -129,20 +149,19 @@ onMounted(async () => {
 				}"
 				:item="getProjectMenuItem(project)"
 				:compact="props.collapsed"
-				:handle-select="projectClicked"
 				:active-tab="projectsStore.projectNavActiveId"
 				mode="tabs"
 				data-test-id="project-menu-item"
 			/>
 		</ElMenu>
-		<N8nTooltip placement="right" :disabled="projectsStore.canCreateProjects">
-			<ElMenu
-				v-if="
-					projectsStore.hasPermissionToCreateProjects && projectsStore.isTeamProjectFeatureEnabled
-				"
-				:collapse="props.collapsed"
-				class="pl-xs pr-xs"
-			>
+		<N8nTooltip
+			v-if="
+				projectsStore.hasPermissionToCreateProjects && projectsStore.isTeamProjectFeatureEnabled
+			"
+			placement="right"
+			:disabled="projectsStore.canCreateProjects"
+		>
+			<ElMenu :collapse="props.collapsed" class="pl-xs pr-xs">
 				<N8nMenuItem
 					:item="addProject"
 					:compact="props.collapsed"
@@ -203,6 +222,15 @@ onMounted(async () => {
 .collapsed {
 	text-transform: uppercase;
 }
+
+.projectsLabel {
+	margin: 0 var(--spacing-xs) var(--spacing-s);
+	padding: 0 var(--spacing-s);
+	text-overflow: ellipsis;
+	overflow: hidden;
+	box-sizing: border-box;
+	color: var(--color-text-base);
+}
 </style>
 
 <style lang="scss" scoped>
diff --git a/packages/editor-ui/src/plugins/i18n/locales/en.json b/packages/editor-ui/src/plugins/i18n/locales/en.json
index 26c21a3dcc..53f0a82a0d 100644
--- a/packages/editor-ui/src/plugins/i18n/locales/en.json
+++ b/packages/editor-ui/src/plugins/i18n/locales/en.json
@@ -2479,6 +2479,8 @@
 	"settings.mfa.updateConfiguration": "MFA configuration updated",
 	"settings.mfa.invalidAuthenticatorCode": "Invalid authenticator code",
 	"projects.menu.home": "Home",
+	"projects.menu.title": "Projects",
+	"projects.menu.personal": "Personal",
 	"projects.menu.addProject": "Add project",
 	"projects.settings": "Project settings",
 	"projects.settings.newProjectName": "My project",
diff --git a/packages/editor-ui/src/plugins/icons/index.ts b/packages/editor-ui/src/plugins/icons/index.ts
index 3ec66cb308..0e9430d8ae 100644
--- a/packages/editor-ui/src/plugins/icons/index.ts
+++ b/packages/editor-ui/src/plugins/icons/index.ts
@@ -91,6 +91,7 @@ import {
 	faInfoCircle,
 	faKey,
 	faLanguage,
+	faLayerGroup,
 	faLink,
 	faList,
 	faLightbulb,
@@ -260,6 +261,7 @@ export const FontAwesomePlugin: Plugin = {
 		addIcon(faInfoCircle);
 		addIcon(faKey);
 		addIcon(faLanguage);
+		addIcon(faLayerGroup);
 		addIcon(faLink);
 		addIcon(faList);
 		addIcon(faLightbulb);
diff --git a/packages/editor-ui/src/stores/projects.store.ts b/packages/editor-ui/src/stores/projects.store.ts
index 21b275ef2f..1824574b6f 100644
--- a/packages/editor-ui/src/stores/projects.store.ts
+++ b/packages/editor-ui/src/stores/projects.store.ts
@@ -60,12 +60,8 @@ export const useProjectsStore = defineStore(STORES.PROJECTS, () => {
 	);
 	const teamProjects = computed(() => projects.value.filter((p) => p.type === ProjectTypes.Team));
 	const teamProjectsLimit = computed(() => settingsStore.settings.enterprise.projects.team.limit);
-	const isTeamProjectFeatureEnabled = computed<boolean>(
-		() => settingsStore.settings.enterprise.projects.team.limit !== 0,
-	);
-	const hasUnlimitedProjects = computed<boolean>(
-		() => settingsStore.settings.enterprise.projects.team.limit === -1,
-	);
+	const isTeamProjectFeatureEnabled = computed<boolean>(() => teamProjectsLimit.value !== 0);
+	const hasUnlimitedProjects = computed<boolean>(() => teamProjectsLimit.value === -1);
 	const isTeamProjectLimitExceeded = computed<boolean>(
 		() => projectsCount.value.team >= teamProjectsLimit.value,
 	);