diff --git a/src/machines/settingsMachine.ts b/src/machines/settingsMachine.ts
index 250427692..37aa3fa39 100644
--- a/src/machines/settingsMachine.ts
+++ b/src/machines/settingsMachine.ts
@@ -1,13 +1,25 @@
 import { assign, createMachine } from 'xstate'
-import { BaseUnit, baseUnitsUnion } from '../useStore'
 import { CommandBarMeta } from '../lib/commands'
 import { Themes, getSystemTheme, setThemeClass } from '../lib/theme'
 
+export const DEFAULT_PROJECT_NAME = 'project-$nnn'
+
 export enum UnitSystem {
   Imperial = 'imperial',
   Metric = 'metric',
 }
 
+export const baseUnits = {
+  imperial: ['in', 'ft'],
+  metric: ['mm', 'cm', 'm'],
+} as const
+
+export type BaseUnit = 'in' | 'ft' | 'mm' | 'cm' | 'm'
+
+export const baseUnitsUnion = Object.values(baseUnits).flatMap((v) => v)
+
+export type Toggle = 'On' | 'Off'
+
 export const SETTINGS_PERSIST_KEY = 'SETTINGS_PERSIST_KEY'
 
 export const settingsCommandBarMeta: CommandBarMeta = {
@@ -85,11 +97,11 @@ export const settingsMachine = createMachine(
     predictableActionArguments: true,
     context: {
       theme: Themes.System,
-      defaultProjectName: '',
+      defaultProjectName: DEFAULT_PROJECT_NAME,
       unitSystem: UnitSystem.Imperial,
       baseUnit: 'in' as BaseUnit,
       defaultDirectory: '',
-      textWrapping: 'On' as 'On' | 'Off',
+      textWrapping: 'On' as Toggle,
       showDebugPanel: false,
       onboardingStatus: '',
     },
@@ -113,7 +125,8 @@ export const settingsMachine = createMachine(
           'Set Default Project Name': {
             actions: [
               assign({
-                defaultProjectName: (_, event) => event.data.defaultProjectName,
+                defaultProjectName: (_, event) =>
+                  event.data.defaultProjectName.trim() || DEFAULT_PROJECT_NAME,
               }),
               'persistSettings',
               'toastSuccess',
@@ -205,7 +218,7 @@ export const settingsMachine = createMachine(
             data: { unitSystem: UnitSystem }
           }
         | { type: 'Set Base Unit'; data: { baseUnit: BaseUnit } }
-        | { type: 'Set Text Wrapping'; data: { textWrapping: 'On' | 'Off' } }
+        | { type: 'Set Text Wrapping'; data: { textWrapping: Toggle } }
         | { type: 'Set Onboarding Status'; data: { onboardingStatus: string } }
         | { type: 'Toggle Debug Panel' },
     },
diff --git a/src/routes/Home.tsx b/src/routes/Home.tsx
index 4175b0520..bbc14a728 100644
--- a/src/routes/Home.tsx
+++ b/src/routes/Home.tsx
@@ -28,6 +28,7 @@ import {
 import useStateMachineCommands from '../hooks/useStateMachineCommands'
 import { useGlobalStateContext } from 'hooks/useGlobalStateContext'
 import { useCommandsContext } from 'hooks/useCommandsContext'
+import { DEFAULT_PROJECT_NAME } from 'machines/settingsMachine'
 
 // This route only opens in the Tauri desktop context for now,
 // as defined in Router.tsx, so we can use the Tauri APIs and types.
@@ -38,6 +39,7 @@ const Home = () => {
   const {
     settings: {
       context: { defaultDirectory, defaultProjectName },
+      send: sendToSettings,
     },
   } = useGlobalStateContext()
 
@@ -71,16 +73,33 @@ const Home = () => {
         context: ContextFrom<typeof homeMachine>,
         event: EventFrom<typeof homeMachine, 'Create project'>
       ) => {
-        let name =
+        let name = (
           event.data && 'name' in event.data
             ? event.data.name
             : defaultProjectName
+        ).trim()
+        let shouldUpdateDefaultProjectName = false
+
+        // If there is no default project name, flag it to be set to the default
+        if (!name) {
+          name = DEFAULT_PROJECT_NAME
+          shouldUpdateDefaultProjectName = true
+        }
+
         if (doesProjectNameNeedInterpolated(name)) {
           const nextIndex = await getNextProjectIndex(name, projects)
           name = interpolateProjectNameWithIndex(name, nextIndex)
         }
 
         await createNewProject(context.defaultDirectory + '/' + name)
+
+        if (shouldUpdateDefaultProjectName) {
+          sendToSettings({
+            type: 'Set Default Project Name',
+            data: { defaultProjectName: DEFAULT_PROJECT_NAME },
+          })
+        }
+
         return `Successfully created "${name}"`
       },
       renameProject: async (
diff --git a/src/routes/Onboarding/Units.tsx b/src/routes/Onboarding/Units.tsx
index cdeced5ce..feb169843 100644
--- a/src/routes/Onboarding/Units.tsx
+++ b/src/routes/Onboarding/Units.tsx
@@ -1,5 +1,5 @@
 import { faArrowRight, faXmark } from '@fortawesome/free-solid-svg-icons'
-import { BaseUnit, baseUnits } from '../../useStore'
+import { BaseUnit, baseUnits } from '../../machines/settingsMachine'
 import { ActionButton } from '../../components/ActionButton'
 import { SettingsSection } from '../Settings'
 import { Toggle } from '../../components/Toggle/Toggle'
diff --git a/src/routes/Settings.tsx b/src/routes/Settings.tsx
index 133473b60..de1bd8b7a 100644
--- a/src/routes/Settings.tsx
+++ b/src/routes/Settings.tsx
@@ -6,7 +6,11 @@ import {
 import { ActionButton } from '../components/ActionButton'
 import { AppHeader } from '../components/AppHeader'
 import { open } from '@tauri-apps/api/dialog'
-import { BaseUnit, baseUnits } from '../useStore'
+import {
+  BaseUnit,
+  DEFAULT_PROJECT_NAME,
+  baseUnits,
+} from '../machines/settingsMachine'
 import { Toggle } from '../components/Toggle/Toggle'
 import { useLocation, useNavigate, useRouteLoaderData } from 'react-router-dom'
 import { useHotkeys } from 'react-hotkeys-hook'
@@ -118,10 +122,14 @@ export const Settings = () => {
                 className="block w-full px-3 py-1 border border-chalkboard-30 bg-transparent"
                 defaultValue={defaultProjectName}
                 onBlur={(e) => {
+                  const newValue = e.target.value.trim() || DEFAULT_PROJECT_NAME
                   send({
                     type: 'Set Default Project Name',
-                    data: { defaultProjectName: e.target.value },
+                    data: {
+                      defaultProjectName: newValue,
+                    },
                   })
+                  e.target.value = newValue
                 }}
                 autoCapitalize="off"
                 autoComplete="off"
diff --git a/src/useStore.ts b/src/useStore.ts
index 697790d53..4b1b97fb1 100644
--- a/src/useStore.ts
+++ b/src/useStore.ts
@@ -94,15 +94,6 @@ export type GuiModes =
       position: Position
     }
 
-export const baseUnits = {
-  imperial: ['in', 'ft'],
-  metric: ['mm', 'cm', 'm'],
-} as const
-
-export type BaseUnit = 'in' | 'ft' | 'mm' | 'cm' | 'm'
-
-export const baseUnitsUnion = Object.values(baseUnits).flatMap((v) => v)
-
 export type PaneType =
   | 'code'
   | 'variables'