diff --git a/apps/dashboard/app/controllers/projects_controller.rb b/apps/dashboard/app/controllers/projects_controller.rb
index dce2c73939..bf029d032e 100644
--- a/apps/dashboard/app/controllers/projects_controller.rb
+++ b/apps/dashboard/app/controllers/projects_controller.rb
@@ -64,6 +64,7 @@ def create
     else
       message = @project.errors[:save].empty? ? I18n.t('dashboard.jobs_project_validation_error') : I18n.t('dashboard.jobs_project_generic_error', error: @project.collect_errors)
       flash.now[:alert] = message
+      @templates = templates if project_params.key?(:template)
       render :new
     end
   end
diff --git a/apps/dashboard/app/models/project.rb b/apps/dashboard/app/models/project.rb
index ec7a4efaa1..96efe7dd06 100644
--- a/apps/dashboard/app/models/project.rb
+++ b/apps/dashboard/app/models/project.rb
@@ -55,6 +55,8 @@ def templates
 
       template_dir.children.map do |child_directory|
         opts = {
+          # Fake id is needed to make it a valid project
+          id:        '__template',
           directory: child_directory
         }
 
@@ -63,7 +65,7 @@ def templates
     end
   end
 
-  attr_reader :directory, :id
+  attr_reader :directory, :id, :template
 
   delegate :icon, :name, :description, to: :manifest
 
@@ -72,6 +74,7 @@ def templates
   validates :icon, format: { with: %r{\Afa[bsrl]://[\w-]+\z}, allow_blank: true, message: :format }, on: [:create, :update]
   validate :project_directory_invalid, on: [:create, :update]
   validate :project_directory_exist, on: [:create]
+  validate :project_template_invalid, on: [:create]
 
   # the template you created this project from
   attr_accessor :template
@@ -80,6 +83,7 @@ def initialize(attributes = {})
     @id = attributes.delete(:id)
     @directory = attributes.delete(:directory)
     @directory = File.expand_path(@directory) unless @directory.blank?
+    @template = attributes.delete(:template)
 
     @manifest = Manifest.new(attributes)
     @manifest = @manifest.merge(Manifest.load(manifest_path)) unless new_record?
@@ -105,8 +109,7 @@ def save(attributes={})
     @directory = Project.dataroot.join(id.to_s).to_s if directory.blank?
     @manifest = manifest.merge({ icon: 'fas://cog' }) if icon.blank?
 
-    make_dir
-    store_manifest
+    make_dir && sync_template && store_manifest(:save)
   end
 
   def update(attributes)
@@ -114,14 +117,14 @@ def update(attributes)
 
     return false unless valid?(:update)
 
-    store_manifest
+    store_manifest(:update)
   end
 
-  def store_manifest
+  def store_manifest(operation)
     if manifest.valid? && manifest.save(manifest_path) && add_to_lookup
       true
     else
-      errors.add(:save, I18n.t('dashboard.jobs_project_save_error', path: manifest_path))
+      errors.add(operation, I18n.t('dashboard.jobs_project_save_error', path: manifest_path))
       false
     end
   end
@@ -171,9 +174,7 @@ def manifest_path
   end
 
   def collect_errors
-    errors.map do |field_error|
-      field_error.message()
-    end.join(', ')
+    errors.map(&:message).join(', ')
   end
 
   private
@@ -183,8 +184,23 @@ def collect_errors
   def make_dir
     project_dataroot.mkpath         unless project_dataroot.exist?
     configuration_directory.mkpath  unless configuration_directory.exist?
+    true
+  rescue StandardError => e
+    errors.add(:save, "Failed to make directory: #{e.message}")
+    false
+  end
+
+  def sync_template
+    return true if template.blank?
+
+    # Sync the template files over
+    oe, s = Open3.capture2e("rsync", "-a", "#{template}/", "#{project_dataroot}")
+    raise oe unless s.success?
+
+    true
   rescue StandardError => e
-    errors.add(:make_directory, "Failed to make directory: #{e.message}")
+    errors.add(:save, "Failed to sync template: #{e.message}")
+    false
   end
 
   def project_directory_exist
@@ -198,4 +214,11 @@ def project_directory_invalid
       errors.add(:directory, :invalid)
     end
   end
+
+  def project_template_invalid
+    # This validation is to prevent the template directory being manipulated in the form.
+    if !template.blank? && Project.templates.map { |template| template.directory.to_s }.exclude?(template.to_s)
+      errors.add(:template, :invalid)
+    end
+  end
 end
diff --git a/apps/dashboard/test/models/projects_test.rb b/apps/dashboard/test/models/projects_test.rb
index fd1229bb73..6fcf504fba 100644
--- a/apps/dashboard/test/models/projects_test.rb
+++ b/apps/dashboard/test/models/projects_test.rb
@@ -3,7 +3,17 @@
 require 'test_helper'
 
 class ProjectsTest < ActiveSupport::TestCase
-  test 'crate project validation' do
+  test 'create empty project' do
+    project = Project.new
+
+    assert_nil project.id
+    assert_nil project.directory
+    assert_equal '', project.name
+    assert_equal '', project.description
+    assert_equal '', project.icon
+  end
+
+  test 'create project validation' do
     Dir.mktmpdir do |tmp|
       OodAppkit.stubs(:dataroot).returns(Pathname.new(tmp))
 
@@ -13,12 +23,13 @@ class ProjectsTest < ActiveSupport::TestCase
       assert_not project.errors[:name].empty?
 
       invalid_directory = Project.dataroot
-      project = Project.new({ name: 'test', icon: 'invalid_format', directory: invalid_directory.to_s })
+      project = Project.new({ name: 'test', icon: 'invalid_format', directory: invalid_directory.to_s, template: '/invalid/template' })
 
       assert_not project.save
-      assert_equal 2, project.errors.size
+      assert_equal 3, project.errors.size
       assert_not project.errors[:icon].empty?
       assert_not project.errors[:directory].empty?
+      assert_not project.errors[:template].empty?
     end
   end
 
@@ -32,6 +43,41 @@ class ProjectsTest < ActiveSupport::TestCase
     end
   end
 
+  test 'creates project with directory override' do
+    Dir.mktmpdir do |tmp|
+      projects_root = Pathname.new(tmp)
+      project_dir = File.join(tmp, 'dir_override')
+      project = create_project(projects_root, directory: project_dir)
+
+      assert_equal project_dir, project.directory
+      assert File.directory?(Pathname.new(project_dir))
+      assert File.file?(Pathname.new("#{project_dir}/.ondemand/manifest.yml"))
+    end
+  end
+
+  test 'creates project with template copies template files' do
+    Dir.mktmpdir do |tmp|
+      template_dir = File.join(tmp, 'template')
+      file_content = <<~HEREDOC
+        some multiline content
+        echo 'multiline content'
+        description: multiline content
+      HEREDOC
+      Pathname.new(template_dir).mkpath
+      File.open("#{template_dir}/script.sh", 'w') { |file| file.write(file_content) }
+      File.open("#{template_dir}/info.txt", 'w') { |file| file.write(file_content) }
+      File.open("#{template_dir}/config.yml", 'w') { |file| file.write(file_content) }
+
+      Configuration.stubs(:project_template_dir).returns(tmp)
+      projects_path = Pathname.new(tmp)
+      project = create_project(projects_path, template: template_dir)
+
+      assert Dir.entries(project.directory).include?('script.sh')
+      assert Dir.entries(project.directory).include?('info.txt')
+      assert Dir.entries(project.directory).include?('config.yml')
+    end
+  end
+
   test 'creates .ondemand configuration directory' do
     Dir.mktmpdir do |tmp|
       projects_path = Pathname.new(tmp)
@@ -96,12 +142,8 @@ class ProjectsTest < ActiveSupport::TestCase
         description: my test project
       HEREDOC
 
-      puts "project: #{project.inspect}"
-
       assert project.update(test_attributes)
 
-      puts "project: #{project.inspect}"
-
       assert File.exist?(project.manifest_path.to_s)
 
       assert_equal expected_manifest_yml, File.read(project.manifest_path.to_s)
@@ -115,13 +157,14 @@ class ProjectsTest < ActiveSupport::TestCase
       old_id = project.id
       old_directory = project.directory
 
-      assert project.update({ id: 'updated', name: 'updated', icon: 'fas://updated', directory: '/updated', description: 'updated' })
+      assert project.update({ id: 'updated', name: 'updated', icon: 'fas://updated', directory: '/updated', description: 'updated', template: '/some/path' })
       assert_equal 'updated', project.name
       assert_equal 'fas://updated', project.icon
       assert_equal 'updated', project.description
 
       assert_equal old_id, project.id
       assert_equal old_directory, project.directory
+      assert_nil project.template
     end
   end
 
@@ -137,13 +180,12 @@ class ProjectsTest < ActiveSupport::TestCase
     end
   end
 
-  def create_project(projects_path, name: 'test-project', icon: 'fas://arrow-right', description: 'description', directory: nil)
+  def create_project(projects_path, name: 'test-project', icon: 'fas://arrow-right', description: 'description', directory: nil, template: nil)
     OodAppkit.stubs(:dataroot).returns(projects_path)
     id = Project.next_id
-    directory = Project.dataroot.join(id.to_s).to_s if directory.blank?
-    attrs = { name: name, icon: icon, id: id, description: description, directory: directory }
+    attrs = { name: name, icon: icon, id: id, description: description, directory: directory, template: template }
     project = Project.new(attrs)
-    assert project.save
+    assert project.save, project.collect_errors
 
     project
   end