diff --git a/frontend/src/component/project/ProjectList/ProjectList.test.tsx b/frontend/src/component/project/ProjectList/ProjectList.test.tsx
new file mode 100644
index 0000000000..b01d8fab4b
--- /dev/null
+++ b/frontend/src/component/project/ProjectList/ProjectList.test.tsx
@@ -0,0 +1,40 @@
+import { render } from 'utils/testRenderer';
+import { ProjectListNew } from './ProjectList';
+import { screen, waitFor } from '@testing-library/react';
+import { testServerRoute, testServerSetup } from 'utils/testServer';
+import { CREATE_PROJECT } from '../../providers/AccessProvider/permissions';
+
+const server = testServerSetup();
+
+const setupApi = () => {
+    testServerRoute(server, '/api/admin/ui-config', {
+        flags: {
+            resourceLimits: true,
+        },
+        resourceLimits: {
+            projects: 1,
+        },
+        versionInfo: {
+            current: { enterprise: 'version' },
+        },
+    });
+
+    testServerRoute(server, '/api/admin/projects', {
+        projects: [],
+    });
+};
+
+test('Enabled new project button when limits, version and permission allow for it', async () => {
+    setupApi();
+    render(<ProjectListNew />, {
+        permissions: [{ permission: CREATE_PROJECT }],
+    });
+
+    const button = await screen.findByText('New project');
+    expect(button).toBeDisabled();
+
+    await waitFor(async () => {
+        const button = await screen.findByText('New project');
+        expect(button).not.toBeDisabled();
+    });
+});
diff --git a/frontend/src/component/project/ProjectList/ProjectList.tsx b/frontend/src/component/project/ProjectList/ProjectList.tsx
index 4010f25299..e626936c94 100644
--- a/frontend/src/component/project/ProjectList/ProjectList.tsx
+++ b/frontend/src/component/project/ProjectList/ProjectList.tsx
@@ -1,4 +1,4 @@
-import { useContext, useEffect, useMemo, useState } from 'react';
+import { type FC, useContext, useEffect, useMemo, useState } from 'react';
 import { useSearchParams } from 'react-router-dom';
 import useProjects from 'hooks/api/getters/useProjects/useProjects';
 import { ConditionallyRender } from 'component/common/ConditionallyRender/ConditionallyRender';
@@ -24,6 +24,7 @@ import { useProfile } from 'hooks/api/getters/useProfile/useProfile';
 import { groupProjects } from './group-projects';
 import { ProjectGroup } from './ProjectGroup';
 import { CreateProjectDialog } from '../Project/CreateProject/NewCreateProjectForm/CreateProjectDialog';
+import { useUiFlag } from 'hooks/useUiFlag';
 
 const StyledApiError = styled(ApiError)(({ theme }) => ({
     maxWidth: '500px',
@@ -53,6 +54,7 @@ const NAVIGATE_TO_CREATE_PROJECT = 'NAVIGATE_TO_CREATE_PROJECT';
 function resolveCreateButtonData(
     isOss: boolean,
     hasAccess: boolean,
+    limitReached: boolean,
 ): ICreateButtonData {
     if (isOss) {
         return {
@@ -78,6 +80,13 @@ function resolveCreateButtonData(
             },
             disabled: true,
         };
+    } else if (limitReached) {
+        return {
+            tooltip: {
+                title: 'Limit of allowed projects reached',
+            },
+            disabled: true,
+        };
     } else {
         return {
             tooltip: { title: 'Click to create a new project' },
@@ -86,16 +95,31 @@ function resolveCreateButtonData(
     }
 }
 
-const ProjectCreationButton = () => {
+const useProjectLimit = (projectsLimit: number, projectCount: number) => {
+    const resourceLimitsEnabled = useUiFlag('resourceLimits');
+    const limitReached = resourceLimitsEnabled && projectCount >= projectsLimit;
+
+    return limitReached;
+};
+
+const ProjectCreationButton: FC<{ projectCount: number }> = ({
+    projectCount,
+}) => {
     const [searchParams] = useSearchParams();
     const showCreateDialog = Boolean(searchParams.get('create'));
     const [openCreateDialog, setOpenCreateDialog] = useState(showCreateDialog);
     const { hasAccess } = useContext(AccessContext);
-    const { isOss } = useUiConfig();
+    const { isOss, uiConfig, loading } = useUiConfig();
+
+    const limitReached = useProjectLimit(
+        uiConfig.resourceLimits.projects,
+        projectCount,
+    );
 
     const createButtonData = resolveCreateButtonData(
         isOss(),
         hasAccess(CREATE_PROJECT),
+        limitReached,
     );
 
     return (
@@ -106,7 +130,7 @@ const ProjectCreationButton = () => {
                 onClick={() => setOpenCreateDialog(true)}
                 maxWidth='700px'
                 permission={CREATE_PROJECT}
-                disabled={createButtonData.disabled}
+                disabled={createButtonData.disabled || loading}
                 tooltipProps={createButtonData.tooltip}
                 data-testid={NAVIGATE_TO_CREATE_PROJECT}
             >
@@ -201,7 +225,9 @@ export const ProjectListNew = () => {
                                     </>
                                 }
                             />
-                            <ProjectCreationButton />
+                            <ProjectCreationButton
+                                projectCount={projects.length}
+                            />
                         </>
                     }
                 >
diff --git a/frontend/src/hooks/api/getters/useUiConfig/defaultValue.tsx b/frontend/src/hooks/api/getters/useUiConfig/defaultValue.tsx
index 2282727fbc..033faefd91 100644
--- a/frontend/src/hooks/api/getters/useUiConfig/defaultValue.tsx
+++ b/frontend/src/hooks/api/getters/useUiConfig/defaultValue.tsx
@@ -40,5 +40,6 @@ export const defaultValue: IUiConfig = {
         featureEnvironmentStrategies: 30,
         environments: 50,
         constraintValues: 250,
+        projects: 500,
     },
 };
diff --git a/frontend/src/openapi/models/resourceLimitsSchema.ts b/frontend/src/openapi/models/resourceLimitsSchema.ts
index fb56bb354c..f04845a529 100644
--- a/frontend/src/openapi/models/resourceLimitsSchema.ts
+++ b/frontend/src/openapi/models/resourceLimitsSchema.ts
@@ -30,4 +30,6 @@ export interface ResourceLimitsSchema {
     environments: number;
     /** The maximum number of values for a single constraint. */
     constraintValues: number;
+    /** The maximum number of projects allowed. */
+    projects: number;
 }
diff --git a/src/lib/create-config.ts b/src/lib/create-config.ts
index c329c8ea41..9a219f18bd 100644
--- a/src/lib/create-config.ts
+++ b/src/lib/create-config.ts
@@ -649,23 +649,32 @@ export function createConfig(options: IUnleashOptions): IUnleashConfig {
             process.env.UNLEASH_SIGNAL_TOKENS_PER_ENDPOINT_LIMIT,
             5,
         ),
-        featureEnvironmentStrategies: parseEnvVarNumber(
-            process.env.UNLEASH_FEATURE_ENVIRONMENT_STRATEGIES_LIMIT,
-            30,
+        featureEnvironmentStrategies: Math.max(
+            1,
+            parseEnvVarNumber(
+                process.env.UNLEASH_FEATURE_ENVIRONMENT_STRATEGIES_LIMIT,
+                30,
+            ),
         ),
-        constraintValues: parseEnvVarNumber(
-            process.env.UNLEASH_CONSTRAINT_VALUES_LIMIT,
-            options?.resourceLimits?.constraintValues || 250,
+        constraintValues: Math.max(
+            1,
+            parseEnvVarNumber(
+                process.env.UNLEASH_CONSTRAINT_VALUES_LIMIT,
+                options?.resourceLimits?.constraintValues || 250,
+            ),
         ),
         environments: parseEnvVarNumber(
             process.env.UNLEASH_ENVIRONMENTS_LIMIT,
             50,
         ),
+        projects: Math.max(
+            1,
+            parseEnvVarNumber(process.env.UNLEASH_PROJECTS_LIMIT, 500),
+        ),
         apiTokens: Math.max(
             0,
             parseEnvVarNumber(process.env.UNLEASH_API_TOKENS_LIMIT, 2000),
         ),
-        projects: parseEnvVarNumber(process.env.UNLEASH_PROJECTS_LIMIT, 500),
     };
 
     return {
diff --git a/src/lib/features/project/project-service.limit.test.ts b/src/lib/features/project/project-service.limit.test.ts
index 974626bc09..186af10bb8 100644
--- a/src/lib/features/project/project-service.limit.test.ts
+++ b/src/lib/features/project/project-service.limit.test.ts
@@ -28,24 +28,3 @@ test('Should not allow to exceed project limit', async () => {
         "Failed to create project. You can't create more than the established limit of 1.",
     );
 });
-
-test('Should enforce minimum project limit of 1', async () => {
-    const INVALID_LIMIT = 0;
-    const projectService = createFakeProjectService({
-        getLogger,
-        flagResolver: alwaysOnFlagResolver,
-        resourceLimits: {
-            projects: INVALID_LIMIT,
-        },
-    } as unknown as IUnleashConfig);
-
-    const createProject = (name: string) =>
-        projectService.createProject({ name }, {} as IUser, {} as IAuditUser);
-
-    // allow to create one project
-    await createProject('projectA');
-
-    await expect(() => createProject('projectB')).rejects.toThrow(
-        "Failed to create project. You can't create more than the established limit of 1.",
-    );
-});