diff --git a/frontend/src/components/HomeComponents/Tasks/AddTaskDialog.tsx b/frontend/src/components/HomeComponents/Tasks/AddTaskDialog.tsx
index 1b60ba10..07aecd29 100644
--- a/frontend/src/components/HomeComponents/Tasks/AddTaskDialog.tsx
+++ b/frontend/src/components/HomeComponents/Tasks/AddTaskDialog.tsx
@@ -201,6 +201,9 @@ export const AddTaskdialog = ({
                   if (value === '__CREATE_NEW__') {
                     setIsCreatingNewProject(true);
                     setNewTask({ ...newTask, project: '' });
+                  } else if (value === '__NONE__') {
+                    setIsCreatingNewProject(false);
+                    setNewTask({ ...newTask, project: '' });
                   } else {
                     setIsCreatingNewProject(false);
                     setNewTask({ ...newTask, project: value });
diff --git a/frontend/src/components/HomeComponents/Tasks/__tests__/AddTaskDialog.test.tsx b/frontend/src/components/HomeComponents/Tasks/__tests__/AddTaskDialog.test.tsx
index 4f1d803c..ef466376 100644
--- a/frontend/src/components/HomeComponents/Tasks/__tests__/AddTaskDialog.test.tsx
+++ b/frontend/src/components/HomeComponents/Tasks/__tests__/AddTaskDialog.test.tsx
@@ -202,6 +202,21 @@ describe('AddTaskDialog Component', () => {
   });
 
   describe('Project Field', () => {
+    test('sets project to empty string when "No project" is selected', () => {
+      mockProps.isOpen = true;
+      mockProps.uniqueProjects = ['Work', 'Personal'];
+      render(<AddTaskdialog {...mockProps} />);
+
+      const projectSelect = screen.getByTestId('project-select');
+      fireEvent.change(projectSelect, { target: { value: '__NONE__' } });
+
+      expect(mockProps.setIsCreatingNewProject).toHaveBeenCalledWith(false);
+      expect(mockProps.setNewTask).toHaveBeenCalledWith({
+        ...mockProps.newTask,
+        project: '',
+      });
+    });
+
     test('updates project when user types in project field', async () => {
       mockProps.isOpen = true;
       mockProps.isCreatingNewProject = true;