diff --git a/src/Microsoft.VisualStudio.SolutionPersistence/Errors.Designer.cs b/src/Microsoft.VisualStudio.SolutionPersistence/Errors.Designer.cs
index 1f985ed7..95ecaeaf 100644
--- a/src/Microsoft.VisualStudio.SolutionPersistence/Errors.Designer.cs
+++ b/src/Microsoft.VisualStudio.SolutionPersistence/Errors.Designer.cs
@@ -115,11 +115,11 @@ internal static string DuplicateName_Args2 {
         }
         
         /// <summary>
-        ///   Looks up a localized string similar to Project name &apos;{0}&apos; already exists in the solution folder..
+        ///   Looks up a localized string similar to Project name &apos;{0}&apos; already exists in the &apos;{1}&apos; solution folder..
         /// </summary>
-        internal static string DuplicateProjectName_Arg1 {
+        internal static string DuplicateProjectName_Arg2 {
             get {
-                return ResourceManager.GetString("DuplicateProjectName_Arg1", resourceCulture);
+                return ResourceManager.GetString("DuplicateProjectName_Arg2", resourceCulture);
             }
         }
         
diff --git a/src/Microsoft.VisualStudio.SolutionPersistence/Errors.resx b/src/Microsoft.VisualStudio.SolutionPersistence/Errors.resx
index a3755c1b..fb39ab19 100644
--- a/src/Microsoft.VisualStudio.SolutionPersistence/Errors.resx
+++ b/src/Microsoft.VisualStudio.SolutionPersistence/Errors.resx
@@ -209,8 +209,8 @@
     <value>Project path '{0}' already exists in the solution.</value>
     <comment>Error message. {0} is the file path that already exists.</comment>
   </data>
-  <data name="DuplicateProjectName_Arg1" xml:space="preserve">
-    <value>Project name '{0}' already exists in the solution folder.</value>
+  <data name="DuplicateProjectName_Arg2" xml:space="preserve">
+    <value>Project name '{0}' already exists in the '{1}' solution folder.</value>
     <comment>Error message. {0} is the name of the folder.</comment>
   </data>
   <data name="InvalidFolderPath_Args1" xml:space="preserve">
diff --git a/src/Microsoft.VisualStudio.SolutionPersistence/Model/SolutionModel.cs b/src/Microsoft.VisualStudio.SolutionPersistence/Model/SolutionModel.cs
index 39d69f68..9ac34f21 100644
--- a/src/Microsoft.VisualStudio.SolutionPersistence/Model/SolutionModel.cs
+++ b/src/Microsoft.VisualStudio.SolutionPersistence/Model/SolutionModel.cs
@@ -588,6 +588,8 @@ internal void ValidateProjectName(SolutionProjectModel project)
         }
 
         string displayName = project.ActualDisplayName;
+        string folderPath = project.Parent?.Path ?? "Root";
+
         foreach (SolutionProjectModel existingProject in this.SolutionProjects)
         {
             if (!ReferenceEquals(existingProject.Parent, project.Parent) || ReferenceEquals(existingProject, project))
@@ -597,7 +599,7 @@ internal void ValidateProjectName(SolutionProjectModel project)
 
             if (existingProject.ActualDisplayName.Equals(displayName, StringComparison.OrdinalIgnoreCase))
             {
-                throw new SolutionArgumentException(string.Format(Errors.DuplicateProjectName_Arg1, displayName), SolutionErrorType.DuplicateProjectName);
+                throw new SolutionArgumentException(string.Format(Errors.DuplicateProjectName_Arg2, displayName, folderPath), SolutionErrorType.DuplicateProjectName);
             }
         }
     }
diff --git a/test/Microsoft.VisualStudio.SolutionPersistence.Tests/Serialization/Folders.cs b/test/Microsoft.VisualStudio.SolutionPersistence.Tests/Serialization/Folders.cs
index 894a8aa1..a9d72984 100644
--- a/test/Microsoft.VisualStudio.SolutionPersistence.Tests/Serialization/Folders.cs
+++ b/test/Microsoft.VisualStudio.SolutionPersistence.Tests/Serialization/Folders.cs
@@ -143,7 +143,7 @@ public void MoveProjectToFolder()
 
         // Try moving project to folder with existing project
         ArgumentException ex = Assert.Throws<SolutionArgumentException>(() => wanderingProject.MoveToFolder(folderA));
-        Assert.Equal(string.Format(Errors.DuplicateProjectName_Arg1, wanderingProject.ActualDisplayName), ex.Message);
+        Assert.Equal(string.Format(Errors.DuplicateProjectName_Arg2, wanderingProject.ActualDisplayName, folderA.Path), ex.Message);
         Assert.Equal("/This/Is/A/Nested/Folder/", wanderingProject.Parent.ItemRef);
 
         // Move project to root