diff --git a/changelog/fragments/bugfix-generate-no-project-name.yaml b/changelog/fragments/bugfix-generate-no-project-name.yaml
new file mode 100644
index 0000000000..41032f33e8
--- /dev/null
+++ b/changelog/fragments/bugfix-generate-no-project-name.yaml
@@ -0,0 +1,4 @@
+entries:
+  - description: >
+      Project version now determines how package name is retrieved for a project
+    kind: bugfix
diff --git a/internal/cmd/operator-sdk/generate/bundle/bundle.go b/internal/cmd/operator-sdk/generate/bundle/bundle.go
index 20351c9d30..cf8d98efe5 100644
--- a/internal/cmd/operator-sdk/generate/bundle/bundle.go
+++ b/internal/cmd/operator-sdk/generate/bundle/bundle.go
@@ -105,21 +105,9 @@ https://github.com/operator-framework/operator-registry/#manifest-format
 const defaultRootDir = "bundle"
 
 // setDefaults sets defaults useful to all modes of this subcommand.
-func (c *bundleCmd) setDefaults() error {
-	if projutil.HasProjectFile() {
-		cfg, err := projutil.ReadConfig()
-		if err != nil {
-			return err
-		}
-		if c.packageName == "" {
-			c.packageName = cfg.ProjectName
-		}
-		c.layout = projutil.GetProjectLayout(cfg)
-	} else {
-		if c.packageName == "" {
-			return fmt.Errorf("package name is required if PROJECT config file is not present")
-		}
-		c.layout = "unknown"
+func (c *bundleCmd) setDefaults() (err error) {
+	if c.packageName, c.layout, err = genutil.GetPackageNameAndLayout(c.packageName); err != nil {
+		return err
 	}
 	return nil
 }
diff --git a/internal/cmd/operator-sdk/generate/internal/genutil.go b/internal/cmd/operator-sdk/generate/internal/genutil.go
index 0b6f6672cb..ad1afc53ab 100644
--- a/internal/cmd/operator-sdk/generate/internal/genutil.go
+++ b/internal/cmd/operator-sdk/generate/internal/genutil.go
@@ -24,6 +24,7 @@ import (
 	"strings"
 
 	"github.com/blang/semver"
+	"github.com/operator-framework/operator-sdk/internal/util/projutil"
 	apiextv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
 	apiextv1beta1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1beta1"
 	"sigs.k8s.io/controller-runtime/pkg/client"
@@ -158,3 +159,37 @@ func IsExist(path string) bool {
 	_, err := os.Stat(path)
 	return err == nil || errors.Is(err, os.ErrExist)
 }
+
+// GetPackageNameAndLayout returns packageName and layout, if any, for a project.
+// These values are determined by project version and whether a PROJECT file exists.
+func GetPackageNameAndLayout(defaultPackageName string) (packageName string, layout string, _ error) {
+	packageName = defaultPackageName
+	if projutil.HasProjectFile() {
+		cfg, err := projutil.ReadConfig()
+		if err != nil {
+			return "", "", err
+		}
+		if packageName == "" {
+			switch {
+			case cfg.IsV2():
+				wd, err := os.Getwd()
+				if err != nil {
+					return "", "", err
+				}
+				packageName = strings.ToLower(filepath.Base(wd))
+			default:
+				if cfg.ProjectName == "" {
+					return "", "", errors.New("--package-name must be set if \"projectName\" is not set in the PROJECT config file")
+				}
+				packageName = cfg.ProjectName
+			}
+		}
+		layout = projutil.GetProjectLayout(cfg)
+	} else {
+		if packageName == "" {
+			return "", "", errors.New("--package-name must be set if PROJECT config file is not present")
+		}
+		layout = "unknown"
+	}
+	return packageName, layout, nil
+}
diff --git a/internal/cmd/operator-sdk/generate/packagemanifests/packagemanifests.go b/internal/cmd/operator-sdk/generate/packagemanifests/packagemanifests.go
index 7ef7b5bcf8..c99af553a9 100644
--- a/internal/cmd/operator-sdk/generate/packagemanifests/packagemanifests.go
+++ b/internal/cmd/operator-sdk/generate/packagemanifests/packagemanifests.go
@@ -26,7 +26,6 @@ import (
 	"github.com/operator-framework/operator-sdk/internal/generate/clusterserviceversion/bases"
 	"github.com/operator-framework/operator-sdk/internal/generate/collector"
 	genpkg "github.com/operator-framework/operator-sdk/internal/generate/packagemanifest"
-	"github.com/operator-framework/operator-sdk/internal/util/projutil"
 )
 
 const (
@@ -78,21 +77,9 @@ https://github.com/operator-framework/operator-registry/#manifest-format
 const defaultRootDir = "packagemanifests"
 
 // setDefaults sets command defaults.
-func (c *packagemanifestsCmd) setDefaults() error {
-	if projutil.HasProjectFile() {
-		cfg, err := projutil.ReadConfig()
-		if err != nil {
-			return err
-		}
-		if c.packageName == "" {
-			c.packageName = cfg.ProjectName
-		}
-		c.layout = projutil.GetProjectLayout(cfg)
-	} else {
-		if c.packageName == "" {
-			return fmt.Errorf("package name is required if PROJECT config file is not present")
-		}
-		c.layout = "unknown"
+func (c *packagemanifestsCmd) setDefaults() (err error) {
+	if c.packageName, c.layout, err = genutil.GetPackageNameAndLayout(c.packageName); err != nil {
+		return err
 	}
 
 	if c.inputDir == "" {
@@ -103,6 +90,7 @@ func (c *packagemanifestsCmd) setDefaults() error {
 			c.outputDir = defaultRootDir
 		}
 	}
+
 	return nil
 }