diff --git a/src/basic_memory/cli/commands/project.py b/src/basic_memory/cli/commands/project.py
index 4c63126d..4297a341 100644
--- a/src/basic_memory/cli/commands/project.py
+++ b/src/basic_memory/cli/commands/project.py
@@ -9,7 +9,6 @@ from rich.console import Console
 from rich.table import Table
 
 from basic_memory.cli.app import app
-from basic_memory.config import config
 from basic_memory.mcp.project_session import session
 from basic_memory.mcp.resources.project_info import project_info
 import json
@@ -24,6 +23,7 @@ from basic_memory.mcp.tools.utils import call_post
 from basic_memory.schemas.project_info import ProjectStatusResponse
 from basic_memory.mcp.tools.utils import call_delete
 from basic_memory.mcp.tools.utils import call_put
+from basic_memory.utils import generate_permalink
 
 console = Console()
 
@@ -44,11 +44,8 @@ def format_path(path: str) -> str:
 def list_projects() -> None:
     """List all configured projects."""
     # Use API to list projects
-
-    project_url = config.project_url
-
     try:
-        response = asyncio.run(call_get(client, f"{project_url}/project/projects"))
+        response = asyncio.run(call_get(client, "/projects/projects"))
         result = ProjectList.model_validate(response.json())
 
         table = Table(title="Basic Memory Projects")
@@ -65,7 +62,6 @@ def list_projects() -> None:
         console.print(table)
     except Exception as e:
         console.print(f"[red]Error listing projects: {str(e)}[/red]")
-        console.print("[yellow]Note: Make sure the Basic Memory server is running.[/yellow]")
         raise typer.Exit(1)
 
 
@@ -80,16 +76,14 @@ def add_project(
     resolved_path = os.path.abspath(os.path.expanduser(path))
 
     try:
-        project_url = config.project_url
         data = {"name": name, "path": resolved_path, "set_default": set_default}
 
-        response = asyncio.run(call_post(client, f"{project_url}/project/projects", json=data))
+        response = asyncio.run(call_post(client, "/projects/projects", json=data))
         result = ProjectStatusResponse.model_validate(response.json())
 
         console.print(f"[green]{result.message}[/green]")
     except Exception as e:
         console.print(f"[red]Error adding project: {str(e)}[/red]")
-        console.print("[yellow]Note: Make sure the Basic Memory server is running.[/yellow]")
         raise typer.Exit(1)
 
     # Display usage hint
@@ -105,15 +99,13 @@ def remove_project(
 ) -> None:
     """Remove a project from configuration."""
     try:
-        project_url = config.project_url
-
-        response = asyncio.run(call_delete(client, f"{project_url}/project/projects/{name}"))
+        project_name = generate_permalink(name)
+        response = asyncio.run(call_delete(client, f"/projects/{project_name}"))
         result = ProjectStatusResponse.model_validate(response.json())
 
         console.print(f"[green]{result.message}[/green]")
     except Exception as e:
         console.print(f"[red]Error removing project: {str(e)}[/red]")
-        console.print("[yellow]Note: Make sure the Basic Memory server is running.[/yellow]")
         raise typer.Exit(1)
 
     # Show this message regardless of method used
@@ -126,20 +118,16 @@ def set_default_project(
 ) -> None:
     """Set the default project and activate it for the current session."""
     try:
-        project_url = config.project_url
+        project_name = generate_permalink(name)
 
-        response = asyncio.run(call_put(client, f"{project_url}/project/projects/{name}/default"))
+        response = asyncio.run(call_put(client, f"projects/{project_name}/default"))
         result = ProjectStatusResponse.model_validate(response.json())
 
         console.print(f"[green]{result.message}[/green]")
     except Exception as e:
         console.print(f"[red]Error setting default project: {str(e)}[/red]")
-        console.print("[yellow]Note: Make sure the Basic Memory server is running.[/yellow]")
         raise typer.Exit(1)
 
-    # Always activate it for the current session
-    os.environ["BASIC_MEMORY_PROJECT"] = name
-
     # Reload configuration to apply the change
     from importlib import reload
     from basic_memory import config as config_module
@@ -149,21 +137,18 @@ def set_default_project(
     console.print("[green]Project activated for current session[/green]")
 
 
-@project_app.command("sync")
+@project_app.command("sync-config")
 def synchronize_projects() -> None:
-    """Synchronize projects between configuration file and database."""
+    """Synchronize project config between configuration file and database."""
     # Call the API to synchronize projects
 
-    project_url = config.project_url
-
     try:
-        response = asyncio.run(call_post(client, f"{project_url}/project/sync"))
+        response = asyncio.run(call_post(client, "/projects/sync"))
         result = ProjectStatusResponse.model_validate(response.json())
 
         console.print(f"[green]{result.message}[/green]")
     except Exception as e:  # pragma: no cover
         console.print(f"[red]Error synchronizing projects: {str(e)}[/red]")
-        console.print("[yellow]Note: Make sure the Basic Memory server is running.[/yellow]")
         raise typer.Exit(1)
 
 
diff --git a/src/basic_memory/mcp/tools/project_management.py b/src/basic_memory/mcp/tools/project_management.py
index bcc72f08..a9a72ff0 100644
--- a/src/basic_memory/mcp/tools/project_management.py
+++ b/src/basic_memory/mcp/tools/project_management.py
@@ -16,6 +16,7 @@ from basic_memory.mcp.server import mcp
 from basic_memory.mcp.tools.utils import call_get, call_put, call_post, call_delete
 from basic_memory.schemas import ProjectInfoResponse
 from basic_memory.schemas.project_info import ProjectList, ProjectStatusResponse, ProjectInfoRequest
+from basic_memory.utils import generate_permalink
 
 
 @mcp.tool()
@@ -77,6 +78,7 @@ async def switch_project(project_name: str, ctx: Context | None = None) -> str:
     if ctx:  # pragma: no cover
         await ctx.info(f"Switching to project: {project_name}")
 
+    project_permalink = generate_permalink(project_name)
     current_project = session.get_current_project()
     try:
         # Validate project exists by getting project list
@@ -84,13 +86,13 @@ async def switch_project(project_name: str, ctx: Context | None = None) -> str:
         project_list = ProjectList.model_validate(response.json())
 
         # Check if project exists
-        project_exists = any(p.name == project_name for p in project_list.projects)
+        project_exists = any(p.permalink == project_permalink for p in project_list.projects)
         if not project_exists:
             available_projects = [p.name for p in project_list.projects]
             return f"Error: Project '{project_name}' not found. Available projects: {', '.join(available_projects)}"
 
         # Switch to the project
-        session.set_current_project(project_name)
+        session.set_current_project(project_permalink)
         current_project = session.get_current_project()
         project_config = get_project_config(current_project)
 
@@ -99,11 +101,11 @@ async def switch_project(project_name: str, ctx: Context | None = None) -> str:
             response = await call_get(
                 client,
                 f"{project_config.project_url}/project/info",
-                params={"project_name": project_name},
+                params={"project_name": project_permalink},
             )
             project_info = ProjectInfoResponse.model_validate(response.json())
 
-            result = f"✓ Switched to {project_name} project\n\n"
+            result = f"✓ Switched to {project_permalink} project\n\n"
             result += "Project Summary:\n"
             result += f"• {project_info.statistics.total_entities} entities\n"
             result += f"• {project_info.statistics.total_observations} observations\n"
@@ -329,4 +331,4 @@ async def delete_project(project_name: str, ctx: Context | None = None) -> str:
     result += "Files remain on disk but project is no longer tracked by Basic Memory.\n"
     result += "Re-add the project to access its content again.\n"
 
-    return add_project_metadata(result, session.get_current_project())
+    return add_project_metadata(result, session.get_current_project())
\ No newline at end of file
diff --git a/src/basic_memory/schemas/project_info.py b/src/basic_memory/schemas/project_info.py
index 2ac8053d..8072431b 100644
--- a/src/basic_memory/schemas/project_info.py
+++ b/src/basic_memory/schemas/project_info.py
@@ -6,6 +6,8 @@ from typing import Dict, List, Optional, Any
 
 from pydantic import Field, BaseModel
 
+from basic_memory.utils import generate_permalink
+
 
 class ProjectStatistics(BaseModel):
     """Statistics about the current project."""
@@ -183,6 +185,10 @@ class ProjectItem(BaseModel):
     name: str
     path: str
     is_default: bool = False
+    
+    @property
+    def permalink(self) -> str: # pragma: no cover
+        return generate_permalink(self.name)
 
 
 class ProjectList(BaseModel):
diff --git a/src/basic_memory/services/project_service.py b/src/basic_memory/services/project_service.py
index e677ea7e..8f76db5d 100644
--- a/src/basic_memory/services/project_service.py
+++ b/src/basic_memory/services/project_service.py
@@ -207,7 +207,7 @@ class ProjectService:
 
         # Get all projects from database
         db_projects = await self.repository.get_active_projects()
-        db_projects_by_name = {p.name: p for p in db_projects}
+        db_projects_by_permalink = {p.permalink: p for p in db_projects}
 
         # Get all projects from configuration and normalize names if needed
         config_projects = config_manager.projects.copy()
@@ -235,7 +235,7 @@ class ProjectService:
 
         # Add projects that exist in config but not in DB
         for name, path in config_projects.items():
-            if name not in db_projects_by_name:
+            if name not in db_projects_by_permalink:
                 logger.info(f"Adding project '{name}' to database")
                 project_data = {
                     "name": name,
@@ -247,7 +247,7 @@ class ProjectService:
                 await self.repository.create(project_data)
 
         # Add projects that exist in DB but not in config to config
-        for name, project in db_projects_by_name.items():
+        for name, project in db_projects_by_permalink.items():
             if name not in config_projects:
                 logger.info(f"Adding project '{name}' to configuration")
                 config_manager.add_project(name, project.path)
@@ -668,4 +668,4 @@ class ProjectService:
             database_size=db_size_readable,
             watch_status=watch_status,
             timestamp=datetime.now(),
-        )
+        )
\ No newline at end of file
diff --git a/tests/cli/test_project_commands.py b/tests/cli/test_project_commands.py
index f64cf120..4af7c9ae 100644
--- a/tests/cli/test_project_commands.py
+++ b/tests/cli/test_project_commands.py
@@ -93,8 +93,6 @@ def test_project_default_command(mock_reload, mock_run, cli_env):
 
             # Just verify it runs without exception and environment is set
             assert result.exit_code == 0
-            assert "BASIC_MEMORY_PROJECT" in os.environ
-            assert os.environ["BASIC_MEMORY_PROJECT"] == "test-project"
 
 
 @patch("basic_memory.cli.commands.project.asyncio.run")
@@ -111,7 +109,7 @@ def test_project_sync_command(mock_run, cli_env):
     mock_run.return_value = mock_response
 
     runner = CliRunner()
-    result = runner.invoke(cli_app, ["project", "sync"])
+    result = runner.invoke(cli_app, ["project", "sync-config"])
 
     # Just verify it runs without exception
     assert result.exit_code == 0
@@ -134,7 +132,6 @@ def test_project_failure_exits_with_error(mock_run, cli_env):
     # All should exit with code 1 and show error message
     assert list_result.exit_code == 1
     assert "Error listing projects" in list_result.output
-    assert "Make sure the Basic Memory server is running" in list_result.output
 
     assert add_result.exit_code == 1
     assert "Error adding project" in add_result.output
diff --git a/tests/conftest.py b/tests/conftest.py
index a989a707..c8f7d8fd 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -105,7 +105,6 @@ def config_manager(
     )
 
     # Patch the project config that CLI commands import (only modules that actually import config)
-    monkeypatch.setattr("basic_memory.cli.commands.project.config", project_config)
     monkeypatch.setattr("basic_memory.cli.commands.sync.config", project_config)
     monkeypatch.setattr("basic_memory.cli.commands.status.config", project_config)
     monkeypatch.setattr("basic_memory.cli.commands.import_memory_json.config", project_config)