diff --git a/src/basic_memory/cli/commands/import_chatgpt.py b/src/basic_memory/cli/commands/import_chatgpt.py
index d695490b..c9d7a859 100644
--- a/src/basic_memory/cli/commands/import_chatgpt.py
+++ b/src/basic_memory/cli/commands/import_chatgpt.py
@@ -60,7 +60,9 @@ def import_chatgpt(
         console.print(f"\nImporting chats from {conversations_json}...writing to {base_path}")
 
         # Create importer and run import
-        importer = ChatGPTImporter(config.home, markdown_processor, file_service)
+        importer = ChatGPTImporter(
+            config.home, markdown_processor, file_service, project_name=config.name
+        )
         with conversations_json.open("r", encoding="utf-8") as file:
             json_data = json.load(file)
             result = run_with_cleanup(importer.import_data(json_data, folder))
diff --git a/src/basic_memory/cli/commands/import_claude_conversations.py b/src/basic_memory/cli/commands/import_claude_conversations.py
index 8ddfb858..4dee5e0e 100644
--- a/src/basic_memory/cli/commands/import_claude_conversations.py
+++ b/src/basic_memory/cli/commands/import_claude_conversations.py
@@ -57,7 +57,9 @@ def import_claude(
         markdown_processor, file_service = run_with_cleanup(get_importer_dependencies())
 
         # Create the importer
-        importer = ClaudeConversationsImporter(config.home, markdown_processor, file_service)
+        importer = ClaudeConversationsImporter(
+            config.home, markdown_processor, file_service, project_name=config.name
+        )
 
         # Process the file
         base_path = config.home / folder
diff --git a/src/basic_memory/cli/commands/import_claude_projects.py b/src/basic_memory/cli/commands/import_claude_projects.py
index d13ee94e..94a8665b 100644
--- a/src/basic_memory/cli/commands/import_claude_projects.py
+++ b/src/basic_memory/cli/commands/import_claude_projects.py
@@ -56,7 +56,9 @@ def import_projects(
         markdown_processor, file_service = run_with_cleanup(get_importer_dependencies())
 
         # Create the importer
-        importer = ClaudeProjectsImporter(config.home, markdown_processor, file_service)
+        importer = ClaudeProjectsImporter(
+            config.home, markdown_processor, file_service, project_name=config.name
+        )
 
         # Process the file
         base_path = config.home / base_folder if base_folder else config.home
diff --git a/src/basic_memory/cli/commands/import_memory_json.py b/src/basic_memory/cli/commands/import_memory_json.py
index 72c51d80..ddb72262 100644
--- a/src/basic_memory/cli/commands/import_memory_json.py
+++ b/src/basic_memory/cli/commands/import_memory_json.py
@@ -55,7 +55,9 @@ def memory_json(
         markdown_processor, file_service = run_with_cleanup(get_importer_dependencies())
 
         # Create the importer
-        importer = MemoryJsonImporter(config.home, markdown_processor, file_service)
+        importer = MemoryJsonImporter(
+            config.home, markdown_processor, file_service, project_name=config.name
+        )
 
         # Process the file
         base_path = config.home if not destination_folder else config.home / destination_folder
diff --git a/src/basic_memory/config.py b/src/basic_memory/config.py
index 43f4227a..6f4ad30e 100644
--- a/src/basic_memory/config.py
+++ b/src/basic_memory/config.py
@@ -196,6 +196,11 @@ class BasicMemoryConfig(BaseSettings):
         description="Disable automatic permalink generation in frontmatter. When enabled, new notes won't have permalinks added and sync won't update permalinks. Existing permalinks will still work for reading.",
     )
 
+    permalinks_include_project: bool = Field(
+        default=True,
+        description="When True, generated permalinks are prefixed with the project slug (e.g., 'specs/search'). Existing permalinks remain unchanged unless explicitly updated.",
+    )
+
     skip_initialization_sync: bool = Field(
         default=False,
         description="Skip expensive initialization synchronization. Useful for cloud/stateless deployments where project reconciliation is not needed.",
diff --git a/src/basic_memory/deps/importers.py b/src/basic_memory/deps/importers.py
index 2209192c..bddeff78 100644
--- a/src/basic_memory/deps/importers.py
+++ b/src/basic_memory/deps/importers.py
@@ -41,7 +41,12 @@ async def get_chatgpt_importer(
     file_service: FileServiceDep,
 ) -> ChatGPTImporter:
     """Create ChatGPTImporter with dependencies."""
-    return ChatGPTImporter(project_config.home, markdown_processor, file_service)
+    return ChatGPTImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ChatGPTImporterDep = Annotated[ChatGPTImporter, Depends(get_chatgpt_importer)]
@@ -53,7 +58,12 @@ async def get_chatgpt_importer_v2(  # pragma: no cover
     file_service: FileServiceV2Dep,
 ) -> ChatGPTImporter:
     """Create ChatGPTImporter with v2 dependencies."""
-    return ChatGPTImporter(project_config.home, markdown_processor, file_service)
+    return ChatGPTImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ChatGPTImporterV2Dep = Annotated[ChatGPTImporter, Depends(get_chatgpt_importer_v2)]
@@ -65,7 +75,12 @@ async def get_chatgpt_importer_v2_external(
     file_service: FileServiceV2ExternalDep,
 ) -> ChatGPTImporter:
     """Create ChatGPTImporter with v2 external_id dependencies."""
-    return ChatGPTImporter(project_config.home, markdown_processor, file_service)
+    return ChatGPTImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ChatGPTImporterV2ExternalDep = Annotated[ChatGPTImporter, Depends(get_chatgpt_importer_v2_external)]
@@ -80,7 +95,12 @@ async def get_claude_conversations_importer(
     file_service: FileServiceDep,
 ) -> ClaudeConversationsImporter:
     """Create ClaudeConversationsImporter with dependencies."""
-    return ClaudeConversationsImporter(project_config.home, markdown_processor, file_service)
+    return ClaudeConversationsImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ClaudeConversationsImporterDep = Annotated[
@@ -94,7 +114,12 @@ async def get_claude_conversations_importer_v2(  # pragma: no cover
     file_service: FileServiceV2Dep,
 ) -> ClaudeConversationsImporter:
     """Create ClaudeConversationsImporter with v2 dependencies."""
-    return ClaudeConversationsImporter(project_config.home, markdown_processor, file_service)
+    return ClaudeConversationsImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ClaudeConversationsImporterV2Dep = Annotated[
@@ -108,7 +133,12 @@ async def get_claude_conversations_importer_v2_external(
     file_service: FileServiceV2ExternalDep,
 ) -> ClaudeConversationsImporter:
     """Create ClaudeConversationsImporter with v2 external_id dependencies."""
-    return ClaudeConversationsImporter(project_config.home, markdown_processor, file_service)
+    return ClaudeConversationsImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ClaudeConversationsImporterV2ExternalDep = Annotated[
@@ -125,7 +155,12 @@ async def get_claude_projects_importer(
     file_service: FileServiceDep,
 ) -> ClaudeProjectsImporter:
     """Create ClaudeProjectsImporter with dependencies."""
-    return ClaudeProjectsImporter(project_config.home, markdown_processor, file_service)
+    return ClaudeProjectsImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ClaudeProjectsImporterDep = Annotated[ClaudeProjectsImporter, Depends(get_claude_projects_importer)]
@@ -137,7 +172,12 @@ async def get_claude_projects_importer_v2(  # pragma: no cover
     file_service: FileServiceV2Dep,
 ) -> ClaudeProjectsImporter:
     """Create ClaudeProjectsImporter with v2 dependencies."""
-    return ClaudeProjectsImporter(project_config.home, markdown_processor, file_service)
+    return ClaudeProjectsImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ClaudeProjectsImporterV2Dep = Annotated[
@@ -151,7 +191,12 @@ async def get_claude_projects_importer_v2_external(
     file_service: FileServiceV2ExternalDep,
 ) -> ClaudeProjectsImporter:
     """Create ClaudeProjectsImporter with v2 external_id dependencies."""
-    return ClaudeProjectsImporter(project_config.home, markdown_processor, file_service)
+    return ClaudeProjectsImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 ClaudeProjectsImporterV2ExternalDep = Annotated[
@@ -168,7 +213,12 @@ async def get_memory_json_importer(
     file_service: FileServiceDep,
 ) -> MemoryJsonImporter:
     """Create MemoryJsonImporter with dependencies."""
-    return MemoryJsonImporter(project_config.home, markdown_processor, file_service)
+    return MemoryJsonImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 MemoryJsonImporterDep = Annotated[MemoryJsonImporter, Depends(get_memory_json_importer)]
@@ -180,7 +230,12 @@ async def get_memory_json_importer_v2(  # pragma: no cover
     file_service: FileServiceV2Dep,
 ) -> MemoryJsonImporter:
     """Create MemoryJsonImporter with v2 dependencies."""
-    return MemoryJsonImporter(project_config.home, markdown_processor, file_service)
+    return MemoryJsonImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 MemoryJsonImporterV2Dep = Annotated[MemoryJsonImporter, Depends(get_memory_json_importer_v2)]
@@ -192,7 +247,12 @@ async def get_memory_json_importer_v2_external(
     file_service: FileServiceV2ExternalDep,
 ) -> MemoryJsonImporter:
     """Create MemoryJsonImporter with v2 external_id dependencies."""
-    return MemoryJsonImporter(project_config.home, markdown_processor, file_service)
+    return MemoryJsonImporter(
+        project_config.home,
+        markdown_processor,
+        file_service,
+        project_name=project_config.name,
+    )
 
 
 MemoryJsonImporterV2ExternalDep = Annotated[
diff --git a/src/basic_memory/importers/base.py b/src/basic_memory/importers/base.py
index 72ddfac9..d3ba81d2 100644
--- a/src/basic_memory/importers/base.py
+++ b/src/basic_memory/importers/base.py
@@ -8,6 +8,7 @@ from typing import TYPE_CHECKING, Any, Optional, TypeVar
 from basic_memory.markdown.markdown_processor import MarkdownProcessor
 from basic_memory.markdown.schemas import EntityMarkdown
 from basic_memory.schemas.importer import ImportResult
+from basic_memory.utils import build_canonical_permalink, generate_permalink
 
 if TYPE_CHECKING:  # pragma: no cover
     from basic_memory.services.file_service import FileService
@@ -29,6 +30,7 @@ class Importer[T: ImportResult]:
         base_path: Path,
         markdown_processor: MarkdownProcessor,
         file_service: "FileService",
+        project_name: Optional[str] = None,
     ):
         """Initialize the import service.
 
@@ -40,6 +42,8 @@ class Importer[T: ImportResult]:
         self.base_path = base_path.resolve()  # Get absolute path
         self.markdown_processor = markdown_processor
         self.file_service = file_service
+        self.project_name = project_name
+        self.project_permalink = generate_permalink(project_name) if project_name else None
 
     @abstractmethod
     async def import_data(self, source_data, destination_folder: str, **kwargs: Any) -> T:
@@ -73,6 +77,26 @@ class Importer[T: ImportResult]:
         # FileService.write_file handles directory creation and returns checksum
         return await self.file_service.write_file(file_path, content)
 
+    def canonical_permalink(self, path: str) -> str:
+        """Build a canonical permalink for imported content."""
+        include_project = True
+        # Trigger: importer has app config with permalink prefixing flag
+        # Why: imported notes should align with canonical permalink format
+        # Outcome: include project prefix when enabled
+        if self.file_service.app_config is not None:
+            include_project = self.file_service.app_config.permalinks_include_project
+
+        return build_canonical_permalink(
+            self.project_permalink,
+            path,
+            include_project=include_project,
+        )
+
+    def build_import_paths(self, path: str) -> tuple[str, str]:
+        """Return (permalink, file_path) for an imported entity."""
+        permalink = self.canonical_permalink(path)
+        return permalink, f"{path}.md"
+
     async def ensure_folder_exists(self, folder: str) -> None:
         """Ensure folder exists using FileService.
 
diff --git a/src/basic_memory/importers/chatgpt_importer.py b/src/basic_memory/importers/chatgpt_importer.py
index 1184c1a3..97111bfd 100644
--- a/src/basic_memory/importers/chatgpt_importer.py
+++ b/src/basic_memory/importers/chatgpt_importer.py
@@ -51,11 +51,20 @@ class ChatGPTImporter(Importer[ChatImportResult]):
             chats_imported = 0
 
             for chat in conversations:
+                created_at = chat["create_time"]
+                date_prefix = datetime.fromtimestamp(created_at).astimezone().strftime("%Y%m%d")
+                clean_title = clean_filename(chat["title"])
+                relative_path = (
+                    f"{destination_folder}/{date_prefix}-{clean_title}"
+                    if destination_folder
+                    else f"{date_prefix}-{clean_title}"
+                )
+                permalink, file_path = self.build_import_paths(relative_path)
+
                 # Convert to entity
-                entity = self._format_chat_content(destination_folder, chat)
+                entity = self._format_chat_content(chat, permalink)
 
                 # Write file using relative path - FileService handles base_path
-                file_path = f"{entity.frontmatter.metadata['permalink']}.md"
                 await self.write_entity(entity, file_path)
 
                 # Count messages
@@ -83,7 +92,7 @@ class ChatGPTImporter(Importer[ChatImportResult]):
             return self.handle_error("Failed to import ChatGPT conversations", e)
 
     def _format_chat_content(
-        self, folder: str, conversation: Dict[str, Any]
+        self, conversation: Dict[str, Any], permalink: str
     ) -> EntityMarkdown:  # pragma: no cover
         """Convert chat conversation to Basic Memory entity.
 
@@ -105,10 +114,6 @@ class ChatGPTImporter(Importer[ChatImportResult]):
                 root_id = node_id
                 break
 
-        # Generate permalink
-        date_prefix = datetime.fromtimestamp(created_at).astimezone().strftime("%Y%m%d")
-        clean_title = clean_filename(conversation["title"])
-
         # Format content
         content = self._format_chat_markdown(
             title=conversation["title"],
@@ -126,7 +131,7 @@ class ChatGPTImporter(Importer[ChatImportResult]):
                     "title": conversation["title"],
                     "created": format_timestamp(created_at),
                     "modified": format_timestamp(modified_at),
-                    "permalink": f"{folder}/{date_prefix}-{clean_title}",
+                    "permalink": permalink,
                 }
             ),
             content=content,
diff --git a/src/basic_memory/importers/claude_conversations_importer.py b/src/basic_memory/importers/claude_conversations_importer.py
index 5e89ad0e..ab6f88e2 100644
--- a/src/basic_memory/importers/claude_conversations_importer.py
+++ b/src/basic_memory/importers/claude_conversations_importer.py
@@ -54,18 +54,27 @@ class ClaudeConversationsImporter(Importer[ChatImportResult]):
             for chat in conversations:
                 # Get name, providing default for unnamed conversations
                 chat_name = chat.get("name") or f"Conversation {chat.get('uuid', 'untitled')}"
+                date_prefix = datetime.fromisoformat(chat["created_at"].replace("Z", "+00:00")).strftime(
+                    "%Y%m%d"
+                )
+                clean_title = clean_filename(chat_name)
+                relative_path = (
+                    f"{destination_folder}/{date_prefix}-{clean_title}"
+                    if destination_folder
+                    else f"{date_prefix}-{clean_title}"
+                )
+                permalink, file_path = self.build_import_paths(relative_path)
 
                 # Convert to entity
                 entity = self._format_chat_content(
-                    folder=destination_folder,
                     name=chat_name,
                     messages=chat["chat_messages"],
                     created_at=chat["created_at"],
                     modified_at=chat["updated_at"],
+                    permalink=permalink,
                 )
 
                 # Write file using relative path - FileService handles base_path
-                file_path = f"{entity.frontmatter.metadata['permalink']}.md"
                 await self.write_entity(entity, file_path)
 
                 chats_imported += 1
@@ -84,11 +93,11 @@ class ClaudeConversationsImporter(Importer[ChatImportResult]):
 
     def _format_chat_content(
         self,
-        folder: str,
         name: str,
         messages: List[Dict[str, Any]],
         created_at: str,
         modified_at: str,
+        permalink: str,
     ) -> EntityMarkdown:
         """Convert chat messages to Basic Memory entity format.
 
@@ -102,11 +111,6 @@ class ClaudeConversationsImporter(Importer[ChatImportResult]):
         Returns:
             EntityMarkdown instance representing the conversation.
         """
-        # Generate permalink using folder name (relative path)
-        date_prefix = datetime.fromisoformat(created_at.replace("Z", "+00:00")).strftime("%Y%m%d")
-        clean_title = clean_filename(name)
-        permalink = f"{folder}/{date_prefix}-{clean_title}"
-
         # Format content
         content = self._format_chat_markdown(
             name=name,
diff --git a/src/basic_memory/importers/claude_projects_importer.py b/src/basic_memory/importers/claude_projects_importer.py
index 3e914083..656ccbcc 100644
--- a/src/basic_memory/importers/claude_projects_importer.py
+++ b/src/basic_memory/importers/claude_projects_importer.py
@@ -63,17 +63,27 @@ class ClaudeProjectsImporter(Importer[ProjectImportResult]):
                 await self.file_service.ensure_directory(docs_dir)
 
                 # Import prompt template if it exists
-                if prompt_entity := self._format_prompt_markdown(project, destination_folder):
-                    # Write file using relative path - FileService handles base_path
-                    file_path = f"{prompt_entity.frontmatter.metadata['permalink']}.md"
+                if project.get("prompt_template"):
+                    prompt_path = (
+                        f"{destination_folder}/{project_dir}/prompt-template"
+                        if destination_folder
+                        else f"{project_dir}/prompt-template"
+                    )
+                    permalink, file_path = self.build_import_paths(prompt_path)
+                    prompt_entity = self._format_prompt_markdown(project, permalink)
                     await self.write_entity(prompt_entity, file_path)
                     prompts_imported += 1
 
                 # Import project documents
                 for doc in project.get("docs", []):
-                    entity = self._format_project_markdown(project, doc, destination_folder)
-                    # Write file using relative path - FileService handles base_path
-                    file_path = f"{entity.frontmatter.metadata['permalink']}.md"
+                    doc_file = clean_filename(doc["filename"])
+                    doc_path = (
+                        f"{destination_folder}/{project_dir}/docs/{doc_file}"
+                        if destination_folder
+                        else f"{project_dir}/docs/{doc_file}"
+                    )
+                    permalink, file_path = self.build_import_paths(doc_path)
+                    entity = self._format_project_markdown(project, doc, permalink)
                     await self.write_entity(entity, file_path)
                     docs_imported += 1
 
@@ -89,7 +99,7 @@ class ClaudeProjectsImporter(Importer[ProjectImportResult]):
             return self.handle_error("Failed to import Claude projects", e)
 
     def _format_project_markdown(
-        self, project: Dict[str, Any], doc: Dict[str, Any], destination_folder: str = ""
+        self, project: Dict[str, Any], doc: Dict[str, Any], permalink: str
     ) -> EntityMarkdown:
         """Format a project document as a Basic Memory entity.
 
@@ -105,17 +115,6 @@ class ClaudeProjectsImporter(Importer[ProjectImportResult]):
         created_at = doc.get("created_at") or project["created_at"]
         modified_at = project["updated_at"]
 
-        # Generate clean names for organization
-        project_dir = clean_filename(project["name"])
-        doc_file = clean_filename(doc["filename"])
-
-        # Build permalink with optional destination folder prefix
-        permalink = (
-            f"{destination_folder}/{project_dir}/docs/{doc_file}"
-            if destination_folder
-            else f"{project_dir}/docs/{doc_file}"
-        )
-
         # Create entity
         entity = EntityMarkdown(
             frontmatter=EntityFrontmatter(
@@ -136,7 +135,7 @@ class ClaudeProjectsImporter(Importer[ProjectImportResult]):
         return entity
 
     def _format_prompt_markdown(
-        self, project: Dict[str, Any], destination_folder: str = ""
+        self, project: Dict[str, Any], permalink: str
     ) -> Optional[EntityMarkdown]:
         """Format project prompt template as a Basic Memory entity.
 
@@ -155,16 +154,6 @@ class ClaudeProjectsImporter(Importer[ProjectImportResult]):
         created_at = project["created_at"]
         modified_at = project["updated_at"]
 
-        # Generate clean project directory name
-        project_dir = clean_filename(project["name"])
-
-        # Build permalink with optional destination folder prefix
-        permalink = (
-            f"{destination_folder}/{project_dir}/prompt-template"
-            if destination_folder
-            else f"{project_dir}/prompt-template"
-        )
-
         # Create entity
         entity = EntityMarkdown(
             frontmatter=EntityFrontmatter(
diff --git a/src/basic_memory/importers/memory_json_importer.py b/src/basic_memory/importers/memory_json_importer.py
index 579a7db2..1dcba387 100644
--- a/src/basic_memory/importers/memory_json_importer.py
+++ b/src/basic_memory/importers/memory_json_importer.py
@@ -80,11 +80,12 @@ class MemoryJsonImporter(Importer[EntityImportResult]):
                 entity_type = entity_data.get("entityType") or entity_data.get("type") or "entity"
 
                 # Build permalink with optional destination folder prefix
-                permalink = (
+                relative_path = (
                     f"{destination_folder}/{entity_type}/{name}"
                     if destination_folder
                     else f"{entity_type}/{name}"
                 )
+                permalink, file_path = self.build_import_paths(relative_path)
 
                 # Ensure entity type directory exists using FileService with relative path
                 entity_type_dir = (
@@ -109,7 +110,6 @@ class MemoryJsonImporter(Importer[EntityImportResult]):
                 )
 
                 # Write file using relative path - FileService handles base_path
-                file_path = f"{entity.frontmatter.metadata['permalink']}.md"
                 await self.write_entity(entity, file_path)
                 entities_created += 1
 
diff --git a/src/basic_memory/markdown/plugins.py b/src/basic_memory/markdown/plugins.py
index 3bdc0682..a23bcebf 100644
--- a/src/basic_memory/markdown/plugins.py
+++ b/src/basic_memory/markdown/plugins.py
@@ -1,6 +1,8 @@
 """Markdown-it plugins for Basic Memory markdown parsing."""
 
 from typing import List, Any, Dict
+
+from basic_memory.utils import normalize_project_reference
 from markdown_it import MarkdownIt
 from markdown_it.token import Token
 
@@ -114,7 +116,7 @@ def parse_relation(token: Token) -> Dict[str, Any] | None:
             rel_type = before
 
         # Get target
-        target = content[start + 2 : end].strip()
+        target = normalize_project_reference(content[start + 2 : end].strip())
 
         # Look for context after
         after = content[end + 2 :].strip()
@@ -160,7 +162,7 @@ def parse_inline_relations(content: str) -> List[Dict[str, Any]]:
             # No matching ]] found
             break
 
-        target = content[start + 2 : end].strip()
+        target = normalize_project_reference(content[start + 2 : end].strip())
         if target:
             relations.append({"type": "links_to", "target": target, "context": None})
 
diff --git a/src/basic_memory/mcp/project_context.py b/src/basic_memory/mcp/project_context.py
index 18f6cff1..9e4b1447 100644
--- a/src/basic_memory/mcp/project_context.py
+++ b/src/basic_memory/mcp/project_context.py
@@ -17,11 +17,14 @@ from httpx._types import (
 )
 from loguru import logger
 from fastmcp import Context
+from mcp.server.fastmcp.exceptions import ToolError
 
 from basic_memory.config import ConfigManager
 from basic_memory.project_resolver import ProjectResolver
 from basic_memory.schemas.project_info import ProjectItem, ProjectList
 from basic_memory.schemas.v2 import ProjectResolveResponse
+from basic_memory.schemas.memory import memory_url_path
+from basic_memory.utils import generate_permalink, normalize_project_reference
 
 
 async def resolve_project_parameter(
@@ -150,6 +153,98 @@ async def get_active_project(
     return active_project
 
 
+def _split_project_prefix(path: str) -> tuple[Optional[str], str]:
+    """Split a possible project prefix from a memory URL path."""
+    if "/" not in path:
+        return None, path
+
+    project_prefix, remainder = path.split("/", 1)
+    if not project_prefix or not remainder:
+        return None, path
+
+    if "*" in project_prefix:
+        return None, path
+
+    return project_prefix, remainder
+
+
+async def resolve_project_and_path(
+    client: AsyncClient,
+    identifier: str,
+    project: Optional[str] = None,
+    context: Optional[Context] = None,
+    headers: HeaderTypes | None = None,
+) -> tuple[ProjectItem, str, bool]:
+    """Resolve project and normalized path for memory:// identifiers.
+
+    Returns:
+        Tuple of (active_project, normalized_path, is_memory_url)
+    """
+    is_memory_url = identifier.strip().startswith("memory://")
+    if not is_memory_url:
+        active_project = await get_active_project(client, project, context, headers)
+        return active_project, identifier, False
+
+    normalized_path = normalize_project_reference(memory_url_path(identifier))
+    project_prefix, remainder = _split_project_prefix(normalized_path)
+    include_project = ConfigManager().config.permalinks_include_project
+
+    # Trigger: memory URL begins with a potential project segment
+    # Why: allow project-scoped memory URLs without requiring a separate project parameter
+    # Outcome: attempt to resolve the prefix as a project and route to it
+    if project_prefix:
+        try:
+            from basic_memory.mcp.tools.utils import call_post
+
+            response = await call_post(
+                client,
+                "/v2/projects/resolve",
+                json={"identifier": project_prefix},
+                headers=headers,
+            )
+            resolved = ProjectResolveResponse.model_validate(response.json())
+        except ToolError as exc:
+            if "project not found" not in str(exc).lower():
+                raise
+        else:
+            resolved_project = await resolve_project_parameter(project_prefix)
+            if resolved_project and generate_permalink(resolved_project) != generate_permalink(
+                project_prefix
+            ):
+                raise ValueError(
+                    f"Project is constrained to '{resolved_project}', cannot use '{project_prefix}'."
+                )
+
+            active_project = ProjectItem(
+                id=resolved.project_id,
+                external_id=resolved.external_id,
+                name=resolved.name,
+                path=resolved.path,
+                is_default=resolved.is_default,
+            )
+            if context:
+                context.set_state("active_project", active_project)
+
+            resolved_path = (
+                f"{resolved.permalink}/{remainder}" if include_project else remainder
+            )
+            return active_project, resolved_path, True
+
+    # Trigger: no resolvable project prefix in the memory URL
+    # Why: preserve existing memory URL behavior within the active project
+    # Outcome: use the active project and normalize the path for lookup
+    active_project = await get_active_project(client, project, context, headers)
+    resolved_path = normalized_path
+    if include_project:
+        # Trigger: project-prefixed permalinks are enabled and the path lacks a prefix
+        # Why: ensure memory URL lookups align with canonical permalinks
+        # Outcome: prefix the path with the active project's permalink
+        project_prefix = active_project.permalink
+        if resolved_path != project_prefix and not resolved_path.startswith(f"{project_prefix}/"):
+            resolved_path = f"{project_prefix}/{resolved_path}"
+    return active_project, resolved_path, True
+
+
 def add_project_metadata(result: str, project_name: str) -> str:
     """Add project context as metadata footer for assistant session tracking.
 
diff --git a/src/basic_memory/mcp/tools/build_context.py b/src/basic_memory/mcp/tools/build_context.py
index a43c0974..579553fc 100644
--- a/src/basic_memory/mcp/tools/build_context.py
+++ b/src/basic_memory/mcp/tools/build_context.py
@@ -5,14 +5,10 @@ from typing import Optional
 from loguru import logger
 from fastmcp import Context
 
-from basic_memory.mcp.project_context import get_project_client
+from basic_memory.mcp.project_context import get_project_client, resolve_project_and_path
 from basic_memory.mcp.server import mcp
 from basic_memory.schemas.base import TimeFrame
-from basic_memory.schemas.memory import (
-    GraphContext,
-    MemoryUrl,
-    memory_url_path,
-)
+from basic_memory.schemas.memory import GraphContext, MemoryUrl
 
 
 @mcp.tool(
@@ -100,13 +96,18 @@ async def build_context(
     # URL is already validated and normalized by MemoryUrl type annotation
 
     async with get_project_client(project, context) as (client, active_project):
+        # Resolve memory:// identifier with project-prefix awareness
+        _, resolved_path, _ = await resolve_project_and_path(
+            client, url, project, context
+        )
+
         # Import here to avoid circular import
         from basic_memory.mcp.clients import MemoryClient
 
         # Use typed MemoryClient for API calls
         memory_client = MemoryClient(client, active_project.external_id)
         return await memory_client.build_context(
-            memory_url_path(url),
+            resolved_path,
             depth=depth or 1,
             timeframe=timeframe,
             page=page,
diff --git a/src/basic_memory/mcp/tools/read_content.py b/src/basic_memory/mcp/tools/read_content.py
index 01b892eb..87925b96 100644
--- a/src/basic_memory/mcp/tools/read_content.py
+++ b/src/basic_memory/mcp/tools/read_content.py
@@ -15,10 +15,9 @@ from PIL import Image as PILImage
 from fastmcp import Context
 from mcp.server.fastmcp.exceptions import ToolError
 
-from basic_memory.mcp.project_context import get_project_client
+from basic_memory.mcp.project_context import get_project_client, resolve_project_and_path
 from basic_memory.mcp.server import mcp
 from basic_memory.mcp.tools.utils import call_get, resolve_entity_id
-from basic_memory.schemas.memory import memory_url_path
 from basic_memory.utils import validate_project_path
 
 
@@ -202,7 +201,8 @@ async def read_content(
     logger.info("Reading file", path=path, project=project)
 
     async with get_project_client(project, context) as (client, active_project):
-        url = memory_url_path(path)
+        # Resolve path with project-prefix awareness for memory:// URLs
+        _, url, _ = await resolve_project_and_path(client, path, project, context)
 
         # Validate path to prevent path traversal attacks
         project_path = active_project.home
diff --git a/src/basic_memory/mcp/tools/read_note.py b/src/basic_memory/mcp/tools/read_note.py
index 1dfec6d0..860e6827 100644
--- a/src/basic_memory/mcp/tools/read_note.py
+++ b/src/basic_memory/mcp/tools/read_note.py
@@ -6,11 +6,10 @@ from typing import Optional, Literal
 from loguru import logger
 from fastmcp import Context
 
-from basic_memory.mcp.project_context import get_project_client
+from basic_memory.mcp.project_context import get_project_client, resolve_project_and_path
 from basic_memory.mcp.server import mcp
 from basic_memory.mcp.formatting import format_note_preview_ascii
 from basic_memory.mcp.tools.search import search_notes
-from basic_memory.schemas.memory import memory_url_path
 from basic_memory.utils import validate_project_path
 
 
@@ -82,9 +81,14 @@ async def read_note(
         including related notes, search commands, and note creation templates.
     """
     async with get_project_client(project, context) as (client, active_project):
+        # Resolve identifier with project-prefix awareness for memory:// URLs
+        _, entity_path, _ = await resolve_project_and_path(
+            client, identifier, project, context
+        )
+
         # Validate identifier to prevent path traversal attacks
         # We need to check both the raw identifier and the processed path
-        processed_path = memory_url_path(identifier)
+        processed_path = entity_path
         project_path = active_project.home
 
         if not validate_project_path(identifier, project_path) or not validate_project_path(
@@ -99,7 +103,6 @@ async def read_note(
             return f"# Error\n\nIdentifier '{identifier}' is not allowed - paths must stay within project boundaries"
 
         # Get the file via REST API - first try direct identifier resolution
-        entity_path = memory_url_path(identifier)
         logger.info(
             f"Attempting to read note from Project: {active_project.name} identifier: {entity_path}"
         )
@@ -135,7 +138,10 @@ async def read_note(
         # Fallback 1: Try title search via API
         logger.info(f"Search title for: {identifier}")
         title_results = await search_notes.fn(
-            query=identifier, search_type="title", project=project, context=context
+            query=identifier,
+            search_type="title",
+            project=active_project.name,
+            context=context,
         )
 
         # Handle both SearchResponse object and error strings
@@ -170,7 +176,10 @@ async def read_note(
         # Fallback 2: Text search as a last resort
         logger.info(f"Title search failed, trying text search for: {identifier}")
         text_results = await search_notes.fn(
-            query=identifier, search_type="text", project=project, context=context
+            query=identifier,
+            search_type="text",
+            project=active_project.name,
+            context=context,
         )
 
         # We didn't find a direct match, construct a helpful error message
diff --git a/src/basic_memory/mcp/tools/search.py b/src/basic_memory/mcp/tools/search.py
index f3abff7f..d325d66a 100644
--- a/src/basic_memory/mcp/tools/search.py
+++ b/src/basic_memory/mcp/tools/search.py
@@ -6,7 +6,7 @@ from typing import List, Optional, Dict, Any, Literal
 from loguru import logger
 from fastmcp import Context
 
-from basic_memory.mcp.project_context import get_project_client
+from basic_memory.mcp.project_context import get_project_client, resolve_project_and_path
 from basic_memory.mcp.formatting import format_search_results_ascii
 from basic_memory.mcp.server import mcp
 from basic_memory.schemas.search import (
@@ -399,42 +399,50 @@ async def search_notes(
     types = types or []
     entity_types = entity_types or []
 
-    # Create a SearchQuery object based on the parameters
-    search_query = SearchQuery()
-
-    # Set the appropriate search field based on search_type
-    if search_type == "text":
-        search_query.text = query
-    elif search_type == "vector":
-        search_query.text = query
-        search_query.retrieval_mode = SearchRetrievalMode.VECTOR
-    elif search_type == "hybrid":
-        search_query.text = query
-        search_query.retrieval_mode = SearchRetrievalMode.HYBRID
-    elif search_type == "title":
-        search_query.title = query
-    elif search_type == "permalink" and "*" in query:
-        search_query.permalink_match = query
-    elif search_type == "permalink":
-        search_query.permalink = query
-    else:  # pragma: no cover
-        search_query.text = query  # Default to text search
-
-    # Add optional filters if provided (empty lists are treated as no filter)
-    if entity_types:
-        search_query.entity_types = [SearchItemType(t) for t in entity_types]
-    if types:
-        search_query.types = types
-    if after_date:
-        search_query.after_date = after_date
-    if metadata_filters:
-        search_query.metadata_filters = metadata_filters
-    if tags:
-        search_query.tags = tags
-    if status:
-        search_query.status = status
-
     async with get_project_client(project, context) as (client, active_project):
+        # Handle memory:// URLs by resolving to permalink search
+        _, resolved_query, is_memory_url = await resolve_project_and_path(
+            client, query, project, context
+        )
+        if is_memory_url:
+            query = resolved_query
+            search_type = "permalink"
+
+        # Create a SearchQuery object based on the parameters
+        search_query = SearchQuery()
+
+        # Set the appropriate search field based on search_type
+        if search_type == "text":
+            search_query.text = query
+        elif search_type == "vector":
+            search_query.text = query
+            search_query.retrieval_mode = SearchRetrievalMode.VECTOR
+        elif search_type == "hybrid":
+            search_query.text = query
+            search_query.retrieval_mode = SearchRetrievalMode.HYBRID
+        elif search_type == "title":
+            search_query.title = query
+        elif search_type == "permalink" and "*" in query:
+            search_query.permalink_match = query
+        elif search_type == "permalink":
+            search_query.permalink = query
+        else:  # pragma: no cover
+            search_query.text = query  # Default to text search
+
+        # Add optional filters if provided (empty lists are treated as no filter)
+        if entity_types:
+            search_query.entity_types = [SearchItemType(t) for t in entity_types]
+        if types:
+            search_query.types = types
+        if after_date:
+            search_query.after_date = after_date
+        if metadata_filters:
+            search_query.metadata_filters = metadata_filters
+        if tags:
+            search_query.tags = tags
+        if status:
+            search_query.status = status
+
         logger.info(f"Searching for {search_query} in project {active_project.name}")
 
         try:
diff --git a/src/basic_memory/services/context_service.py b/src/basic_memory/services/context_service.py
index 33326ff9..51ebab65 100644
--- a/src/basic_memory/services/context_service.py
+++ b/src/basic_memory/services/context_service.py
@@ -539,9 +539,7 @@ class ContextService:
                 {relation_date_filter}
                 {relation_project_filter}
             )
-            LEFT JOIN entity e_to ON (r.to_id = e_to.id)
             WHERE eg.depth < :max_depth
-            AND (r.to_id IS NULL OR e_to.project_id = :project_id)
 
             UNION ALL
 
diff --git a/src/basic_memory/services/entity_service.py b/src/basic_memory/services/entity_service.py
index 3adfc027..e8641de0 100644
--- a/src/basic_memory/services/entity_service.py
+++ b/src/basic_memory/services/entity_service.py
@@ -24,6 +24,7 @@ from basic_memory.models import Entity as EntityModel
 from basic_memory.models import Observation, Relation
 from basic_memory.models.knowledge import Entity
 from basic_memory.repository import ObservationRepository, RelationRepository
+from basic_memory.repository.project_repository import ProjectRepository
 from basic_memory.repository.entity_repository import EntityRepository
 from basic_memory.schemas import Entity as EntitySchema
 from basic_memory.schemas.base import Permalink
@@ -41,7 +42,7 @@ from basic_memory.services.exceptions import (
 )
 from basic_memory.services.link_resolver import LinkResolver
 from basic_memory.services.search_service import SearchService
-from basic_memory.utils import generate_permalink
+from basic_memory.utils import build_canonical_permalink, generate_permalink
 
 
 class EntityService(BaseService[EntityModel]):
@@ -66,6 +67,7 @@ class EntityService(BaseService[EntityModel]):
         self.link_resolver = link_resolver
         self.search_service = search_service
         self.app_config = app_config
+        self._project_permalink: Optional[str] = None
 
     async def detect_file_path_conflicts(
         self, file_path: str, skip_check: bool = False
@@ -159,7 +161,23 @@ class EntityService(BaseService[EntityModel]):
         if markdown and markdown.frontmatter.permalink:
             desired_permalink = markdown.frontmatter.permalink
         else:
-            desired_permalink = generate_permalink(file_path_str)
+            # Trigger: generating a permalink for a new file
+            # Why: canonical permalinks may require project prefix for global addressing
+            # Outcome: include project slug when enabled in config
+            include_project = True
+            if self.app_config:
+                include_project = self.app_config.permalinks_include_project
+
+            project_permalink = None
+            # Trigger: project-prefixed permalinks are enabled
+            # Why: we need the project slug to build the canonical permalink
+            # Outcome: fetch and cache the project's permalink
+            if include_project:
+                project_permalink = await self._get_project_permalink()
+
+            desired_permalink = build_canonical_permalink(
+                project_permalink, file_path_str, include_project=include_project
+            )
 
         # Make unique if needed - enhanced to handle character conflicts
         # Use lightweight existence check instead of loading full entity
@@ -172,6 +190,21 @@ class EntityService(BaseService[EntityModel]):
 
         return permalink
 
+    async def _get_project_permalink(self) -> Optional[str]:
+        """Get and cache the current project's permalink."""
+        if self._project_permalink is not None:
+            return self._project_permalink
+
+        project_id = self.repository.project_id
+        if project_id is None:  # pragma: no cover
+            return None  # pragma: no cover
+
+        project_repository = ProjectRepository(self.repository.session_maker)
+        project = await project_repository.get_by_id(project_id)
+        if project:
+            self._project_permalink = project.permalink
+        return self._project_permalink
+
     def _build_frontmatter_markdown(
         self, title: str, entity_type: str, permalink: str
     ) -> EntityMarkdown:
diff --git a/src/basic_memory/services/link_resolver.py b/src/basic_memory/services/link_resolver.py
index dec21a42..80457a42 100644
--- a/src/basic_memory/services/link_resolver.py
+++ b/src/basic_memory/services/link_resolver.py
@@ -1,14 +1,21 @@
 """Service for resolving markdown links to permalinks."""
 
-from typing import Optional, Tuple
-
+from typing import Optional, Tuple, Dict
 
 from loguru import logger
 
-from basic_memory.models import Entity
+from basic_memory.config import BasicMemoryConfig, ConfigManager
+from basic_memory.models import Entity, Project
 from basic_memory.repository.entity_repository import EntityRepository
+from basic_memory.repository.project_repository import ProjectRepository
+from basic_memory.repository.search_repository import create_search_repository
 from basic_memory.schemas.search import SearchQuery, SearchItemType
 from basic_memory.services.search_service import SearchService
+from basic_memory.utils import (
+    build_canonical_permalink,
+    generate_permalink,
+    normalize_project_reference,
+)
 
 
 class LinkResolver:
@@ -26,6 +33,12 @@ class LinkResolver:
         """Initialize with repositories."""
         self.entity_repository = entity_repository
         self.search_service = search_service
+        self._project_repository = ProjectRepository(entity_repository.session_maker)
+        self._app_config: BasicMemoryConfig = ConfigManager().config
+        self._project_permalink: Optional[str] = None
+        self._project_cache_by_identifier: Dict[str, Project] = {}
+        self._entity_repository_cache: Dict[int, EntityRepository] = {}
+        self._search_service_cache: Dict[int, SearchService] = {}
 
     async def resolve_link(
         self,
@@ -47,111 +60,69 @@ class LinkResolver:
 
         # Clean link text and extract any alias
         clean_text, alias = self._normalize_link_text(link_text)
+        explicit_project_reference = "::" in clean_text
+        clean_text = normalize_project_reference(clean_text)
 
-        # --- Path Resolution ---
-        # Note: All paths in Basic Memory are stored as POSIX strings (forward slashes)
-        # for cross-platform compatibility. See entity_repository.py which normalizes
-        # paths using Path().as_posix(). This allows consistent path operations here.
+        # Trigger: link uses project namespace syntax (project::note)
+        # Why: treat it as an explicit cross-project reference
+        # Outcome: resolve only within the referenced project scope
+        if explicit_project_reference:
+            project_prefix, remainder = self._split_project_prefix(clean_text)
+            if not project_prefix:
+                return None
 
-        # --- Relative Path Resolution ---
-        # Trigger: source_path is provided AND link contains "/"
-        # Why: Resolve paths like [[nested/deep-note]] relative to source folder first
-        # Outcome: [[nested/deep-note]] from testing/link-test.md → testing/nested/deep-note.md
-        if source_path and "/" in clean_text:
-            source_folder = source_path.rsplit("/", 1)[0] if "/" in source_path else ""
-            if source_folder:
-                # Construct relative path from source folder
-                relative_path = f"{source_folder}/{clean_text}"
+            project_resources = await self._get_project_resources(project_prefix)
+            if not project_resources:
+                return None
 
-                # Try with .md extension
-                if not relative_path.endswith(".md"):
-                    relative_path_md = f"{relative_path}.md"
-                    entity = await self.entity_repository.get_by_file_path(relative_path_md)
-                    if entity:
-                        return entity
-
-                # Try as-is (already has extension or is a permalink)
-                entity = await self.entity_repository.get_by_file_path(relative_path)
-                if entity:
-                    return entity
-
-        # When source_path is provided, use context-aware resolution:
-        # Check both permalink and title matches, prefer closest to source.
-        # Example: [[testing]] from folder/note.md prefers folder/testing.md
-        # over a root testing.md with permalink "testing".
-        if source_path:
-            # Gather all potential matches
-            candidates: list[Entity] = []
-
-            # Check permalink match
-            permalink_entity = await self.entity_repository.get_by_permalink(clean_text)
-            if permalink_entity:
-                candidates.append(permalink_entity)
-
-            # Check title matches
-            title_entities = await self.entity_repository.get_by_title(clean_text)
-            for entity in title_entities:
-                # Avoid duplicates (permalink match might also be in title matches)
-                if entity.id not in [c.id for c in candidates]:
-                    candidates.append(entity)
-
-            if candidates:
-                if len(candidates) == 1:
-                    return candidates[0]
-                else:
-                    # Multiple candidates - pick closest to source
-                    return self._find_closest_entity(candidates, source_path)
-
-        # Standard resolution (no source context): permalink first, then title
-        # 1. Try exact permalink match first (most efficient)
-        entity = await self.entity_repository.get_by_permalink(clean_text)
-        if entity:
-            logger.debug(f"Found exact permalink match: {entity.permalink}")
-            return entity
-
-        # 2. Try exact title match
-        found = await self.entity_repository.get_by_title(clean_text)
-        if found:
-            # Return first match (shortest path) if no source context
-            entity = found[0]
-            logger.debug(f"Found title match: {entity.title}")
-            return entity
-
-        # 3. Try file path
-        found_path = await self.entity_repository.get_by_file_path(clean_text)
-        if found_path:
-            logger.debug(f"Found entity with path: {found_path.file_path}")
-            return found_path
-
-        # 4. Try file path with .md extension if not already present
-        if not clean_text.endswith(".md") and "/" in clean_text:
-            file_path_with_md = f"{clean_text}.md"
-            found_path_md = await self.entity_repository.get_by_file_path(file_path_with_md)
-            if found_path_md:
-                logger.debug(f"Found entity with path (with .md): {found_path_md.file_path}")
-                return found_path_md
-
-        # In strict mode, don't try fuzzy search - return None if no exact match found
-        if strict:
-            return None
-
-        # 5. Fall back to search for fuzzy matching (only if not in strict mode)
-        if use_search and "*" not in clean_text:
-            results = await self.search_service.search(
-                query=SearchQuery(text=clean_text, entity_types=[SearchItemType.ENTITY]),
+            project, entity_repository, search_service = project_resources
+            return await self._resolve_in_project(
+                entity_repository=entity_repository,
+                search_service=search_service,
+                link_text=remainder,
+                use_search=use_search,
+                strict=strict,
+                source_path=None,
+                project_permalink=project.permalink,
             )
 
-            if results:
-                # Look for best match
-                best_match = min(results, key=lambda x: x.score)  # pyright: ignore
-                logger.trace(
-                    f"Selected best match from {len(results)} results: {best_match.permalink}"
-                )
-                if best_match.permalink:
-                    return await self.entity_repository.get_by_permalink(best_match.permalink)
+        current_project_permalink = await self._get_current_project_permalink()
+        resolved = await self._resolve_in_project(
+            entity_repository=self.entity_repository,
+            search_service=self.search_service,
+            link_text=clean_text,
+            use_search=use_search,
+            strict=strict,
+            source_path=source_path,
+            project_permalink=current_project_permalink,
+        )
+        if resolved:
+            return resolved
 
-        # if we couldn't find anything then return None
-        return None
+        # Trigger: local resolution failed and identifier looks like project/path
+        # Why: allow explicit project path references without namespace syntax
+        # Outcome: attempt resolution in the referenced project if it exists
+        project_prefix, remainder = self._split_project_prefix(clean_text)
+        if not project_prefix:
+            return None
+
+        project_resources = await self._get_project_resources(project_prefix)
+        if not project_resources:
+            return None
+
+        project, entity_repository, search_service = project_resources
+        if project.id == self.entity_repository.project_id:
+            return None
+
+        return await self._resolve_in_project(
+            entity_repository=entity_repository,
+            search_service=search_service,
+            link_text=remainder,
+            use_search=use_search,
+            strict=strict,
+            source_path=None,
+            project_permalink=project.permalink,
+        )
 
     def _normalize_link_text(self, link_text: str) -> Tuple[str, Optional[str]]:
         """Normalize link text and extract alias if present.
@@ -181,6 +152,228 @@ class LinkResolver:
 
         return text, alias
 
+    async def _resolve_in_project(
+        self,
+        *,
+        entity_repository: EntityRepository,
+        search_service: SearchService,
+        link_text: str,
+        use_search: bool,
+        strict: bool,
+        source_path: Optional[str],
+        project_permalink: Optional[str],
+    ) -> Optional[Entity]:
+        """Resolve a link within a specific project scope."""
+        clean_text = link_text
+        include_project = self._include_project_permalinks()
+
+        canonical_permalink: Optional[str] = None
+        legacy_permalink: Optional[str] = None
+        # Trigger: permalinks include project slug and project permalink is known
+        # Why: support globally addressable permalinks while keeping legacy links resolvable
+        # Outcome: include canonical and legacy candidates for resolution
+        if include_project and project_permalink:
+            canonical_permalink = build_canonical_permalink(
+                project_permalink, clean_text, include_project=True
+            )
+            if clean_text.startswith(f"{project_permalink}/"):
+                legacy_candidate = clean_text.removeprefix(f"{project_permalink}/")
+                if legacy_candidate:
+                    legacy_permalink = legacy_candidate
+
+        permalink_candidates = []
+        for candidate in (clean_text, canonical_permalink, legacy_permalink):
+            if candidate and candidate not in permalink_candidates:
+                permalink_candidates.append(candidate)
+
+        # --- Path Resolution ---
+        # Note: All paths in Basic Memory are stored as POSIX strings (forward slashes)
+        # for cross-platform compatibility. See entity_repository.py which normalizes
+        # paths using Path().as_posix(). This allows consistent path operations here.
+
+        # --- Relative Path Resolution ---
+        # Trigger: source_path is provided AND link contains "/"
+        # Why: Resolve paths like [[nested/deep-note]] relative to source folder first
+        # Outcome: [[nested/deep-note]] from testing/link-test.md → testing/nested/deep-note.md
+        if source_path and "/" in clean_text:
+            if not (
+                include_project
+                and project_permalink
+                and clean_text.startswith(f"{project_permalink}/")
+            ):
+                source_folder = source_path.rsplit("/", 1)[0] if "/" in source_path else ""
+                if source_folder:
+                    # Construct relative path from source folder
+                    relative_path = f"{source_folder}/{clean_text}"
+
+                    # Try with .md extension
+                    if not relative_path.endswith(".md"):
+                        relative_path_md = f"{relative_path}.md"
+                        entity = await entity_repository.get_by_file_path(relative_path_md)
+                        if entity:
+                            return entity
+
+                    # Try as-is (already has extension or is a permalink)
+                    entity = await entity_repository.get_by_file_path(relative_path)
+                    if entity:
+                        return entity
+
+        # When source_path is provided, use context-aware resolution:
+        # Check both permalink and title matches, prefer closest to source.
+        # Example: [[testing]] from folder/note.md prefers folder/testing.md
+        # over a root testing.md with permalink "testing".
+        if source_path:
+            # Gather all potential matches
+            candidates: list[Entity] = []
+
+            # Check permalink match
+            for candidate_permalink in permalink_candidates:
+                permalink_entity = await entity_repository.get_by_permalink(candidate_permalink)
+                if permalink_entity and permalink_entity.id not in [c.id for c in candidates]:
+                    candidates.append(permalink_entity)
+
+            # Check title matches
+            title_entities = await entity_repository.get_by_title(clean_text)
+            for entity in title_entities:
+                # Avoid duplicates (permalink match might also be in title matches)
+                if entity.id not in [c.id for c in candidates]:
+                    candidates.append(entity)
+
+            if candidates:
+                if len(candidates) == 1:
+                    return candidates[0]
+                else:
+                    # Multiple candidates - pick closest to source
+                    return self._find_closest_entity(candidates, source_path)
+
+        # Standard resolution (no source context): permalink first, then title
+        # 1. Try exact permalink match first (most efficient)
+        for candidate_permalink in permalink_candidates:
+            entity = await entity_repository.get_by_permalink(candidate_permalink)
+            if entity:
+                logger.debug(f"Found exact permalink match: {entity.permalink}")
+                return entity
+
+        # 2. Try exact title match
+        found = await entity_repository.get_by_title(clean_text)
+        if found:
+            # Return first match (shortest path) if no source context
+            entity = found[0]
+            logger.debug(f"Found title match: {entity.title}")
+            return entity
+
+        # 3. Try file path
+        found_path = await entity_repository.get_by_file_path(clean_text)
+        if found_path:
+            logger.debug(f"Found entity with path: {found_path.file_path}")
+            return found_path
+
+        # 4. Try file path with .md extension if not already present
+        if not clean_text.endswith(".md") and "/" in clean_text:
+            file_path_with_md = f"{clean_text}.md"
+            found_path_md = await entity_repository.get_by_file_path(file_path_with_md)
+            if found_path_md:
+                logger.debug(f"Found entity with path (with .md): {found_path_md.file_path}")
+                return found_path_md
+
+        # In strict mode, don't try fuzzy search - return None if no exact match found
+        if strict:
+            return None
+
+        # 5. Fall back to search for fuzzy matching (only if not in strict mode)
+        if use_search and "*" not in clean_text:
+            results = await search_service.search(
+                query=SearchQuery(text=clean_text, entity_types=[SearchItemType.ENTITY]),
+            )
+
+            if results:
+                # Look for best match
+                best_match = min(results, key=lambda x: x.score)  # pyright: ignore
+                logger.trace(
+                    f"Selected best match from {len(results)} results: {best_match.permalink}"
+                )
+                if best_match.permalink:
+                    return await entity_repository.get_by_permalink(best_match.permalink)
+
+        # if we couldn't find anything then return None
+        return None
+
+    def _include_project_permalinks(self) -> bool:
+        """Return True when permalinks should include the project slug."""
+        return self._app_config.permalinks_include_project
+
+    async def _get_current_project_permalink(self) -> Optional[str]:
+        """Get and cache the current project's permalink."""
+        if self._project_permalink is not None:
+            return self._project_permalink
+
+        project_id = self.entity_repository.project_id
+        if project_id is None:  # pragma: no cover
+            return None  # pragma: no cover
+
+        project = await self._project_repository.get_by_id(project_id)
+        if project:
+            self._project_permalink = project.permalink
+        return self._project_permalink
+
+    async def _get_project_by_identifier(self, identifier: str) -> Optional[Project]:
+        """Resolve project by name or permalink."""
+        cache_key = identifier.strip().lower()
+        if cache_key in self._project_cache_by_identifier:
+            return self._project_cache_by_identifier[cache_key]
+
+        project = await self._project_repository.get_by_name(identifier)
+        if not project:
+            project = await self._project_repository.get_by_name_case_insensitive(identifier)
+        if not project:
+            project = await self._project_repository.get_by_permalink(generate_permalink(identifier))
+
+        if project:
+            self._project_cache_by_identifier[cache_key] = project
+        return project
+
+    async def _get_project_resources(
+        self, project_identifier: str
+    ) -> Optional[Tuple[Project, EntityRepository, SearchService]]:
+        """Fetch repositories and services scoped to a project."""
+        project = await self._get_project_by_identifier(project_identifier)
+        if not project:
+            return None
+
+        entity_repository = self._entity_repository_cache.get(project.id)
+        if not entity_repository:
+            entity_repository = EntityRepository(
+                self.entity_repository.session_maker, project_id=project.id
+            )
+            self._entity_repository_cache[project.id] = entity_repository
+
+        search_service = self._search_service_cache.get(project.id)
+        if not search_service:
+            search_repository = create_search_repository(
+                self.entity_repository.session_maker,
+                project_id=project.id,
+                database_backend=self._app_config.database_backend,
+            )
+            search_service = SearchService(
+                search_repository,
+                entity_repository,
+                self.search_service.file_service,
+            )
+            self._search_service_cache[project.id] = search_service
+
+        return project, entity_repository, search_service
+
+    def _split_project_prefix(self, identifier: str) -> Tuple[Optional[str], str]:
+        """Split project prefix from a path-like identifier."""
+        if "/" not in identifier:
+            return None, identifier
+
+        project_prefix, remainder = identifier.split("/", 1)
+        if not project_prefix or not remainder:
+            return None, identifier
+
+        return project_prefix, remainder
+
     def _find_closest_entity(self, entities: list[Entity], source_path: str) -> Entity:
         """Find the entity closest to the source file path.
 
diff --git a/src/basic_memory/utils.py b/src/basic_memory/utils.py
index bea1af9d..c6260017 100644
--- a/src/basic_memory/utils.py
+++ b/src/basic_memory/utils.py
@@ -7,7 +7,7 @@ import re
 import sys
 from datetime import datetime, timezone
 from pathlib import Path
-from typing import Protocol, Union, runtime_checkable, List
+from typing import Protocol, Union, runtime_checkable, List, Optional
 
 from loguru import logger
 from unidecode import unidecode
@@ -202,6 +202,49 @@ def generate_permalink(file_path: Union[Path, str, PathLike], split_extension: b
     return return_val
 
 
+def normalize_project_reference(identifier: str) -> str:
+    """Normalize project-prefixed references.
+
+    Converts project namespace syntax ("project::note") to path syntax ("project/note").
+    Leaves non-namespaced identifiers unchanged.
+    """
+    if "::" not in identifier:
+        return identifier
+
+    project, remainder = identifier.split("::", 1)
+    remainder = remainder.lstrip("/")
+    return f"{project}/{remainder}"
+
+
+def build_canonical_permalink(
+    project_permalink: Optional[str],
+    file_path: Union[Path, str, PathLike],
+    include_project: bool = True,
+) -> str:
+    """Build a canonical permalink, optionally prefixed with project slug.
+
+    Args:
+        project_permalink: URL-friendly project identifier (slug). If None, no prefix is added.
+        file_path: Original file path or permalink-like string.
+        include_project: When True, prefix with project slug.
+
+    Returns:
+        Canonical permalink string.
+    """
+    normalized_path = generate_permalink(file_path)
+
+    if not include_project or not project_permalink:
+        return normalized_path
+
+    normalized_project = generate_permalink(project_permalink)
+    if normalized_path == normalized_project or normalized_path.startswith(
+        f"{normalized_project}/"
+    ):
+        return normalized_path
+
+    return f"{normalized_project}/{normalized_path}"
+
+
 def setup_logging(
     log_level: str = "INFO",
     log_to_file: bool = False,
diff --git a/test-int/mcp/test_read_content_integration.py b/test-int/mcp/test_read_content_integration.py
index 8191c02e..24f35963 100644
--- a/test-int/mcp/test_read_content_integration.py
+++ b/test-int/mcp/test_read_content_integration.py
@@ -283,7 +283,7 @@ async def test_read_content_empty_file(mcp_server, app, test_project):
 
         # Should still have frontmatter even with empty content
         assert "title: Empty Test" in content
-        assert "permalink: test/empty-test" in content
+        assert f"permalink: {test_project.name}/test/empty-test" in content
 
 
 @pytest.mark.asyncio
diff --git a/test-int/mcp/test_read_note_integration.py b/test-int/mcp/test_read_note_integration.py
index ff992836..bb4b4f8c 100644
--- a/test-int/mcp/test_read_note_integration.py
+++ b/test-int/mcp/test_read_note_integration.py
@@ -45,7 +45,7 @@ async def test_read_note_after_write(mcp_server, app, test_project):
         # Should contain the note content and metadata
         assert "# Test Note" in result_text
         assert "This is test content." in result_text
-        assert "test/test-note" in result_text  # permalink
+        assert f"{test_project.name}/test/test-note" in result_text  # permalink
 
 
 @pytest.mark.asyncio
@@ -78,7 +78,7 @@ async def test_read_note_underscored_folder_by_permalink(mcp_server, app, test_p
         assert "_archive/articles/Example Note.md" in write_text
 
         # Verify the permalink has underscores stripped (this is the expected behavior)
-        assert "archive/articles/example-note" in write_text
+        assert f"{test_project.name}/archive/articles/example-note" in write_text
 
         # Now try to read the note using the permalink (without underscores)
         # This is the exact scenario from the bug report - using the permalink
@@ -99,4 +99,4 @@ async def test_read_note_underscored_folder_by_permalink(mcp_server, app, test_p
         # Should contain the note content
         assert "# Example Note" in result_text
         assert "This is a test note in an underscored folder." in result_text
-        assert "archive/articles/example-note" in result_text  # permalink
+        assert f"{test_project.name}/archive/articles/example-note" in result_text  # permalink
diff --git a/test-int/mcp/test_search_integration.py b/test-int/mcp/test_search_integration.py
index 7729420c..bd8c32ef 100644
--- a/test-int/mcp/test_search_integration.py
+++ b/test-int/mcp/test_search_integration.py
@@ -224,7 +224,7 @@ async def test_search_permalink_exact(mcp_server, app, test_project):
             "search_notes",
             {
                 "project": test_project.name,
-                "query": "api/api-documentation",
+                "query": f"{test_project.name}/api/api-documentation",
                 "search_type": "permalink",
             },
         )
@@ -278,7 +278,7 @@ async def test_search_permalink_pattern(mcp_server, app, test_project):
             "search_notes",
             {
                 "project": test_project.name,
-                "query": "meetings/*",
+                "query": f"{test_project.name}/meetings/*",
                 "search_type": "permalink",
             },
         )
diff --git a/test-int/mcp/test_write_note_integration.py b/test-int/mcp/test_write_note_integration.py
index cd14b8fe..88684c56 100644
--- a/test-int/mcp/test_write_note_integration.py
+++ b/test-int/mcp/test_write_note_integration.py
@@ -38,7 +38,7 @@ async def test_write_note_basic_creation(mcp_server, app, test_project):
         assert "# Created note" in response_text
         assert f"project: {test_project.name}" in response_text
         assert "file_path: basic/Simple Note.md" in response_text
-        assert "permalink: basic/simple-note" in response_text
+        assert f"permalink: {test_project.name}/basic/simple-note" in response_text
         assert "## Tags" in response_text
         assert "- simple, test" in response_text
         assert f"[Session: Using project '{test_project.name}']" in response_text
@@ -65,7 +65,7 @@ async def test_write_note_no_tags(mcp_server, app, test_project):
 
         assert "# Created note" in response_text
         assert "file_path: test/No Tags Note.md" in response_text
-        assert "permalink: test/no-tags-note" in response_text
+        assert f"permalink: {test_project.name}/test/no-tags-note" in response_text
         # Should not have tags section when no tags provided
 
 
@@ -107,7 +107,7 @@ async def test_write_note_update_existing(mcp_server, app, test_project):
         assert "# Updated note" in response_text
         assert f"project: {test_project.name}" in response_text
         assert "file_path: test/Update Test.md" in response_text
-        assert "permalink: test/update-test" in response_text
+        assert f"permalink: {test_project.name}/test/update-test" in response_text
         assert "- updated, modified" in response_text
         assert f"[Session: Using project '{test_project.name}']" in response_text
 
@@ -136,7 +136,7 @@ async def test_write_note_tag_array(mcp_server, app, test_project):
         assert "# Created note" in response_text
         assert f"project: {test_project.name}" in response_text
         assert "file_path: test/Array Tags Test.md" in response_text
-        assert "permalink: test/array-tags-test" in response_text
+        assert f"permalink: {test_project.name}/test/array-tags-test" in response_text
         assert "## Tags" in response_text
         assert "python" in response_text
         assert f"[Session: Using project '{test_project.name}']" in response_text
@@ -206,7 +206,7 @@ async def test_write_note_unicode_content(mcp_server, app, test_project):
         assert f"project: {test_project.name}" in response_text
         assert "file_path: test/Unicode Test 🌟.md" in response_text
         # Permalink should be sanitized
-        assert "permalink: test/unicode-test" in response_text
+        assert f"permalink: {test_project.name}/test/unicode-test" in response_text
         assert "## Tags" in response_text
         assert f"[Session: Using project '{test_project.name}']" in response_text
 
@@ -256,7 +256,7 @@ async def test_write_note_complex_content_with_observations_relations(
         assert "# Created note" in response_text
         assert f"project: {test_project.name}" in response_text
         assert "file_path: knowledge/Complex Knowledge Note.md" in response_text
-        assert "permalink: knowledge/complex-knowledge-note" in response_text
+        assert f"permalink: {test_project.name}/knowledge/complex-knowledge-note" in response_text
 
         # Should show observation and relation counts
         assert "## Observations" in response_text
@@ -309,7 +309,7 @@ async def test_write_note_preserve_frontmatter(mcp_server, app, test_project):
         assert "# Created note" in response_text
         assert f"project: {test_project.name}" in response_text
         assert "file_path: test/Frontmatter Note.md" in response_text
-        assert "permalink: test/frontmatter-note" in response_text
+        assert f"permalink: {test_project.name}/test/frontmatter-note" in response_text
         assert f"[Session: Using project '{test_project.name}']" in response_text
 
 
@@ -338,7 +338,7 @@ async def test_write_note_kebab_filenames_basic(mcp_server, app, test_project, a
         # File path and permalink should be kebab-case and sanitized
         assert f"project: {test_project.name}" in response_text
         assert "file_path: my-folder/my-note-with-invalid-chars.md" in response_text
-        assert "permalink: my-folder/my-note-with-invalid-chars" in response_text
+        assert f"permalink: {test_project.name}/my-folder/my-note-with-invalid-chars" in response_text
         assert f"[Session: Using project '{test_project.name}']" in response_text
 
 
@@ -366,7 +366,7 @@ async def test_write_note_kebab_filenames_repeat_invalid(mcp_server, app, test_p
 
         assert f"project: {test_project.name}" in response_text
         assert "file_path: my-folder/crazy-note-name.md" in response_text
-        assert "permalink: my-folder/crazy-note-name" in response_text
+        assert f"permalink: {test_project.name}/my-folder/crazy-note-name" in response_text
         assert f"[Session: Using project '{test_project.name}']" in response_text
 
 
@@ -416,7 +416,7 @@ async def test_write_note_file_path_os_path_join(mcp_server, app, test_project,
 
             assert f"project: {test_project.name}" in response_text
             assert f"file_path: {expected_path}" in response_text
-            assert f"permalink: {expected_permalink}" in response_text
+            assert f"permalink: {test_project.name}/{expected_permalink}" in response_text
             assert f"[Session: Using project '{test_project.name}']" in response_text
 
 
diff --git a/tests/importers/test_conversation_indexing.py b/tests/importers/test_conversation_indexing.py
index 5e659d7c..194d243c 100644
--- a/tests/importers/test_conversation_indexing.py
+++ b/tests/importers/test_conversation_indexing.py
@@ -38,7 +38,9 @@ async def test_imported_conversations_have_correct_permalink_and_title(
     file_service = FileService(base_path, processor)
 
     # Create importer
-    importer = ClaudeConversationsImporter(base_path, processor, file_service)
+    importer = ClaudeConversationsImporter(
+        base_path, processor, file_service, project_name=project_config.name
+    )
 
     # Sample conversation data
     conversations = [
@@ -80,7 +82,10 @@ async def test_imported_conversations_have_correct_permalink_and_title(
     content = conv_path.read_text()
     assert "---" in content, "File should have frontmatter markers"
     assert "title: My Test Conversation Title" in content, "File should have title in frontmatter"
-    assert "permalink: conversations/20250115-My_Test_Conversation_Title" in content, (
+    assert (
+        f"permalink: {project_config.name}/conversations/20250115-My_Test_Conversation_Title"
+        in content
+    ), (
         "File should have permalink in frontmatter"
     )
 
@@ -97,7 +102,10 @@ async def test_imported_conversations_have_correct_permalink_and_title(
     assert entity.title == "My Test Conversation Title", (
         f"Title should be from frontmatter, got: {entity.title}"
     )
-    assert entity.permalink == "conversations/20250115-My_Test_Conversation_Title", (
+    assert (
+        entity.permalink
+        == f"{project_config.name}/conversations/20250115-My_Test_Conversation_Title"
+    ), (
         f"Permalink should be from frontmatter, got: {entity.permalink}"
     )
 
@@ -111,6 +119,9 @@ async def test_imported_conversations_have_correct_permalink_and_title(
     assert search_result.title == "My Test Conversation Title", (
         f"Search title should be from frontmatter, got: {search_result.title}"
     )
-    assert search_result.permalink == "conversations/20250115-My_Test_Conversation_Title", (
+    assert (
+        search_result.permalink
+        == f"{project_config.name}/conversations/20250115-My_Test_Conversation_Title"
+    ), (
         f"Search permalink should not be null, got: {search_result.permalink}"
     )
diff --git a/tests/markdown/test_markdown_plugins.py b/tests/markdown/test_markdown_plugins.py
index e68376f3..bd4440c6 100644
--- a/tests/markdown/test_markdown_plugins.py
+++ b/tests/markdown/test_markdown_plugins.py
@@ -176,6 +176,14 @@ def test_relation_plugin():
     assert rel["target"] == "Component"
     assert rel["context"] == "with context"
 
+    # Test project namespace normalization
+    content = dedent("""
+        - relates_to [[other-project::Component]]
+        """)
+    token = [t for t in md.parse(content) if t.type == "inline"][0]
+    rel = token.meta["relations"][0]
+    assert rel["target"] == "other-project/Component"
+
     # Test implicit relations in text
     content = "Some text with a [[Link]] and [[Another Link]]"
     token = [t for t in md.parse(content) if t.type == "inline"][0]
diff --git a/tests/mcp/test_permalink_collision_file_overwrite.py b/tests/mcp/test_permalink_collision_file_overwrite.py
index 79f8ce7c..ffe26e42 100644
--- a/tests/mcp/test_permalink_collision_file_overwrite.py
+++ b/tests/mcp/test_permalink_collision_file_overwrite.py
@@ -22,6 +22,7 @@ from basic_memory.mcp.tools import write_note, read_note
 from basic_memory.sync.sync_service import SyncService
 from basic_memory.config import ProjectConfig
 from basic_memory.services import EntityService
+from basic_memory.utils import generate_permalink
 
 
 async def force_full_scan(sync_service: SyncService) -> None:
@@ -70,7 +71,7 @@ async def test_permalink_collision_should_not_overwrite_different_file(app, test
 
     assert "# Created note" in result_a
     assert "file_path: edge-cases/Node A.md" in result_a
-    assert "permalink: edge-cases/node-a" in result_a
+    assert f"permalink: {test_project.name}/edge-cases/node-a" in result_a
 
     # Verify Node A content via read
     content_a = await read_note.fn("edge-cases/node-a", project=test_project.name)
@@ -87,7 +88,7 @@ async def test_permalink_collision_should_not_overwrite_different_file(app, test
 
     assert "# Created note" in result_b
     assert "file_path: edge-cases/Node B.md" in result_b
-    assert "permalink: edge-cases/node-b" in result_b
+    assert f"permalink: {test_project.name}/edge-cases/node-b" in result_b
 
     # Step 3: Create third note "Node C" (this is where the bug occurs)
     result_c = await write_note.fn(
@@ -99,7 +100,7 @@ async def test_permalink_collision_should_not_overwrite_different_file(app, test
 
     assert "# Created note" in result_c
     assert "file_path: edge-cases/Node C.md" in result_c
-    assert "permalink: edge-cases/node-c" in result_c
+    assert f"permalink: {test_project.name}/edge-cases/node-c" in result_c
 
     # CRITICAL CHECK: Verify Node A still has its original content
     # This is where the bug manifests - Node A.md gets overwritten with Node C content
@@ -258,6 +259,7 @@ async def test_sync_permalink_collision_file_overwrite_bug(
     project_dir = project_config.home
     edge_cases_dir = project_dir / "edge-cases"
     edge_cases_dir.mkdir(parents=True, exist_ok=True)
+    project_prefix = generate_permalink(project_config.name)
 
     # Step 1: Create Node A file
     node_a_content = dedent("""
@@ -284,7 +286,7 @@ async def test_sync_permalink_collision_file_overwrite_bug(
     await sync_service.sync(project_dir)
 
     # Verify Node A is in database
-    node_a = await entity_service.get_by_permalink("edge-cases/node-a")
+    node_a = await entity_service.get_by_permalink(f"{project_prefix}/edge-cases/node-a")
     assert node_a is not None
     assert node_a.title == "Node A"
 
@@ -375,8 +377,8 @@ async def test_sync_permalink_collision_file_overwrite_bug(
     assert "Content for Node C" in node_c_after_sync
 
     # Verify database has both entities correctly
-    node_a_db = await entity_service.get_by_permalink("edge-cases/node-a")
-    node_c_db = await entity_service.get_by_permalink("edge-cases/node-c")
+    node_a_db = await entity_service.get_by_permalink(f"{project_prefix}/edge-cases/node-a")
+    node_c_db = await entity_service.get_by_permalink(f"{project_prefix}/edge-cases/node-c")
 
     assert node_a_db is not None, "Node A should exist in database"
     assert node_a_db.title == "Node A", "Node A database entry should have correct title"
diff --git a/tests/mcp/test_tool_build_context.py b/tests/mcp/test_tool_build_context.py
index 0cce7271..e395ec0f 100644
--- a/tests/mcp/test_tool_build_context.py
+++ b/tests/mcp/test_tool_build_context.py
@@ -18,11 +18,11 @@ async def test_get_basic_discussion_context(client, test_graph, test_project):
 
     assert isinstance(context, GraphContext)
     assert len(context.results) == 1
-    assert context.results[0].primary_result.permalink == "test/root"
+    assert context.results[0].primary_result.permalink == f"{test_project.name}/test/root"
     assert len(context.results[0].related_results) > 0
 
     # Verify metadata
-    assert context.metadata.uri == "test/root"
+    assert context.metadata.uri == f"{test_project.name}/test/root"
     assert context.metadata.depth == 1  # default depth
     assert context.metadata.timeframe is not None
     assert isinstance(context.metadata.generated_at, datetime)
@@ -38,7 +38,10 @@ async def test_get_discussion_context_pattern(client, test_graph, test_project):
 
     assert isinstance(context, GraphContext)
     assert len(context.results) > 1  # Should match multiple test/* paths
-    assert all("test/" in item.primary_result.permalink for item in context.results)  # pyright: ignore [reportOperatorIssue]
+    assert all(
+        f"{test_project.name}/test/" in item.primary_result.permalink
+        for item in context.results
+    )  # pyright: ignore [reportOperatorIssue]
     assert context.metadata.depth == 1
 
 
diff --git a/tests/mcp/test_tool_edit_note.py b/tests/mcp/test_tool_edit_note.py
index ca8a3f1c..11c08bf9 100644
--- a/tests/mcp/test_tool_edit_note.py
+++ b/tests/mcp/test_tool_edit_note.py
@@ -29,7 +29,7 @@ async def test_edit_note_append_operation(client, test_project):
     assert "Edited note (append)" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: test/Test Note.md" in result
-    assert "permalink: test/test-note" in result
+    assert f"permalink: {test_project.name}/test/test-note" in result
     assert "Added 3 lines to end of note" in result
     assert f"[Session: Using project '{test_project.name}']" in result
 
@@ -57,7 +57,7 @@ async def test_edit_note_prepend_operation(client, test_project):
     assert "Edited note (prepend)" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: meetings/Meeting Notes.md" in result
-    assert "permalink: meetings/meeting-notes" in result
+    assert f"permalink: {test_project.name}/meetings/meeting-notes" in result
     assert "Added 3 lines to beginning of note" in result
     assert f"[Session: Using project '{test_project.name}']" in result
 
@@ -439,7 +439,7 @@ async def test_edit_note_preserves_permalink_when_frontmatter_missing(client, te
     )
 
     assert isinstance(first_result, str)
-    assert "permalink: test/test-note" in first_result
+    assert f"permalink: {test_project.name}/test/test-note" in first_result
 
     # Perform another edit - this should preserve the permalink even if the
     # file doesn't have a permalink in its frontmatter
@@ -453,6 +453,6 @@ async def test_edit_note_preserves_permalink_when_frontmatter_missing(client, te
     assert isinstance(second_result, str)
     assert "Edited note (append)" in second_result
     assert f"project: {test_project.name}" in second_result
-    assert "permalink: test/test-note" in second_result
+    assert f"permalink: {test_project.name}/test/test-note" in second_result
     assert f"[Session: Using project '{test_project.name}']" in second_result
     # The edit should succeed without validation errors
diff --git a/tests/mcp/test_tool_move_note.py b/tests/mcp/test_tool_move_note.py
index acb977be..78d86544 100644
--- a/tests/mcp/test_tool_move_note.py
+++ b/tests/mcp/test_tool_move_note.py
@@ -67,7 +67,7 @@ async def test_move_note_success(app, client, test_project):
     content = await read_note.fn("target/moved-note", project=test_project.name)
     assert "# Test Note" in content
     assert "Original content here" in content
-    assert "permalink: target/moved-note" in content
+    assert f"permalink: {test_project.name}/target/moved-note" in content
 
 
 @pytest.mark.asyncio
@@ -426,7 +426,7 @@ async def test_move_note_rename_only(client, test_project):
     content = await read_note.fn("test/new-name", project=test_project.name)
     assert "# OriginalName" in content  # Title in content remains same
     assert "Content to rename" in content
-    assert "permalink: test/new-name" in content
+    assert f"permalink: {test_project.name}/test/new-name" in content
 
 
 @pytest.mark.asyncio
@@ -587,7 +587,7 @@ async def test_move_note_preserves_frontmatter(app, client, test_project):
     content = await read_note.fn("target/moved-custom-note", project=test_project.name)
     assert "title: Custom Frontmatter Note" in content
     assert "type: note" in content
-    assert "permalink: target/moved-custom-note" in content
+    assert f"permalink: {test_project.name}/target/moved-custom-note" in content
     assert "# Custom Frontmatter Note" in content
     assert "Content with custom metadata" in content
 
diff --git a/tests/mcp/test_tool_read_note.py b/tests/mcp/test_tool_read_note.py
index 14e901de..8f27b971 100644
--- a/tests/mcp/test_tool_read_note.py
+++ b/tests/mcp/test_tool_read_note.py
@@ -119,7 +119,7 @@ async def test_note_unicode_content(app, test_project):
     assert "# Created note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: test/Unicode Test.md" in result
-    assert "permalink: test/unicode-test" in result
+    assert f"permalink: {test_project.name}/test/unicode-test" in result
     assert "checksum:" in result  # Checksum exists but may be "unknown"
 
     # Read back should preserve unicode
@@ -201,6 +201,21 @@ async def test_read_note_memory_url(app, test_project):
     assert "Testing memory:// URL handling" in content
 
 
+@pytest.mark.asyncio
+async def test_read_note_memory_url_with_project_prefix(app, test_project):
+    """Test reading a note using a memory:// URL with explicit project prefix."""
+    await write_note.fn(
+        project=test_project.name,
+        title="Project Prefixed Memory URL Test",
+        directory="test",
+        content="Testing memory:// URL handling with project prefix",
+    )
+
+    memory_url = f"memory://{test_project.name}/test/project-prefixed-memory-url-test"
+    content = await read_note.fn(memory_url)
+    assert "Testing memory:// URL handling with project prefix" in content
+
+
 class TestReadNoteSecurityValidation:
     """Test read_note security validation features."""
 
diff --git a/tests/mcp/test_tool_resource.py b/tests/mcp/test_tool_resource.py
index 3fa0dcfb..54f4b5e4 100644
--- a/tests/mcp/test_tool_resource.py
+++ b/tests/mcp/test_tool_resource.py
@@ -150,6 +150,23 @@ async def test_read_file_memory_url(app, synced_files, test_project):
     assert "Testing memory:// URL handling for resources" in response["text"]
 
 
+@pytest.mark.asyncio
+async def test_read_file_memory_url_with_project_prefix(app, synced_files, test_project):
+    """Test reading a resource using a memory:// URL with explicit project prefix."""
+    await write_note.fn(
+        project=test_project.name,
+        title="Project Prefixed Resource URL Test",
+        directory="test",
+        content="Testing memory:// URL handling for resources with project prefix",
+    )
+
+    memory_url = f"memory://{test_project.name}/test/project-prefixed-resource-url-test"
+    response = await read_content.fn(memory_url)
+
+    assert response["type"] == "text"
+    assert "Testing memory:// URL handling for resources with project prefix" in response["text"]
+
+
 @pytest.mark.asyncio
 async def test_image_optimization_functions(app):
     """Test the image optimization helper functions."""
diff --git a/tests/mcp/test_tool_search.py b/tests/mcp/test_tool_search.py
index d9cb9c04..b20ef757 100644
--- a/tests/mcp/test_tool_search.py
+++ b/tests/mcp/test_tool_search.py
@@ -1,6 +1,7 @@
 """Tests for search MCP tools."""
 
 import pytest
+from contextlib import asynccontextmanager
 from datetime import datetime, timedelta
 
 from basic_memory.mcp.tools import write_note
@@ -28,7 +29,10 @@ async def test_search_text(client, test_project):
     if isinstance(response, SearchResponse):
         # Success case - verify SearchResponse
         assert len(response.results) > 0
-        assert any(r.permalink == "test/test-search-note" for r in response.results)
+        assert any(
+            r.permalink == f"{test_project.name}/test/test-search-note"
+            for r in response.results
+        )
     else:
         # If search failed and returned error message, test should fail with informative message
         pytest.fail(f"Search failed with error: {response}")
@@ -59,7 +63,10 @@ async def test_search_title(client, test_project):
     else:
         # Success case - verify SearchResponse
         assert len(response.results) > 0
-        assert any(r.permalink == "test/test-search-note" for r in response.results)
+        assert any(
+            r.permalink == f"{test_project.name}/test/test-search-note"
+            for r in response.results
+        )
 
 
 @pytest.mark.asyncio
@@ -77,14 +84,19 @@ async def test_search_permalink(client, test_project):
 
     # Search for it
     response = await search_notes.fn(
-        project=test_project.name, query="test/test-search-note", search_type="permalink"
+        project=test_project.name,
+        query=f"{test_project.name}/test/test-search-note",
+        search_type="permalink",
     )
 
     # Verify results - handle both success and error cases
     if isinstance(response, SearchResponse):
         # Success case - verify SearchResponse
         assert len(response.results) > 0
-        assert any(r.permalink == "test/test-search-note" for r in response.results)
+        assert any(
+            r.permalink == f"{test_project.name}/test/test-search-note"
+            for r in response.results
+        )
     else:
         # If search failed and returned error message, test should fail with informative message
         pytest.fail(f"Search failed with error: {response}")
@@ -105,19 +117,49 @@ async def test_search_permalink_match(client, test_project):
 
     # Search for it
     response = await search_notes.fn(
-        project=test_project.name, query="test/test-search-*", search_type="permalink"
+        project=test_project.name,
+        query=f"{test_project.name}/test/test-search-*",
+        search_type="permalink",
     )
 
     # Verify results - handle both success and error cases
     if isinstance(response, SearchResponse):
         # Success case - verify SearchResponse
         assert len(response.results) > 0
-        assert any(r.permalink == "test/test-search-note" for r in response.results)
+        assert any(
+            r.permalink == f"{test_project.name}/test/test-search-note"
+            for r in response.results
+        )
     else:
         # If search failed and returned error message, test should fail with informative message
         pytest.fail(f"Search failed with error: {response}")
 
 
+@pytest.mark.asyncio
+async def test_search_memory_url_with_project_prefix(client, test_project):
+    """Test searching with a memory:// URL that includes the project prefix."""
+    result = await write_note.fn(
+        project=test_project.name,
+        title="Memory URL Search Note",
+        directory="test",
+        content="# Memory URL Search\nThis note should be found via memory URL search",
+    )
+    assert result
+
+    response = await search_notes.fn(
+        query=f"memory://{test_project.name}/test/memory-url-search-note"
+    )
+
+    if isinstance(response, SearchResponse):
+        assert len(response.results) > 0
+        assert any(
+            r.permalink == f"{test_project.name}/test/memory-url-search-note"
+            for r in response.results
+        )
+    else:
+        pytest.fail(f"Search failed with error: {response}")
+
+
 @pytest.mark.asyncio
 async def test_search_pagination(client, test_project):
     """Test basic search functionality."""
@@ -140,7 +182,10 @@ async def test_search_pagination(client, test_project):
     if isinstance(response, SearchResponse):
         # Success case - verify SearchResponse
         assert len(response.results) == 1
-        assert any(r.permalink == "test/test-search-note" for r in response.results)
+        assert any(
+            r.permalink == f"{test_project.name}/test/test-search-note"
+            for r in response.results
+        )
     else:
         # If search failed and returned error message, test should fail with informative message
         pytest.fail(f"Search failed with error: {response}")
@@ -315,21 +360,23 @@ class TestSearchToolErrorHandling:
     async def test_search_notes_exception_handling(self, monkeypatch):
         """Test exception handling in search_notes."""
         import importlib
-        from contextlib import asynccontextmanager
 
         search_mod = importlib.import_module("basic_memory.mcp.tools.search")
         clients_mod = importlib.import_module("basic_memory.mcp.clients")
 
         class StubProject:
-            project_url = "http://test"
             name = "test-project"
-            id = 1
             external_id = "test-external-id"
 
         @asynccontextmanager
         async def fake_get_project_client(*args, **kwargs):
             yield (object(), StubProject())
 
+        async def fake_resolve_project_and_path(
+            client, identifier, project=None, context=None, headers=None
+        ):
+            return StubProject(), identifier, False
+
         # Mock SearchClient to raise an exception
         class MockSearchClient:
             def __init__(self, *args, **kwargs):
@@ -339,6 +386,7 @@ class TestSearchToolErrorHandling:
                 raise Exception("syntax error")
 
         monkeypatch.setattr(search_mod, "get_project_client", fake_get_project_client)
+        monkeypatch.setattr(search_mod, "resolve_project_and_path", fake_resolve_project_and_path)
         # Patch at the clients module level where the import happens
         monkeypatch.setattr(clients_mod, "SearchClient", MockSearchClient)
 
@@ -350,21 +398,23 @@ class TestSearchToolErrorHandling:
     async def test_search_notes_permission_error(self, monkeypatch):
         """Test search_notes with permission error."""
         import importlib
-        from contextlib import asynccontextmanager
 
         search_mod = importlib.import_module("basic_memory.mcp.tools.search")
         clients_mod = importlib.import_module("basic_memory.mcp.clients")
 
         class StubProject:
-            project_url = "http://test"
             name = "test-project"
-            id = 1
             external_id = "test-external-id"
 
         @asynccontextmanager
         async def fake_get_project_client(*args, **kwargs):
             yield (object(), StubProject())
 
+        async def fake_resolve_project_and_path(
+            client, identifier, project=None, context=None, headers=None
+        ):
+            return StubProject(), identifier, False
+
         # Mock SearchClient to raise a permission error
         class MockSearchClient:
             def __init__(self, *args, **kwargs):
@@ -374,6 +424,7 @@ class TestSearchToolErrorHandling:
                 raise Exception("permission denied")
 
         monkeypatch.setattr(search_mod, "get_project_client", fake_get_project_client)
+        monkeypatch.setattr(search_mod, "resolve_project_and_path", fake_resolve_project_and_path)
         # Patch at the clients module level where the import happens
         monkeypatch.setattr(clients_mod, "SearchClient", MockSearchClient)
 
@@ -387,7 +438,6 @@ class TestSearchToolErrorHandling:
 async def test_search_notes_sets_retrieval_mode_for_semantic_types(monkeypatch, search_type):
     """Vector/hybrid search types should populate retrieval_mode in API payload."""
     import importlib
-    from contextlib import asynccontextmanager
 
     search_mod = importlib.import_module("basic_memory.mcp.tools.search")
     clients_mod = importlib.import_module("basic_memory.mcp.clients")
@@ -402,6 +452,11 @@ async def test_search_notes_sets_retrieval_mode_for_semantic_types(monkeypatch,
     async def fake_get_project_client(*args, **kwargs):
         yield (object(), StubProject())
 
+    async def fake_resolve_project_and_path(
+        client, identifier, project=None, context=None, headers=None
+    ):
+        return StubProject(), identifier, False
+
     captured_payload: dict = {}
 
     class MockSearchClient:
@@ -413,6 +468,7 @@ async def test_search_notes_sets_retrieval_mode_for_semantic_types(monkeypatch,
             return SearchResponse(results=[], current_page=page, page_size=page_size)
 
     monkeypatch.setattr(search_mod, "get_project_client", fake_get_project_client)
+    monkeypatch.setattr(search_mod, "resolve_project_and_path", fake_resolve_project_and_path)
     monkeypatch.setattr(clients_mod, "SearchClient", MockSearchClient)
 
     result = await search_mod.search_notes.fn(
diff --git a/tests/mcp/test_tool_write_note.py b/tests/mcp/test_tool_write_note.py
index 4e3cfd9f..e6d7a651 100644
--- a/tests/mcp/test_tool_write_note.py
+++ b/tests/mcp/test_tool_write_note.py
@@ -29,31 +29,29 @@ async def test_write_note(app, test_project):
     assert "# Created note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: test/Test Note.md" in result
-    assert "permalink: test/test-note" in result
+    assert f"permalink: {test_project.name}/test/test-note" in result
     assert "## Tags" in result
     assert "- test, documentation" in result
     assert f"[Session: Using project '{test_project.name}']" in result
 
     # Try reading it back via permalink
     content = await read_note.fn("test/test-note", project=test_project.name)
-    assert (
-        normalize_newlines(
-            dedent("""
+    expected = normalize_newlines(
+        dedent("""
         ---
         title: Test Note
         type: note
-        permalink: test/test-note
+        permalink: {permalink}
         tags:
         - test
         - documentation
         ---
-        
+
         # Test
         This is a test note
-        """).strip()
-        )
-        in content
+        """).format(permalink=f"{test_project.name}/test/test-note").strip()
     )
+    assert expected in content
 
 
 @pytest.mark.asyncio
@@ -67,24 +65,22 @@ async def test_write_note_no_tags(app, test_project):
     assert "# Created note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: test/Simple Note.md" in result
-    assert "permalink: test/simple-note" in result
+    assert f"permalink: {test_project.name}/test/simple-note" in result
     assert f"[Session: Using project '{test_project.name}']" in result
     # Should be able to read it back
     content = await read_note.fn("test/simple-note", project=test_project.name)
-    assert (
-        normalize_newlines(
-            dedent("""
+    expected = normalize_newlines(
+        dedent("""
         ---
         title: Simple Note
         type: note
-        permalink: test/simple-note
+        permalink: {permalink}
         ---
-        
+
         Just some text
-        """).strip()
-        )
-        in content
+        """).format(permalink=f"{test_project.name}/test/simple-note").strip()
     )
+    assert expected in content
 
 
 @pytest.mark.asyncio
@@ -109,7 +105,7 @@ async def test_write_note_update_existing(app, test_project):
     assert "# Created note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: test/Test Note.md" in result
-    assert "permalink: test/test-note" in result
+    assert f"permalink: {test_project.name}/test/test-note" in result
     assert "## Tags" in result
     assert "- test, documentation" in result
     assert f"[Session: Using project '{test_project.name}']" in result
@@ -124,7 +120,7 @@ async def test_write_note_update_existing(app, test_project):
     assert "# Updated note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: test/Test Note.md" in result
-    assert "permalink: test/test-note" in result
+    assert f"permalink: {test_project.name}/test/test-note" in result
     assert "## Tags" in result
     assert "- test, documentation" in result
     assert f"[Session: Using project '{test_project.name}']" in result
@@ -138,16 +134,16 @@ async def test_write_note_update_existing(app, test_project):
         ---
         title: Test Note
         type: note
-        permalink: test/test-note
+        permalink: {permalink}
         tags:
         - test
         - documentation
         ---
-        
+
         # Test
         This is an updated note
         """
-            ).strip()
+            ).format(permalink=f"{test_project.name}/test/test-note").strip()
         )
         == content
     )
@@ -294,7 +290,7 @@ async def test_write_note_with_tag_array_from_bug_report(app, test_project):
 
     assert result
     assert f"project: {test_project.name}" in result
-    assert "permalink: folder/title" in result
+    assert f"permalink: {test_project.name}/folder/title" in result
     assert "Tags" in result
     assert "hipporag" in result
     assert f"[Session: Using project '{test_project.name}']" in result
@@ -327,7 +323,7 @@ async def test_write_note_verbose(app, test_project):
     assert "# Created note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: test/Test Note.md" in result
-    assert "permalink: test/test-note" in result
+    assert f"permalink: {test_project.name}/test/test-note" in result
     assert "## Observations" in result
     assert "- note: 1" in result
     assert "## Relations" in result
@@ -441,7 +437,7 @@ async def test_write_note_preserves_content_frontmatter(app, test_project):
             ---
             title: Test Note
             type: note
-            permalink: test/test-note
+            permalink: {permalink}
             version: 1.0
             author: name
             tags:
@@ -453,7 +449,7 @@ async def test_write_note_preserves_content_frontmatter(app, test_project):
 
             This is a test note
             """
-            ).strip()
+            ).format(permalink=f"{test_project.name}/test/test-note").strip()
         )
         in content
     )
@@ -480,7 +476,7 @@ async def test_write_note_permalink_collision_fix_issue_139(app, test_project):
     )
     assert "# Created note" in result1
     assert f"project: {test_project.name}" in result1
-    assert "permalink: test/note-1" in result1
+    assert f"permalink: {test_project.name}/test/note-1" in result1
 
     # Step 2: Create second note with different title
     result2 = await write_note.fn(
@@ -488,7 +484,7 @@ async def test_write_note_permalink_collision_fix_issue_139(app, test_project):
     )
     assert "# Created note" in result2
     assert f"project: {test_project.name}" in result2
-    assert "permalink: test/note-2" in result2
+    assert f"permalink: {test_project.name}/test/note-2" in result2
 
     # Step 3: Try to create/replace first note again
     # This scenario would trigger the UNIQUE constraint failure before the fix
@@ -509,10 +505,13 @@ async def test_write_note_permalink_collision_fix_issue_139(app, test_project):
     assert "Updated note" in result3 or "Created note" in result3
 
     # The result should contain either the original permalink or a unique one
-    assert "permalink: test/note-1" in result3 or "permalink: test/note-1-1" in result3
+    assert (
+        f"permalink: {test_project.name}/test/note-1" in result3
+        or f"permalink: {test_project.name}/test/note-1-1" in result3
+    )
 
     # Verify we can read back the content
-    if "permalink: test/note-1" in result3:
+    if f"permalink: {test_project.name}/test/note-1" in result3:
         # Updated existing note case
         content = await read_note.fn("test/note-1", project=test_project.name)
         assert "Replacement content for note 1" in content
@@ -552,13 +551,12 @@ async def test_write_note_with_custom_entity_type(app, test_project):
 
     # Verify the entity type is correctly set in the frontmatter
     content = await read_note.fn("guides/test-guide", project=test_project.name)
-    assert (
-        normalize_newlines(
-            dedent("""
+    expected = normalize_newlines(
+        dedent("""
         ---
         title: Test Guide
         type: guide
-        permalink: guides/test-guide
+        permalink: {permalink}
         tags:
         - guide
         - documentation
@@ -566,10 +564,9 @@ async def test_write_note_with_custom_entity_type(app, test_project):
 
         # Guide Content
         This is a guide
-        """).strip()
-        )
-        in content
+        """).format(permalink=f"{test_project.name}/guides/test-guide").strip()
     )
+    assert expected in content
 
 
 @pytest.mark.asyncio
@@ -588,7 +585,7 @@ async def test_write_note_with_report_entity_type(app, test_project):
     assert "# Created note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: reports/Monthly Report.md" in result
-    assert "permalink: reports/monthly-report" in result
+    assert f"permalink: {test_project.name}/reports/monthly-report" in result
     assert f"[Session: Using project '{test_project.name}']" in result
 
     # Verify the entity type is correctly set in the frontmatter
@@ -612,7 +609,7 @@ async def test_write_note_with_config_entity_type(app, test_project):
     assert "# Created note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: config/System Config.md" in result
-    assert "permalink: config/system-config" in result
+    assert f"permalink: {test_project.name}/config/system-config" in result
     assert f"[Session: Using project '{test_project.name}']" in result
 
     # Verify the entity type is correctly set in the frontmatter
@@ -640,7 +637,7 @@ async def test_write_note_entity_type_default_behavior(app, test_project):
     assert "# Created note" in result
     assert f"project: {test_project.name}" in result
     assert "file_path: test/Default Type Test.md" in result
-    assert "permalink: test/default-type-test" in result
+    assert f"permalink: {test_project.name}/test/default-type-test" in result
     assert f"[Session: Using project '{test_project.name}']" in result
 
     # Verify the entity type defaults to "note"
@@ -1035,7 +1032,9 @@ class TestWriteNoteSecurityValidation:
         assert "paths must stay within project boundaries" not in result
         assert "# Created note" in result
         assert "file_path: security-tests/Full Feature Security Test.md" in result
-        assert "permalink: security-tests/full-feature-security-test" in result
+        assert (
+            f"permalink: {test_project.name}/security-tests/full-feature-security-test" in result
+        )
 
         # Should process observations and relations
         assert "## Observations" in result
diff --git a/tests/mcp/test_tool_write_note_kebab_filenames.py b/tests/mcp/test_tool_write_note_kebab_filenames.py
index 88ec8afb..87db56cb 100644
--- a/tests/mcp/test_tool_write_note_kebab_filenames.py
+++ b/tests/mcp/test_tool_write_note_kebab_filenames.py
@@ -37,7 +37,7 @@ async def test_write_note_spaces_to_hyphens(app, test_project, app_config):
     )
 
     assert "file_path: test/my-awesome-note.md" in result
-    assert "permalink: test/my-awesome-note" in result
+    assert f"permalink: {test_project.name}/test/my-awesome-note" in result
 
 
 @pytest.mark.asyncio
@@ -53,7 +53,7 @@ async def test_write_note_underscores_to_hyphens(app, test_project, app_config):
     )
 
     assert "file_path: test/my-note-with-underscores.md" in result
-    assert "permalink: test/my-note-with-underscores" in result
+    assert f"permalink: {test_project.name}/test/my-note-with-underscores" in result
 
 
 @pytest.mark.asyncio
@@ -69,7 +69,7 @@ async def test_write_note_camelcase_to_kebab(app, test_project, app_config):
     )
 
     assert "file_path: test/my-awesome-feature.md" in result
-    assert "permalink: test/my-awesome-feature" in result
+    assert f"permalink: {test_project.name}/test/my-awesome-feature" in result
 
 
 @pytest.mark.asyncio
@@ -85,7 +85,7 @@ async def test_write_note_mixed_case_to_lowercase(app, test_project, app_config)
     )
 
     assert "file_path: test/mixed-case-example.md" in result
-    assert "permalink: test/mixed-case-example" in result
+    assert f"permalink: {test_project.name}/test/mixed-case-example" in result
 
 
 # =============================================================================
@@ -110,7 +110,7 @@ async def test_write_note_single_period_preserved(app, test_project, app_config)
     )
 
     assert "file_path: test/test-3.0-version.md" in result
-    assert "permalink: test/test-3.0-version" in result
+    assert f"permalink: {test_project.name}/test/test-3.0-version" in result
 
 
 @pytest.mark.asyncio
@@ -126,7 +126,7 @@ async def test_write_note_multiple_periods_preserved(app, test_project, app_conf
     )
 
     assert "file_path: test/version-1.2.3-release.md" in result
-    assert "permalink: test/version-1.2.3-release" in result
+    assert f"permalink: {test_project.name}/test/version-1.2.3-release" in result
 
 
 # =============================================================================
@@ -147,7 +147,7 @@ async def test_write_note_special_chars_to_hyphens(app, test_project, app_config
     )
 
     assert "file_path: test/test-2.0-new-feature.md" in result
-    assert "permalink: test/test-2.0-new-feature" in result
+    assert f"permalink: {test_project.name}/test/test-2.0-new-feature" in result
 
 
 @pytest.mark.asyncio
@@ -163,7 +163,7 @@ async def test_write_note_parentheses_removed(app, test_project, app_config):
     )
 
     assert "file_path: test/feature-v2.0-update.md" in result
-    assert "permalink: test/feature-v2.0-update" in result
+    assert f"permalink: {test_project.name}/test/feature-v2.0-update" in result
 
 
 @pytest.mark.asyncio
@@ -179,7 +179,7 @@ async def test_write_note_apostrophes_removed(app, test_project, app_config):
     )
 
     assert "file_path: test/users-guide.md" in result
-    assert "permalink: test/users-guide" in result
+    assert f"permalink: {test_project.name}/test/users-guide" in result
 
 
 # =============================================================================
@@ -200,7 +200,10 @@ async def test_write_note_all_transformations_combined(app, test_project, app_co
     )
 
     assert "file_path: test/my-project-v3.0-feature-update-draft.md" in result
-    assert "permalink: test/my-project-v3.0-feature-update-draft" in result
+    assert (
+        f"permalink: {test_project.name}/test/my-project-v3.0-feature-update-draft"
+        in result
+    )
 
 
 @pytest.mark.asyncio
@@ -217,7 +220,7 @@ async def test_write_note_consecutive_special_chars_collapsed(app, test_project,
 
     # Multiple underscores/hyphens should collapse to single hyphen
     assert "file_path: test/test-multiple-separators.md" in result
-    assert "permalink: test/test-multiple-separators" in result
+    assert f"permalink: {test_project.name}/test/test-multiple-separators" in result
 
 
 # =============================================================================
@@ -238,7 +241,7 @@ async def test_write_note_leading_trailing_hyphens_trimmed(app, test_project, ap
     )
 
     assert "file_path: test/test-note.md" in result
-    assert "permalink: test/test-note" in result
+    assert f"permalink: {test_project.name}/test/test-note" in result
 
 
 @pytest.mark.asyncio
@@ -254,7 +257,7 @@ async def test_write_note_all_special_chars_becomes_valid_filename(app, test_pro
     )
 
     assert "file_path: test/test.md" in result
-    assert "permalink: test/test" in result
+    assert f"permalink: {test_project.name}/test/test" in result
 
 
 # =============================================================================
@@ -276,7 +279,7 @@ async def test_write_note_folder_path_unaffected(app, test_project, app_config):
 
     # Folder paths should be preserved (sanitized but not kebab-cased)
     assert "file_path: My_Folder/Sub Folder/test-note.md" in result
-    assert "permalink: my-folder/sub-folder/test-note" in result
+    assert f"permalink: {test_project.name}/my-folder/sub-folder/test-note" in result
 
 
 @pytest.mark.asyncio
@@ -292,7 +295,7 @@ async def test_write_note_root_folder_with_kebab(app, test_project, app_config):
     )
 
     assert "file_path: test-3.0-note.md" in result
-    assert "permalink: test-3.0-note" in result
+    assert f"permalink: {test_project.name}/test-3.0-note" in result
 
 
 # =============================================================================
@@ -315,7 +318,7 @@ async def test_write_note_kebab_disabled_preserves_original(app, test_project, a
     # Periods and spaces should be preserved
     assert "file_path: test/Test 3.0 Version.md" in result
     # Permalinks are ALWAYS kebab-case regardless of setting, and preserve periods
-    assert "permalink: test/test-3.0-version" in result
+    assert f"permalink: {test_project.name}/test/test-3.0-version" in result
 
 
 @pytest.mark.asyncio
@@ -331,7 +334,7 @@ async def test_write_note_kebab_disabled_preserves_underscores(app, test_project
     )
 
     assert "file_path: test/my_note_example.md" in result
-    assert "permalink: test/my-note-example" in result
+    assert f"permalink: {test_project.name}/test/my-note-example" in result
 
 
 @pytest.mark.asyncio
@@ -347,7 +350,7 @@ async def test_write_note_kebab_disabled_preserves_case(app, test_project, app_c
     )
 
     assert "file_path: test/MyAwesomeNote.md" in result
-    assert "permalink: test/my-awesome-note" in result
+    assert f"permalink: {test_project.name}/test/my-awesome-note" in result
 
 
 # =============================================================================
@@ -375,7 +378,7 @@ async def test_permalinks_always_kebab_case(app, test_project, app_config):
 
     # Filename preserves original, permalink is kebab-case
     assert "file_path: test/Test Note 1.md" in result1
-    assert "permalink: test/test-note-1" in result1
+    assert f"permalink: {test_project.name}/test/test-note-1" in result1
 
     # Test with kebab enabled
     ConfigManager().config.kebab_filenames = True
@@ -389,4 +392,4 @@ async def test_permalinks_always_kebab_case(app, test_project, app_config):
 
     # Both filename and permalink are kebab-case
     assert "file_path: test/test-note-2.md" in result2
-    assert "permalink: test/test-note-2" in result2
+    assert f"permalink: {test_project.name}/test/test-note-2" in result2
diff --git a/tests/services/test_entity_service.py b/tests/services/test_entity_service.py
index dc477b90..3aefdf38 100644
--- a/tests/services/test_entity_service.py
+++ b/tests/services/test_entity_service.py
@@ -20,7 +20,9 @@ from basic_memory.utils import generate_permalink
 
 
 @pytest.mark.asyncio
-async def test_create_entity(entity_service: EntityService, file_service: FileService):
+async def test_create_entity(
+    entity_service: EntityService, file_service: FileService, project_config: ProjectConfig
+):
     """Test successful entity creation."""
     entity_data = EntitySchema(
         title="Test Entity",
@@ -33,14 +35,14 @@ async def test_create_entity(entity_service: EntityService, file_service: FileSe
 
     # Assert Entity
     assert isinstance(entity, EntityModel)
-    assert entity.permalink == entity_data.permalink
+    assert entity.permalink == f"{generate_permalink(project_config.name)}/{entity_data.permalink}"
     assert entity.file_path == entity_data.file_path
     assert entity.entity_type == "test"
     assert entity.created_at is not None
     assert len(entity.relations) == 0
 
     # Verify we can retrieve it using permalink
-    retrieved = await entity_service.get_by_permalink(entity_data.permalink)
+    retrieved = await entity_service.get_by_permalink(entity.permalink)
     assert retrieved.title == "Test Entity"
     assert retrieved.entity_type == "test"
     assert retrieved.created_at is not None
@@ -59,7 +61,9 @@ async def test_create_entity(entity_service: EntityService, file_service: FileSe
 
 
 @pytest.mark.asyncio
-async def test_create_entity_file_exists(entity_service: EntityService, file_service: FileService):
+async def test_create_entity_file_exists(
+    entity_service: EntityService, file_service: FileService, project_config: ProjectConfig
+):
     """Test successful entity creation."""
     entity_data = EntitySchema(
         title="Test Entity",
@@ -77,7 +81,8 @@ async def test_create_entity_file_exists(entity_service: EntityService, file_ser
 
     file_content, _ = await file_service.read_file(file_path)
     assert (
-        "---\ntitle: Test Entity\ntype: test\npermalink: test-entity\n---\n\nfirst" == file_content
+        f"---\ntitle: Test Entity\ntype: test\npermalink: {generate_permalink(project_config.name)}/test-entity\n---\n\nfirst"
+        == file_content
     )
 
     entity_data = EntitySchema(
@@ -108,7 +113,9 @@ async def test_create_entity_unique_permalink(
     entity = await entity_service.create_entity(entity_data)
 
     # default permalink
-    assert entity.permalink == generate_permalink(entity.file_path)
+    assert entity.permalink == (
+        f"{generate_permalink(project_config.name)}/{generate_permalink(entity.file_path)}"
+    )
 
     # move file
     file_path = file_service.get_entity_path(entity)
@@ -536,7 +543,11 @@ async def test_create_with_content(entity_service: EntityService, file_service:
 
 
 @pytest.mark.asyncio
-async def test_update_with_content(entity_service: EntityService, file_service: FileService):
+async def test_update_with_content(
+    entity_service: EntityService,
+    file_service: FileService,
+    project_config: ProjectConfig,
+):
     content = """# Git Workflow Guide"""
 
     # Create test entity
@@ -560,13 +571,14 @@ async def test_update_with_content(entity_service: EntityService, file_service:
     file_content, _ = await file_service.read_file(file_path)
 
     # assert content is in file
+    project_prefix = generate_permalink(project_config.name)
     assert (
         dedent(
-            """
+            f"""
             ---
             title: Git Workflow Guide
             type: test
-            permalink: test/git-workflow-guide
+            permalink: {project_prefix}/test/git-workflow-guide
             ---
             
             # Git Workflow Guide
@@ -1414,7 +1426,7 @@ async def test_move_entity_success(
     app_config = BasicMemoryConfig(update_permalinks_on_move=False)
 
     # Move entity
-    assert entity.permalink == "original/test-note"
+    assert entity.permalink == f"{generate_permalink(project_config.name)}/original/test-note"
     await entity_service.move_entity(
         identifier=entity.permalink,
         destination_path="moved/test-note.md",
diff --git a/tests/services/test_link_resolver.py b/tests/services/test_link_resolver.py
index bb8e2138..630d1300 100644
--- a/tests/services/test_link_resolver.py
+++ b/tests/services/test_link_resolver.py
@@ -110,40 +110,46 @@ async def link_resolver(entity_repository, search_service, test_entities):
     return LinkResolver(entity_repository, search_service)
 
 
+@pytest.fixture
+def project_prefix(test_entities) -> str:
+    """Project permalink prefix for expected permalinks."""
+    return test_entities[0].permalink.split("/", 1)[0]
+
+
 @pytest.mark.asyncio
-async def test_exact_permalink_match(link_resolver, test_entities):
+async def test_exact_permalink_match(link_resolver, test_entities, project_prefix):
     """Test resolving a link that exactly matches a permalink."""
     entity = await link_resolver.resolve_link("components/core-service")
-    assert entity.permalink == "components/core-service"
+    assert entity.permalink == f"{project_prefix}/components/core-service"
 
 
 @pytest.mark.asyncio
-async def test_exact_title_match(link_resolver, test_entities):
+async def test_exact_title_match(link_resolver, test_entities, project_prefix):
     """Test resolving a link that matches an entity title."""
     entity = await link_resolver.resolve_link("Core Service")
-    assert entity.permalink == "components/core-service"
+    assert entity.permalink == f"{project_prefix}/components/core-service"
 
 
 @pytest.mark.asyncio
-async def test_duplicate_title_match(link_resolver, test_entities):
+async def test_duplicate_title_match(link_resolver, test_entities, project_prefix):
     """Test resolving a link that matches an entity title."""
     entity = await link_resolver.resolve_link("Core Service")
-    assert entity.permalink == "components/core-service"
+    assert entity.permalink == f"{project_prefix}/components/core-service"
 
 
 @pytest.mark.asyncio
-async def test_fuzzy_title_partial_match(link_resolver):
+async def test_fuzzy_title_partial_match(link_resolver, project_prefix):
     # Test partial match
     result = await link_resolver.resolve_link("Auth Serv")
     assert result is not None, "Did not find partial match"
-    assert result.permalink == "components/auth-service"
+    assert result.permalink == f"{project_prefix}/components/auth-service"
 
 
 @pytest.mark.asyncio
-async def test_fuzzy_title_exact_match(link_resolver):
+async def test_fuzzy_title_exact_match(link_resolver, project_prefix):
     # Test partial match
     result = await link_resolver.resolve_link("auth-service")
-    assert result.permalink == "components/auth-service"
+    assert result.permalink == f"{project_prefix}/components/auth-service"
 
 
 @pytest.mark.asyncio
@@ -183,7 +189,7 @@ async def test_resolve_file(link_resolver):
 
 
 @pytest.mark.asyncio
-async def test_folder_title_pattern_with_md_extension(link_resolver, test_entities):
+async def test_folder_title_pattern_with_md_extension(link_resolver, test_entities, project_prefix):
     """Test resolving folder/title patterns that need .md extension added.
 
     This tests the new logic added in step 4 of resolve_link that handles
@@ -193,25 +199,25 @@ async def test_folder_title_pattern_with_md_extension(link_resolver, test_entiti
     # "components/Core Service" should resolve to file path "components/Core Service.md"
     entity = await link_resolver.resolve_link("components/Core Service")
     assert entity is not None
-    assert entity.permalink == "components/core-service"
+    assert entity.permalink == f"{project_prefix}/components/core-service"
     assert entity.file_path == "components/Core Service.md"
 
     # Test with different entity
     entity = await link_resolver.resolve_link("config/Service Config")
     assert entity is not None
-    assert entity.permalink == "config/service-config"
+    assert entity.permalink == f"{project_prefix}/config/service-config"
     assert entity.file_path == "config/Service Config.md"
 
     # Test with nested folder structure
     entity = await link_resolver.resolve_link("specs/subspec/Sub Features 1")
     assert entity is not None
-    assert entity.permalink == "specs/subspec/sub-features-1"
+    assert entity.permalink == f"{project_prefix}/specs/subspec/sub-features-1"
     assert entity.file_path == "specs/subspec/Sub Features 1.md"
 
     # Test that it doesn't try to add .md to things that already have it
     entity = await link_resolver.resolve_link("components/Core Service.md")
     assert entity is not None
-    assert entity.permalink == "components/core-service"
+    assert entity.permalink == f"{project_prefix}/components/core-service"
 
     # Test that it doesn't try to add .md to single words (no slash)
     entity = await link_resolver.resolve_link("NonExistent")
@@ -220,12 +226,12 @@ async def test_folder_title_pattern_with_md_extension(link_resolver, test_entiti
     # Test that it doesn't interfere with exact permalink matches
     entity = await link_resolver.resolve_link("components/core-service")
     assert entity is not None
-    assert entity.permalink == "components/core-service"
+    assert entity.permalink == f"{project_prefix}/components/core-service"
 
 
 # Tests for strict mode parameter combinations
 @pytest.mark.asyncio
-async def test_strict_mode_parameter_combinations(link_resolver, test_entities):
+async def test_strict_mode_parameter_combinations(link_resolver, test_entities, project_prefix):
     """Test all combinations of use_search and strict parameters."""
 
     # Test queries
@@ -236,11 +242,11 @@ async def test_strict_mode_parameter_combinations(link_resolver, test_entities):
     # Case 1: use_search=True, strict=False (default behavior - fuzzy matching allowed)
     result = await link_resolver.resolve_link(exact_match, use_search=True, strict=False)
     assert result is not None
-    assert result.permalink == "components/auth-service"
+    assert result.permalink == f"{project_prefix}/components/auth-service"
 
     result = await link_resolver.resolve_link(fuzzy_match, use_search=True, strict=False)
     assert result is not None  # Should find "Auth Service" via fuzzy matching
-    assert result.permalink == "components/auth-service"
+    assert result.permalink == f"{project_prefix}/components/auth-service"
 
     result = await link_resolver.resolve_link(non_existent, use_search=True, strict=False)
     assert result is None
@@ -248,7 +254,7 @@ async def test_strict_mode_parameter_combinations(link_resolver, test_entities):
     # Case 2: use_search=True, strict=True (exact matches only, even with search enabled)
     result = await link_resolver.resolve_link(exact_match, use_search=True, strict=True)
     assert result is not None
-    assert result.permalink == "components/auth-service"
+    assert result.permalink == f"{project_prefix}/components/auth-service"
 
     result = await link_resolver.resolve_link(fuzzy_match, use_search=True, strict=True)
     assert result is None  # Should NOT find via fuzzy matching in strict mode
@@ -259,7 +265,7 @@ async def test_strict_mode_parameter_combinations(link_resolver, test_entities):
     # Case 3: use_search=False, strict=False (no search, exact repository matches only)
     result = await link_resolver.resolve_link(exact_match, use_search=False, strict=False)
     assert result is not None
-    assert result.permalink == "components/auth-service"
+    assert result.permalink == f"{project_prefix}/components/auth-service"
 
     result = await link_resolver.resolve_link(fuzzy_match, use_search=False, strict=False)
     assert result is None  # No search means no fuzzy matching
@@ -270,7 +276,7 @@ async def test_strict_mode_parameter_combinations(link_resolver, test_entities):
     # Case 4: use_search=False, strict=True (redundant but should work same as case 3)
     result = await link_resolver.resolve_link(exact_match, use_search=False, strict=True)
     assert result is not None
-    assert result.permalink == "components/auth-service"
+    assert result.permalink == f"{project_prefix}/components/auth-service"
 
     result = await link_resolver.resolve_link(fuzzy_match, use_search=False, strict=True)
     assert result is None  # No search means no fuzzy matching
@@ -280,28 +286,28 @@ async def test_strict_mode_parameter_combinations(link_resolver, test_entities):
 
 
 @pytest.mark.asyncio
-async def test_exact_match_types_in_strict_mode(link_resolver, test_entities):
+async def test_exact_match_types_in_strict_mode(link_resolver, test_entities, project_prefix):
     """Test that all types of exact matches work in strict mode."""
 
     # 1. Exact permalink match
     result = await link_resolver.resolve_link("components/core-service", strict=True)
     assert result is not None
-    assert result.permalink == "components/core-service"
+    assert result.permalink == f"{project_prefix}/components/core-service"
 
     # 2. Exact title match
     result = await link_resolver.resolve_link("Core Service", strict=True)
     assert result is not None
-    assert result.permalink == "components/core-service"
+    assert result.permalink == f"{project_prefix}/components/core-service"
 
     # 3. Exact file path match
     result = await link_resolver.resolve_link("components/Core Service.md", strict=True)
     assert result is not None
-    assert result.permalink == "components/core-service"
+    assert result.permalink == f"{project_prefix}/components/core-service"
 
     # 4. Folder/title pattern with .md extension added
     result = await link_resolver.resolve_link("components/Core Service", strict=True)
     assert result is not None
-    assert result.permalink == "components/core-service"
+    assert result.permalink == f"{project_prefix}/components/core-service"
 
     # 5. Non-markdown file (Image.png)
     result = await link_resolver.resolve_link("Image.png", strict=True)
@@ -329,14 +335,14 @@ async def test_fuzzy_matching_blocked_in_strict_mode(link_resolver, test_entitie
 
 
 @pytest.mark.asyncio
-async def test_link_normalization_with_strict_mode(link_resolver, test_entities):
+async def test_link_normalization_with_strict_mode(link_resolver, test_entities, project_prefix):
     """Test that link normalization still works in strict mode."""
 
     # Test bracket removal and alias handling in strict mode
     queries_and_expected = [
-        ("[[Core Service]]", "components/core-service"),
-        ("[[Core Service|Main]]", "components/core-service"),  # Alias should be ignored
-        ("  [[  Core Service  ]]  ", "components/core-service"),  # Extra whitespace
+        ("[[Core Service]]", f"{project_prefix}/components/core-service"),
+        ("[[Core Service|Main]]", f"{project_prefix}/components/core-service"),
+        ("  [[  Core Service  ]]  ", f"{project_prefix}/components/core-service"),
     ]
 
     for query, expected_permalink in queries_and_expected:
@@ -346,7 +352,7 @@ async def test_link_normalization_with_strict_mode(link_resolver, test_entities)
 
 
 @pytest.mark.asyncio
-async def test_duplicate_title_handling_in_strict_mode(link_resolver, test_entities):
+async def test_duplicate_title_handling_in_strict_mode(link_resolver, test_entities, project_prefix):
     """Test how duplicate titles are handled in strict mode."""
 
     # "Core Service" appears twice in test data (components/core-service and components2/core-service)
@@ -356,7 +362,48 @@ async def test_duplicate_title_handling_in_strict_mode(link_resolver, test_entit
     result = await link_resolver.resolve_link("Core Service", strict=True)
     assert result is not None
     # Should return the first match (components/core-service based on test fixture order)
-    assert result.permalink == "components/core-service"
+    assert result.permalink == f"{project_prefix}/components/core-service"
+
+
+@pytest.mark.asyncio
+async def test_cross_project_link_resolution(
+    session_maker, entity_repository, search_service, tmp_path
+):
+    """Test resolving explicit cross-project links."""
+    from basic_memory.repository.project_repository import ProjectRepository
+
+    project_repo = ProjectRepository(session_maker)
+    other_project = await project_repo.create(
+        {
+            "name": "other-project",
+            "description": "Secondary project",
+            "path": str(tmp_path / "other-project"),
+            "is_active": True,
+            "is_default": False,
+        }
+    )
+
+    now = datetime.now(timezone.utc)
+    other_entity_repo = EntityRepository(session_maker, project_id=other_project.id)
+    target = await other_entity_repo.add(
+        EntityModel(
+            title="Cross Project Note",
+            entity_type="note",
+            content_type="text/markdown",
+            file_path="docs/Cross Project Note.md",
+            permalink=f"{other_project.permalink}/docs/cross-project-note",
+            created_at=now,
+            updated_at=now,
+            project_id=other_project.id,
+        )
+    )
+
+    resolver = LinkResolver(entity_repository, search_service)
+    resolved = await resolver.resolve_link("other-project::Cross Project Note", strict=True)
+
+    assert resolved is not None
+    assert resolved.id == target.id
+    assert resolved.project_id == other_project.id
 
 
 # ============================================================================
diff --git a/tests/sync/test_sync_service.py b/tests/sync/test_sync_service.py
index dab7f010..506427d5 100644
--- a/tests/sync/test_sync_service.py
+++ b/tests/sync/test_sync_service.py
@@ -14,6 +14,7 @@ from basic_memory.schemas.search import SearchQuery
 from basic_memory.services import EntityService, FileService
 from basic_memory.services.search_service import SearchService
 from basic_memory.sync.sync_service import SyncService
+from basic_memory.utils import generate_permalink
 
 
 async def create_test_file(path: Path, content: str = "test content") -> None:
@@ -642,6 +643,7 @@ async def test_permalink_formatting(
     sync_service: SyncService, project_config: ProjectConfig, entity_service: EntityService
 ):
     """Test that permalinks are properly formatted during sync."""
+    project_prefix = generate_permalink(project_config.name)
 
     # Test cases with different filename formats
     test_files = {
@@ -675,8 +677,9 @@ Testing permalink generation.
     for filename, expected_permalink in test_files.items():
         # Find entity for this file
         entity = next(e for e in entities if e.file_path == filename)
-        assert entity.permalink == expected_permalink, (
-            f"File {filename} should have permalink {expected_permalink}"
+        expected_full_permalink = f"{project_prefix}/{expected_permalink}"
+        assert entity.permalink == expected_full_permalink, (
+            f"File {filename} should have permalink {expected_full_permalink}"
         )
 
 
@@ -938,6 +941,7 @@ async def test_sync_permalink_resolved(
 ):
     """Test that we resolve duplicate permalinks on sync ."""
     project_dir = project_config.home
+    project_prefix = generate_permalink(project_config.name)
 
     # Create initial file
     content = """
@@ -967,13 +971,13 @@ Content for move test
     await sync_service.sync(project_config.home)
 
     file_content, _ = await file_service.read_file(new_path)
-    assert "permalink: new/moved-file" in file_content
+    assert f"permalink: {project_prefix}/new/moved-file" in file_content
 
     # Create another that has the same permalink
-    content = """
+    content = f"""
 ---
 type: knowledge
-permalink: new/moved-file
+permalink: {project_prefix}/new/moved-file
 ---
 # Test Move
 Content for move test
@@ -991,7 +995,7 @@ Content for move test
 
     # assert permalink is unique
     file_content, _ = await file_service.read_file(old_path)
-    assert "permalink: new/moved-file-1" in file_content
+    assert f"permalink: {project_prefix}/new/moved-file-1" in file_content
 
 
 @pytest.mark.asyncio
@@ -1124,6 +1128,7 @@ async def test_sync_permalink_updated_on_move(
 ):
     """Test that we update a permalink on a file move if set in config ."""
     project_dir = project_config.home
+    project_prefix = generate_permalink(project_config.name)
 
     # Create initial file
     content = dedent(
@@ -1145,7 +1150,7 @@ async def test_sync_permalink_updated_on_move(
 
     # verify permalink
     old_content, _ = await file_service.read_file(old_path)
-    assert "permalink: old/test-move" in old_content
+    assert f"permalink: {project_prefix}/old/test-move" in old_content
 
     # Move the file
     new_path = project_dir / "new" / "moved_file.md"
@@ -1160,7 +1165,7 @@ async def test_sync_permalink_updated_on_move(
     await sync_service.sync(project_config.home)
 
     file_content, _ = await file_service.read_file(new_path)
-    assert "permalink: new/moved-file" in file_content
+    assert f"permalink: {project_prefix}/new/moved-file" in file_content
 
 
 @pytest.mark.asyncio
@@ -1297,6 +1302,7 @@ async def test_sync_relation_to_non_markdown_file(
 ):
     """Test that sync resolves permalink conflicts on update."""
     project_dir = project_config.home
+    project_prefix = generate_permalink(project_config.name)
 
     content = f"""
 ---
@@ -1321,7 +1327,7 @@ tags: []
 title: a note
 type: note
 tags: []
-permalink: note
+permalink: {project_prefix}/note
 ---
 
 - relates_to [[{test_files["pdf"].name}]]
diff --git a/tests/test_config.py b/tests/test_config.py
index 019099ce..20fd47a8 100644
--- a/tests/test_config.py
+++ b/tests/test_config.py
@@ -215,6 +215,16 @@ class TestConfigManager:
         config = BasicMemoryConfig(disable_permalinks=True)
         assert config.disable_permalinks is True
 
+    def test_permalinks_include_project_flag_default(self):
+        """Test that permalinks_include_project defaults to True."""
+        config = BasicMemoryConfig()
+        assert config.permalinks_include_project is True
+
+    def test_permalinks_include_project_flag_can_be_disabled(self):
+        """Test that permalinks_include_project can be set to False."""
+        config = BasicMemoryConfig(permalinks_include_project=False)
+        assert config.permalinks_include_project is False
+
     def test_config_manager_respects_custom_config_dir(self, monkeypatch):
         """Test that ConfigManager respects BASIC_MEMORY_CONFIG_DIR environment variable."""
         with tempfile.TemporaryDirectory() as temp_dir: