Add reference to another sql project (#12186)

* add projects to add database reference dialog * able to add project references * check for circular dependency * only allow adding reference to project in the same workspace * fix location dropdown when project reference is enabled * add tests * more tests * cleanup * fix flakey test * addressing comments
2026-01-18 09:35:39 -05:00 · 2020-09-10 17:44:39 -07:00
parent 7df132b307
commit 133ff73a43
11 changed files with 380 additions and 70 deletions
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -99,6 +99,7 @@ export const defaultUser = localize('default', "default");
 export const addDatabaseReferenceDialogName = localize('addDatabaseReferencedialogName', "Add database reference");
 export const addDatabaseReferenceOkButtonText = localize('addDatabaseReferenceOkButtonText', "Add reference");
 export const referenceRadioButtonsGroupTitle = localize('referenceRadioButtonsGroupTitle', "Type");
+export const projectRadioButtonTitle = localize('projectRadioButtonTitle', "Database project in folder");
 export const systemDatabaseRadioButtonTitle = localize('systemDatabaseRadioButtonTitle', "System database");
 export const dacpacText = localize('dacpacText', "Data-tier application (.dacpac)");
 export const dacpacPlaceholder = localize('dacpacPlaceholder', "Select .dacpac");
@@ -118,6 +119,7 @@ export const exampleUsage = localize('exampleUsage', "Example Usage");
 export const enterSystemDbName = localize('enterSystemDbName', "Enter a database name for this system database");
 export const databaseNameRequiredVariableOptional = localize('databaseNameRequiredVariableOptional', "A database name is required. The database variable is optional.");
 export const databaseNameServerNameVariableRequired = localize('databaseNameServerNameVariableRequired', "A database name, server name, and server variable are required. The database variable is optional");
+export const databaseProject = localize('databaseProject', "Database project");

 // Error messages

@@ -164,6 +166,7 @@ export function unexpectedProjectContext(uri: string) { return localize('unexpec
 export function unableToPerformAction(action: string, uri: string) { return localize('unableToPerformAction', "Unable to locate '{0}' target: '{1}'", action, uri); }
 export function unableToFindObject(path: string, objType: string) { return localize('unableToFindFile', "Unable to find {1} with path '{0}'", path, objType); }
 export function deployScriptExists(scriptType: string) { return localize('deployScriptExists', "A {0} script already exists. The new script will not be included in build.", scriptType); }
+export function cantAddCircularProjectReference(project: string) { return localize('cantAddCircularProjectReference', "A reference to project '{0} cannot be added. Adding this project as a reference would cause a circular dependency", project); }

 // Action types
 export const deleteAction = localize('deleteAction', 'Delete');
@@ -217,6 +220,8 @@ export const PostDeploy = 'PostDeploy';
 export const None = 'None';
 export const True = 'True';
 export const False = 'False';
+export const Private = 'Private';
+export const ProjectGuid = 'ProjectGuid';

 // SqlProj File targets
 export const NetCoreTargets = '$(NETCoreTargetsPath)\\Microsoft.Data.Tools.Schema.SqlTasks.targets';
--- a/extensions/sql-database-projects/src/common/utils.ts
+++ b/extensions/sql-database-projects/src/common/utils.ts
@@ -6,8 +6,9 @@
 import * as vscode from 'vscode';
 import * as os from 'os';
 import * as constants from './constants';
-import { promises as fs } from 'fs';
 import * as path from 'path';
+import * as glob from 'fast-glob';
+import { promises as fs } from 'fs';

 /**
 * Consolidates on the error message string
@@ -143,3 +144,16 @@ export function readSqlCmdVariables(xmlDoc: any): Record<string, string> {

 	return sqlCmdVariables;
 }
+
+/**
+ * Recursively gets all the sqlproj files at any depth in a folder
+ * @param folderPath
+ */
+export async function getSqlProjectFilesInFolder(folderPath: string): Promise<string[]> {
+	// path needs to use forward slashes for glob to work
+	const escapedPath = glob.escapePath(folderPath.replace(/\\/g, '/'));
+	const sqlprojFilter = path.posix.join(escapedPath, '**', '*.sqlproj');
+	const results = await glob(sqlprojFilter);
+
+	return results;
+}
--- a/extensions/sql-database-projects/src/controllers/mainController.ts
+++ b/extensions/sql-database-projects/src/controllers/mainController.ts
@@ -9,11 +9,10 @@ import * as dataworkspace from 'dataworkspace';
 import * as templates from '../templates/templates';
 import * as constants from '../common/constants';
 import * as path from 'path';
-import * as glob from 'fast-glob';
 import * as newProjectTool from '../tools/newProjectTool';

 import { SqlDatabaseProjectTreeViewProvider } from './databaseProjectTreeViewProvider';
-import { getErrorMessage } from '../common/utils';
+import { getErrorMessage, getSqlProjectFilesInFolder } from '../common/utils';
 import { ProjectsController } from './projectController';
 import { BaseProjectTreeItem } from '../models/tree/baseTreeItem';
 import { NetCoreTool } from '../tools/netcoreTool';
@@ -113,10 +112,7 @@ export default class MainController implements vscode.Disposable {
 	}

 	public async loadProjectsInFolder(folderPath: string): Promise<void> {
-		// path needs to use forward slashes for glob to work
-		let escapedPath = glob.escapePath(folderPath.replace(/\\/g, '/'));
-		let sqlprojFilter = path.posix.join(escapedPath, '**', '*.sqlproj');
-		let results = await glob(sqlprojFilter);
+		const results = await getSqlProjectFilesInFolder(folderPath);

 		for (let f in results) {
 			// open the project, but don't switch focus to the file explorer viewlet
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -28,7 +28,7 @@ import { NetCoreTool, DotNetCommandOptions } from '../tools/netcoreTool';
 import { BuildHelper } from '../tools/buildHelper';
 import { PublishProfile, load } from '../models/publishProfile/publishProfile';
 import { AddDatabaseReferenceDialog } from '../dialogs/addDatabaseReferenceDialog';
-import { ISystemDatabaseReferenceSettings, IDacpacReferenceSettings } from '../models/IDatabaseReferenceSettings';
+import { ISystemDatabaseReferenceSettings, IDacpacReferenceSettings, IProjectReferenceSettings } from '../models/IDatabaseReferenceSettings';

 /**
 * Controller for managing project lifecycle
@@ -76,7 +76,6 @@ export class ProjectsController {
 				try {
 					await this.openProject(projUri, false, true);
 				} catch (e) {
-					vscode.window.showErrorMessage(e.message === constants.projectAlreadyOpened(projUri.fsPath) ? constants.circularProjectReference(newProject.projectFileName, proj.databaseName) : e.message);
 				}
 			}

@@ -486,9 +485,28 @@ export class ProjectsController {
 		return addDatabaseReferenceDialog;
 	}

-	public async addDatabaseReferenceCallback(project: Project, settings: ISystemDatabaseReferenceSettings | IDacpacReferenceSettings): Promise<void> {
+	public async addDatabaseReferenceCallback(project: Project, settings: ISystemDatabaseReferenceSettings | IDacpacReferenceSettings | IProjectReferenceSettings): Promise<void> {
 		try {
-			if ((<ISystemDatabaseReferenceSettings>settings).systemDb !== undefined) {
+			if ((<IProjectReferenceSettings>settings).projectName !== undefined) {
+				// get project path and guid
+				const projectReferenceSettings = settings as IProjectReferenceSettings;
+				const referencedProject = this.projects.find(p => p.projectFileName === projectReferenceSettings.projectName);
+				const relativePath = path.relative(project.projectFolderPath, referencedProject?.projectFilePath!);
+				projectReferenceSettings.projectRelativePath = vscode.Uri.file(relativePath);
+				projectReferenceSettings.projectGuid = referencedProject?.projectGuid!;
+
+				const projectReferences = referencedProject?.databaseReferences.filter(r => r instanceof SqlProjectReferenceProjectEntry) ?? [];
+
+				// check for cirular dependency
+				for (let r of projectReferences) {
+					if ((<SqlProjectReferenceProjectEntry>r).projectName === project.projectFileName) {
+						vscode.window.showErrorMessage(constants.cantAddCircularProjectReference(referencedProject?.projectFileName!));
+						return;
+					}
+				}
+
+				await project.addProjectReference(projectReferenceSettings);
+			} else if ((<ISystemDatabaseReferenceSettings>settings).systemDb !== undefined) {
 				await project.addSystemDatabaseReference(<ISystemDatabaseReferenceSettings>settings);
 			} else {
 				await project.addDatabaseReference(<IDacpacReferenceSettings>settings);
--- a/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceDialog.ts
@@ -5,12 +5,14 @@

 import * as azdata from 'azdata';
 import * as vscode from 'vscode';
+import * as path from 'path';
 import * as constants from '../common/constants';

-import { Project, SystemDatabase, DatabaseReferenceLocation } from '../models/project';
+import { Project, SystemDatabase } from '../models/project';
 import { cssStyles } from '../common/uiConstants';
 import { IconPathHelper } from '../common/iconHelper';
-import { ISystemDatabaseReferenceSettings, IDacpacReferenceSettings } from '../models/IDatabaseReferenceSettings';
+import { ISystemDatabaseReferenceSettings, IDacpacReferenceSettings, IProjectReferenceSettings } from '../models/IDatabaseReferenceSettings';
+import { getSqlProjectFilesInFolder } from '../common/utils';

 export enum ReferenceType {
 	project,
@@ -28,6 +30,8 @@ export class AddDatabaseReferenceDialog {
 	public addDatabaseReferenceTab: azdata.window.DialogTab;
 	private view: azdata.ModelView | undefined;
 	private formBuilder: azdata.FormBuilder | undefined;
+	private projectDropdown: azdata.DropDownComponent | undefined;
+	private projectFormComponent: azdata.FormComponent | undefined;
 	private systemDatabaseDropdown: azdata.DropDownComponent | undefined;
 	private systemDatabaseFormComponent: azdata.FormComponent | undefined;
 	public dacpacTextbox: azdata.InputBoxComponent | undefined;
@@ -41,23 +45,16 @@ export class AddDatabaseReferenceDialog {
 	public exampleUsage: azdata.TextComponent | undefined;

 	public currentReferenceType: ReferenceType | undefined;
-	private referenceLocationMap: Map<string, DatabaseReferenceLocation>;

 	private toDispose: vscode.Disposable[] = [];
 	private initDialogComplete: Deferred<void> | undefined;
 	private initDialogPromise: Promise<void> = new Promise<void>((resolve, reject) => this.initDialogComplete = { resolve, reject });

-	public addReference: ((proj: Project, settings: ISystemDatabaseReferenceSettings | IDacpacReferenceSettings) => any) | undefined;
+	public addReference: ((proj: Project, settings: ISystemDatabaseReferenceSettings | IDacpacReferenceSettings | IProjectReferenceSettings) => any) | undefined;

 	constructor(private project: Project) {
 		this.dialog = azdata.window.createModelViewDialog(constants.addDatabaseReferenceDialogName);
 		this.addDatabaseReferenceTab = azdata.window.createTab(constants.addDatabaseReferenceDialogName);
-
-		this.referenceLocationMap = new Map([
-			[constants.sameDatabase, DatabaseReferenceLocation.sameDatabase],
-			[constants.differentDbSameServer, DatabaseReferenceLocation.differentDatabaseSameServer],
-			[constants.differentDbDifferentServer, DatabaseReferenceLocation.differentDatabaseDifferentServer]
-		]);
 	}

 	public async openDialog(): Promise<void> {
@@ -84,6 +81,7 @@ export class AddDatabaseReferenceDialog {
 	private initializeTab(): void {
 		this.addDatabaseReferenceTab.registerContent(async view => {
 			this.view = view;
+			this.projectFormComponent = await this.createProjectDropdown();
 			const radioButtonGroup = this.createRadioButtons();
 			this.systemDatabaseFormComponent = this.createSystemDatabaseDropdown();
 			this.dacpacFormComponent = this.createDacpacTextbox();
@@ -100,7 +98,7 @@ export class AddDatabaseReferenceDialog {
 						title: '',
 						components: [
 							radioButtonGroup,
-							this.systemDatabaseFormComponent,
+							this.currentReferenceType === ReferenceType.project ? this.projectFormComponent : this.systemDatabaseFormComponent,
 							locationDropdown,
 							variableSection,
 							exampleUsage,
@@ -118,15 +116,27 @@ export class AddDatabaseReferenceDialog {

 			let formModel = this.formBuilder.component();
 			await view.initializeModel(formModel);
+			this.updateEnabledInputBoxes();

 			this.initDialogComplete?.resolve();
 		});
 	}

 	public async addReferenceClick(): Promise<void> {
-		let referenceSettings: ISystemDatabaseReferenceSettings | IDacpacReferenceSettings;
+		let referenceSettings: ISystemDatabaseReferenceSettings | IDacpacReferenceSettings | IProjectReferenceSettings;

-		if (this.currentReferenceType === ReferenceType.systemDb) {
+		if (this.currentReferenceType === ReferenceType.project) {
+			referenceSettings = {
+				projectName: <string>this.projectDropdown?.value,
+				projectGuid: '',
+				projectRelativePath: undefined,
+				databaseName: <string>this.databaseNameTextbox?.value,
+				databaseVariable: <string>this.databaseVariableTextbox?.value,
+				serverName: <string>this.serverNameTextbox?.value,
+				serverVariable: <string>this.serverVariableTextbox?.value,
+				suppressMissingDependenciesErrors: <boolean>this.suppressMissingDependenciesErrorsCheckbox?.checked
+			};
+		} else if (this.currentReferenceType === ReferenceType.systemDb) {
 			referenceSettings = {
 				databaseName: <string>this.databaseNameTextbox?.value,
 				systemDb: <string>this.systemDatabaseDropdown?.value === constants.master ? SystemDatabase.master : SystemDatabase.msdb,
@@ -135,14 +145,12 @@ export class AddDatabaseReferenceDialog {
 		} else { // this.currentReferenceType === ReferenceType.dacpac
 			referenceSettings = {
 				databaseName: <string>this.databaseNameTextbox?.value,
-				databaseLocation: <DatabaseReferenceLocation>this.referenceLocationMap.get(<string>this.locationDropdown?.value),
 				dacpacFileLocation: vscode.Uri.file(<string>this.dacpacTextbox?.value),
 				databaseVariable: <string>this.databaseVariableTextbox?.value,
 				serverName: <string>this.serverNameTextbox?.value,
 				serverVariable: <string>this.serverVariableTextbox?.value,
 				suppressMissingDependenciesErrors: <boolean>this.suppressMissingDependenciesErrorsCheckbox?.checked
 			};
-			// TODO: add project reference support
 		}

 		await this.addReference!(this.project, referenceSettings);
@@ -151,14 +159,22 @@ export class AddDatabaseReferenceDialog {
 	}

 	private createRadioButtons(): azdata.FormComponent {
-		// TODO: add project reference button
+		const projectRadioButton = this.view!.modelBuilder.radioButton()
+			.withProperties({
+				name: 'referenceType',
+				label: constants.projectRadioButtonTitle
+			}).component();
+
+		projectRadioButton.onDidClick(() => {
+			this.projectRadioButtonClick();
+		});
+
 		const systemDatabaseRadioButton = this.view!.modelBuilder.radioButton()
 			.withProperties({
 				name: 'referenceType',
 				label: constants.systemDatabaseRadioButtonTitle
 			}).component();

-		systemDatabaseRadioButton.checked = true;
 		systemDatabaseRadioButton.onDidClick(() => {
 			this.systemDbRadioButtonClick();
 		});
@@ -173,10 +189,20 @@ export class AddDatabaseReferenceDialog {
 			this.dacpacRadioButtonClick();
 		});

-		this.currentReferenceType = ReferenceType.systemDb;
+		if (this.projectDropdown?.values?.length) {
+			projectRadioButton.checked = true;
+			this.currentReferenceType = ReferenceType.project;
+		} else {
+			systemDatabaseRadioButton.checked = true;
+			this.currentReferenceType = ReferenceType.systemDb;
+
+			// disable projects radio button if there aren't any projects that can be added as a reference
+			projectRadioButton.enabled = false;
+		}
+
 		let flexRadioButtonsModel: azdata.FlexContainer = this.view!.modelBuilder.flexContainer()
 			.withLayout({ flexFlow: 'column' })
-			.withItems([systemDatabaseRadioButton, dacpacRadioButton])
+			.withItems([projectRadioButton, systemDatabaseRadioButton, dacpacRadioButton])
 			.withProperties({ ariaRole: 'radiogroup' })
 			.component();

@@ -186,21 +212,35 @@ export class AddDatabaseReferenceDialog {
 		};
 	}

+	public projectRadioButtonClick(): void {
+		this.formBuilder!.removeFormItem(<azdata.FormComponent>this.dacpacFormComponent);
+		this.formBuilder!.removeFormItem(<azdata.FormComponent>this.systemDatabaseFormComponent);
+		this.formBuilder!.insertFormItem(<azdata.FormComponent>this.projectFormComponent, 2);
+
+		this.currentReferenceType = ReferenceType.project;
+		this.updateEnabledInputBoxes();
+		this.tryEnableAddReferenceButton();
+		this.updateExampleUsage();
+	}
+
 	public systemDbRadioButtonClick(): void {
 		this.formBuilder!.removeFormItem(<azdata.FormComponent>this.dacpacFormComponent);
+		this.formBuilder!.removeFormItem(<azdata.FormComponent>this.projectFormComponent);
 		this.formBuilder!.insertFormItem(<azdata.FormComponent>this.systemDatabaseFormComponent, 2);

 		// update dropdown values because only different database, same server is a valid location for system db references
 		this.locationDropdown!.values = constants.systemDbLocationDropdownValues;
+		this.locationDropdown!.value = constants.differentDbSameServer;

 		this.currentReferenceType = ReferenceType.systemDb;
-		this.updateEnabledInputBoxes(true);
+		this.updateEnabledInputBoxes();
 		this.tryEnableAddReferenceButton();
 		this.updateExampleUsage();
 	}

 	public dacpacRadioButtonClick(): void {
 		this.formBuilder!.removeFormItem(<azdata.FormComponent>this.systemDatabaseFormComponent);
+		this.formBuilder!.removeFormItem(<azdata.FormComponent>this.projectFormComponent);
 		this.formBuilder!.insertFormItem(<azdata.FormComponent>this.dacpacFormComponent, 2);

 		this.locationDropdown!.values = constants.locationDropdownValues;
@@ -212,6 +252,39 @@ export class AddDatabaseReferenceDialog {
 		this.updateExampleUsage();
 	}

+	private async createProjectDropdown(): Promise<azdata.FormComponent> {
+		this.projectDropdown = this.view!.modelBuilder.dropDown().withProperties({
+			ariaLabel: constants.databaseProject
+		}).component();
+
+		// get projects in workspace
+		const workspaceFolders = vscode.workspace.workspaceFolders;
+		if (workspaceFolders?.length) {
+			let projectFiles = await getSqlProjectFilesInFolder(workspaceFolders[0].uri.fsPath);
+
+			// check if current project is in same open folder (should only be able to add a reference to another project in
+			// the folder if the current project is also in the folder)
+			if (projectFiles.find(p => p === this.project.projectFilePath)) {
+				// filter out current project
+				projectFiles = projectFiles.filter(p => p !== this.project.projectFilePath);
+
+				projectFiles.forEach(p => {
+					projectFiles[projectFiles.indexOf(p)] = path.parse(p).name;
+				});
+
+				this.projectDropdown.values = projectFiles;
+			} else {
+				this.projectDropdown.values = [];
+			}
+		}
+
+		return {
+			component: this.projectDropdown,
+			title: constants.databaseProject
+		};
+	}
+
+
 	private createSystemDatabaseDropdown(): azdata.FormComponent {
 		this.systemDatabaseDropdown = this.view!.modelBuilder.dropDown().withProperties({
 			values: [constants.master, constants.msdb],
@@ -286,9 +359,11 @@ export class AddDatabaseReferenceDialog {
 	private createLocationDropdown(): azdata.FormComponent {
 		this.locationDropdown = this.view!.modelBuilder.dropDown().withProperties({
 			ariaLabel: constants.locationDropdown,
-			values: constants.systemDbLocationDropdownValues
+			values: this.currentReferenceType === ReferenceType.systemDb ? constants.systemDbLocationDropdownValues : constants.locationDropdownValues
 		}).component();

+		this.locationDropdown.value = constants.differentDbSameServer;
+
 		this.locationDropdown.onValueChanged(() => {
 			this.updateEnabledInputBoxes();
 			this.tryEnableAddReferenceButton();
@@ -305,7 +380,9 @@ export class AddDatabaseReferenceDialog {
 	 * Update the enabled input boxes based on what the location of the database reference selected in the dropdown is
 	 * @param isSystemDb
 	 */
-	public updateEnabledInputBoxes(isSystemDb: boolean = false): void {
+	public updateEnabledInputBoxes(): void {
+		const isSystemDb = this.currentReferenceType === ReferenceType.systemDb;
+
 		if (this.locationDropdown?.value === constants.sameDatabase) {
 			this.databaseNameTextbox!.enabled = false;
 			this.databaseVariableTextbox!.enabled = false;
@@ -387,7 +464,7 @@ export class AddDatabaseReferenceDialog {

 	private createExampleUsage(): azdata.FormComponent {
 		this.exampleUsage = this.view!.modelBuilder.text().withProperties({
-			value: constants.systemDatabaseReferenceRequired,
+			value: this.currentReferenceType === ReferenceType.project ? constants.databaseNameRequiredVariableOptional : constants.systemDatabaseReferenceRequired,
 			CSSStyles: { 'user-select': 'text' }
 		}).component();

@@ -440,27 +517,35 @@ export class AddDatabaseReferenceDialog {
 	 */
 	public tryEnableAddReferenceButton(): void {
 		switch (this.currentReferenceType) {
+			case ReferenceType.project: {
+				this.dialog.okButton.enabled = this.projectRequiredFieldsFilled();
+				break;
+			}
 			case ReferenceType.systemDb: {
 				this.dialog.okButton.enabled = !!this.databaseNameTextbox?.value;
 				break;
 			}
 			case ReferenceType.dacpac: {
-				this.dialog.okButton.enabled = this.dacpacFieldsRequiredFieldsFilled();
+				this.dialog.okButton.enabled = this.dacpacRequiredFieldsFilled();
 				break;
 			}
-			case ReferenceType.project: {
-				// TODO
-			}
 		}
 	}

-	private dacpacFieldsRequiredFieldsFilled(): boolean {
+	private dacpacRequiredFieldsFilled(): boolean {
 		return !!this.dacpacTextbox?.value &&
 			((this.locationDropdown?.value === constants.sameDatabase)
 				|| (this.locationDropdown?.value === constants.differentDbSameServer && this.differentDatabaseSameServerRequiredFieldsFilled())
 				|| ((this.locationDropdown?.value === constants.differentDbDifferentServer && this.differentDatabaseDifferentServerRequiredFieldsFilled())));
 	}

+	private projectRequiredFieldsFilled(): boolean {
+		return !!this.projectDropdown?.value &&
+			((this.locationDropdown?.value === constants.sameDatabase)
+				|| (this.locationDropdown?.value === constants.differentDbSameServer && this.differentDatabaseSameServerRequiredFieldsFilled())
+				|| ((this.locationDropdown?.value === constants.differentDbDifferentServer && this.differentDatabaseDifferentServerRequiredFieldsFilled())));
+	}
+
 	private differentDatabaseSameServerRequiredFieldsFilled(): boolean {
 		return !!this.databaseNameTextbox?.value;
 	}
--- a/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/publishDatabaseDialog.ts
@@ -518,7 +518,7 @@ export class PublishDatabaseDialog {
 					canSelectFiles: true,
 					canSelectFolders: false,
 					canSelectMany: false,
-					defaultUri: vscode.workspace.workspaceFolders ? (vscode.workspace.workspaceFolders as vscode.WorkspaceFolder[])[0].uri : undefined,
+					defaultUri: vscode.Uri.file(this.project.projectFolderPath),
 					filters: {
 						[constants.publishSettingsFiles]: ['publish.xml']
 					}
@@ -533,11 +533,14 @@ export class PublishDatabaseDialog {
 				const result = await this.readPublishProfile(fileUris[0]);
 				// clear out old database dropdown values. They'll get populated later if there was a connection specified in the profile
 				(<azdata.DropDownComponent>this.targetDatabaseDropDown).values = [];
-				(<azdata.DropDownComponent>this.targetDatabaseDropDown).value = result.databaseName;

 				this.connectionId = result.connectionId;
 				await this.updateConnectionComponents(result.connection, <string>this.connectionId);

+				if (result.databaseName) {
+					(<azdata.DropDownComponent>this.targetDatabaseDropDown).value = result.databaseName;
+				}
+
 				for (let key in result.sqlCmdVariables) {
 					(<Record<string, string>>this.sqlCmdVars)[key] = result.sqlCmdVariables[key];
 				}
--- a/extensions/sql-database-projects/src/models/IDatabaseReferenceSettings.ts
+++ b/extensions/sql-database-projects/src/models/IDatabaseReferenceSettings.ts
@@ -3,7 +3,7 @@
 *  Licensed under the Source EULA. See License.txt in the project root for license information.
 *--------------------------------------------------------------------------------------------*/

-import { DatabaseReferenceLocation, SystemDatabase } from './project';
+import { SystemDatabase } from './project';
 import { Uri } from 'vscode';

 export interface IDatabaseReferenceSettings {
@@ -16,9 +16,17 @@ export interface ISystemDatabaseReferenceSettings extends IDatabaseReferenceSett
 }

 export interface IDacpacReferenceSettings extends IDatabaseReferenceSettings {
-	databaseLocation: DatabaseReferenceLocation;
 	dacpacFileLocation: Uri;
 	databaseVariable?: string;
 	serverName?: string;
 	serverVariable?: string;
 }
+
+export interface IProjectReferenceSettings extends IDatabaseReferenceSettings {
+	projectRelativePath: Uri | undefined;
+	projectName: string;
+	projectGuid: string;
+	databaseVariable?: string;
+	serverName?: string;
+	serverVariable?: string;
+}
--- a/extensions/sql-database-projects/src/models/project.ts
+++ b/extensions/sql-database-projects/src/models/project.ts
@@ -14,7 +14,7 @@ import * as templates from '../templates/templates';
 import { Uri, window } from 'vscode';
 import { promises as fs } from 'fs';
 import { DataSource } from './dataSources/dataSources';
-import { ISystemDatabaseReferenceSettings, IDacpacReferenceSettings } from './IDatabaseReferenceSettings';
+import { ISystemDatabaseReferenceSettings, IDacpacReferenceSettings, IProjectReferenceSettings } from './IDatabaseReferenceSettings';

 /**
 * Class representing a Project, and providing functions for operating on it
@@ -22,6 +22,7 @@ import { ISystemDatabaseReferenceSettings, IDacpacReferenceSettings } from './ID
 export class Project {
 	public projectFilePath: string;
 	public projectFileName: string;
+	public projectGuid: string | undefined;
 	public files: FileProjectEntry[] = [];
 	public dataSources: DataSource[] = [];
 	public importedTargets: string[] = [];
@@ -61,6 +62,9 @@ export class Project {
 		const projFileText = await fs.readFile(this.projectFilePath);
 		this.projFileXmlDoc = new xmldom.DOMParser().parseFromString(projFileText.toString());

+		// get projectGUID
+		this.projectGuid = this.projFileXmlDoc.documentElement.getElementsByTagName(constants.ProjectGuid)[0].childNodes[0].nodeValue;
+
 		// find all folders and files to include
 		for (let ig = 0; ig < this.projFileXmlDoc.documentElement.getElementsByTagName(constants.ItemGroup).length; ig++) {
 			const itemGroup = this.projFileXmlDoc.documentElement.getElementsByTagName(constants.ItemGroup)[ig];
@@ -128,13 +132,12 @@ export class Project {
 				const name = nameNodes.length === 1 ? nameNodes[0].childNodes[0].nodeValue : undefined;

 				const suppressMissingDependenciesErrorNode = references[r].getElementsByTagName(constants.SuppressMissingDependenciesErrors);
-				const suppressMissingDependences = suppressMissingDependenciesErrorNode[0].childNodes[0].nodeValue === true ?? false;
+				const suppressMissingDependencies = suppressMissingDependenciesErrorNode[0].childNodes[0].nodeValue === true ?? false;

 				this.databaseReferences.push(new DacpacReferenceProjectEntry({
 					dacpacFileLocation: Uri.file(utils.getPlatformSafeFileEntryPath(filepath)),
-					databaseLocation: name ? DatabaseReferenceLocation.differentDatabaseSameServer : DatabaseReferenceLocation.sameDatabase,
 					databaseName: name,
-					suppressMissingDependenciesErrors: suppressMissingDependences
+					suppressMissingDependenciesErrors: suppressMissingDependencies
 				}));
 			}
 		}
@@ -151,9 +154,14 @@ export class Project {
 			const name = nameNodes[0].childNodes[0].nodeValue;

 			const suppressMissingDependenciesErrorNode = projectReferences[r].getElementsByTagName(constants.SuppressMissingDependenciesErrors);
-			const suppressMissingDependences = suppressMissingDependenciesErrorNode[0].childNodes[0].nodeValue === true ?? false;
+			const suppressMissingDependencies = suppressMissingDependenciesErrorNode[0].childNodes[0].nodeValue === true ?? false;

-			this.databaseReferences.push(new SqlProjectReferenceProjectEntry(Uri.file(utils.getPlatformSafeFileEntryPath(filepath)), name, suppressMissingDependences));
+			this.databaseReferences.push(new SqlProjectReferenceProjectEntry({
+				projectRelativePath: Uri.file(utils.getPlatformSafeFileEntryPath(filepath)),
+				projectName: name,
+				projectGuid: '', // don't care when just reading project as a reference
+				suppressMissingDependenciesErrors: suppressMissingDependencies
+			}));
 		}
 	}

@@ -374,6 +382,16 @@ export class Project {
 		await this.addToProjFile(databaseReferenceEntry);
 	}

+	/**
+	 * Adds reference to a another project in the workspace
+	 * @param uri Uri of the dacpac
+	 * @param databaseName name of the database
+	 */
+	public async addProjectReference(settings: IProjectReferenceSettings): Promise<void> {
+		const projectReferenceEntry = new SqlProjectReferenceProjectEntry(settings);
+		await this.addToProjFile(projectReferenceEntry);
+	}
+
 	/**
 	 * Adds a SQLCMD variable to the project
 	 * @param name name of the variable
@@ -529,10 +547,15 @@ export class Project {
 			throw new Error(constants.databaseReferenceAlreadyExists);
 		}

-		const isSystemDatabaseProjectEntry = (<SystemDatabaseReferenceProjectEntry>entry).ssdtUri;
-
-		if (isSystemDatabaseProjectEntry) {
+		if (entry instanceof SystemDatabaseReferenceProjectEntry) {
 			this.addSystemDatabaseReferenceToProjFile(<SystemDatabaseReferenceProjectEntry>entry);
+		} else if (entry instanceof SqlProjectReferenceProjectEntry) {
+			const referenceNode = this.projFileXmlDoc.createElement(constants.ProjectReference);
+			referenceNode.setAttribute(constants.Include, entry.pathForSqlProj());
+			this.addProjectReferenceChildren(referenceNode, <SqlProjectReferenceProjectEntry>entry);
+			this.addDatabaseReferenceChildren(referenceNode, entry);
+			this.findOrCreateItemGroup(constants.ProjectReference).appendChild(referenceNode);
+			this.databaseReferences.push(entry);
 		} else {
 			const referenceNode = this.projFileXmlDoc.createElement(constants.ArtifactReference);
 			referenceNode.setAttribute(constants.Include, entry.pathForSqlProj());
@@ -579,6 +602,26 @@ export class Project {
 		}
 	}

+	private addProjectReferenceChildren(referenceNode: any, entry: SqlProjectReferenceProjectEntry): void {
+		// project name
+		const nameElement = this.projFileXmlDoc.createElement(constants.Name);
+		const nameTextNode = this.projFileXmlDoc.createTextNode(entry.projectName);
+		nameElement.appendChild(nameTextNode);
+		referenceNode.appendChild(nameElement);
+
+		// add project guid
+		const projectElement = this.projFileXmlDoc.createElement(constants.Project);
+		const projectGuidTextNode = this.projFileXmlDoc.createTextNode(entry.projectGuid);
+		projectElement.appendChild(projectGuidTextNode);
+		referenceNode.appendChild(projectElement);
+
+		// add Private (not sure what this is for)
+		const privateElement = this.projFileXmlDoc.createElement(constants.Private);
+		const privateTextNode = this.projFileXmlDoc.createTextNode(constants.True);
+		privateElement.appendChild(privateTextNode);
+		referenceNode.appendChild(privateElement);
+	}
+
 	public addSqlCmdVariableToProjFile(entry: SqlCmdVariableProjectEntry): void {
 		// Remove any entries with the same variable name. It'll be replaced with a new one
 		this.removeFromProjFile(entry);
@@ -821,7 +864,6 @@ export interface IDatabaseReferenceProjectEntry extends FileProjectEntry {
 }

 export class DacpacReferenceProjectEntry extends FileProjectEntry implements IDatabaseReferenceProjectEntry {
-	databaseLocation: DatabaseReferenceLocation;
 	databaseVariableLiteralValue?: string;
 	databaseSqlCmdVariable?: string;
 	serverName?: string;
@@ -830,7 +872,6 @@ export class DacpacReferenceProjectEntry extends FileProjectEntry implements IDa

 	constructor(settings: IDacpacReferenceSettings) {
 		super(settings.dacpacFileLocation, '', EntryType.DatabaseReference);
-		this.databaseLocation = settings.databaseLocation;
 		this.databaseSqlCmdVariable = settings.databaseVariable;
 		this.databaseVariableLiteralValue = settings.databaseName;
 		this.serverName = settings.serverName;
@@ -870,13 +911,33 @@ class SystemDatabaseReferenceProjectEntry extends FileProjectEntry implements ID
 }

 export class SqlProjectReferenceProjectEntry extends FileProjectEntry implements IDatabaseReferenceProjectEntry {
-	constructor(uri: Uri, public projectName: string, public suppressMissingDependenciesErrors: boolean) {
-		super(uri, '', EntryType.DatabaseReference);
+	projectName: string;
+	projectGuid: string;
+	databaseVariableLiteralValue?: string;
+	databaseSqlCmdVariable?: string;
+	serverName?: string;
+	serverSqlCmdVariable?: string;
+	suppressMissingDependenciesErrors: boolean;
+
+	constructor(settings: IProjectReferenceSettings) {
+		super(settings.projectRelativePath!, '', EntryType.DatabaseReference);
+		this.projectName = settings.projectName;
+		this.projectGuid = settings.projectGuid;
+		this.databaseSqlCmdVariable = settings.databaseVariable;
+		this.databaseVariableLiteralValue = settings.databaseName;
+		this.serverName = settings.serverName;
+		this.serverSqlCmdVariable = settings.serverVariable;
+		this.suppressMissingDependenciesErrors = settings.suppressMissingDependenciesErrors;
 	}

 	public get databaseName(): string {
 		return this.projectName;
 	}
+
+	public pathForSqlProj(): string {
+		// need to remove the leading slash from path for build to work on Windows
+		return utils.convertSlashesForSqlProj(this.fsUri.path.substring(1));
+	}
 }

 export class SqlCmdVariableProjectEntry extends ProjectEntry {
--- a/extensions/sql-database-projects/src/test/dialogs/addDatabaseReferenceDialog.test.ts
+++ b/extensions/sql-database-projects/src/test/dialogs/addDatabaseReferenceDialog.test.ts
@@ -52,6 +52,7 @@ describe('Add Database Reference Dialog', () => {

 		// change location to different database, different server
 		dialog.locationDropdown!.value = constants.differentDbDifferentServer;
+		dialog.updateEnabledInputBoxes();
 		dialog.tryEnableAddReferenceButton();
 		should(dialog.dialog.okButton.enabled).equal(false, 'Ok button should not be enabled because server fields are not filled');

@@ -63,9 +64,14 @@ describe('Add Database Reference Dialog', () => {

 		// change location to same database
 		dialog.locationDropdown!.value = constants.sameDatabase;
+		dialog.updateEnabledInputBoxes();
 		dialog.tryEnableAddReferenceButton();
 		should(dialog.dialog.okButton.enabled).equal(true, 'Ok button should be enabled because only dacpac location is needed for a reference located on the same database');

+		// switch to project
+		dialog.projectRadioButtonClick();
+		should(dialog.dialog.okButton.enabled).equal(false, 'Ok button should not be enabled because there are no projects in the dropdown');
+
 		// change reference type back to system db
 		dialog.systemDbRadioButtonClick();
 		should(dialog.databaseNameTextbox?.value).equal('', `Database name textbox should be empty. Actual:${dialog.databaseNameTextbox?.value}`);
@@ -77,7 +83,7 @@ describe('Add Database Reference Dialog', () => {
 		const dialog = new AddDatabaseReferenceDialog(project);
 		await dialog.openDialog();

-		// dialog starts with system db
+		// dialog starts with system db because there aren't any other projects in the workspace
 		should(dialog.currentReferenceType).equal(ReferenceType.systemDb);
 		validateInputBoxEnabledStates(dialog, { databaseNameEnabled: true, databaseVariableEnabled: false, serverNameEnabled: false, serverVariabledEnabled: false});

@@ -96,6 +102,12 @@ describe('Add Database Reference Dialog', () => {
 		dialog.locationDropdown!.value = constants.sameDatabase;
 		dialog.updateEnabledInputBoxes();
 		validateInputBoxEnabledStates(dialog, { databaseNameEnabled: false, databaseVariableEnabled: false, serverNameEnabled: false, serverVariabledEnabled: false});
+
+		// change to project reference
+		dialog.projectRadioButtonClick();
+		should(dialog.currentReferenceType).equal(ReferenceType.project);
+		should(dialog.locationDropdown!.value).equal(constants.sameDatabase);
+		validateInputBoxEnabledStates(dialog, { databaseNameEnabled: false, databaseVariableEnabled: false, serverNameEnabled: false, serverVariabledEnabled: false});
 	});
 });

@@ -107,8 +119,8 @@ interface inputBoxExpectedStates {
 }

 function validateInputBoxEnabledStates(dialog: AddDatabaseReferenceDialog, expectedStates: inputBoxExpectedStates): void {
-	should(dialog.databaseNameTextbox?.enabled).equal(expectedStates.databaseNameEnabled);
-	should(dialog.databaseVariableTextbox?.enabled).equal(expectedStates.databaseVariableEnabled);
-	should(dialog.serverNameTextbox?.enabled).equal(expectedStates.serverNameEnabled);
-	should(dialog.serverVariableTextbox?.enabled).equal(expectedStates.serverVariabledEnabled);
+	should(dialog.databaseNameTextbox?.enabled).equal(expectedStates.databaseNameEnabled, `Database name text box should be ${expectedStates.databaseNameEnabled}. Actual: ${dialog.databaseNameTextbox?.enabled}`);
+	should(dialog.databaseVariableTextbox?.enabled).equal(expectedStates.databaseVariableEnabled, `Database variable text box should be ${expectedStates.databaseVariableEnabled}. Actual: ${dialog.databaseVariableTextbox?.enabled}`);
+	should(dialog.serverNameTextbox?.enabled).equal(expectedStates.serverNameEnabled,  `Server name text box should be ${expectedStates.serverNameEnabled}. Actual: ${dialog.serverNameTextbox?.enabled}`);
+	should(dialog.serverVariableTextbox?.enabled).equal(expectedStates.serverVariabledEnabled, `Server variable text box should be ${expectedStates.serverVariabledEnabled}. Actual: ${dialog.serverVariableTextbox?.enabled}`);
 }
--- a/extensions/sql-database-projects/src/test/project.test.ts
+++ b/extensions/sql-database-projects/src/test/project.test.ts
@@ -12,7 +12,7 @@ import * as testUtils from './testUtils';
 import * as constants from '../common/constants';

 import { promises as fs } from 'fs';
-import { Project, EntryType, TargetPlatform, SystemDatabase, DatabaseReferenceLocation, DacpacReferenceProjectEntry, SqlProjectReferenceProjectEntry } from '../models/project';
+import { Project, EntryType, TargetPlatform, SystemDatabase, DacpacReferenceProjectEntry, SqlProjectReferenceProjectEntry } from '../models/project';
 import { exists, convertSlashesForSqlProj } from '../common/utils';
 import { Uri, window } from 'vscode';

@@ -217,7 +217,7 @@ describe('Project: sqlproj content operations', function (): void {

 		// add database reference in the same database
 		should(project.databaseReferences.length).equal(0, 'There should be no database references to start with');
-		await project.addDatabaseReference({ dacpacFileLocation: Uri.file('test1.dacpac'), databaseLocation: DatabaseReferenceLocation.sameDatabase, suppressMissingDependenciesErrors: true });
+		await project.addDatabaseReference({ dacpacFileLocation: Uri.file('test1.dacpac'), suppressMissingDependenciesErrors: true });
 		should(project.databaseReferences.length).equal(1, 'There should be a database reference after adding a reference to test1');
 		should(project.databaseReferences[0].databaseName).equal('test1', 'The database reference should be test1');
 		should(project.databaseReferences[0].suppressMissingDependenciesErrors).equal(true, 'project.databaseReferences[0].suppressMissingDependenciesErrors should be true');
@@ -234,7 +234,6 @@ describe('Project: sqlproj content operations', function (): void {
 		should(project.databaseReferences.length).equal(0, 'There should be no database references to start with');
 		await project.addDatabaseReference({
 			dacpacFileLocation: Uri.file('test2.dacpac'),
-			databaseLocation: DatabaseReferenceLocation.differentDatabaseSameServer,
 			databaseName: 'test2DbName',
 			databaseVariable: 'test2Db',
 			suppressMissingDependenciesErrors: false
@@ -257,7 +256,6 @@ describe('Project: sqlproj content operations', function (): void {
 		should(project.databaseReferences.length).equal(0, 'There should be no database references to start with');
 		await project.addDatabaseReference({
 			dacpacFileLocation: Uri.file('test3.dacpac'),
-			databaseLocation: DatabaseReferenceLocation.differentDatabaseDifferentServer,
 			databaseName: 'test3DbName',
 			databaseVariable: 'test3Db',
 			serverName: 'otherServerName',
@@ -267,7 +265,7 @@ describe('Project: sqlproj content operations', function (): void {
 		should(project.databaseReferences.length).equal(1, 'There should be a database reference after adding a reference to test3');
 		should(project.databaseReferences[0].databaseName).equal('test3', 'The database reference should be test3');
 		should(project.databaseReferences[0].suppressMissingDependenciesErrors).equal(false, 'project.databaseReferences[0].suppressMissingDependenciesErrors should be false');
-		// make sure reference to test2.dacpac and SQLCMD variables were added
+		// make sure reference to test3.dacpac and SQLCMD variables were added
 		let projFileText = (await fs.readFile(projFilePath)).toString();
 		should(projFileText).containEql('test3.dacpac');
 		should(projFileText).containEql('<DatabaseSqlCmdVariable>test3Db</DatabaseSqlCmdVariable>');
@@ -276,6 +274,87 @@ describe('Project: sqlproj content operations', function (): void {
 		should(projFileText).containEql('<SqlCmdVariable Include="otherServer">');
 	});

+	it('Should add a project reference to the same database correctly', async function (): Promise<void> {
+		projFilePath = await testUtils.createTestSqlProjFile(baselines.newProjectFileBaseline);
+		const project = await Project.openProject(projFilePath);
+
+		// add database reference to a different database on a different server
+		should(project.databaseReferences.length).equal(0, 'There should be no database references to start with');
+		should(Object.keys(project.sqlCmdVariables).length).equal(0, `There should be no sqlcmd variables to start with. Actual: ${Object.keys(project.sqlCmdVariables).length}`);
+		await project.addProjectReference({
+			projectName: 'project1',
+			projectGuid: '',
+			projectRelativePath: Uri.file(path.join('..','project1', 'project1.sqlproj')),
+			suppressMissingDependenciesErrors: false
+		});
+		should(project.databaseReferences.length).equal(1, 'There should be a database reference after adding a reference to project1');
+		should(project.databaseReferences[0].databaseName).equal('project1', 'The database reference should be project1');
+		should(project.databaseReferences[0].suppressMissingDependenciesErrors).equal(false, 'project.databaseReferences[0].suppressMissingDependenciesErrors should be false');
+		should(Object.keys(project.sqlCmdVariables).length).equal(0, `There should be no sqlcmd variables added. Actual: ${Object.keys(project.sqlCmdVariables).length}`);
+
+		// make sure reference to project1 and SQLCMD variables were added
+		let projFileText = (await fs.readFile(projFilePath)).toString();
+		should(projFileText).containEql('project1');
+	});
+
+	it('Should add a project reference to a different database in the same server correctly', async function (): Promise<void> {
+		projFilePath = await testUtils.createTestSqlProjFile(baselines.newProjectFileBaseline);
+		const project = await Project.openProject(projFilePath);
+
+		// add database reference to a different database on a different server
+		should(project.databaseReferences.length).equal(0, 'There should be no database references to start with');
+		should(Object.keys(project.sqlCmdVariables).length).equal(0, 'There should be no sqlcmd variables to start with');
+		await project.addProjectReference({
+			projectName: 'project1',
+			projectGuid: '',
+			projectRelativePath: Uri.file(path.join('..','project1', 'project1.sqlproj')),
+			databaseName: 'testdbName',
+			databaseVariable: 'testdb',
+			suppressMissingDependenciesErrors: false
+		});
+		should(project.databaseReferences.length).equal(1, 'There should be a database reference after adding a reference to project1');
+		should(project.databaseReferences[0].databaseName).equal('project1', 'The database reference should be project1');
+		should(project.databaseReferences[0].suppressMissingDependenciesErrors).equal(false, 'project.databaseReferences[0].suppressMissingDependenciesErrors should be false');
+		should(Object.keys(project.sqlCmdVariables).length).equal(1, `There should be one new sqlcmd variable added. Actual: ${Object.keys(project.sqlCmdVariables).length}`);
+
+		// make sure reference to project1 and SQLCMD variables were added
+		let projFileText = (await fs.readFile(projFilePath)).toString();
+		should(projFileText).containEql('project1');
+		should(projFileText).containEql('<DatabaseSqlCmdVariable>testdb</DatabaseSqlCmdVariable>');
+		should(projFileText).containEql('<SqlCmdVariable Include="testdb">');
+	});
+
+	it('Should add a project reference to a different database in a different server correctly', async function (): Promise<void> {
+		projFilePath = await testUtils.createTestSqlProjFile(baselines.newProjectFileBaseline);
+		const project = await Project.openProject(projFilePath);
+
+		// add database reference to a different database on a different server
+		should(project.databaseReferences.length).equal(0, 'There should be no database references to start with');
+		should(Object.keys(project.sqlCmdVariables).length).equal(0, 'There should be no sqlcmd variables to start with');
+		await project.addProjectReference({
+			projectName: 'project1',
+			projectGuid: '',
+			projectRelativePath: Uri.file(path.join('..','project1', 'project1.sqlproj')),
+			databaseName: 'testdbName',
+			databaseVariable: 'testdb',
+			serverName: 'otherServerName',
+			serverVariable: 'otherServer',
+			suppressMissingDependenciesErrors: false
+		});
+		should(project.databaseReferences.length).equal(1, 'There should be a database reference after adding a reference to project1');
+		should(project.databaseReferences[0].databaseName).equal('project1', 'The database reference should be project1');
+		should(project.databaseReferences[0].suppressMissingDependenciesErrors).equal(false, 'project.databaseReferences[0].suppressMissingDependenciesErrors should be false');
+		should(Object.keys(project.sqlCmdVariables).length).equal(2, `There should be two new sqlcmd variables added. Actual: ${Object.keys(project.sqlCmdVariables).length}`);
+
+		// make sure reference to project1 and SQLCMD variables were added
+		let projFileText = (await fs.readFile(projFilePath)).toString();
+		should(projFileText).containEql('project1');
+		should(projFileText).containEql('<DatabaseSqlCmdVariable>testdb</DatabaseSqlCmdVariable>');
+		should(projFileText).containEql('<SqlCmdVariable Include="testdb">');
+		should(projFileText).containEql('<ServerSqlCmdVariable>otherServer</ServerSqlCmdVariable>');
+		should(projFileText).containEql('<SqlCmdVariable Include="otherServer">');
+	});
+
 	it('Should not allow adding duplicate database references', async function (): Promise<void> {
 		projFilePath = await testUtils.createTestSqlProjFile(baselines.newProjectFileBaseline);
 		const project = await Project.openProject(projFilePath);
@@ -289,12 +368,12 @@ describe('Project: sqlproj content operations', function (): void {
 		await testUtils.shouldThrowSpecificError(async () => await project.addSystemDatabaseReference({ databaseName: 'master', systemDb: SystemDatabase.master, suppressMissingDependenciesErrors: false }), constants.databaseReferenceAlreadyExists);
 		should(project.databaseReferences.length).equal(1, 'There should only be one database reference after trying to add a reference to master again');

-		await project.addDatabaseReference({ dacpacFileLocation: Uri.file('test.dacpac'), databaseLocation: DatabaseReferenceLocation.sameDatabase, suppressMissingDependenciesErrors: false });
+		await project.addDatabaseReference({ dacpacFileLocation: Uri.file('test.dacpac'), suppressMissingDependenciesErrors: false });
 		should(project.databaseReferences.length).equal(2, 'There should be two database references after adding a reference to test.dacpac');
 		should(project.databaseReferences[1].databaseName).equal('test', 'project.databaseReferences[1].databaseName should be test');

 		// try to add reference to test.dacpac again
-		await testUtils.shouldThrowSpecificError(async () => await project.addDatabaseReference({ dacpacFileLocation: Uri.file('test.dacpac'), databaseLocation: DatabaseReferenceLocation.sameDatabase, suppressMissingDependenciesErrors: false }), constants.databaseReferenceAlreadyExists);
+		await testUtils.shouldThrowSpecificError(async () => await project.addDatabaseReference({ dacpacFileLocation: Uri.file('test.dacpac'), suppressMissingDependenciesErrors: false }), constants.databaseReferenceAlreadyExists);
 		should(project.databaseReferences.length).equal(2, 'There should be two database references after trying to add a reference to test.dacpac again');
 	});

--- a/extensions/sql-database-projects/src/test/projectController.test.ts
+++ b/extensions/sql-database-projects/src/test/projectController.test.ts
@@ -518,7 +518,7 @@ describe('ProjectsController', function (): void {
 			let opened = false;

 			let addDbReferenceDialog = TypeMoq.Mock.ofType(AddDatabaseReferenceDialog);
-			addDbReferenceDialog.setup(x => x.openDialog()).returns(() => { opened = true; return Promise.resolve(undefined) });
+			addDbReferenceDialog.setup(x => x.openDialog()).returns(() => { opened = true; return Promise.resolve(undefined); });

 			let projController = TypeMoq.Mock.ofType(ProjectsController);
 			projController.callBase = true;
@@ -530,7 +530,6 @@ describe('ProjectsController', function (): void {

 		it('Callbacks are hooked up and called from Add database reference dialog', async function (): Promise<void> {
 			const projPath = path.dirname(await testUtils.createTestSqlProjFile(baselines.openProjectFileBaseline));
-			await testUtils.createTestDataSources(baselines.openDataSourcesBaseline, projPath);
 			const proj = new Project(projPath);

 			const addDbRefHoller = 'hello from callback for addDatabaseReference()';
@@ -557,6 +556,36 @@ describe('ProjectsController', function (): void {

 			should(holler).equal(addDbRefHoller, 'executionCallback() is supposed to have been setup and called for add database reference scenario');
 		});
+
+		it('Should not allow adding circular project references', async function (): Promise<void> {
+			const showErrorMessageSpy = sinon.spy(vscode.window, 'showErrorMessage');
+
+			const projPath1 = await testUtils.createTestSqlProjFile(baselines.openProjectFileBaseline);
+			const projPath2 = await testUtils.createTestSqlProjFile(baselines.newProjectFileBaseline);
+			const projController = new ProjectsController(new SqlDatabaseProjectTreeViewProvider());
+
+			const project1 = await projController.openProject(vscode.Uri.file(projPath1));
+			const project2 = await projController.openProject(vscode.Uri.file(projPath2));
+
+			// add project reference from project1 to project2
+			await projController.addDatabaseReferenceCallback(project1, {
+				projectGuid: '',
+				projectName: 'TestProject',
+				projectRelativePath: undefined,
+				suppressMissingDependenciesErrors: false
+			});
+			should(showErrorMessageSpy.notCalled).be.true('showErrorMessage should not have been called');
+
+			// try to add circular reference
+			await projController.addDatabaseReferenceCallback(project2, {
+				projectGuid: '',
+				projectName: 'TestProjectName',
+				projectRelativePath: undefined,
+				suppressMissingDependenciesErrors: false
+			});
+			should(showErrorMessageSpy.called).be.true('showErrorMessage should have been called');
+		});
+
 	});
 });