diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index 8b815af48e..0261a7640d 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -137,7 +137,7 @@ export class ProjectsController {
 		catch { } // file doesn't already exist
 
 		if (fileExists) {
-			throw new Error(constants.projectAlreadyExists(newProjFileName, folderUri.fsPath));
+			throw new Error(constants.projectAlreadyExists(newProjFileName, path.parse(newProjFilePath).dir));
 		}
 
 		await fs.mkdir(path.dirname(newProjFilePath), { recursive: true });