diff --git a/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseQuickpick.ts b/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseQuickpick.ts
index 81d723f4a8..02c7c5f950 100644
--- a/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseQuickpick.ts
+++ b/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseQuickpick.ts
@@ -6,7 +6,7 @@
 import * as vscode from 'vscode';
 import * as path from 'path';
 import * as constants from '../common/constants';
-import { exists, getVscodeMssqlApi, isValidBasenameErrorMessage, sanitizeStringForFilename } from '../common/utils';
+import { exists, getVscodeMssqlApi, isValidBasenameErrorMessage, sanitizeStringForFilename, getErrorMessage } from '../common/utils';
 import { IConnectionInfo } from 'vscode-mssql';
 import { defaultProjectNameFromDb, defaultProjectSaveLocation } from '../tools/newProjectTool';
 import { ImportDataModel } from '../models/api/import';
@@ -30,21 +30,28 @@ export async function createNewProjectFromDatabaseWithQuickpick(connectionInfo?:
 	}
 	let connectionUri: string = '';
 	let dbs: string[] | undefined = undefined;
+
+	let isValidProfile = connectionProfile?.server !== undefined; // undefined when createProjectFromDatabase is launched without context (via command palette)
+
 	while (!dbs) {
 		// Get the list of databases now to validate that the connection is valid and re-prompt them if it isn't
-		try {
-			connectionUri = await vscodeMssqlApi.connect(connectionProfile);
-			dbs = (await vscodeMssqlApi.listDatabases(connectionUri))
-				.filter(db => !constants.systemDbs.includes(db)); // Filter out system dbs
-		} catch (err) {
-			// The mssql extension handles showing the error to the user. Prompt the user
-			// for a new connection and then go and try getting the DBs again
+		if (isValidProfile) {
+			try {
+				connectionUri = await vscodeMssqlApi.connect(connectionProfile);
+				dbs = (await vscodeMssqlApi.listDatabases(connectionUri))
+					.filter(db => !constants.systemDbs.includes(db)); // Filter out system dbs
+			} catch (err) {
+				// Prompt the user for a new connection and then go and try getting the DBs again
+				isValidProfile = false;
+				console.error(getErrorMessage(err));
+			}
+		} else {
 			connectionProfile = await vscodeMssqlApi.promptForConnection(true);
 			if (!connectionProfile) {
-				// User cancelled
-				return undefined;
+				return undefined; // cancelled by user
+			} else {
+				isValidProfile = true;
 			}
-
 		}
 	}