diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 88b9143e28..991a823bf7 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -297,6 +297,7 @@ export const browseButtonText = localize('browseButtonText', "Browse folder");
 export const selectFolderStructure = localize('selectFolderStructure', "Select folder structure");
 export const folderStructureLabel = localize('folderStructureLabel', "Folder structure");
 export const includePermissionsLabel = localize('includePermissionsLabel', "Include permissions");
+export const includePermissionsInProject = localize('includePermissionsInProject', "Include permissions in project");
 export const WorkspaceFileExtension = '.code-workspace';
 export const browseEllipsisWithIcon = `$(folder) ${localize('browseEllipsis', "Browse...")}`;
 export const selectProjectLocation = localize('selectProjectLocation', "Select project location");
diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index c19e854b65..da2882aa53 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -1510,7 +1510,7 @@ export class ProjectsController {
 		if (azdataApi) {
 			await (service as mssql.IDacFxService).createProjectFromDatabase(model.database, model.filePath, model.projName, model.version, model.connectionUri, model.extractTarget as mssql.ExtractTarget, azdataApi.TaskExecutionMode.execute, model.includePermissions);
 		} else {
-			await (service as mssqlVscode.IDacFxService).createProjectFromDatabase(model.database, model.filePath, model.projName, model.version, model.connectionUri, model.extractTarget as mssqlVscode.ExtractTarget, TaskExecutionMode.execute as unknown as mssqlVscode.TaskExecutionMode);
+			await (service as mssqlVscode.IDacFxService).createProjectFromDatabase(model.database, model.filePath, model.projName, model.version, model.connectionUri, model.extractTarget as mssqlVscode.ExtractTarget, TaskExecutionMode.execute as unknown as mssqlVscode.TaskExecutionMode, model.includePermissions);
 		}
 		// TODO: Check for success; throw error
 	}
diff --git a/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseQuickpick.ts b/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseQuickpick.ts
index 120691f651..6b181939f5 100644
--- a/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseQuickpick.ts
+++ b/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseQuickpick.ts
@@ -133,7 +133,20 @@ export async function createNewProjectFromDatabaseWithQuickpick(connectionInfo?:
 		return undefined;
 	}
 
-	// 5. SDK-style project or not
+	// 6. Include permissions or not
+	const includePermissionsResult = await vscode.window.showQuickPick(
+		[constants.noStringDefault, constants.yesString],
+		{ title: constants.includePermissionsInProject, ignoreFocusOut: true }
+	);
+
+	if (!includePermissionsResult) {
+		// User cancelled
+		return undefined;
+	}
+
+	const includePermissions = includePermissionsResult === constants.yesString;
+
+	// 7. SDK-style project or not
 	let sdkStyle;
 	const sdkLearnMoreButton: vscode.QuickInputButton = {
 		iconPath: new vscode.ThemeIcon('link-external'),
@@ -182,6 +195,7 @@ export async function createNewProjectFromDatabaseWithQuickpick(connectionInfo?:
 		filePath: projectLocation,
 		version: '1.0.0.0',
 		extractTarget: mapExtractTargetEnum(folderStructure),
-		sdkStyle: sdkStyle
+		sdkStyle: sdkStyle,
+		includePermissions: includePermissions
 	};
 }
diff --git a/extensions/types/vscode-mssql.d.ts b/extensions/types/vscode-mssql.d.ts
index 9abffc3633..24f68f2ec7 100644
--- a/extensions/types/vscode-mssql.d.ts
+++ b/extensions/types/vscode-mssql.d.ts
@@ -415,7 +415,7 @@ declare module 'vscode-mssql' {
 		exportBacpac(databaseName: string, packageFilePath: string, ownerUri: string, taskExecutionMode: TaskExecutionMode): Thenable<DacFxResult>;
 		importBacpac(packageFilePath: string, databaseName: string, ownerUri: string, taskExecutionMode: TaskExecutionMode): Thenable<DacFxResult>;
 		extractDacpac(databaseName: string, packageFilePath: string, applicationName: string, applicationVersion: string, ownerUri: string, taskExecutionMode: TaskExecutionMode): Thenable<DacFxResult>;
-		createProjectFromDatabase(databaseName: string, targetFilePath: string, applicationName: string, applicationVersion: string, ownerUri: string, extractTarget: ExtractTarget, taskExecutionMode: TaskExecutionMode): Thenable<DacFxResult>;
+		createProjectFromDatabase(databaseName: string, targetFilePath: string, applicationName: string, applicationVersion: string, ownerUri: string, extractTarget: ExtractTarget, taskExecutionMode: TaskExecutionMode, includePermissions?: boolean): Thenable<DacFxResult>;
 		deployDacpac(packageFilePath: string, databaseName: string, upgradeExisting: boolean, ownerUri: string, taskExecutionMode: TaskExecutionMode, sqlCommandVariableValues?: Record<string, string>, deploymentOptions?: DeploymentOptions): Thenable<DacFxResult>;
 		generateDeployScript(packageFilePath: string, databaseName: string, ownerUri: string, taskExecutionMode: TaskExecutionMode, sqlCommandVariableValues?: Record<string, string>, deploymentOptions?: DeploymentOptions): Thenable<DacFxResult>;
 		generateDeployPlan(packageFilePath: string, databaseName: string, ownerUri: string, taskExecutionMode: TaskExecutionMode): Thenable<GenerateDeployPlanResult>;