diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 462bc85c27..aba103185d 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -620,6 +620,7 @@ export function differentDbDifferentServerExampleUsage(server: string, db: strin
 
 //#region Target platforms
 export const targetPlatformToVersion: Map<string, string> = new Map<string, string>([
+	// Note: the values here must match values from Microsoft.Data.Tools.Schema.SchemaModel.SqlPlatformNames
 	[SqlTargetPlatform.sqlServer2012, '110'],
 	[SqlTargetPlatform.sqlServer2014, '120'],
 	[SqlTargetPlatform.sqlServer2016, '130'],
@@ -627,7 +628,8 @@ export const targetPlatformToVersion: Map<string, string> = new Map<string, stri
 	[SqlTargetPlatform.sqlServer2019, '150'],
 	[SqlTargetPlatform.sqlServer2022, '160'],
 	[SqlTargetPlatform.sqlAzure, 'AzureV12'],
-	[SqlTargetPlatform.sqlDW, 'Dw']
+	[SqlTargetPlatform.sqlDW, 'Dw'],
+	[SqlTargetPlatform.sqlDwUnified, 'DwUnified']
 ]);
 
 export const onPremServerVersionToTargetPlatform: Map<number, SqlTargetPlatform> = new Map<number, SqlTargetPlatform>([
diff --git a/extensions/sql-database-projects/src/common/utils.ts b/extensions/sql-database-projects/src/common/utils.ts
index 95aa988524..6af5cbaa81 100644
--- a/extensions/sql-database-projects/src/common/utils.ts
+++ b/extensions/sql-database-projects/src/common/utils.ts
@@ -718,9 +718,10 @@ export async function fileContainsCreateTableStatement(fullPath: string, project
 /**
  * Gets target platform based on the server edition/version
  * @param serverInfo server information
+ * @param serverUrl optional server URL, only used to check if it's a known domain for Microsoft Fabric DW
  * @returns target platform for the database project
  */
-export async function getTargetPlatformFromServerVersion(serverInfo: azdataType.ServerInfo | vscodeMssql.IServerInfo): Promise<SqlTargetPlatform | undefined> {
+export async function getTargetPlatformFromServerVersion(serverInfo: azdataType.ServerInfo | vscodeMssql.IServerInfo, serverUrl?: string): Promise<SqlTargetPlatform | undefined> {
 	const isCloud = serverInfo.isCloud;
 
 	let targetPlatform;
@@ -728,9 +729,25 @@ export async function getTargetPlatformFromServerVersion(serverInfo: azdataType.
 		const engineEdition = serverInfo.engineEditionId;
 		const azdataApi = getAzdataApi();
 		if (azdataApi) {
-			targetPlatform = engineEdition === azdataApi.DatabaseEngineEdition.SqlDataWarehouse ? SqlTargetPlatform.sqlDW : SqlTargetPlatform.sqlAzure;
+			// TODO: Update this when Fabric DW gets its own engine edition
+			// https://github.com/microsoft/azuredatastudio/issues/24112
+			if (engineEdition === azdataApi.DatabaseEngineEdition.SqlOnDemand && isSqlDwUnifiedServer(serverUrl)) {
+				targetPlatform = SqlTargetPlatform.sqlDwUnified;
+			} else if (engineEdition === azdataApi.DatabaseEngineEdition.SqlDataWarehouse) {
+				targetPlatform = SqlTargetPlatform.sqlDW;
+			} else {
+				targetPlatform = SqlTargetPlatform.sqlAzure;
+			}
 		} else {
-			targetPlatform = engineEdition === vscodeMssql.DatabaseEngineEdition.SqlDataWarehouse ? SqlTargetPlatform.sqlDW : SqlTargetPlatform.sqlAzure;
+			// TODO: Update this when Fabric DW gets its own engine edition
+			// https://github.com/microsoft/azuredatastudio/issues/24112
+			if (engineEdition === vscodeMssql.DatabaseEngineEdition.SqlOnDemand && isSqlDwUnifiedServer(serverUrl)) {
+				targetPlatform = SqlTargetPlatform.sqlDwUnified;
+			} else if (engineEdition === vscodeMssql.DatabaseEngineEdition.SqlDataWarehouse) {
+				targetPlatform = SqlTargetPlatform.sqlDW;
+			} else {
+				targetPlatform = SqlTargetPlatform.sqlAzure;
+			}
 		}
 	} else {
 		const serverMajorVersion = serverInfo.serverMajorVersion;
@@ -740,6 +757,16 @@ export async function getTargetPlatformFromServerVersion(serverInfo: azdataType.
 	return targetPlatform;
 }
 
+/**
+ * Determines if a server name is a known domain for Microsoft Fabric DW. This is required because the engine edition for Fabric DW is the same as Serverless.
+ * @param server The server name to check
+ * @returns True if the server name matches a known domain for Microsoft Fabric DW, otherwise false
+ */
+export function isSqlDwUnifiedServer(server?: string): boolean | undefined {
+	const serverLowerCase = server?.toLowerCase();
+	return serverLowerCase?.includes("datawarehouse.pbidedicated.windows.net") || serverLowerCase?.includes("datawarehouse.fabric.microsoft.com");
+}
+
 /**
  * Determines if a given character is a valid filename character
  * @param c Character to validate
diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index 11f899b8cf..7541d4ef98 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -1559,7 +1559,7 @@ export class ProjectsController {
 		if (utils.getAzdataApi()) {
 			let createProjectFromDatabaseDialog = this.getCreateProjectFromDatabaseDialog(profile as azdataType.IConnectionProfile);
 
-			createProjectFromDatabaseDialog.createProjectFromDatabaseCallback = async (model, connectionId) => await this.createProjectFromDatabaseCallback(model, connectionId);
+			createProjectFromDatabaseDialog.createProjectFromDatabaseCallback = async (model, connectionId) => await this.createProjectFromDatabaseCallback(model, connectionId, (profile as azdataType.IConnectionProfile)?.serverName);
 
 			await createProjectFromDatabaseDialog.openDialog();
 
@@ -1575,7 +1575,7 @@ export class ProjectsController {
 			}
 			const model = await createNewProjectFromDatabaseWithQuickpick(profile as mssqlVscode.IConnectionInfo);
 			if (model) {
-				await this.createProjectFromDatabaseCallback(model, profile as mssqlVscode.IConnectionInfo);
+				await this.createProjectFromDatabaseCallback(model, profile as mssqlVscode.IConnectionInfo, (profile as mssqlVscode.IConnectionInfo)?.server);
 			}
 			return undefined;
 		}
@@ -1586,7 +1586,7 @@ export class ProjectsController {
 		return new CreateProjectFromDatabaseDialog(profile);
 	}
 
-	public async createProjectFromDatabaseCallback(model: ImportDataModel, connectionInfo?: string | mssqlVscode.IConnectionInfo) {
+	public async createProjectFromDatabaseCallback(model: ImportDataModel, connectionInfo?: string | mssqlVscode.IConnectionInfo, serverName?: string) {
 		try {
 
 			const newProjFolderUri = model.filePath;
@@ -1601,7 +1601,7 @@ export class ProjectsController {
 			}
 
 			if (serverInfo) {
-				targetPlatform = await utils.getTargetPlatformFromServerVersion(serverInfo);
+				targetPlatform = await utils.getTargetPlatformFromServerVersion(serverInfo, serverName);
 			}
 
 			const newProjFilePath = await this.createNewProject({
diff --git a/extensions/sql-database-projects/src/sqldbproj.d.ts b/extensions/sql-database-projects/src/sqldbproj.d.ts
index dfd939fb5a..1499508fcb 100644
--- a/extensions/sql-database-projects/src/sqldbproj.d.ts
+++ b/extensions/sql-database-projects/src/sqldbproj.d.ts
@@ -321,7 +321,8 @@ declare module 'sqldbproj' {
 		sqlServer2022 = 'SQL Server 2022',
 		sqlAzure = 'Azure SQL Database',
 		sqlDW = 'Azure Synapse SQL Pool',
-		sqlEdge = 'Azure SQL Edge'
+		sqlEdge = 'Azure SQL Edge',
+		sqlDwUnified = 'Synapse Data Warehouse in Microsoft Fabric'
 	}
 
 	export interface ISqlConnectionProperties {