diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 9bb78519de..31ab6df75c 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -594,6 +594,15 @@ export const targetPlatformToVersion: Map<string, string> = new Map<string, stri
 	[SqlTargetPlatform.sqlDW, 'Dw']
 ]);
 
+export const onPremServerVersionToTargetPlatform: Map<number, SqlTargetPlatform> = new Map<number, SqlTargetPlatform>([
+	[11, SqlTargetPlatform.sqlServer2012],
+	[12, SqlTargetPlatform.sqlServer2014],
+	[13, SqlTargetPlatform.sqlServer2016],
+	[14, SqlTargetPlatform.sqlServer2017],
+	[15, SqlTargetPlatform.sqlServer2019],
+	[16, SqlTargetPlatform.sqlServer2022]
+]);
+
 // DW is special since the system dacpac folder has a different name from the target platform
 export const AzureDwFolder = 'AzureDw';
 
diff --git a/extensions/sql-database-projects/src/common/utils.ts b/extensions/sql-database-projects/src/common/utils.ts
index 8cd2c33e0f..cdf477f16e 100644
--- a/extensions/sql-database-projects/src/common/utils.ts
+++ b/extensions/sql-database-projects/src/common/utils.ts
@@ -15,7 +15,7 @@ import * as vscodeMssql from 'vscode-mssql';
 import * as fse from 'fs-extra';
 import * as which from 'which';
 import { promises as fs } from 'fs';
-import { ISqlProject } from 'sqldbproj';
+import { ISqlProject, SqlTargetPlatform } from 'sqldbproj';
 
 export interface ValidationResult {
 	errorMessage: string;
@@ -711,3 +711,24 @@ export async function fileContainsCreateTableStatement(fullPath: string, project
 
 	return containsCreateTableStatement;
 }
+
+/**
+ * Gets target platform based on the server edition/version
+ * @param connectionId server connection profile id
+ * @returns target platform for the database project
+ */
+export async function getTargetPlatformFromServerVersion(connectionId: string): Promise<SqlTargetPlatform | undefined> {
+	const serverInfo = await getAzdataApi()!.connection.getServerInfo(connectionId);
+	const isCloud = serverInfo.isCloud;
+
+	let targetPlatform;
+	if (isCloud) {
+		const engineEdition = serverInfo.engineEditionId;
+		targetPlatform = engineEdition === getAzdataApi()!.DatabaseEngineEdition.SqlDataWarehouse ? SqlTargetPlatform.sqlDW : SqlTargetPlatform.sqlAzure;
+	} else {
+		const serverMajorVersion = serverInfo.serverMajorVersion;
+		targetPlatform = serverMajorVersion ? constants.onPremServerVersionToTargetPlatform.get(serverMajorVersion) : undefined;
+	}
+
+	return targetPlatform;
+}
diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index 70c071e907..aae92b9ae0 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -1404,7 +1404,7 @@ export class ProjectsController {
 		if (utils.getAzdataApi()) {
 			let createProjectFromDatabaseDialog = this.getCreateProjectFromDatabaseDialog(profile as azdataType.IConnectionProfile);
 
-			createProjectFromDatabaseDialog.createProjectFromDatabaseCallback = async (model) => await this.createProjectFromDatabaseCallback(model);
+			createProjectFromDatabaseDialog.createProjectFromDatabaseCallback = async (model, connectionId) => await this.createProjectFromDatabaseCallback(model, connectionId);
 
 			await createProjectFromDatabaseDialog.openDialog();
 
@@ -1431,16 +1431,21 @@ export class ProjectsController {
 		return new CreateProjectFromDatabaseDialog(profile);
 	}
 
-	public async createProjectFromDatabaseCallback(model: ImportDataModel) {
+	public async createProjectFromDatabaseCallback(model: ImportDataModel, connectionId?: string) {
 		try {
 
 			const newProjFolderUri = model.filePath;
+			let targetPlatform: SqlTargetPlatform | undefined;
+			if (connectionId) {
+				targetPlatform = await utils.getTargetPlatformFromServerVersion(connectionId);
+			}
 
 			const newProjFilePath = await this.createNewProject({
 				newProjName: model.projName,
 				folderUri: vscode.Uri.file(newProjFolderUri),
 				projectTypeId: model.sdkStyle ? constants.emptySqlDatabaseSdkProjectTypeId : constants.emptySqlDatabaseProjectTypeId,
-				sdkStyle: model.sdkStyle
+				sdkStyle: model.sdkStyle,
+				targetPlatform: targetPlatform
 			});
 
 			model.filePath = path.dirname(newProjFilePath);
diff --git a/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseDialog.ts b/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseDialog.ts
index 8aea5ce179..9c1ac0fb44 100644
--- a/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseDialog.ts
@@ -32,7 +32,7 @@ export class CreateProjectFromDatabaseDialog {
 	private toDispose: vscode.Disposable[] = [];
 	private initDialogComplete: Deferred = new Deferred();
 
-	public createProjectFromDatabaseCallback: ((model: ImportDataModel) => any) | undefined;
+	public createProjectFromDatabaseCallback: ((model: ImportDataModel, connectionId?: string) => any) | undefined;
 
 	constructor(private profile: azdataType.IConnectionProfile | undefined) {
 		this.dialog = getAzdataApi()!.window.createModelViewDialog(constants.createProjectFromDatabaseDialogName, 'createProjectFromDatabaseDialog');
@@ -411,7 +411,7 @@ export class CreateProjectFromDatabaseDialog {
 		};
 
 		azdataApi!.window.closeDialog(this.dialog);
-		await this.createProjectFromDatabaseCallback!(model);
+		await this.createProjectFromDatabaseCallback!(model, this.connectionId!);
 
 		this.dispose();
 	}