diff --git a/extensions/data-workspace/package.json b/extensions/data-workspace/package.json
index 92ce77c142..518e85e025 100644
--- a/extensions/data-workspace/package.json
+++ b/extensions/data-workspace/package.json
@@ -133,12 +133,12 @@
       "view/item/context": [
         {
           "command": "projects.manageProject",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project && azdataAvailable",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ && azdataAvailable",
           "group": "0_projectsFirst@1"
         },
         {
           "command": "projects.removeProject",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/",
           "group": "9_dbProjectsLast@9"
         }
       ]
diff --git a/extensions/sql-database-projects/package.json b/extensions/sql-database-projects/package.json
index 2f670f0857..36ae9d4dad 100644
--- a/extensions/sql-database-projects/package.json
+++ b/extensions/sql-database-projects/package.json
@@ -185,6 +185,11 @@
         "command": "sqlDatabaseProjects.generateProjectFromOpenApiSpec",
         "title": "%sqlDatabaseProjects.generateProjectFromOpenApiSpec%",
         "category": "%sqlDatabaseProjects.displayName%"
+      },
+      {
+        "command": "sqlDatabaseProjects.convertToSdkStyleProject",
+        "title": "%sqlDatabaseProjects.convertToSdkStyleProject%",
+        "category": "%sqlDatabaseProjects.displayName%"
       }
     ],
     "menus": {
@@ -296,77 +301,81 @@
         {
           "command": "sqlDatabaseProjects.changeTargetPlatform",
           "when": "false"
+        },
+        {
+          "command": "sqlDatabaseProjects.convertToSdkStyleProject",
+          "when": "false"
         }
       ],
       "view/item/context": [
         {
           "command": "sqlDatabaseProjects.build",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/",
           "group": "1_dbProjectsFirst@1"
         },
         {
           "command": "sqlDatabaseProjects.publish",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/",
           "group": "1_dbProjectsFirst@2"
         },
         {
           "command": "sqlDatabaseProjects.schemaCompare",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project && azdataAvailable",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ && azdataAvailable",
           "group": "1_dbProjectsFirst@3"
         },
         {
           "command": "sqlDatabaseProjects.updateProjectFromDatabase",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project && azdataAvailable",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ && azdataAvailable",
           "group": "1_dbProjectsFirst@4"
         },
         {
           "command": "sqlDatabaseProjects.newItem",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "2_dbProjects_newMain@1"
         },
         {
           "command": "sqlDatabaseProjects.addExistingItem",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "2_dbProjects_newMain@2"
         },
         {
           "command": "sqlDatabaseProjects.newFolder",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "2_dbProjects_newMain@3"
         },
         {
           "command": "sqlDatabaseProjects.newTable",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "3_dbProjects_newItem@1"
         },
         {
           "command": "sqlDatabaseProjects.newView",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "3_dbProjects_newItem@2"
         },
         {
           "command": "sqlDatabaseProjects.newStoredProcedure",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "3_dbProjects_newItem@3"
         },
         {
           "command": "sqlDatabaseProjects.newExternalStreamingJob",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "3_dbProjects_newItem@4"
         },
         {
           "command": "sqlDatabaseProjects.newScript",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "3_dbProjects_newItem@7"
         },
         {
           "command": "sqlDatabaseProjects.newPreDeploymentScript",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "3_dbProjects_newItem@8"
         },
         {
           "command": "sqlDatabaseProjects.newPostDeploymentScript",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project || viewItem == databaseProject.itemType.folder",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/ || viewItem == databaseProject.itemType.folder",
           "group": "3_dbProjects_newItem@9"
         },
         {
@@ -389,19 +398,24 @@
           "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.folder || viewItem =~ /^databaseProject.itemType.file/ || viewItem == databaseProject.itemType.reference",
           "group": "9_dbProjectsLast@2"
         },
+        {
+          "command": "sqlDatabaseProjects.convertToSdkStyleProject",
+          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.legacyProject",
+          "group": "9_dbProjectsLast@5"
+        },
         {
           "command": "sqlDatabaseProjects.changeTargetPlatform",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/",
           "group": "9_dbProjectsLast@6"
         },
         {
           "command": "sqlDatabaseProjects.editProjectFile",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/",
           "group": "9_dbProjectsLast@7"
         },
         {
           "command": "sqlDatabaseProjects.openContainingFolder",
-          "when": "view == dataworkspace.views.main && viewItem == databaseProject.itemType.project",
+          "when": "view == dataworkspace.views.main && viewItem =~ /^(databaseProject.itemType.project|databaseProject.itemType.legacyProject)$/",
           "group": "9_dbProjectsLast@8"
         },
         {
diff --git a/extensions/sql-database-projects/package.nls.json b/extensions/sql-database-projects/package.nls.json
index 46cfd10152..851ddbc606 100644
--- a/extensions/sql-database-projects/package.nls.json
+++ b/extensions/sql-database-projects/package.nls.json
@@ -32,6 +32,7 @@
 	"sqlDatabaseProjects.editProjectFile": "Edit .sqlproj File",
 	"sqlDatabaseProjects.changeTargetPlatform": "Change Target Platform",
 	"sqlDatabaseProjects.generateProjectFromOpenApiSpec": "Generate SQL Project from OpenAPI/Swagger spec",
+	"sqlDatabaseProjects.convertToSdkStyleProject": "Convert to SDK-style project",
 
 	"sqlDatabaseProjects.Settings": "Database Projects",
 	"sqlDatabaseProjects.dotnetInstallLocation": "Full path to .NET SDK on the machine.",
diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index ea5b2c3dfc..541b5eb49f 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -481,6 +481,7 @@ export const sqlAuth = 'SqlAuth';
 // Tree item types
 export enum DatabaseProjectItemType {
 	project = 'databaseProject.itemType.project',
+	legacyProject = 'databaseProject.itemType.legacyProject',
 	folder = 'databaseProject.itemType.folder',
 	file = 'databaseProject.itemType.file',
 	externalStreamingJob = 'databaseProject.itemType.file.externalStreamingJob',
diff --git a/extensions/sql-database-projects/src/controllers/mainController.ts b/extensions/sql-database-projects/src/controllers/mainController.ts
index dcbf427a74..065ed09f9d 100644
--- a/extensions/sql-database-projects/src/controllers/mainController.ts
+++ b/extensions/sql-database-projects/src/controllers/mainController.ts
@@ -81,6 +81,7 @@ export default class MainController implements vscode.Disposable {
 		vscode.commands.registerCommand('sqlDatabaseProjects.addDatabaseReference', async (node: WorkspaceTreeItem) => { return this.projectsController.addDatabaseReference(node); });
 		vscode.commands.registerCommand('sqlDatabaseProjects.openContainingFolder', async (node: WorkspaceTreeItem) => { return this.projectsController.openContainingFolder(node); });
 		vscode.commands.registerCommand('sqlDatabaseProjects.editProjectFile', async (node: WorkspaceTreeItem) => { return this.projectsController.editProjectFile(node); });
+		vscode.commands.registerCommand('sqlDatabaseProjects.convertToSdkStyleProject', async (node: WorkspaceTreeItem) => { return this.projectsController.convertToSdkStyleProject(node); });
 		vscode.commands.registerCommand('sqlDatabaseProjects.delete', async (node: WorkspaceTreeItem) => { return this.projectsController.delete(node); });
 		vscode.commands.registerCommand('sqlDatabaseProjects.exclude', async (node: WorkspaceTreeItem) => { return this.projectsController.exclude(node); });
 		vscode.commands.registerCommand('sqlDatabaseProjects.changeTargetPlatform', async (node: WorkspaceTreeItem) => { return this.projectsController.changeTargetPlatform(node); });
diff --git a/extensions/sql-database-projects/src/models/tree/projectTreeItem.ts b/extensions/sql-database-projects/src/models/tree/projectTreeItem.ts
index 4aafa0a626..88bb2c024c 100644
--- a/extensions/sql-database-projects/src/models/tree/projectTreeItem.ts
+++ b/extensions/sql-database-projects/src/models/tree/projectTreeItem.ts
@@ -47,7 +47,7 @@ export class ProjectRootTreeItem extends BaseProjectTreeItem {
 
 	public get treeItem(): vscode.TreeItem {
 		const projectItem = new vscode.TreeItem(this.fileSystemUri, vscode.TreeItemCollapsibleState.Expanded);
-		projectItem.contextValue = DatabaseProjectItemType.project;
+		projectItem.contextValue = this.project.isSdkStyleProject ? DatabaseProjectItemType.project : DatabaseProjectItemType.legacyProject;
 		projectItem.iconPath = IconPathHelper.databaseProject;
 		projectItem.label = path.basename(this.projectUri.fsPath, sqlprojExtension);