diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 2ea87124af..b4640b16a3 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -256,6 +256,7 @@ export const folderStructureLabel = localize('folderStructureLabel', "Folder str
 export const WorkspaceFileExtension = '.code-workspace';
 export const browseEllipsisWithIcon = `$(folder) ${localize('browseEllipsis', "Browse...")}`;
 export const selectProjectLocation = localize('selectProjectLocation', "Select project location");
+export const sdkStyleProject = localize('sdkStyleProject', 'SDK-style project');
 export const ProjectParentDirectoryNotExistError = (location: string): string => { return localize('dataworkspace.projectParentDirectoryNotExistError', "The selected project location '{0}' does not exist or is not a directory.", location); };
 export const ProjectDirectoryAlreadyExistError = (projectName: string, location: string): string => { return localize('dataworkspace.projectDirectoryAlreadyExistError', "There is already a directory named '{0}' in the selected location: '{1}'.", projectName, location); };
 
diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index 1951372406..16b7a12767 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -1261,7 +1261,7 @@ export class ProjectsController {
 			const newProjFilePath = await this.createNewProject({
 				newProjName: model.projName,
 				folderUri: vscode.Uri.file(newProjFolderUri),
-				projectTypeId: constants.emptySqlDatabaseProjectTypeId
+				projectTypeId: model.sdkStyle ? constants.emptySqlDatabaseSdkProjectTypeId : constants.emptySqlDatabaseProjectTypeId
 			});
 
 			model.filePath = path.dirname(newProjFilePath);
@@ -1271,7 +1271,9 @@ export class ProjectsController {
 			await this.createProjectFromDatabaseApiCall(model); // Call ExtractAPI in DacFx Service
 			let fileFolderList: vscode.Uri[] = model.extractTarget === mssql.ExtractTarget.file ? [vscode.Uri.file(model.filePath)] : await this.generateList(model.filePath); // Create a list of all the files and directories to be added to project
 
-			await project.addToProject(fileFolderList); // Add generated file structure to the project
+			if (!model.sdkStyle) {
+				await project.addToProject(fileFolderList); // Add generated file structure to the project
+			}
 
 			// add project to workspace
 			const workspaceApi = utils.getDataWorkspaceExtensionApi();
diff --git a/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseDialog.ts b/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseDialog.ts
index 6f4e75aa5f..4ce8b2e174 100644
--- a/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseDialog.ts
+++ b/extensions/sql-database-projects/src/dialogs/createProjectFromDatabaseDialog.ts
@@ -26,6 +26,7 @@ export class CreateProjectFromDatabaseDialog {
 	public projectNameTextBox: azdataType.InputBoxComponent | undefined;
 	public projectLocationTextBox: azdataType.InputBoxComponent | undefined;
 	public folderStructureDropDown: azdataType.DropDownComponent | undefined;
+	public sdkStyleCheckbox: azdataType.CheckBoxComponent | undefined;
 	private formBuilder: azdataType.FormBuilder | undefined;
 	private connectionId: string | undefined;
 	private toDispose: vscode.Disposable[] = [];
@@ -85,6 +86,12 @@ export class CreateProjectFromDatabaseDialog {
 			const createProjectSettingsFormSection = view.modelBuilder.flexContainer().withLayout({ flexFlow: 'column' }).component();
 			createProjectSettingsFormSection.addItems([folderStructureRow]);
 
+			// could also potentially be radio buttons once there's a term to refer to "legacy" style sqlprojs
+			this.sdkStyleCheckbox = view.modelBuilder.checkBox().withProps({
+				checked: true,
+				label: constants.sdkStyleProject
+			}).component();
+
 			this.formBuilder = <azdataType.FormBuilder>view.modelBuilder.formContainer()
 				.withFormItems([
 					{
@@ -108,6 +115,9 @@ export class CreateProjectFromDatabaseDialog {
 						components: [
 							{
 								component: createProjectSettingsFormSection,
+							},
+							{
+								component: this.sdkStyleCheckbox
 							}
 						]
 					}
@@ -360,7 +370,8 @@ export class CreateProjectFromDatabaseDialog {
 			projName: this.projectNameTextBox!.value!,
 			filePath: this.projectLocationTextBox!.value!,
 			version: '1.0.0.0',
-			extractTarget: mapExtractTargetEnum(<string>this.folderStructureDropDown!.value)
+			extractTarget: mapExtractTargetEnum(<string>this.folderStructureDropDown!.value),
+			sdkStyle: this.sdkStyleCheckbox?.checked
 		};
 
 		azdataApi!.window.closeDialog(this.dialog);
diff --git a/extensions/sql-database-projects/src/models/api/import.ts b/extensions/sql-database-projects/src/models/api/import.ts
index d97c780e91..9f3f5aefc1 100644
--- a/extensions/sql-database-projects/src/models/api/import.ts
+++ b/extensions/sql-database-projects/src/models/api/import.ts
@@ -18,4 +18,5 @@ export interface ImportDataModel {
 	filePath: string;
 	version: string;
 	extractTarget: ExtractTarget;
+	sdkStyle?: boolean;
 }
diff --git a/extensions/sql-database-projects/src/test/dialogs/createProjectFromDatabaseDialog.test.ts b/extensions/sql-database-projects/src/test/dialogs/createProjectFromDatabaseDialog.test.ts
index e41db56318..c3d77c885f 100644
--- a/extensions/sql-database-projects/src/test/dialogs/createProjectFromDatabaseDialog.test.ts
+++ b/extensions/sql-database-projects/src/test/dialogs/createProjectFromDatabaseDialog.test.ts
@@ -100,7 +100,8 @@ describe('Create Project From Database Dialog', () => {
 			projName: 'testProject',
 			filePath: 'testLocation',
 			version: '1.0.0.0',
-			extractTarget: mssql.ExtractTarget.schemaObjectType
+			extractTarget: mssql.ExtractTarget.schemaObjectType,
+			sdkStyle: true
 		};
 
 		dialog.createProjectFromDatabaseCallback = (m) => { model = m; };