diff --git a/desktop/playwright.config.ts b/desktop/playwright.config.ts
index ee7d4ec9bf0..9984046f3be 100644
--- a/desktop/playwright.config.ts
+++ b/desktop/playwright.config.ts
@@ -121,6 +121,7 @@ export default defineConfig({
         "**/send-channel-binding.spec.ts",
         "**/project-cold-start.spec.ts",
         "**/project-commit-detail.spec.ts",
+        "**/project-empty-state-alignment.spec.ts",
         "**/project-inbox.spec.ts",
         "**/projects-v3-screenshots.spec.ts",
         "**/project-issue-comments.spec.ts",
diff --git a/desktop/src/features/projects/ui/ProjectCards.tsx b/desktop/src/features/projects/ui/ProjectCards.tsx
index e9672d643bd..a1a48e89e47 100644
--- a/desktop/src/features/projects/ui/ProjectCards.tsx
+++ b/desktop/src/features/projects/ui/ProjectCards.tsx
@@ -5,6 +5,7 @@ import {
   Folders,
   GitCommit,
   GitPullRequest,
+  Plus,
   TerminalSquare,
   Trash2,
 } from "lucide-react";
@@ -304,7 +305,11 @@ function RepositoryUnavailableIndicator({
   );
 }
 
-export function EmptyState() {
+export function EmptyState({
+  onCreateProject,
+}: {
+  onCreateProject: () => void;
+}) {
   return (
     <div className="flex flex-1 flex-col items-center justify-center gap-3 px-4 py-16 text-center">
       <Folders className="h-10 w-10 text-muted-foreground/40" />
@@ -314,6 +319,10 @@ export function EmptyState() {
           Projects published to this relay will appear here.
         </p>
       </div>
+      <Button onClick={onCreateProject} size="sm" type="button">
+        <Plus className="h-4 w-4" />
+        Create project
+      </Button>
     </div>
   );
 }
diff --git a/desktop/src/features/projects/ui/ProjectCreationDialog.tsx b/desktop/src/features/projects/ui/ProjectCreationDialog.tsx
new file mode 100644
index 00000000000..1039c087833
--- /dev/null
+++ b/desktop/src/features/projects/ui/ProjectCreationDialog.tsx
@@ -0,0 +1,36 @@
+import { toast } from "sonner";
+
+import { useAppNavigation } from "@/app/navigation/useAppNavigation";
+import { useCreateProjectMutation } from "@/features/projects/useCreateProject";
+import { CreateProjectDialog } from "@/features/projects/ui/CreateProjectDialog";
+
+/** Shared project-creation flow for populated and first-run project views. */
+export function ProjectCreationDialog({
+  onOpenChange,
+  open,
+}: {
+  onOpenChange: (open: boolean) => void;
+  open: boolean;
+}) {
+  const { goProject } = useAppNavigation();
+  const createProjectMutation = useCreateProjectMutation();
+
+  return (
+    <CreateProjectDialog
+      isCreating={createProjectMutation.isPending}
+      onCreate={async (input) => {
+        const result = await createProjectMutation.mutateAsync(input);
+        if (result.compatibilityWarning) {
+          toast.warning("Created as a standalone project", {
+            description: result.compatibilityWarning,
+          });
+        } else {
+          toast.success(`Project "${result.project.name}" created.`);
+        }
+        await goProject(result.project.id);
+      }}
+      onOpenChange={onOpenChange}
+      open={open}
+    />
+  );
+}
diff --git a/desktop/src/features/projects/ui/ProjectHomeContextPanel.tsx b/desktop/src/features/projects/ui/ProjectHomeContextPanel.tsx
index 63245ab632c..080ec5aa32a 100644
--- a/desktop/src/features/projects/ui/ProjectHomeContextPanel.tsx
+++ b/desktop/src/features/projects/ui/ProjectHomeContextPanel.tsx
@@ -258,7 +258,7 @@ export function ProjectHomeContextPanel({
 
   return (
     <div
-      className="space-y-4 px-2 pb-8 pt-1"
+      className="space-y-4 px-2 pb-8 pt-3"
       data-testid="project-home-context-panel"
     >
       <ContextSection testId="project-home-context-workspace">
diff --git a/desktop/src/features/projects/ui/ProjectsView.tsx b/desktop/src/features/projects/ui/ProjectsView.tsx
index f33659bcfc5..f79cf910cba 100644
--- a/desktop/src/features/projects/ui/ProjectsView.tsx
+++ b/desktop/src/features/projects/ui/ProjectsView.tsx
@@ -1,5 +1,4 @@
 import * as React from "react";
-import { toast } from "sonner";
 
 import { useAppNavigation } from "@/app/navigation/useAppNavigation";
 import { useManagedAgentsQuery } from "@/features/agents/hooks";
@@ -17,7 +16,6 @@ import {
   useProjectsWorkItemsQuery,
 } from "@/features/projects/hooks";
 import { useRepositoryActivitySummariesQuery } from "@/features/projects/repositoryActivityHooks";
-import { useCreateProjectMutation } from "@/features/projects/useCreateProject";
 import { isExplicitProject } from "@/features/projects/projectModels";
 import { projectsWithWorkItemRepositories } from "@/features/projects/projectWorkItems";
 import { useProjectsRepoSnapshotsQuery } from "@/features/projects/useProjectsRepoSnapshots";
@@ -52,7 +50,7 @@ import {
   ProjectsOverviewProjectItems,
   ProjectsOverviewRepositoryItems,
 } from "@/features/projects/ui/ProjectsOverviewItems";
-import { CreateProjectDialog } from "@/features/projects/ui/CreateProjectDialog";
+import { ProjectCreationDialog } from "@/features/projects/ui/ProjectCreationDialog";
 import { CreateProjectIssueDialog } from "@/features/projects/ui/CreateProjectIssueDialog";
 import { CreatePullRequestDialog } from "@/features/projects/ui/CreatePullRequestDialog";
 import { ProjectAgentChatPanel } from "@/features/projects/ui/ProjectAgentChatPanel";
@@ -183,7 +181,6 @@ export function ProjectsView() {
   const [createIssueOpen, setCreateIssueOpen] = React.useState(false);
   const [createPullRequestOpen, setCreatePullRequestOpen] =
     React.useState(false);
-  const createProjectMutation = useCreateProjectMutation();
   const [storedViewMode, setStoredViewMode] =
     React.useState<ProjectsViewMode | null>(() => readStoredViewMode());
   const [sort, setSort] = React.useState<ProjectsSort>(() => readStoredSort());
@@ -566,7 +563,15 @@ export function ProjectsView() {
   }
 
   if (projectReadModels.length === 0) {
-    return <EmptyState />;
+    return (
+      <>
+        <ProjectCreationDialog
+          onOpenChange={setCreateProjectOpen}
+          open={createProjectOpen}
+        />
+        <EmptyState onCreateProject={() => setCreateProjectOpen(true)} />
+      </>
+    );
   }
 
   const projectItems = (
@@ -740,19 +745,7 @@ export function ProjectsView() {
             overviewDetached ? "projects-overview-content-pod" : undefined
           }
         >
-          <CreateProjectDialog
-            isCreating={createProjectMutation.isPending}
-            onCreate={async (input) => {
-              const result = await createProjectMutation.mutateAsync(input);
-              if (result.compatibilityWarning) {
-                toast.warning("Created as a standalone project", {
-                  description: result.compatibilityWarning,
-                });
-              } else {
-                toast.success(`Project "${result.project.name}" created.`);
-              }
-              await goProject(result.project.id);
-            }}
+          <ProjectCreationDialog
             onOpenChange={setCreateProjectOpen}
             open={createProjectOpen}
           />
diff --git a/desktop/src/features/projects/ui/projectsOverviewContext.test.mjs b/desktop/src/features/projects/ui/projectsOverviewContext.test.mjs
index 60e3b650a20..cef99805f15 100644
--- a/desktop/src/features/projects/ui/projectsOverviewContext.test.mjs
+++ b/desktop/src/features/projects/ui/projectsOverviewContext.test.mjs
@@ -72,7 +72,7 @@ test("activity pod shows workspace details without a create action", () => {
     },
   });
 
-  assert.equal(context.title, "Projects");
+  assert.equal(context.title, "Activity");
   assert.equal(context.detailsTitle, "Details");
   assert.equal(context.action, null);
   assert.deepEqual(
diff --git a/desktop/src/features/projects/ui/projectsOverviewContext.ts b/desktop/src/features/projects/ui/projectsOverviewContext.ts
index 0b4c5bfc693..8d717e90eb5 100644
--- a/desktop/src/features/projects/ui/projectsOverviewContext.ts
+++ b/desktop/src/features/projects/ui/projectsOverviewContext.ts
@@ -405,7 +405,7 @@ export function projectsOverviewContext(
           section: "prs",
         },
       ],
-      title: "Projects",
+      title: "Activity",
     };
   }
 
diff --git a/desktop/src/testing/e2eBridge.ts b/desktop/src/testing/e2eBridge.ts
index c620c577648..b06b1fa627c 100644
--- a/desktop/src/testing/e2eBridge.ts
+++ b/desktop/src/testing/e2eBridge.ts
@@ -1259,6 +1259,8 @@ declare global {
     __BUZZ_E2E_REPOSITORY_ONLY_PROJECTS__?: boolean;
     /** Leaves broad project enumeration pending while scoped project queries remain available. */
     __BUZZ_E2E_DEFER_FULL_PROJECT_QUERIES__?: boolean;
+    /** Omits all seeded project and repository events for empty-state tests. */
+    __BUZZ_E2E_EMPTY_PROJECTS__?: boolean;
     /** Project-scoped events accepted by the mock relay. */
     __BUZZ_E2E_ACCEPTED_PROJECT_EVENTS__?: Array<{
       content: string;
@@ -5912,6 +5914,10 @@ function writeMockProjectBranch(
 }
 
 function buildMockProjectEvents(): RelayEvent[] {
+  if (window.__BUZZ_E2E_EMPTY_PROJECTS__) {
+    return [];
+  }
+
   const events: RelayEvent[] = [];
   const daySeconds = 86_400;
   const now = Math.floor(Date.now() / 1000);
diff --git a/desktop/tests/e2e/project-empty-state-alignment.spec.ts b/desktop/tests/e2e/project-empty-state-alignment.spec.ts
new file mode 100644
index 00000000000..2532e32453d
--- /dev/null
+++ b/desktop/tests/e2e/project-empty-state-alignment.spec.ts
@@ -0,0 +1,69 @@
+import { expect, test } from "@playwright/test";
+
+import { waitForAnimations } from "../helpers/animations";
+import { installMockBridge } from "../helpers/bridge";
+
+const ALIGNMENT_TOLERANCE_PX = 2;
+
+async function enableProjectsFeature(page: import("@playwright/test").Page) {
+  await page.addInitScript(() => {
+    window.localStorage.setItem(
+      "buzz-feature-overrides-v1",
+      JSON.stringify({ projects: true }),
+    );
+  });
+}
+
+async function addProjectToSidebar(
+  page: import("@playwright/test").Page,
+  dtag: string,
+) {
+  await page.getByTestId("sidebar-projects-section-label").hover();
+  await page.getByTestId("sidebar-projects-create").click();
+  const browser = page.getByTestId("project-browser-dialog");
+  await browser.getByRole("searchbox", { name: "Search projects" }).fill(dtag);
+  await browser.getByTestId(`project-browser-result-${dtag}`).click();
+  await expect(browser).toBeHidden();
+  await expect(page.getByTestId(`sidebar-project-${dtag}`)).toBeVisible();
+}
+
+test("first-time project empty state opens project creation", async ({
+  page,
+}) => {
+  await enableProjectsFeature(page);
+  await page.addInitScript(() => {
+    window.__BUZZ_E2E_EMPTY_PROJECTS__ = true;
+  });
+  await installMockBridge(page);
+  await page.goto("/", { waitUntil: "domcontentloaded" });
+  await page.getByTestId("open-projects-view").click();
+
+  await expect(
+    page.getByRole("main").getByText("No projects yet"),
+  ).toBeVisible();
+  await page.getByRole("button", { name: "Create project" }).click();
+  await expect(page.getByTestId("create-project-dialog")).toBeVisible();
+});
+
+test("project home context aligns with the channel header", async ({
+  page,
+}) => {
+  await enableProjectsFeature(page);
+  await installMockBridge(page);
+  await page.goto("/", { waitUntil: "domcontentloaded" });
+  await addProjectToSidebar(page, "buzz");
+  await waitForAnimations(page);
+
+  const [headerTitleBox, tasksBox] = await Promise.all([
+    page.getByTestId("chat-title").boundingBox(),
+    page.getByTestId("project-home-context-tasks").boundingBox(),
+  ]);
+  expect(headerTitleBox).not.toBeNull();
+  expect(tasksBox).not.toBeNull();
+  const headerTitleCenter =
+    (headerTitleBox?.y ?? 0) + (headerTitleBox?.height ?? 0) / 2;
+  const tasksCenter = (tasksBox?.y ?? 0) + (tasksBox?.height ?? 0) / 2;
+  expect(Math.abs(headerTitleCenter - tasksCenter)).toBeLessThanOrEqual(
+    ALIGNMENT_TOLERANCE_PX,
+  );
+});
diff --git a/desktop/tests/e2e/project-pr-review.spec.ts b/desktop/tests/e2e/project-pr-review.spec.ts
index ace54e9fa47..16d249a6dbb 100644
--- a/desktop/tests/e2e/project-pr-review.spec.ts
+++ b/desktop/tests/e2e/project-pr-review.spec.ts
@@ -1722,7 +1722,7 @@ test("project overview presents collapsible context beside grouped activity", as
     page.getByTestId("projects-overview-context-panel"),
   ).toBeVisible();
   await expect(page.getByTestId("projects-overview-context-title")).toHaveText(
-    "Projects",
+    "Activity",
   );
   expect(
     Math.round(
@@ -1757,7 +1757,7 @@ test("project overview presents collapsible context beside grouped activity", as
   await expect(
     page
       .getByTestId("projects-overview-context-panel")
-      .getByRole("heading", { name: "Activity" }),
+      .getByRole("heading", { level: 3, name: "Activity" }),
   ).toHaveCount(0);
   await expect(
     page
@@ -1932,7 +1932,7 @@ test("project overview presents collapsible context beside grouped activity", as
     page.getByTestId("projects-overview-context-panel"),
   ).toBeVisible();
   await expect(page.getByTestId("projects-overview-context-title")).toHaveText(
-    "Projects",
+    "Activity",
   );
   await expect(page.getByTestId("projects-overview-activity")).toHaveCount(0);