diff --git a/internal/db/tasks.go b/internal/db/tasks.go
index eaeaeba2..72f96d2a 100644
--- a/internal/db/tasks.go
+++ b/internal/db/tasks.go
@@ -518,6 +518,11 @@ func (db *DB) UpdateTask(t *Task) error {
 		}
 	}
 
+	// Update last used project if project is set
+	if t.Project != "" {
+		db.SetLastUsedProject(t.Project)
+	}
+
 	return nil
 }
 
diff --git a/internal/db/tasks_test.go b/internal/db/tasks_test.go
index 8edb9214..58e91d7c 100644
--- a/internal/db/tasks_test.go
+++ b/internal/db/tasks_test.go
@@ -1852,6 +1852,49 @@ func TestCreateTaskSavesLastProject(t *testing.T) {
 	}
 }
 
+func TestUpdateTaskSavesLastProject(t *testing.T) {
+	tmpDir := t.TempDir()
+	dbPath := filepath.Join(tmpDir, "test.db")
+
+	db, err := Open(dbPath)
+	if err != nil {
+		t.Fatalf("failed to open database: %v", err)
+	}
+	defer db.Close()
+	defer os.Remove(dbPath)
+
+	if err := db.CreateProject(&Project{Name: "work", Path: tmpDir + "/work"}); err != nil {
+		t.Fatalf("failed to create work project: %v", err)
+	}
+
+	task := &Task{
+		Title:   "Test Task",
+		Status:  StatusBacklog,
+		Project: "personal",
+	}
+	if err := db.CreateTask(task); err != nil {
+		t.Fatalf("failed to create task: %v", err)
+	}
+
+	lastProject, _ := db.GetLastUsedProject()
+	if lastProject != "personal" {
+		t.Errorf("expected 'personal' after create, got %q", lastProject)
+	}
+
+	task.Project = "work"
+	if err := db.UpdateTask(task); err != nil {
+		t.Fatalf("failed to update task: %v", err)
+	}
+
+	lastProject, err = db.GetLastUsedProject()
+	if err != nil {
+		t.Fatalf("failed to get last used project: %v", err)
+	}
+	if lastProject != "work" {
+		t.Errorf("expected 'work' after update, got %q", lastProject)
+	}
+}
+
 func TestGetExecutorUsageByProject(t *testing.T) {
 	// Create temporary database
 	tmpDir := t.TempDir()
diff --git a/internal/ui/form_test.go b/internal/ui/form_test.go
index a31c01cb..7adc5e55 100644
--- a/internal/ui/form_test.go
+++ b/internal/ui/form_test.go
@@ -1,6 +1,7 @@
 package ui
 
 import (
+	"path/filepath"
 	"strings"
 	"testing"
 
@@ -1161,3 +1162,62 @@ func TestFilterProjectsEmptyQueryShowsAll(t *testing.T) {
 		t.Errorf("expected current project 'workflow' to be pre-selected, got %q", m.projectFiltered[m.projectFilteredIdx])
 	}
 }
+
+func TestNewFormModelDefaultsToLastUsedProject(t *testing.T) {
+	tmpDir := t.TempDir()
+	dbPath := filepath.Join(tmpDir, "test.db")
+
+	database, err := db.Open(dbPath)
+	if err != nil {
+		t.Fatalf("failed to open database: %v", err)
+	}
+	defer database.Close()
+
+	if err := database.CreateProject(&db.Project{Name: "work", Path: tmpDir}); err != nil {
+		t.Fatalf("failed to create work project: %v", err)
+	}
+
+	if err := database.SetLastUsedProject("work"); err != nil {
+		t.Fatalf("failed to set last used project: %v", err)
+	}
+
+	m := NewFormModel(database, 100, 50, "", nil)
+
+	if m.project != "work" {
+		t.Errorf("expected default project to be 'work' (last used), got %q", m.project)
+	}
+}
+
+func TestNewFormModelDefaultsToPersonalWithoutDatabase(t *testing.T) {
+	m := NewFormModel(nil, 100, 50, "", nil)
+
+	if m.project != "personal" {
+		t.Errorf("expected default project to be 'personal', got %q", m.project)
+	}
+}
+
+func TestNewFormModelLastUsedOverridesWorkingDir(t *testing.T) {
+	tmpDir1 := t.TempDir()
+	tmpDir2 := t.TempDir()
+	dbPath := filepath.Join(tmpDir1, "test.db")
+
+	database, err := db.Open(dbPath)
+	if err != nil {
+		t.Fatalf("failed to open database: %v", err)
+	}
+	defer database.Close()
+
+	if err := database.CreateProject(&db.Project{Name: "work", Path: tmpDir2}); err != nil {
+		t.Fatalf("failed to create work project: %v", err)
+	}
+
+	if err := database.SetLastUsedProject("work"); err != nil {
+		t.Fatalf("failed to set last used project: %v", err)
+	}
+
+	m := NewFormModel(database, 100, 50, tmpDir1, nil)
+
+	if m.project != "work" {
+		t.Errorf("expected project to be 'work' (last used should override working dir), got %q", m.project)
+	}
+}