diff --git a/packages/app/src/components/worktree-setup-callout-policy.test.ts b/packages/app/src/components/worktree-setup-callout-policy.test.ts
index 03257be24..dc5bc19dc 100644
--- a/packages/app/src/components/worktree-setup-callout-policy.test.ts
+++ b/packages/app/src/components/worktree-setup-callout-policy.test.ts
@@ -22,6 +22,7 @@ describe("selectActiveGitWorkspaceProject", () => {
   it("selects the active git workspace project from checkout metadata", () => {
     expect(selectActiveGitWorkspaceProject("server-1", gitWorkspace())).toEqual({
       serverId: "server-1",
+      projectId: "project-1",
       projectKey: "project-1",
       repoRoot: "/repo/main-project-1",
     });
@@ -35,11 +36,27 @@ describe("selectActiveGitWorkspaceProject", () => {
       ),
     ).toEqual({
       serverId: "server-1",
+      projectId: "project-1",
       projectKey: "project-1",
       repoRoot: "/repo/project-1",
     });
   });
 
+  it("uses the persisted project group key for the settings route", () => {
+    expect(
+      selectActiveGitWorkspaceProject(
+        "server-1",
+        gitWorkspace({
+          projectId: "prj_local",
+          projectGroupKey: "remote:github.com/acme/project",
+        }),
+      ),
+    ).toMatchObject({
+      projectId: "prj_local",
+      projectKey: "remote:github.com/acme/project",
+    });
+  });
+
   it("ignores non-git workspaces and blank project coordinates", () => {
     expect(
       selectActiveGitWorkspaceProject("server-1", gitWorkspace({ projectKind: "local" })),
@@ -85,6 +102,7 @@ describe("buildWorktreeSetupCalloutPolicy", () => {
     expect(
       buildWorktreeSetupCalloutPolicy({
         serverId: "server-1",
+        projectId: "project-1",
         projectKey: "project-1",
         repoRoot: "/repo/project-1",
       }),
diff --git a/packages/app/src/components/worktree-setup-callout-policy.ts b/packages/app/src/components/worktree-setup-callout-policy.ts
index 371af8f22..43942bbed 100644
--- a/packages/app/src/components/worktree-setup-callout-policy.ts
+++ b/packages/app/src/components/worktree-setup-callout-policy.ts
@@ -1,9 +1,11 @@
 import type { PaseoConfigRaw } from "@getpaseo/protocol/messages";
 import { i18n } from "@/i18n/i18next";
+import { resolveProjectGroupKey } from "@/projects/project-group-key";
 import { buildProjectSettingsRoute } from "@/utils/host-routes";
 
 export interface WorktreeSetupWorkspaceInput {
   projectId: string;
+  projectGroupKey?: string | null;
   projectKind: string;
   projectRootPath: string;
   project?: {
@@ -15,6 +17,7 @@ export interface WorktreeSetupWorkspaceInput {
 
 export interface ActiveGitWorkspaceProject {
   serverId: string;
+  projectId: string;
   projectKey: string;
   repoRoot: string;
 }
@@ -43,13 +46,18 @@ export function selectActiveGitWorkspaceProject(
     return null;
   }
 
-  const projectKey = workspace.projectId.trim();
+  const projectId = workspace.projectId.trim();
+  const projectKey = resolveProjectGroupKey({
+    serverId,
+    projectId,
+    projectGroupKey: workspace.projectGroupKey,
+  });
   const repoRoot = (workspace.project?.checkout?.mainRepoRoot ?? workspace.projectRootPath).trim();
-  if (!projectKey || !repoRoot) {
+  if (!projectId || !repoRoot) {
     return null;
   }
 
-  return { serverId, projectKey, repoRoot };
+  return { serverId, projectId, projectKey, repoRoot };
 }
 
 export function shouldShowWorktreeSetupCallout(readResult: ReadProjectConfigResult | undefined) {
diff --git a/packages/app/src/components/worktree-setup-callout-source.tsx b/packages/app/src/components/worktree-setup-callout-source.tsx
index 2cba8dfe6..6ee2f940f 100644
--- a/packages/app/src/components/worktree-setup-callout-source.tsx
+++ b/packages/app/src/components/worktree-setup-callout-source.tsx
@@ -3,6 +3,7 @@ import { useRouter } from "expo-router";
 import { useEffect, useMemo } from "react";
 import { useSidebarCallouts } from "@/contexts/sidebar-callout-context";
 import { useStableEvent } from "@/hooks/use-stable-event";
+import { useProjects } from "@/hooks/use-projects";
 import { useHostRuntimeClient } from "@/runtime/host-runtime";
 import { useActiveWorkspaceSelection } from "@/stores/navigation-active-workspace-store";
 import { useWorkspaceFields } from "@/stores/session-store-hooks";
@@ -14,11 +15,25 @@ import {
 
 export function WorktreeSetupCalloutSource() {
   const selection = useActiveWorkspaceSelection();
-  const activeProject = useWorkspaceFields(
+  const selectedWorkspaceProject = useWorkspaceFields(
     selection?.serverId ?? null,
     selection?.workspaceId ?? null,
     (workspace) => selectActiveGitWorkspaceProject(selection?.serverId ?? "", workspace),
   );
+  const { projects } = useProjects();
+  const activeProject = useMemo(() => {
+    if (!selectedWorkspaceProject) return null;
+    const structuralProject = projects.find((project) =>
+      project.hosts.some(
+        (host) =>
+          host.serverId === selectedWorkspaceProject.serverId &&
+          host.projectId === selectedWorkspaceProject.projectId,
+      ),
+    );
+    return structuralProject
+      ? { ...selectedWorkspaceProject, projectKey: structuralProject.projectKey }
+      : selectedWorkspaceProject;
+  }, [projects, selectedWorkspaceProject]);
   const client = useHostRuntimeClient(activeProject?.serverId ?? "");
   const callouts = useSidebarCallouts();
   const router = useRouter();
diff --git a/packages/server/src/server/project-group-key.test.ts b/packages/server/src/server/project-group-key.test.ts
index 611d2c571..6be6120e5 100644
--- a/packages/server/src/server/project-group-key.test.ts
+++ b/packages/server/src/server/project-group-key.test.ts
@@ -16,6 +16,19 @@ describe("deriveProjectGroupKey", () => {
     ).toBe("remote:git.example.com:8443/acme/app");
   });
 
+  test("accepts a root-level remote repository path", () => {
+    const rootPath = path.resolve("repo");
+
+    expect(
+      deriveProjectGroupKey({
+        rootPath,
+        remoteUrl: "https://git.example.com/repo.git",
+        worktreeRoot: rootPath,
+        mainRepoRoot: null,
+      }),
+    ).toBe("remote:git.example.com/repo");
+  });
+
   test("includes the selected path within a repository", () => {
     const worktreeRoot = path.resolve("repo");
     const rootPath = path.join(worktreeRoot, "packages", "app");
diff --git a/packages/server/src/server/project-group-key.ts b/packages/server/src/server/project-group-key.ts
index 31c5f6ee3..81dbfa7db 100644
--- a/packages/server/src/server/project-group-key.ts
+++ b/packages/server/src/server/project-group-key.ts
@@ -55,6 +55,6 @@ function deriveRemoteProjectGroupKey(remoteUrl: string | null): string | null {
   if (!host || !remotePath) return null;
   let cleanedPath = remotePath.trim().replace(/^\/+/, "").replace(/\/+$/, "");
   if (cleanedPath.endsWith(".git")) cleanedPath = cleanedPath.slice(0, -4);
-  if (!cleanedPath.includes("/")) return null;
+  if (!cleanedPath) return null;
   return `remote:${host.toLowerCase()}/${cleanedPath}`;
 }
diff --git a/packages/server/src/server/workspace-registry-bootstrap-legacy.ts b/packages/server/src/server/workspace-registry-bootstrap-legacy.ts
index a97924060..c3bf8736f 100644
--- a/packages/server/src/server/workspace-registry-bootstrap-legacy.ts
+++ b/packages/server/src/server/workspace-registry-bootstrap-legacy.ts
@@ -1,4 +1,4 @@
-import { resolve } from "node:path";
+import { basename, resolve } from "node:path";
 
 import type { ProjectCheckoutLitePayload } from "@getpaseo/protocol/messages";
 
@@ -46,7 +46,7 @@ export function classifyDirectoryForProjectMembership(input: {
     workspaceKind: deriveWorkspaceKind(checkout),
     workspaceDisplayName: deriveWorkspaceDisplayName({ cwd, checkout }),
     projectKey,
-    projectName: deriveProjectGroupingName(projectKey),
+    projectName: deriveProjectGroupingName(projectKey, cwd),
     projectRootPath: deriveProjectRootPath({ cwd, checkout }),
     projectKind: deriveProjectKind(checkout),
   };
@@ -58,7 +58,8 @@ function deriveWorkspaceDirectoryKey(cwd: string, checkout: ProjectCheckoutLiteP
   return worktreeRoot && resolve(worktreeRoot) === selectedRoot ? worktreeRoot : selectedRoot;
 }
 
-function deriveProjectGroupingName(projectKey: string): string {
+function deriveProjectGroupingName(projectKey: string, selectedRoot: string): string {
+  if (projectKey.includes("#subdir:")) return basename(selectedRoot);
   if (projectKey.startsWith("remote:")) {
     const pathSegments = projectKey.slice("remote:".length).split("/").filter(Boolean).slice(1);
     if (pathSegments.length >= 2) return pathSegments.slice(-2).join("/");
diff --git a/packages/server/src/server/workspace-registry-bootstrap.test.ts b/packages/server/src/server/workspace-registry-bootstrap.test.ts
index e1c78926e..033fdc6dc 100644
--- a/packages/server/src/server/workspace-registry-bootstrap.test.ts
+++ b/packages/server/src/server/workspace-registry-bootstrap.test.ts
@@ -426,9 +426,19 @@ describe("bootstrapWorkspaceRegistries", () => {
       logger,
     });
 
-    expect((await projectRegistry.list()).map((project) => project.projectId).sort()).toEqual([
-      "remote:github.com/acme/legacy-project#subdir:packages/app",
-      "remote:github.com/acme/legacy-project#subdir:packages/server",
+    expect(
+      (await projectRegistry.list())
+        .map((project) => ({ projectId: project.projectId, displayName: project.displayName }))
+        .sort((left, right) => left.projectId.localeCompare(right.projectId)),
+    ).toEqual([
+      {
+        projectId: "remote:github.com/acme/legacy-project#subdir:packages/app",
+        displayName: "app",
+      },
+      {
+        projectId: "remote:github.com/acme/legacy-project#subdir:packages/server",
+        displayName: "server",
+      },
     ]);
     expect(
       new Set((await workspaceRegistry.list()).map((workspace) => workspace.projectId)),