diff --git a/openstackclient/identity/v3/project.py b/openstackclient/identity/v3/project.py
index 7c27bb7181..99242391fe 100644
--- a/openstackclient/identity/v3/project.py
+++ b/openstackclient/identity/v3/project.py
@@ -137,6 +137,7 @@ class CreateProject(command.ShowOne):
             kwargs['parent_id'] = common.find_project_id_sdk(
                 identity_client,
                 parsed_args.parent,
+                domain_name_or_id=domain,
             )
 
         kwargs['is_enabled'] = parsed_args.enabled
@@ -310,7 +311,9 @@ class ListProject(command.Lister):
 
         if parsed_args.parent:
             parent_id = common.find_project_id_sdk(
-                identity_client, parsed_args.parent
+                identity_client,
+                parsed_args.parent,
+                domain_name_or_id=domain_id,
             )
             kwargs['parent_id'] = parent_id
 
diff --git a/releasenotes/notes/use-project-domain-for-parent-cb29ee3f5adeb647.yaml b/releasenotes/notes/use-project-domain-for-parent-cb29ee3f5adeb647.yaml
new file mode 100644
index 0000000000..acbf2ba6cf
--- /dev/null
+++ b/releasenotes/notes/use-project-domain-for-parent-cb29ee3f5adeb647.yaml
@@ -0,0 +1,5 @@
+---
+upgrade:
+  - |
+    When creating or listing projects, parent project will now be searched from
+    the same domain as the child project.