diff --git a/functional/tests/identity/v3/test_identity.py b/functional/tests/identity/v3/test_identity.py
index d7e72b02a7..cd11e200af 100644
--- a/functional/tests/identity/v3/test_identity.py
+++ b/functional/tests/identity/v3/test_identity.py
@@ -96,12 +96,14 @@ class IdentityTests(test.TestCase):
             'user create '
             '--domain %(domain)s '
             '--project %(project)s '
+            '--project-domain %(project_domain)s '
             '--password %(password)s '
             '--email %(email)s '
             '--description %(description)s '
             '--enable '
             '%(name)s' % {'domain': self.domain_name,
                           'project': self.project_name,
+                          'project_domain': self.domain_name,
                           'email': email,
                           'password': password,
                           'description': description,
diff --git a/functional/tests/identity/v3/test_user.py b/functional/tests/identity/v3/test_user.py
index 69420b96f2..00b9bdc2fc 100644
--- a/functional/tests/identity/v3/test_user.py
+++ b/functional/tests/identity/v3/test_user.py
@@ -53,9 +53,43 @@ class UserTests(test_identity.IdentityTests):
                                     '--domain %(domain)s '
                                     '%(name)s' % {'domain': self.domain_name,
                                                   'name': new_username})
-        new_user = self.parse_show_as_object(raw_output)
-        self.assertEqual(user['id'], new_user['id'])
-        self.assertEqual(new_email, new_user['email'])
+        updated_user = self.parse_show_as_object(raw_output)
+        self.assertEqual(user['id'], updated_user['id'])
+        self.assertEqual(new_email, updated_user['email'])
+
+    def test_user_set_default_project_id(self):
+        username = self._create_dummy_user()
+        project_name = self._create_dummy_project()
+        # get original user details
+        raw_output = self.openstack('user show '
+                                    '--domain %(domain)s '
+                                    '%(name)s' % {'domain': self.domain_name,
+                                                  'name': username})
+        user = self.parse_show_as_object(raw_output)
+        # update user
+        raw_output = self.openstack('user set '
+                                    '--project %(project)s '
+                                    '--project-domain %(project_domain)s '
+                                    '%(id)s' % {'project': project_name,
+                                                'project_domain':
+                                                    self.domain_name,
+                                                'id': user['id']})
+        self.assertEqual(0, len(raw_output))
+        # get updated user details
+        raw_output = self.openstack('user show '
+                                    '--domain %(domain)s '
+                                    '%(name)s' % {'domain': self.domain_name,
+                                                  'name': username})
+        updated_user = self.parse_show_as_object(raw_output)
+        # get project details
+        raw_output = self.openstack('project show '
+                                    '--domain %(domain)s '
+                                    '%(name)s' % {'domain': self.domain_name,
+                                                  'name': project_name})
+        project = self.parse_show_as_object(raw_output)
+        # check updated user details
+        self.assertEqual(user['id'], updated_user['id'])
+        self.assertEqual(project['id'], updated_user['default_project_id'])
 
     def test_user_show(self):
         username = self._create_dummy_user()
diff --git a/openstackclient/tests/identity/v3/test_user.py b/openstackclient/tests/identity/v3/test_user.py
index bdde25a2ce..76d5f83487 100644
--- a/openstackclient/tests/identity/v3/test_user.py
+++ b/openstackclient/tests/identity/v3/test_user.py
@@ -956,6 +956,39 @@ class TestUserSet(TestUser):
             **kwargs
         )
 
+    def test_user_set_project_domain(self):
+        arglist = [
+            '--project', identity_fakes.project_id,
+            '--project-domain', identity_fakes.domain_id,
+            identity_fakes.user_name,
+        ]
+        verifylist = [
+            ('name', None),
+            ('password', None),
+            ('email', None),
+            ('project', identity_fakes.project_id),
+            ('project_domain', identity_fakes.domain_id),
+            ('enable', False),
+            ('disable', False),
+            ('user', identity_fakes.user_name),
+        ]
+        parsed_args = self.check_parser(self.cmd, arglist, verifylist)
+
+        # DisplayCommandBase.take_action() returns two tuples
+        self.cmd.take_action(parsed_args)
+
+        # Set expected values
+        kwargs = {
+            'enabled': True,
+            'default_project': identity_fakes.project_id,
+        }
+        # UserManager.update(user, name=, domain=, project=, password=,
+        #     email=, description=, enabled=, default_project=)
+        self.users_mock.update.assert_called_with(
+            identity_fakes.user_id,
+            **kwargs
+        )
+
     def test_user_set_enable(self):
         arglist = [
             '--enable',