diff --git a/CHANGELOG.md b/CHANGELOG.md
index 00b780ca57..88cdabc384 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,8 @@
 
 Previously, `dfx ledger top-up` only accepted canister principals. Now it accepts both principals and canister names.
 
+### feat: `dfx new` allows hyphens in project name
+
 # 0.15.2
 
 ### fix: `dfx canister delete <canister id>` removes the related entry from the canister id store
diff --git a/e2e/tests-dfx/new.bash b/e2e/tests-dfx/new.bash
index 6559b2d5b6..025e2c62ef 100644
--- a/e2e/tests-dfx/new.bash
+++ b/e2e/tests-dfx/new.bash
@@ -18,6 +18,7 @@ teardown() {
   dfx new --no-frontend a_1
   dfx new --no-frontend a1
   dfx new --no-frontend a1a
+  dfx new --no-frontend a-b-c
 }
 
 @test "dfx new - bad names" {
@@ -29,7 +30,6 @@ teardown() {
   assert_command_fail dfx new 1_
   assert_command_fail dfx new -
   assert_command_fail dfx new _
-  assert_command_fail dfx new a-b-c
   assert_command_fail dfx new '🕹'
   assert_command_fail dfx new '不好'
   assert_command_fail dfx new 'a:b'
diff --git a/src/dfx/src/commands/new.rs b/src/dfx/src/commands/new.rs
index 99f205b162..8c467e728e 100644
--- a/src/dfx/src/commands/new.rs
+++ b/src/dfx/src/commands/new.rs
@@ -585,6 +585,7 @@ mod tests {
         assert!(project_name_parser("A1").is_ok());
         assert!(project_name_parser("a_good_name_").is_ok());
         assert!(project_name_parser("a_good_name").is_ok());
+        assert!(project_name_parser("a-b-c").is_ok());
     }
 
     #[test]
@@ -597,7 +598,6 @@ mod tests {
         assert!(project_name_parser("1_").is_err());
         assert!(project_name_parser("-").is_err());
         assert!(project_name_parser("_").is_err());
-        assert!(project_name_parser("a-b-c").is_err());
         assert!(project_name_parser("🕹").is_err());
         assert!(project_name_parser("不好").is_err());
         assert!(project_name_parser("a:b").is_err());
diff --git a/src/dfx/src/util/clap/parsers.rs b/src/dfx/src/util/clap/parsers.rs
index 9b7184dffc..c8fb6554e6 100644
--- a/src/dfx/src/util/clap/parsers.rs
+++ b/src/dfx/src/util/clap/parsers.rs
@@ -141,7 +141,7 @@ pub fn project_name_parser(name: &str) -> Result<String, String> {
             // Reverses the search here; if there is a character that is not compatible
             // it is found and an error is returned.
             let m: Vec<&str> = name
-                .matches(|x: char| !x.is_ascii_alphanumeric() && x != '_')
+                .matches(|x: char| !x.is_ascii_alphanumeric() && x != '_' && x != '-')
                 .collect();
 
             if m.is_empty() {