diff --git a/cmd/argocd/commands/admin/dashboard.go b/cmd/argocd/commands/admin/dashboard.go
index 52a14a42d7a63..06ced1631e2dc 100644
--- a/cmd/argocd/commands/admin/dashboard.go
+++ b/cmd/argocd/commands/admin/dashboard.go
@@ -26,9 +26,13 @@ func NewDashboardCommand() *cobra.Command {
 		Run: func(cmd *cobra.Command, args []string) {
 			ctx := cmd.Context()
 
+			var disableDefaultProjectCreation bool
+
+			cmd.Flags().BoolVar(&disableDefaultProjectCreation, "disable-default-project-creation", false, "Disable default project creation")
+
 			compression, err := cache.CompressionTypeFromString(compressionStr)
 			errors.CheckError(err)
-			errors.CheckError(headless.StartLocalServer(ctx, &argocdclient.ClientOptions{Core: true}, initialize.RetrieveContextIfChanged(cmd.Flag("context")), &port, &address, compression))
+			errors.CheckError(headless.StartLocalServer(ctx, &argocdclient.ClientOptions{Core: true}, initialize.RetrieveContextIfChanged(cmd.Flag("context")), &port, &address, compression, disableDefaultProjectCreation))
 			println(fmt.Sprintf("Argo CD UI is available at http://%s:%d", address, port))
 			<-ctx.Done()
 		},
diff --git a/cmd/argocd/commands/headless/headless.go b/cmd/argocd/commands/headless/headless.go
index d0885990fe747..ae6a4f5252136 100644
--- a/cmd/argocd/commands/headless/headless.go
+++ b/cmd/argocd/commands/headless/headless.go
@@ -147,7 +147,7 @@ func testAPI(ctx context.Context, clientOpts *apiclient.ClientOptions) error {
 
 // StartLocalServer allows executing command in a headless mode: on the fly starts Argo CD API server and
 // changes provided client options to use started API server port
-func StartLocalServer(ctx context.Context, clientOpts *apiclient.ClientOptions, ctxStr string, port *int, address *string, compression cache.RedisCompressionType) error {
+func StartLocalServer(ctx context.Context, clientOpts *apiclient.ClientOptions, ctxStr string, port *int, address *string, compression cache.RedisCompressionType, disableDefaultProjectCreation bool) error {
 	flags := pflag.NewFlagSet("tmp", pflag.ContinueOnError)
 	clientConfig := cli.AddKubectlFlagsToSet(flags)
 	startInProcessAPI := clientOpts.Core
@@ -222,7 +222,7 @@ func StartLocalServer(ctx context.Context, clientOpts *apiclient.ClientOptions,
 		ListenHost:                    *address,
 		RepoClientset:                 &forwardRepoClientset{namespace: namespace, context: ctxStr, repoServerName: clientOpts.RepoServerName},
 		EnableProxyExtension:          false,
-		DisableDefaultProjectCreation: true,
+		DisableDefaultProjectCreation: disableDefaultProjectCreation,
 	})
 	srv.Init(ctx)
 
@@ -251,8 +251,12 @@ func StartLocalServer(ctx context.Context, clientOpts *apiclient.ClientOptions,
 func NewClientOrDie(opts *apiclient.ClientOptions, c *cobra.Command) apiclient.Client {
 	ctx := c.Context()
 
+	var disableDefaultProjectCreation bool
+
+	c.Flags().BoolVar(&disableDefaultProjectCreation, "disable-default-project-creation", false, "Disable default project creation")
+
 	ctxStr := initialize.RetrieveContextIfChanged(c.Flag("context"))
-	err := StartLocalServer(ctx, opts, ctxStr, nil, nil, cache.RedisCompressionNone)
+	err := StartLocalServer(ctx, opts, ctxStr, nil, nil, cache.RedisCompressionNone, disableDefaultProjectCreation)
 	if err != nil {
 		log.Fatal(err)
 	}