diff --git a/src/utils/git-root.ts b/src/utils/git-root.ts
new file mode 100644
index 000000000..98de59ca1
--- /dev/null
+++ b/src/utils/git-root.ts
@@ -0,0 +1,36 @@
+/**
+ * Git Root Detection Utility
+ *
+ * Walks up the directory tree from a given path to find the nearest
+ * git repository root (directory containing a .git entry).
+ */
+import { statSync } from 'fs';
+import path from 'path';
+
+/**
+ * Find the git repository root by walking up the directory tree.
+ *
+ * @param cwd - Starting directory (absolute path)
+ * @returns Absolute path to the git root, or null if not in a git repo
+ */
+export function findGitRoot(cwd: string | null | undefined): string | null {
+  if (!cwd || cwd.trim() === '') return null;
+
+  let current = path.resolve(cwd);
+
+  while (true) {
+    const gitPath = path.join(current, '.git');
+    try {
+      statSync(gitPath);
+      // .git exists (file or directory) - this is the repo root
+      return current;
+    } catch {
+      // .git not found here, walk up
+    }
+
+    const parent = path.dirname(current);
+    // Reached filesystem root with no .git found
+    if (parent === current) return null;
+    current = parent;
+  }
+}
diff --git a/src/utils/project-name.ts b/src/utils/project-name.ts
index 287f42725..8cdee90ed 100644
--- a/src/utils/project-name.ts
+++ b/src/utils/project-name.ts
@@ -1,9 +1,12 @@
 import path from 'path';
 import { logger } from './logger.js';
 import { detectWorktree } from './worktree.js';
+import { findGitRoot } from './git-root.js';
 
 /**
- * Extract project name from working directory path
+ * Extract project name from working directory path.
+ * Prefers the git repository root name over the raw cwd basename,
+ * so that running from any subdirectory yields a consistent project name.
  * Handles edge cases: null/undefined cwd, drive roots, trailing slashes
  *
  * @param cwd - Current working directory (absolute path)
@@ -15,6 +18,16 @@ export function getProjectName(cwd: string | null | undefined): string {
     return 'unknown-project';
   }
 
+  // Prefer git root name for consistent project identification across subdirectories
+  const gitRoot = findGitRoot(cwd);
+  if (gitRoot) {
+    const gitRootName = path.basename(gitRoot);
+    if (gitRootName !== '') {
+      logger.debug('PROJECT_NAME', 'Using git root as project name', { cwd, gitRoot, gitRootName });
+      return gitRootName;
+    }
+  }
+
   // Extract basename (handles trailing slashes automatically)
   const basename = path.basename(cwd);
 
@@ -64,13 +77,10 @@ export interface ProjectContext {
  */
 export function getProjectContext(cwd: string | null | undefined): ProjectContext {
   const primary = getProjectName(cwd);
-
   if (!cwd) {
     return { primary, parent: null, isWorktree: false, allProjects: [primary] };
   }
-
   const worktreeInfo = detectWorktree(cwd);
-
   if (worktreeInfo.isWorktree && worktreeInfo.parentProjectName) {
     // In a worktree: include parent first for chronological ordering
     return {
@@ -80,6 +90,5 @@ export function getProjectContext(cwd: string | null | undefined): ProjectContex
       allProjects: [worktreeInfo.parentProjectName, primary]
     };
   }
-
   return { primary, parent: null, isWorktree: false, allProjects: [primary] };
 }
diff --git a/tests/utils/git-root.test.ts b/tests/utils/git-root.test.ts
new file mode 100644
index 000000000..2625b42eb
--- /dev/null
+++ b/tests/utils/git-root.test.ts
@@ -0,0 +1,68 @@
+/**
+ * Git Root Detection Tests
+ *
+ * Tests walking up the directory tree to find the nearest .git root.
+ * Source: src/utils/git-root.ts
+ */
+import { describe, it, expect } from 'bun:test';
+import { findGitRoot } from '../../src/utils/git-root.js';
+import { mkdirSync, mkdtempSync, writeFileSync, rmSync } from 'fs';
+import path from 'path';
+import os from 'os';
+
+describe('findGitRoot', () => {
+  describe('with no git repo', () => {
+    it('returns null for a directory with no .git', () => {
+      const tmp = mkdtempSync(path.join(os.tmpdir(), 'claude-mem-test-'));
+      try {
+        expect(findGitRoot(tmp)).toBeNull();
+      } finally {
+        rmSync(tmp, { recursive: true });
+      }
+    });
+
+    it('returns null for null input', () => {
+      expect(findGitRoot(null)).toBeNull();
+    });
+
+    it('returns null for empty string', () => {
+      expect(findGitRoot('')).toBeNull();
+    });
+  });
+
+  describe('with a git repo', () => {
+    it('finds .git in the current directory', () => {
+      const tmp = mkdtempSync(path.join(os.tmpdir(), 'claude-mem-test-'));
+      try {
+        mkdirSync(path.join(tmp, '.git'));
+        expect(findGitRoot(tmp)).toBe(tmp);
+      } finally {
+        rmSync(tmp, { recursive: true });
+      }
+    });
+
+    it('finds .git by walking up from a subdirectory', () => {
+      const tmp = mkdtempSync(path.join(os.tmpdir(), 'claude-mem-test-'));
+      try {
+        mkdirSync(path.join(tmp, '.git'));
+        const subdir = path.join(tmp, 'src', 'utils');
+        mkdirSync(subdir, { recursive: true });
+        expect(findGitRoot(subdir)).toBe(tmp);
+      } finally {
+        rmSync(tmp, { recursive: true });
+      }
+    });
+
+    it('finds .git as a file (worktree)', () => {
+      const tmp = mkdtempSync(path.join(os.tmpdir(), 'claude-mem-test-'));
+      try {
+        writeFileSync(path.join(tmp, '.git'), 'gitdir: /some/other/path');
+        const subdir = path.join(tmp, 'src');
+        mkdirSync(subdir, { recursive: true });
+        expect(findGitRoot(subdir)).toBe(tmp);
+      } finally {
+        rmSync(tmp, { recursive: true });
+      }
+    });
+  });
+});
diff --git a/tests/utils/project-name.test.ts b/tests/utils/project-name.test.ts
new file mode 100644
index 000000000..cd5453dea
--- /dev/null
+++ b/tests/utils/project-name.test.ts
@@ -0,0 +1,58 @@
+/**
+ * Project Name Tests
+ *
+ * Tests project name extraction with git root detection.
+ * Source: src/utils/project-name.ts
+ */
+import { describe, it, expect } from 'bun:test';
+import { getProjectName } from '../../src/utils/project-name.js';
+import { mkdirSync, mkdtempSync, rmSync } from 'fs';
+import path from 'path';
+import os from 'os';
+
+describe('getProjectName', () => {
+  describe('with null/empty input', () => {
+    it('returns unknown-project for null', () => {
+      expect(getProjectName(null)).toBe('unknown-project');
+    });
+
+    it('returns unknown-project for empty string', () => {
+      expect(getProjectName('')).toBe('unknown-project');
+    });
+  });
+
+  describe('with git repo', () => {
+    it('uses git root name when in repo root', () => {
+      const tmp = mkdtempSync(path.join(os.tmpdir(), 'my-project-'));
+      try {
+        mkdirSync(path.join(tmp, '.git'));
+        expect(getProjectName(tmp)).toBe(path.basename(tmp));
+      } finally {
+        rmSync(tmp, { recursive: true });
+      }
+    });
+
+    it('uses git root name when in subdirectory', () => {
+      const tmp = mkdtempSync(path.join(os.tmpdir(), 'my-project-'));
+      try {
+        mkdirSync(path.join(tmp, '.git'));
+        const subdir = path.join(tmp, 'src', 'utils');
+        mkdirSync(subdir, { recursive: true });
+        expect(getProjectName(subdir)).toBe(path.basename(tmp));
+      } finally {
+        rmSync(tmp, { recursive: true });
+      }
+    });
+  });
+
+  describe('without git repo', () => {
+    it('falls back to basename of cwd', () => {
+      const tmp = mkdtempSync(path.join(os.tmpdir(), 'claude-mem-test-'));
+      try {
+        expect(getProjectName(tmp)).toBe(path.basename(tmp));
+      } finally {
+        rmSync(tmp, { recursive: true });
+      }
+    });
+  });
+});