diff --git a/server/src/com/cloud/acl/DomainChecker.java b/server/src/com/cloud/acl/DomainChecker.java
index c778c501b82..8b20f3def5b 100755
--- a/server/src/com/cloud/acl/DomainChecker.java
+++ b/server/src/com/cloud/acl/DomainChecker.java
@@ -19,11 +19,11 @@ package com.cloud.acl;
 import javax.ejb.Local;
 import javax.inject.Inject;
 
-import org.springframework.stereotype.Component;
-
 import org.apache.cloudstack.acl.ControlledEntity;
 import org.apache.cloudstack.acl.SecurityChecker;
 import org.apache.cloudstack.api.BaseCmd;
+import org.springframework.stereotype.Component;
+
 import com.cloud.dc.DataCenter;
 import com.cloud.domain.Domain;
 import com.cloud.domain.dao.DomainDao;
@@ -95,6 +95,10 @@ public class DomainChecker extends AdapterBase implements SecurityChecker {
                 if (BaseCmd.isRootAdmin(caller.getType()) || (owner.getId() == caller.getId())) {
                     return true;
                 }
+                //special handling for the project case
+                if (owner.getType() == Account.ACCOUNT_TYPE_PROJECT && _projectMgr.canAccessProjectAccount(caller, owner.getId())) {
+                    return true;
+                }
                 
                 // since the current account is not the owner of the template, check the launch permissions table to see if the
                 // account can launch a VM from this template