diff --git a/erpnext/projects/doctype/project/project.py b/erpnext/projects/doctype/project/project.py
index 448a59e98ff3..2e9fa5c9115f 100644
--- a/erpnext/projects/doctype/project/project.py
+++ b/erpnext/projects/doctype/project/project.py
@@ -101,30 +101,23 @@ def validate(self):
 		self.validate_from_to_dates("actual_start_date", "actual_end_date")
 
 	def copy_from_template(self):
-		"""
-		Copy tasks from template
-		"""
-		if self.project_template and not frappe.db.get_all("Task", dict(project=self.name), limit=1):
-			# has a template, and no loaded tasks, so lets create
-			if not self.expected_start_date:
-				# project starts today
-				self.expected_start_date = today()
+		self.copy_data_from_project_template()
+		self.copy_tasks_from_project_template()
 
-			template = frappe.get_doc("Project Template", self.project_template)
-
-			if not self.project_type:
-				self.project_type = template.project_type
+	def copy_tasks_from_project_template(self):
+		if not self._project_template_applies():
+			return
 
-			# create tasks from template
-			project_tasks = []
-			tmp_task_details = []
-			for task in template.tasks:
-				template_task_details = frappe.get_doc("Task", task.task)
-				tmp_task_details.append(template_task_details)
-				task = self.create_task_from_template(template_task_details)
-				project_tasks.append(task)
+		template = frappe.get_doc("Project Template", self.project_template)
+		project_tasks = []
+		tmp_task_details = []
+		for task in template.tasks:
+			template_task_details = frappe.get_doc("Task", task.task)
+			tmp_task_details.append(template_task_details)
+			task = self.create_task_from_template(template_task_details)
+			project_tasks.append(task)
 
-			self.dependency_mapping(tmp_task_details, project_tasks)
+		self.dependency_mapping(tmp_task_details, project_tasks)
 
 	def create_task_from_template(self, task_details):
 		return frappe.get_doc(
@@ -146,6 +139,26 @@ def create_task_from_template(self, task_details):
 			)
 		).insert()
 
+	def copy_data_from_project_template(self):
+		if not self._project_template_applies():
+			return
+
+		if not self.expected_start_date:
+			self.expected_start_date = today()
+
+		if not self.project_type:
+			self.project_type = frappe.db.get_value("Project Template", self.project_template, "project_type")
+
+	def _project_template_applies(self) -> bool:
+		"""Return True if the project template should be applied."""
+		if not self.project_template:
+			return False
+
+		if frappe.db.exists("Task", dict(project=self.name)):
+			return False
+
+		return True
+
 	def calculate_start_date(self, task_details):
 		self.start_date = add_days(self.expected_start_date, task_details.start)
 		self.start_date = self.update_if_holiday(self.start_date)
@@ -204,8 +217,11 @@ def update_project(self):
 		self.update_costing()
 		self.db_update()
 
+	def before_insert(self):
+		self.copy_data_from_project_template()
+
 	def after_insert(self):
-		self.copy_from_template()
+		self.copy_tasks_from_project_template()
 		if self.sales_order:
 			frappe.db.set_value("Sales Order", self.sales_order, "project", self.name)
 
diff --git a/erpnext/projects/doctype/project/test_project.py b/erpnext/projects/doctype/project/test_project.py
index 901f7beabf1d..a74114e661cc 100644
--- a/erpnext/projects/doctype/project/test_project.py
+++ b/erpnext/projects/doctype/project/test_project.py
@@ -3,7 +3,7 @@
 
 import frappe
 from frappe.tests import IntegrationTestCase, UnitTestCase
-from frappe.utils import add_days, getdate, nowdate
+from frappe.utils import add_days, getdate, nowdate, today
 
 from erpnext.projects.doctype.project_template.test_project_template import make_project_template
 from erpnext.projects.doctype.task.test_task import create_task
@@ -47,6 +47,9 @@ def test_project_with_template_having_no_parent_and_depend_tasks(self):
 			order_by="creation asc",
 		)
 
+		self.assertEqual(project.project_type, "Internal")
+		self.assertEqual(project.expected_start_date, today())
+
 		self.assertEqual(tasks[0].priority, "High")
 		self.assertEqual(tasks[0].subject, "Test Template Task with No Parent and Dependency")
 		self.assertEqual(getdate(tasks[0].exp_end_date), calculate_end_date(project, 5, 3))
@@ -98,6 +101,9 @@ def test_project_template_having_parent_child_tasks(self):
 			order_by="creation asc",
 		)
 
+		self.assertEqual(project.project_type, "Internal")
+		self.assertEqual(project.expected_start_date, today())
+
 		self.assertEqual(tasks[0].subject, "Test Template Task Parent")
 		self.assertEqual(getdate(tasks[0].exp_end_date), calculate_end_date(project, 1, 10))
 
@@ -141,6 +147,9 @@ def test_project_template_having_dependent_tasks(self):
 			order_by="creation asc",
 		)
 
+		self.assertEqual(project.project_type, "Internal")
+		self.assertEqual(project.expected_start_date, today())
+
 		self.assertEqual(tasks[1].subject, "Test Template Task with Dependency")
 		self.assertEqual(getdate(tasks[1].exp_end_date), calculate_end_date(project, 2, 2))
 		self.assertTrue(tasks[1].depends_on_tasks.find(tasks[0].name) >= 0)
diff --git a/erpnext/projects/doctype/project_template/test_project_template.py b/erpnext/projects/doctype/project_template/test_project_template.py
index 7d94e5226ca0..30b843bdb53e 100644
--- a/erpnext/projects/doctype/project_template/test_project_template.py
+++ b/erpnext/projects/doctype/project_template/test_project_template.py
@@ -20,7 +20,9 @@ def make_project_template(project_template_name, project_tasks=None):
 			create_task(subject="_Test Template Task 1", is_template=1, begin=0, duration=3),
 			create_task(subject="_Test Template Task 2", is_template=1, begin=0, duration=2),
 		]
-		doc = frappe.get_doc(dict(doctype="Project Template", name=project_template_name))
+		doc = frappe.get_doc(
+			{"doctype": "Project Template", "name": project_template_name, "project_type": "Internal"}
+		)
 		for task in project_tasks:
 			doc.append("tasks", {"task": task.name})
 		doc.insert()