diff --git a/apis/projects/v1alpha1/types.go b/apis/projects/v1alpha1/types.go
index 3bc5043..050c853 100644
--- a/apis/projects/v1alpha1/types.go
+++ b/apis/projects/v1alpha1/types.go
@@ -41,6 +41,9 @@ type ProjectParameters struct {
 	// Destinations contains list of destinations available for deployment
 	// +optional
 	Destinations []ApplicationDestination `json:"destinations,omitempty"`
+	// SourceNamespaces contains list of namespaces which are authorized in the project
+	// +optional
+	SourceNamespaces []string `json:"sourceNamespaces,omitempty"`
 	// Description contains optional project description
 	// +optional
 	Description *string `json:"description,omitempty"`
diff --git a/apis/projects/v1alpha1/zz_generated.deepcopy.go b/apis/projects/v1alpha1/zz_generated.deepcopy.go
index e0d4875..9aa41b6 100644
--- a/apis/projects/v1alpha1/zz_generated.deepcopy.go
+++ b/apis/projects/v1alpha1/zz_generated.deepcopy.go
@@ -278,6 +278,11 @@ func (in *ProjectParameters) DeepCopyInto(out *ProjectParameters) {
 			(*in)[i].DeepCopyInto(&(*out)[i])
 		}
 	}
+	if in.SourceNamespaces != nil {
+		in, out := &in.SourceNamespaces, &out.SourceNamespaces
+		*out = make([]string, len(*in))
+		copy(*out, *in)
+	}
 	if in.Description != nil {
 		in, out := &in.Description, &out.Description
 		*out = new(string)
diff --git a/examples/projects/project-with-source-namespaces.yaml b/examples/projects/project-with-source-namespaces.yaml
new file mode 100644
index 0000000..70edd7e
--- /dev/null
+++ b/examples/projects/project-with-source-namespaces.yaml
@@ -0,0 +1,13 @@
+---
+apiVersion: projects.argocd.crossplane.io/v1alpha1
+kind: Project
+metadata:
+  name: example-project
+spec:
+  forProvider:
+    sourceNamespaces:
+      - default
+    projectLabels:
+      argocd.crossplane.io/global-project: "true"
+  providerConfigRef:
+    name: argocd-provider
diff --git a/package/crds/projects.argocd.crossplane.io_projects.yaml b/package/crds/projects.argocd.crossplane.io_projects.yaml
index 6962dbb..ee997cc 100644
--- a/package/crds/projects.argocd.crossplane.io_projects.yaml
+++ b/package/crds/projects.argocd.crossplane.io_projects.yaml
@@ -334,6 +334,12 @@ spec:
                       - keyID
                       type: object
                     type: array
+                  sourceNamespaces:
+                    description: SourceNamespaces contains list of namespaces which
+                      are authorized in the project
+                    items:
+                      type: string
+                    type: array
                   sourceRepos:
                     description: SourceRepos contains list of repository URLs which
                       can be used for deployment
diff --git a/pkg/controller/projects/controller.go b/pkg/controller/projects/controller.go
index c32535d..6778a89 100644
--- a/pkg/controller/projects/controller.go
+++ b/pkg/controller/projects/controller.go
@@ -434,6 +434,10 @@ func generateProjectSpec(p *v1alpha1.ProjectParameters) argocdv1alpha1.AppProjec
 		projSpec.ClusterResourceBlacklist = p.ClusterResourceBlacklist
 	}
 
+	if p.SourceNamespaces != nil {
+		projSpec.SourceNamespaces = p.SourceNamespaces
+	}
+
 	return projSpec
 }