diff --git a/src/ape/cli/options.py b/src/ape/cli/options.py
index 1c492e113f..e4a717ea04 100644
--- a/src/ape/cli/options.py
+++ b/src/ape/cli/options.py
@@ -573,10 +573,21 @@ def project_option(**kwargs):
         if (isinstance(_type, type) and issubclass(_type, Path))
         else _project_callback
     )
+    cd = kwargs.pop("cd", False)
+
+    def callback_wrapper(ctx, param, val):
+        result = callback(ctx, param, val)
+        if cd:
+            # The CLI requested we also change directories into this path.
+            path = getattr(result, "path", result)  # project.path or path
+            ctx.obj.local_project.chdir(path.expanduser().resolve())
+
+        return result
+
     return click.option(
         "--project",
         help="The path to a local project or manifest",
-        callback=callback,
+        callback=callback_wrapper,
         metavar="PATH",
         is_eager=True,
         **kwargs,
diff --git a/src/ape/managers/project.py b/src/ape/managers/project.py
index 203619d752..0a665d12e1 100644
--- a/src/ape/managers/project.py
+++ b/src/ape/managers/project.py
@@ -1,4 +1,5 @@
 import json
+import os
 import random
 import shutil
 from collections.abc import Callable, Iterable, Iterator
@@ -2568,6 +2569,24 @@ def clean(self):
         self.sources._path_cache = None
         self._clear_cached_config()
 
+    def chdir(self, path: Path) -> "LocalProject":
+        """
+        Change the local project to the new path.
+
+        Args:
+            path (Path): The path of the new project.
+
+        Returns:
+            LocalProject
+        """
+        if self.path == path:
+            return  # Already there!
+
+        os.chdir(path)
+        new_local_project = LocalProject(path)
+        ManagerAccessMixin.local_project._cache = new_local_project
+        return new_local_project
+
     def reload_config(self):
         """
         Reload the local ape-config.yaml file.
diff --git a/src/ape_test/_cli.py b/src/ape_test/_cli.py
index a98baaffd5..fedb4b3b7e 100644
--- a/src/ape_test/_cli.py
+++ b/src/ape_test/_cli.py
@@ -7,7 +7,7 @@
 import pytest
 from click import Command
 
-from ape.cli.options import ape_cli_context
+from ape.cli.options import ape_cli_context, project_option
 from ape.logging import LogLevel, _get_level
 
 
@@ -79,6 +79,7 @@ def parse_args(self, ctx, args: list[str]) -> list[str]:
 @ape_cli_context(
     default_log_level=LogLevel.WARNING.value,
 )
+@project_option(type=Path, cd=True)
 @click.option(
     "-w",
     "--watch",
@@ -103,7 +104,7 @@ def parse_args(self, ctx, args: list[str]) -> list[str]:
     help="Delay between polling cycles for `ape test --watch`. Defaults to 0.5 seconds.",
 )
 @click.argument("pytest_args", nargs=-1, type=click.UNPROCESSED)
-def cli(cli_ctx, watch, watch_folders, watch_delay, pytest_args):
+def cli(cli_ctx, project, watch, watch_folders, watch_delay, pytest_args):
     pytest_arg_ls = [*pytest_args]
     if pytest_verbosity := cli_ctx.get("pytest_verbosity"):
         pytest_arg_ls.append(pytest_verbosity)
diff --git a/tests/integration/cli/test_test.py b/tests/integration/cli/test_test.py
index 90cf0b184c..51343353aa 100644
--- a/tests/integration/cli/test_test.py
+++ b/tests/integration/cli/test_test.py
@@ -442,3 +442,28 @@ def test_watch(mocker, integ_project, runner, ape_cli):
     assert result.exit_code == 0
 
     runner_patch.assert_called_once_with((Path("contracts"), Path("tests")), 0.5, "-s")
+
+
+@skip_projects_except("with-contracts")
+def test_project_option(integ_project, ape_cli, runner):
+    _ = integ_project  # NOTE: Not actually used, but avoid running across all projects.
+
+    # NOTE: Using isolated filesystem so that
+    with runner.isolated_filesystem():
+        # Setup a project
+        project_name = "test-token-project"
+        project_dir = Path.cwd() / project_name
+        tests_dir = project_dir / "tests"
+        tests_dir.mkdir(parents=True)
+
+        # Setup a test
+        test_file = tests_dir / "test_project_option.py"
+        test_text = """
+def test_project_option():
+    assert True
+""".lstrip()
+        test_file.write_text(test_text)
+
+        result = runner.invoke(ape_cli, ("test", "--project", f"./{project_name}"))
+        assert "1 passed" in result.output
+        assert result.exit_code == 0