diff --git a/editor/project_manager/project_dialog.cpp b/editor/project_manager/project_dialog.cpp
index d0a0607e7d71..1c1d8cd343fa 100644
--- a/editor/project_manager/project_dialog.cpp
+++ b/editor/project_manager/project_dialog.cpp
@@ -195,7 +195,8 @@ void ProjectDialog::_validate_path() {
 	String home_dir = OS::get_singleton()->get_environment("HOME");
 #endif
 	String documents_dir = OS::get_singleton()->get_system_dir(OS::SYSTEM_DIR_DOCUMENTS);
-	if (target_path == home_dir || target_path == documents_dir) {
+	String default_dir = String(EditorSettings::get_singleton()->get("filesystem/directories/default_project_path"));
+	if (target_path == home_dir || target_path == documents_dir || target_path == default_dir) {
 		_set_message(TTRC("You cannot save a project at the selected path. Please create a subfolder or choose a new path."), MESSAGE_ERROR, target_path_input_type);
 		return;
 	}
diff --git a/editor/settings/editor_settings.cpp b/editor/settings/editor_settings.cpp
index f747bd757f17..4248e37da461 100644
--- a/editor/settings/editor_settings.cpp
+++ b/editor/settings/editor_settings.cpp
@@ -648,9 +648,10 @@ void EditorSettings::_load_defaults(Ref<ConfigFile> p_extra_config) {
 	EDITOR_SETTING(Variant::STRING, PROPERTY_HINT_PLACEHOLDER_TEXT, "filesystem/external_programs/terminal_emulator_flags", "", "Call flags with placeholder: {directory}.");
 
 	// Directories
-	EDITOR_SETTING(Variant::STRING, PROPERTY_HINT_GLOBAL_DIR, "filesystem/directories/autoscan_project_path", "", "")
-	const String fs_dir_default_project_path = OS::get_singleton()->has_environment("HOME") ? OS::get_singleton()->get_environment("HOME") : OS::get_singleton()->get_system_dir(OS::SYSTEM_DIR_DOCUMENTS);
-	EDITOR_SETTING_BASIC(Variant::STRING, PROPERTY_HINT_GLOBAL_DIR, "filesystem/directories/default_project_path", fs_dir_default_project_path, "")
+	// Set the default directory as both the autoscan project path and default project path,
+	// so that projects can be dropped onto it and detected automatically.
+	EDITOR_SETTING(Variant::STRING, PROPERTY_HINT_GLOBAL_DIR, "filesystem/directories/autoscan_project_path", OS::get_singleton()->get_system_dir(OS::SYSTEM_DIR_DOCUMENTS).path_join("Godot"), "");
+	EDITOR_SETTING_BASIC(Variant::STRING, PROPERTY_HINT_GLOBAL_DIR, "filesystem/directories/default_project_path", OS::get_singleton()->get_system_dir(OS::SYSTEM_DIR_DOCUMENTS).path_join("Godot"), "");
 
 	// On save
 	_initial_set("filesystem/on_save/compress_binary_resources", true);