diff --git a/pkg/cmd/cli/cmd/project.go b/pkg/cmd/cli/cmd/project.go
index dd6bc11dfd24..6c5ee46a06f7 100644
--- a/pkg/cmd/cli/cmd/project.go
+++ b/pkg/cmd/cli/cmd/project.go
@@ -1,17 +1,25 @@
 package cmd
 
 import (
+	"bytes"
 	"fmt"
 	"io"
 
 	"github.com/GoogleCloudPlatform/kubernetes/pkg/api/errors"
+	kclient "github.com/GoogleCloudPlatform/kubernetes/pkg/client"
 	kclientcmd "github.com/GoogleCloudPlatform/kubernetes/pkg/client/clientcmd"
 	clientcmdapi "github.com/GoogleCloudPlatform/kubernetes/pkg/client/clientcmd/api"
+	"github.com/GoogleCloudPlatform/kubernetes/pkg/fields"
 	cmdutil "github.com/GoogleCloudPlatform/kubernetes/pkg/kubectl/cmd/util"
+	"github.com/GoogleCloudPlatform/kubernetes/pkg/labels"
 	"github.com/GoogleCloudPlatform/kubernetes/pkg/util"
-	"github.com/golang/glog"
-	"github.com/openshift/origin/pkg/cmd/cli/config"
+
+	"github.com/openshift/origin/pkg/client"
+	cliconfig "github.com/openshift/origin/pkg/cmd/cli/config"
 	"github.com/openshift/origin/pkg/cmd/util/clientcmd"
+	"github.com/openshift/origin/pkg/project/api"
+
+	"github.com/golang/glog"
 	"github.com/spf13/cobra"
 )
 
@@ -36,6 +44,7 @@ func NewCmdProject(f *clientcmd.Factory, out io.Writer) *cobra.Command {
 			oClient, _, err := f.Clients()
 			checkErr(err)
 
+			// No argument provided, we will just print info
 			if argsLength == 0 {
 				currentContext := rawCfg.Contexts[rawCfg.CurrentContext]
 				currentProject := currentContext.Namespace
@@ -44,70 +53,114 @@ func NewCmdProject(f *clientcmd.Factory, out io.Writer) *cobra.Command {
 					_, err := oClient.Projects().Get(currentProject)
 					if err != nil {
 						if errors.IsNotFound(err) {
-							glog.Fatalf("The project '%v' specified in your config does not exist or you do not have rights to view it.", currentProject)
+							glog.Fatalf("The project %q specified in your config does not exist.", currentProject)
+						}
+						if clientcmd.IsForbidden(err) {
+							glog.Fatalf("You do not have rights to view project %q.", currentProject)
 						}
 						checkErr(err)
 					}
 
-					fmt.Printf("Using project '%v'.\n", currentProject)
+					if rawCfg.CurrentContext != currentProject {
+						fmt.Printf("Using project %q from context named %q on server %q.\n", currentProject, rawCfg.CurrentContext, clientCfg.Host)
+					} else {
+						fmt.Printf("Using project %q on server %q.\n", currentProject, clientCfg.Host)
+					}
 
 				} else {
-					fmt.Printf("No specific project in use.\n")
+					fmt.Printf("No project has been set. Pass a project name to make that the default.\n")
 				}
 				return
-
 			}
 
-			projectName := args[0]
+			// We have an argument that can be either a context or project
+			argument := args[0]
+
+			configStore, err := loadConfigStore(cmd)
+			checkErr(err)
+			config := configStore.Config
+
+			contextInUse := ""
+			namespaceInUse := ""
+
+			// Check if argument is an existing context, if so just set it as the context in use.
+			// If not a context then we will try to handle it as a project.
+			if context, ok := config.Contexts[argument]; ok {
+				contextInUse = argument
+				namespaceInUse = context.Namespace
+
+				config.CurrentContext = argument
 
-			project, err := oClient.Projects().Get(projectName)
-			if err != nil {
-				if errors.IsNotFound(err) {
-					glog.Fatalf("Unable to find a project with name '%v'.", projectName)
+			} else {
+				project, err := oClient.Projects().Get(argument)
+				if err != nil {
+					if isNotFound, isForbidden := errors.IsNotFound(err), clientcmd.IsForbidden(err); isNotFound || isForbidden {
+						msg := ""
+
+						if isNotFound {
+							msg = fmt.Sprintf("A project named %q does not exist on server %q.", argument, clientCfg.Host)
+						} else {
+							msg = fmt.Sprintf("You do not have rights to view project %q on server %q.", argument, clientCfg.Host)
+						}
+
+						projects, err := getProjects(oClient)
+						if err == nil {
+							msg += "\nYour projects are:"
+							for _, project := range projects {
+								msg += "\n" + project.Name
+							}
+						}
+
+						if hasMultipleServers(config) {
+							msg += "\nTo see projects on another server, pass '--server=<server>'."
+						}
+
+						glog.Fatal(msg)
+					}
+
+					checkErr(err)
 				}
-				checkErr(err)
-			}
 
-			pathFromFlag := cmdutil.GetFlagString(cmd, config.OpenShiftConfigFlagName)
+				// If a context exists, just set it as the current one.
+				exists := false
+				for k, ctx := range config.Contexts {
+					namespace := ctx.Namespace
+					cluster := config.Clusters[ctx.Cluster]
+					authInfo := config.AuthInfos[ctx.AuthInfo]
 
-			configStore, err := config.LoadFrom(pathFromFlag)
-			if err != nil {
-				configStore, err = config.LoadWithLoadingRules()
-				checkErr(err)
-			}
-			checkErr(err)
+					if namespace == project.Name && clusterAndAuthEquality(clientCfg, cluster, authInfo) {
+						exists = true
+						config.CurrentContext = k
 
-			config := configStore.Config
+						contextInUse = k
+						namespaceInUse = namespace
 
-			// check if context exists in the file I'm going to save
-			// if so just set it as the current one
-			exists := false
-			for k, ctx := range config.Contexts {
-				namespace := ctx.Namespace
-				cluster := config.Clusters[ctx.Cluster]
-				authInfo := config.AuthInfos[ctx.AuthInfo]
-
-				if namespace == project.Name && cluster.Server == clientCfg.Host && authInfo.Token == clientCfg.BearerToken {
-					exists = true
-					config.CurrentContext = k
-					break
+						break
+					}
 				}
-			}
 
-			// otherwise use the current context if it's in the file I'm going to save,
-			// or create a new one if it's not
-			if !exists {
-				currentCtx := rawCfg.CurrentContext
-				if ctx, ok := config.Contexts[currentCtx]; ok {
-					ctx.Namespace = project.Name
-					config.Contexts[currentCtx] = ctx
-				} else {
-					ctx = rawCfg.Contexts[currentCtx]
+				// Otherwise create a new context, reusing the cluster and auth info
+				if !exists {
+					currentCtx := rawCfg.CurrentContext
+
 					newCtx := clientcmdapi.NewContext()
 					newCtx.Namespace = project.Name
-					newCtx.AuthInfo = ctx.AuthInfo
-					newCtx.Cluster = ctx.Cluster
-					config.Contexts[fmt.Sprint(util.NewUUID())] = *newCtx
+
+					newCtx.AuthInfo = rawCfg.Contexts[currentCtx].AuthInfo
+					newCtx.Cluster = rawCfg.Contexts[currentCtx].Cluster
+
+					existingContexIdentifiers := &util.StringSet{}
+					for key := range rawCfg.Contexts {
+						existingContexIdentifiers.Insert(key)
+					}
+
+					newCtxName := cliconfig.GenerateContextIdentifier(newCtx.Namespace, newCtx.Cluster, "", existingContexIdentifiers)
+
+					config.Contexts[newCtxName] = *newCtx
+					config.CurrentContext = newCtxName
+
+					contextInUse = newCtxName
+					namespaceInUse = project.Name
 				}
 			}
 
@@ -115,8 +168,60 @@ func NewCmdProject(f *clientcmd.Factory, out io.Writer) *cobra.Command {
 				glog.Fatalf("Error saving project information in the config: %v.", err)
 			}
 
-			fmt.Printf("Now using project '%v'.\n", project.Name)
+			if contextInUse != namespaceInUse {
+				fmt.Printf("Now using project %q from context named %q on server %q.\n", namespaceInUse, contextInUse, clientCfg.Host)
+			} else {
+				fmt.Printf("Now using project %q on server %q.\n", namespaceInUse, clientCfg.Host)
+			}
 		},
 	}
 	return cmd
 }
+
+func getProjects(oClient *client.Client) ([]api.Project, error) {
+	projects, err := oClient.Projects().List(labels.Everything(), fields.Everything())
+	if err != nil {
+		return nil, err
+	}
+	return projects.Items, nil
+}
+
+func loadConfigStore(cmd *cobra.Command) (*cliconfig.ConfigStore, error) {
+	pathFromFlag := cmdutil.GetFlagString(cmd, cliconfig.OpenShiftConfigFlagName)
+
+	configStore, err := cliconfig.LoadFrom(pathFromFlag)
+	if err != nil {
+		configStore, err = cliconfig.LoadWithLoadingRules()
+		if err != nil {
+			return nil, err
+		}
+	}
+
+	return configStore, err
+}
+
+func clusterAndAuthEquality(clientCfg *kclient.Config, cluster clientcmdapi.Cluster, authInfo clientcmdapi.AuthInfo) bool {
+	return cluster.Server == clientCfg.Host &&
+		cluster.InsecureSkipTLSVerify == clientCfg.Insecure &&
+		cluster.CertificateAuthority == clientCfg.CAFile &&
+		bytes.Equal(cluster.CertificateAuthorityData, clientCfg.CAData) &&
+		authInfo.Token == clientCfg.BearerToken &&
+		authInfo.ClientCertificate == clientCfg.TLSClientConfig.CertFile &&
+		bytes.Equal(authInfo.ClientCertificateData, clientCfg.TLSClientConfig.CertData) &&
+		authInfo.ClientKey == clientCfg.TLSClientConfig.KeyFile &&
+		bytes.Equal(authInfo.ClientKeyData, clientCfg.TLSClientConfig.KeyData)
+}
+
+// TODO these kind of funcs could be moved to some kind of clientcmd util
+func hasMultipleServers(config *clientcmdapi.Config) bool {
+	server := ""
+	for _, cluster := range config.Clusters {
+		if len(server) == 0 {
+			server = cluster.Server
+		}
+		if server != cluster.Server {
+			return true
+		}
+	}
+	return false
+}
diff --git a/pkg/cmd/cli/config/smart_merge.go b/pkg/cmd/cli/config/smart_merge.go
index 400dd4592c0f..5f6ddd50fced 100644
--- a/pkg/cmd/cli/config/smart_merge.go
+++ b/pkg/cmd/cli/config/smart_merge.go
@@ -2,12 +2,18 @@ package config
 
 import (
 	"fmt"
+	"net"
+	"net/url"
 	"reflect"
+	"regexp"
 
 	clientcmdapi "github.com/GoogleCloudPlatform/kubernetes/pkg/client/clientcmd/api"
 	"github.com/GoogleCloudPlatform/kubernetes/pkg/util"
+	"github.com/golang/glog"
 )
 
+var invalidSafeStringSep = regexp.MustCompile(`[.:/]`)
+
 // MergeConfig takes a haystack to look for existing stanzas in (probably the merged config), a config object to modify (probably
 // either the local or envvar config), and the new additions to merge in.  It tries to find equivalents for the addition inside of the
 // haystack and uses the mapping to avoid creating additional stanzas with duplicate information.  It either locates or original
@@ -73,7 +79,7 @@ func MergeConfig(haystack, toModify, addition clientcmdapi.Config) (*clientcmdap
 			continue
 		}
 
-		uniqueName := getUniqueName(actualContext.Cluster+"-"+actualContext.AuthInfo, existingContextNames)
+		uniqueName := GenerateContextIdentifier(actualContext.Namespace, actualContext.Cluster, actualContext.AuthInfo, existingContextNames)
 		requestedContextNamesToActualContextNames[requestedKey] = uniqueName
 		ret.Contexts[uniqueName] = *actualContext
 	}
@@ -142,6 +148,19 @@ func getMapKeys(theMap reflect.Value) (*util.StringSet, error) {
 }
 
 func getUniqueName(basename string, existingNames *util.StringSet) string {
+	if parsedUrl, err := url.Parse(basename); err != nil {
+		if host, port, err := net.SplitHostPort(parsedUrl.Host); err != nil {
+			if !existingNames.Has(host) {
+				return host
+			}
+			if id := host + "-" + port; !existingNames.Has(id) {
+				return id
+			}
+		}
+	}
+
+	basename = invalidSafeStringSep.ReplaceAllString(basename, "-")
+
 	if !existingNames.Has(basename) {
 		return basename
 	}
@@ -155,3 +174,68 @@ func getUniqueName(basename string, existingNames *util.StringSet) string {
 
 	return string(util.NewUUID())
 }
+
+// Generates the best context identifier possible based on the information it gets.
+func GenerateContextIdentifier(namespace string, cluster string, authInfo string, existingContextIdentifiers *util.StringSet) string {
+	ctx := ""
+
+	// try to use plain namespace
+	if len(namespace) > 0 {
+		ctx += namespace
+
+		if !existingContextIdentifiers.Has(ctx) {
+			return ctx
+		}
+	}
+
+	// tries appending "-host" or "-host-port"
+	if len(cluster) > 0 {
+		if parsedUrl, err := url.Parse(cluster); err != nil {
+			if host, port, err := net.SplitHostPort(parsedUrl.Host); err != nil {
+				if len(ctx) > 0 {
+					ctx += "-"
+				}
+				ctx += host
+				if !existingContextIdentifiers.Has(ctx) {
+					return ctx
+				}
+
+				ctx += "-" + port
+				if !existingContextIdentifiers.Has(ctx) {
+					return ctx
+				}
+
+			} else {
+				if len(ctx) > 0 {
+					ctx += "-"
+				}
+				ctx += "-" + parsedUrl.Host
+				if !existingContextIdentifiers.Has(ctx) {
+					return ctx
+				}
+			}
+		}
+	}
+
+	// tries appending "-username"
+	if len(authInfo) > 0 {
+		if len(ctx) > 0 {
+			ctx += "-"
+		}
+		ctx += authInfo
+
+		if !existingContextIdentifiers.Has(ctx) {
+			return ctx
+		}
+	}
+
+	// append an integer
+	for i := 0; i < 100; i++ {
+		if trialName := fmt.Sprintf("%v-%d", ctx, i); !existingContextIdentifiers.Has(trialName) {
+			return trialName
+		}
+	}
+
+	glog.Fatalf("Unable to generate a context identifier. Please provide a context using the '--context=<context>' flag.")
+	return ""
+}