diff --git a/.editorconfig b/.editorconfig
index c1b7c13..0176d42 100644
--- a/.editorconfig
+++ b/.editorconfig
@@ -18,5 +18,11 @@
 [test/fast/Listing versions/Running "nvm ls --no-alias" does not call into nvm_alias]
 indent_size = false
 
+[test/fast/Unit tests/mocks/**]
+insert_final_newline = off
+
+[test/**/.urchin*]
+insert_final_newline = off
+
 [Makefile]
 indent_style = tab
diff --git a/nvm.sh b/nvm.sh
index 8683949..0e0dbdc 100644
--- a/nvm.sh
+++ b/nvm.sh
@@ -317,6 +317,15 @@
   [ "${pathdir}" = "${tree}" ]
 }
 
+nvm_find_project_dir() {
+  local path_
+  path_="${PWD}"
+  while [ "${path_}" != "" ] && [ ! -f "${path_}/package.json" ] && [ ! -d "${path_}/node_modules" ]; do
+    path_=${path_%/*}
+  done
+  nvm_echo "${path_}"
+}
+
 # Traverse up in directory tree to find containing folder
 nvm_find_up() {
   local path_
@@ -3654,7 +3663,7 @@
         nvm_normalize_version nvm_is_valid_version \
         nvm_ensure_version_installed nvm_cache_dir \
         nvm_version_path nvm_alias_path nvm_version_dir \
-        nvm_find_nvmrc nvm_find_up nvm_tree_contains_path \
+        nvm_find_nvmrc nvm_find_up nvm_find_project_dir nvm_tree_contains_path \
         nvm_version_greater nvm_version_greater_than_or_equal_to \
         nvm_print_npm_version nvm_install_latest_npm nvm_npm_global_modules \
         nvm_has_system_node nvm_has_system_iojs \
diff --git a/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested-pkg/node_modules/foo/bar/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested-pkg/node_modules/foo/bar/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested-pkg/node_modules/foo/bar/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested-pkg/node_modules/foo/package.json b/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested-pkg/node_modules/foo/package.json
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested-pkg/node_modules/foo/package.json
diff --git a/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested/node_modules/foo/bar/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested/node_modules/foo/bar/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/inside-n_m-nested/node_modules/foo/bar/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/nested-both/a/b/c/d/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/nested-both/a/b/c/d/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/nested-both/a/b/c/d/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/nested-both/node_modules/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/nested-both/node_modules/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/nested-both/node_modules/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/nested-both/package.json b/test/fast/Unit tests/mocks/project_dirs/nested-both/package.json
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/nested-both/package.json
diff --git a/test/fast/Unit tests/mocks/project_dirs/nested-n_m/a/b/c/d/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/nested-n_m/a/b/c/d/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/nested-n_m/a/b/c/d/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/nested-n_m/node_modules/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/nested-n_m/node_modules/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/nested-n_m/node_modules/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/nested-pkg/a/b/c/d/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/nested-pkg/a/b/c/d/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/nested-pkg/a/b/c/d/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/nested-pkg/package.json b/test/fast/Unit tests/mocks/project_dirs/nested-pkg/package.json
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/nested-pkg/package.json
diff --git a/test/fast/Unit tests/mocks/project_dirs/no-nesting-both/node_modules/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/no-nesting-both/node_modules/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/no-nesting-both/node_modules/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/no-nesting-both/package.json b/test/fast/Unit tests/mocks/project_dirs/no-nesting-both/package.json
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/no-nesting-both/package.json
diff --git a/test/fast/Unit tests/mocks/project_dirs/no-nesting-n_m/node_modules/.gitkeep b/test/fast/Unit tests/mocks/project_dirs/no-nesting-n_m/node_modules/.gitkeep
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/no-nesting-n_m/node_modules/.gitkeep
diff --git a/test/fast/Unit tests/mocks/project_dirs/no-nesting-pkg/package.json b/test/fast/Unit tests/mocks/project_dirs/no-nesting-pkg/package.json
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/test/fast/Unit tests/mocks/project_dirs/no-nesting-pkg/package.json
diff --git a/test/fast/Unit tests/nvm_find_project_dir b/test/fast/Unit tests/nvm_find_project_dir
new file mode 100755
index 0000000..7dc46df
--- /dev/null
+++ b/test/fast/Unit tests/nvm_find_project_dir
@@ -0,0 +1,33 @@
+#!/bin/sh
+
+die () { echo "$@" ; exit 1; }
+
+\. ../../../nvm.sh
+
+set -ex
+
+TEST_DIR="$PWD/mocks/project_dirs"
+
+ACTUAL="$(PWD=$TEST_DIR/inside-n_m-nested/node_modules/foo/bar nvm_find_project_dir)"
+[ "${ACTUAL}" = "$TEST_DIR/inside-n_m-nested" ] || die "inside-n_m-nested: got ${ACTUAL}"
+
+ACTUAL="$(PWD=$TEST_DIR/inside-n_m-nested-pkg/node_modules/foo/bar nvm_find_project_dir)"
+[ "${ACTUAL}" = "$TEST_DIR/inside-n_m-nested-pkg/node_modules/foo" ] || die "inside-n_m-nested-pkg: got ${ACTUAL}"
+
+ACTUAL="$(PWD=$TEST_DIR/nested-both/a/b/c/d nvm_find_project_dir)"
+[ "${ACTUAL}" = "$TEST_DIR/nested-both" ] || die "nested-both: got ${ACTUAL}"
+
+ACTUAL="$(PWD=$TEST_DIR/nested-pkg/a/b/c/d nvm_find_project_dir)"
+[ "${ACTUAL}" = "$TEST_DIR/nested-pkg" ] || die "nested-pkg: got ${ACTUAL}"
+
+ACTUAL="$(PWD=$TEST_DIR/nested-n_m/a/b/c/d nvm_find_project_dir)"
+[ "${ACTUAL}" = "$TEST_DIR/nested-n_m" ] || die "nested-n_m: got ${ACTUAL}"
+
+ACTUAL="$(PWD=$TEST_DIR/no-nesting-both nvm_find_project_dir)"
+[ "${ACTUAL}" = "$TEST_DIR/no-nesting-both" ] || die "no-nesting-both: got ${ACTUAL}"
+
+ACTUAL="$(PWD=$TEST_DIR/no-nesting-n_m nvm_find_project_dir)"
+[ "${ACTUAL}" = "$TEST_DIR/no-nesting-n_m" ] || die "no-nesting-n_m: got ${ACTUAL}"
+
+ACTUAL="$(PWD=$TEST_DIR/no-nesting-pkg nvm_find_project_dir)"
+[ "${ACTUAL}" = "$TEST_DIR/no-nesting-pkg" ] || die "no-nesting-pkg: got ${ACTUAL}"