diff --git a/app/assets/javascripts/project_select.js.coffee b/app/assets/javascripts/project_select.js.coffee
index 43b18a3da59..0ae274f3363 100644
--- a/app/assets/javascripts/project_select.js.coffee
+++ b/app/assets/javascripts/project_select.js.coffee
@@ -2,25 +2,38 @@ class @ProjectSelect
   constructor: ->
     $('.ajax-project-select').each (i, select) ->
       @groupId = $(select).data('group-id')
+      @includeGroups = $(select).data('include-groups')
+
+      placeholder = "Search for project"
+      placeholder += " or group" if @includeGroups
 
       $(select).select2
-        placeholder: "Search for project"
-        multiple: $(select).hasClass('multiselect')
+        placeholder: placeholder
         minimumInputLength: 0
         query: (query) =>
-          callback = (projects) ->
+          finalCallback = (projects) ->
             data = { results: projects }
             query.callback(data)
 
-          if @groupId
-            Api.groupProjects @groupId, query.term, callback
+          if @includeGroups
+            projectsCallback = (projects) ->
+              groupsCallback = (groups) ->
+                data = groups.concat(projects)
+                finalCallback(data)
+
+              Api.groups query.term, false, groupsCallback
           else
-            Api.projects query.term, callback
+            projectsCallback = finalCallback
+
+          if @groupId
+            Api.groupProjects @groupId, query.term, projectsCallback
+          else
+            Api.projects query.term, projectsCallback
 
         id: (project) ->
           project.web_url
 
         text: (project) ->
-          project.name_with_namespace
+          project.name_with_namespace || project.name
 
         dropdownCssClass: "ajax-project-dropdown"
diff --git a/app/views/dashboard/milestones/index.html.haml b/app/views/dashboard/milestones/index.html.haml
index 94ff259a338..bec1692a4de 100644
--- a/app/views/dashboard/milestones/index.html.haml
+++ b/app/views/dashboard/milestones/index.html.haml
@@ -3,7 +3,7 @@
 
 .project-issuable-filter
   .controls
-    = render 'shared/new_project_item_select', path: 'milestones/new', label: "New Milestone"
+    = render 'shared/new_project_item_select', path: 'milestones/new', label: "New Milestone", include_groups: true
 
   = render 'shared/milestones_filter'
 
diff --git a/app/views/shared/_new_project_item_select.html.haml b/app/views/shared/_new_project_item_select.html.haml
index d7243b2d518..c4431d66927 100644
--- a/app/views/shared/_new_project_item_select.html.haml
+++ b/app/views/shared/_new_project_item_select.html.haml
@@ -1,6 +1,6 @@
 - if @projects.any?
   .prepend-left-10.new-project-item-select-holder
-    = project_select_tag :project_path, class: "new-project-item-select"
+    = project_select_tag :project_path, class: "new-project-item-select", data: { include_groups: local_assigns[:include_groups] }
     %a.btn.btn-new.new-project-item-select-button
       = icon('plus')
       = local_assigns[:label]