diff --git a/app/models/concerns/storage/legacy_namespace.rb b/app/models/concerns/storage/legacy_namespace.rb
index b3020484738..22b9ef4e338 100644
--- a/app/models/concerns/storage/legacy_namespace.rb
+++ b/app/models/concerns/storage/legacy_namespace.rb
@@ -34,6 +34,8 @@ module Storage
       # So we basically we mute exceptions in next actions
       begin
         send_update_instructions
+        write_projects_full_path_config
+
         true
       rescue
         # Returning false does not rollback after_* transaction but gives
diff --git a/app/models/namespace.rb b/app/models/namespace.rb
index 0ff169d4531..d983b2f106b 100644
--- a/app/models/namespace.rb
+++ b/app/models/namespace.rb
@@ -268,4 +268,11 @@ class Namespace < ActiveRecord::Base
   def namespace_previously_created_with_same_path?
     RedirectRoute.permanent.exists?(path: path)
   end
+
+  def write_projects_full_path_config
+    all_projects.each do |project|
+      project.expires_full_path_cache # we need to clear cache to validate renames correctly
+      project.write_repository_config(:fullpath, project.full_path)
+    end
+  end
 end
diff --git a/spec/models/namespace_spec.rb b/spec/models/namespace_spec.rb
index b7c6286fd83..0a99485ec8e 100644
--- a/spec/models/namespace_spec.rb
+++ b/spec/models/namespace_spec.rb
@@ -240,6 +240,20 @@ describe Namespace do
         end
       end
     end
+
+    it 'updates project full path in .git/config for each project inside namespace' do
+      parent = create(:group, name: 'mygroup', path: 'mygroup')
+      subgroup = create(:group, name: 'mysubgroup', path: 'mysubgroup', parent: parent)
+      project_in_parent_group = create(:project, :repository, namespace: parent, name: 'foo1')
+      hashed_project_in_subgroup = create(:project, :repository, :hashed, namespace: subgroup, name: 'foo2')
+      legacy_project_in_subgroup = create(:project, :repository, namespace: subgroup, name: 'foo3')
+
+      parent.update(path: 'mygroup_new')
+
+      expect(project_in_parent_group.repo.config['gitlab.fullpath']).to eq "mygroup_new/#{project_in_parent_group.path}"
+      expect(hashed_project_in_subgroup.repo.config['gitlab.fullpath']).to eq "mygroup_new/mysubgroup/#{hashed_project_in_subgroup.path}"
+      expect(legacy_project_in_subgroup.repo.config['gitlab.fullpath']).to eq "mygroup_new/mysubgroup/#{legacy_project_in_subgroup.path}"
+    end
   end
 
   describe '#rm_dir', 'callback' do