diff --git a/app/services/clusters/refresh_service.rb b/app/services/clusters/refresh_service.rb
index 7c82b98a33f..76ad8dd0fb0 100644
--- a/app/services/clusters/refresh_service.rb
+++ b/app/services/clusters/refresh_service.rb
@@ -21,7 +21,11 @@ module Clusters
     private_class_method :projects_with_missing_kubernetes_namespaces_for_cluster
 
     def self.clusters_with_missing_kubernetes_namespaces_for_project(project)
-      project.all_clusters.missing_kubernetes_namespace(project.kubernetes_namespaces)
+      if Feature.enabled?(:ci_preparing_state, default_enabled: true)
+        project.clusters.missing_kubernetes_namespace(project.kubernetes_namespaces)
+      else
+        project.all_clusters.missing_kubernetes_namespace(project.kubernetes_namespaces)
+      end
     end
 
     private_class_method :clusters_with_missing_kubernetes_namespaces_for_project
diff --git a/app/workers/cluster_configure_worker.rb b/app/workers/cluster_configure_worker.rb
index b984dee5b21..22681157b62 100644
--- a/app/workers/cluster_configure_worker.rb
+++ b/app/workers/cluster_configure_worker.rb
@@ -5,10 +5,10 @@ class ClusterConfigureWorker
   include ClusterQueue
 
   def perform(cluster_id)
-    return if Feature.enabled?(:ci_preparing_state, default_enabled: true)
-
     Clusters::Cluster.find_by_id(cluster_id).try do |cluster|
-      Clusters::RefreshService.create_or_update_namespaces_for_cluster(cluster)
+      if cluster.project_type? || Feature.disabled?(:ci_preparing_state, default_enabled: true)
+        Clusters::RefreshService.create_or_update_namespaces_for_cluster(cluster)
+      end
     end
   end
 end
diff --git a/app/workers/cluster_project_configure_worker.rb b/app/workers/cluster_project_configure_worker.rb
index d7bea69a01c..497e57c0d0b 100644
--- a/app/workers/cluster_project_configure_worker.rb
+++ b/app/workers/cluster_project_configure_worker.rb
@@ -5,8 +5,6 @@ class ClusterProjectConfigureWorker
   include ClusterQueue
 
   def perform(project_id)
-    return if Feature.enabled?(:ci_preparing_state, default_enabled: true)
-
     project = Project.find(project_id)
 
     ::Clusters::RefreshService.create_or_update_namespaces_for_project(project)
diff --git a/changelogs/unreleased/60500-disable-jit-kubernetes-resource-creation-for-project-level-clusters.yml b/changelogs/unreleased/60500-disable-jit-kubernetes-resource-creation-for-project-level-clusters.yml
new file mode 100644
index 00000000000..df6e6ea4be3
--- /dev/null
+++ b/changelogs/unreleased/60500-disable-jit-kubernetes-resource-creation-for-project-level-clusters.yml
@@ -0,0 +1,5 @@
+---
+title: Disable just-in-time Kubernetes resource creation for project level clusters
+merge_request: 27352
+author:
+type: changed
diff --git a/doc/user/project/clusters/index.md b/doc/user/project/clusters/index.md
index 1983513174c..ccd60b9761f 100644
--- a/doc/user/project/clusters/index.md
+++ b/doc/user/project/clusters/index.md
@@ -565,7 +565,9 @@ service account of the cluster integration.
 ### Troubleshooting failed deployment jobs
 
 GitLab will create a namespace and service account specifically for your
-deployment jobs, immediately before the jobs starts.
+deployment jobs. On project level clusters, this happens when the cluster
+is created. On group level clusters, resources are created immediately
+before the deployment job starts.
 
 However, sometimes GitLab can not create them. In such instances, your job will fail with the message:
 
diff --git a/lib/gitlab/ci/build/prerequisite/kubernetes_namespace.rb b/lib/gitlab/ci/build/prerequisite/kubernetes_namespace.rb
index 41135ae62bb..bb2b209e793 100644
--- a/lib/gitlab/ci/build/prerequisite/kubernetes_namespace.rb
+++ b/lib/gitlab/ci/build/prerequisite/kubernetes_namespace.rb
@@ -6,7 +6,9 @@ module Gitlab
       module Prerequisite
         class KubernetesNamespace < Base
           def unmet?
-            deployment_cluster.present? && kubernetes_namespace.new_record?
+            deployment_cluster.present? &&
+              !deployment_cluster.project_type? &&
+              kubernetes_namespace.new_record?
           end
 
           def complete!
diff --git a/spec/lib/gitlab/ci/build/prerequisite/kubernetes_namespace_spec.rb b/spec/lib/gitlab/ci/build/prerequisite/kubernetes_namespace_spec.rb
index 62dcd80fad7..e8332b14627 100644
--- a/spec/lib/gitlab/ci/build/prerequisite/kubernetes_namespace_spec.rb
+++ b/spec/lib/gitlab/ci/build/prerequisite/kubernetes_namespace_spec.rb
@@ -20,7 +20,7 @@ describe Gitlab::Ci::Build::Prerequisite::KubernetesNamespace do
       let!(:deployment) { create(:deployment, deployable: build) }
 
       context 'and a cluster to deploy to' do
-        let(:cluster) { create(:cluster, projects: [build.project]) }
+        let(:cluster) { create(:cluster, :group) }
 
         before do
           allow(build.deployment).to receive(:cluster).and_return(cluster)
@@ -33,6 +33,12 @@ describe Gitlab::Ci::Build::Prerequisite::KubernetesNamespace do
 
           it { is_expected.to be_falsey }
         end
+
+        context 'and cluster is project type' do
+          let(:cluster) { create(:cluster, :project) }
+
+          it { is_expected.to be_falsey }
+        end
       end
 
       context 'and no cluster to deploy to' do
@@ -52,7 +58,7 @@ describe Gitlab::Ci::Build::Prerequisite::KubernetesNamespace do
     subject { described_class.new(build).complete! }
 
     context 'completion is required' do
-      let(:cluster) { create(:cluster, projects: [build.project]) }
+      let(:cluster) { create(:cluster, :group) }
 
       before do
         allow(build.deployment).to receive(:cluster).and_return(cluster)
diff --git a/spec/services/clusters/refresh_service_spec.rb b/spec/services/clusters/refresh_service_spec.rb
index 58ab3c3cf73..9e442ebf4e9 100644
--- a/spec/services/clusters/refresh_service_spec.rb
+++ b/spec/services/clusters/refresh_service_spec.rb
@@ -93,14 +93,32 @@ describe Clusters::RefreshService do
       let(:group) { cluster.group }
       let(:project) { create(:project, group: group) }
 
-      include_examples 'creates a kubernetes namespace'
+      context 'when ci_preparing_state feature flag is enabled' do
+        include_examples 'does not create a kubernetes namespace'
 
-      context 'when project already has kubernetes namespace' do
+        context 'when project already has kubernetes namespace' do
+          before do
+            create(:cluster_kubernetes_namespace, project: project, cluster: cluster)
+          end
+
+          include_examples 'does not create a kubernetes namespace'
+        end
+      end
+
+      context 'when ci_preparing_state feature flag is disabled' do
         before do
-          create(:cluster_kubernetes_namespace, project: project, cluster: cluster)
+          stub_feature_flags(ci_preparing_state: false)
         end
 
-        include_examples 'does not create a kubernetes namespace'
+        include_examples 'creates a kubernetes namespace'
+
+        context 'when project already has kubernetes namespace' do
+          before do
+            create(:cluster_kubernetes_namespace, project: project, cluster: cluster)
+          end
+
+          include_examples 'does not create a kubernetes namespace'
+        end
       end
     end
   end
diff --git a/spec/workers/cluster_configure_worker_spec.rb b/spec/workers/cluster_configure_worker_spec.rb
index 83f76809435..bdb8e0e9c84 100644
--- a/spec/workers/cluster_configure_worker_spec.rb
+++ b/spec/workers/cluster_configure_worker_spec.rb
@@ -10,25 +10,35 @@ describe ClusterConfigureWorker, '#perform' do
     stub_feature_flags(ci_preparing_state: ci_preparing_state_enabled)
   end
 
-  context 'when group cluster' do
+  shared_examples 'configured cluster' do
+    it 'creates a namespace' do
+      expect(Clusters::RefreshService).to receive(:create_or_update_namespaces_for_cluster).with(cluster).once
+
+      worker.perform(cluster.id)
+    end
+  end
+
+  shared_examples 'unconfigured cluster' do
+    it 'does not create a namespace' do
+      expect(Clusters::RefreshService).not_to receive(:create_or_update_namespaces_for_cluster)
+
+      worker.perform(cluster.id)
+    end
+  end
+
+  context 'group cluster' do
     let(:cluster) { create(:cluster, :group, :provided_by_gcp) }
     let(:group) { cluster.group }
 
-    context 'when group has no projects' do
-      it 'does not create a namespace' do
-        expect_any_instance_of(Clusters::Gcp::Kubernetes::CreateOrUpdateNamespaceService).not_to receive(:execute)
-
-        worker.perform(cluster.id)
-      end
-    end
-
     context 'when group has a project' do
       let!(:project) { create(:project, group: group) }
 
-      it 'creates a namespace for the project' do
-        expect_any_instance_of(Clusters::Gcp::Kubernetes::CreateOrUpdateNamespaceService).to receive(:execute).once
+      it_behaves_like 'configured cluster'
 
-        worker.perform(cluster.id)
+      context 'ci_preparing_state feature is enabled' do
+        let(:ci_preparing_state_enabled) { true }
+
+        it_behaves_like 'unconfigured cluster'
       end
     end
 
@@ -36,32 +46,26 @@ describe ClusterConfigureWorker, '#perform' do
       let!(:subgroup) { create(:group, parent: group) }
       let!(:project) { create(:project, group: subgroup) }
 
-      it 'creates a namespace for the project' do
-        expect_any_instance_of(Clusters::Gcp::Kubernetes::CreateOrUpdateNamespaceService).to receive(:execute).once
+      it_behaves_like 'configured cluster'
 
-        worker.perform(cluster.id)
+      context 'ci_preparing_state feature is enabled' do
+        let(:ci_preparing_state_enabled) { true }
+
+        it_behaves_like 'unconfigured cluster'
       end
     end
   end
 
   context 'when provider type is gcp' do
-    let(:cluster) { create(:cluster, :project, :provided_by_gcp) }
+    let!(:cluster) { create(:cluster, :project, :provided_by_gcp) }
 
-    it 'configures kubernetes platform' do
-      expect_any_instance_of(Clusters::Gcp::Kubernetes::CreateOrUpdateNamespaceService).to receive(:execute)
-
-      described_class.new.perform(cluster.id)
-    end
+    it_behaves_like 'configured cluster'
   end
 
   context 'when provider type is user' do
-    let(:cluster) { create(:cluster, :project, :provided_by_user) }
+    let!(:cluster) { create(:cluster, :project, :provided_by_user) }
 
-    it 'configures kubernetes platform' do
-      expect_any_instance_of(Clusters::Gcp::Kubernetes::CreateOrUpdateNamespaceService).to receive(:execute)
-
-      described_class.new.perform(cluster.id)
-    end
+    it_behaves_like 'configured cluster'
   end
 
   context 'when cluster does not exist' do
@@ -71,15 +75,4 @@ describe ClusterConfigureWorker, '#perform' do
       described_class.new.perform(123)
     end
   end
-
-  context 'ci_preparing_state feature is enabled' do
-    let(:cluster) { create(:cluster) }
-    let(:ci_preparing_state_enabled) { true }
-
-    it 'does not configure the cluster' do
-      expect(Clusters::RefreshService).not_to receive(:create_or_update_namespaces_for_cluster)
-
-      described_class.new.perform(cluster.id)
-    end
-  end
 end
diff --git a/spec/workers/cluster_project_configure_worker_spec.rb b/spec/workers/cluster_project_configure_worker_spec.rb
index afdea55adf4..2ac9d0f61b4 100644
--- a/spec/workers/cluster_project_configure_worker_spec.rb
+++ b/spec/workers/cluster_project_configure_worker_spec.rb
@@ -4,18 +4,11 @@ require 'spec_helper'
 
 describe ClusterProjectConfigureWorker, '#perform' do
   let(:worker) { described_class.new }
+  let(:cluster) { create(:cluster, :project) }
 
-  context 'ci_preparing_state feature is enabled' do
-    let(:cluster) { create(:cluster) }
+  it 'configures the cluster' do
+    expect(Clusters::RefreshService).to receive(:create_or_update_namespaces_for_project)
 
-    before do
-      stub_feature_flags(ci_preparing_state: true)
-    end
-
-    it 'does not configure the cluster' do
-      expect(Clusters::RefreshService).not_to receive(:create_or_update_namespaces_for_project)
-
-      described_class.new.perform(cluster.id)
-    end
+    described_class.new.perform(cluster.projects.first.id)
   end
 end