diff --git a/packages/node_modules/@node-red/runtime/lib/storage/localfilesystem/projects/index.js b/packages/node_modules/@node-red/runtime/lib/storage/localfilesystem/projects/index.js
index fa4c294e7..22b0aa36a 100644
--- a/packages/node_modules/@node-red/runtime/lib/storage/localfilesystem/projects/index.js
+++ b/packages/node_modules/@node-red/runtime/lib/storage/localfilesystem/projects/index.js
@@ -563,7 +563,8 @@ function saveFlows(flows) {
 
     var flowData;
 
-    if (settings.flowFilePretty) {
+    if (settings.flowFilePretty || (activeProject && settings.flowFilePretty !== false) ) {
+        // Pretty format if option enabled, or using Projects and not explicitly disabled
         flowData = JSON.stringify(flows,null,4);
     } else {
         flowData = JSON.stringify(flows);
@@ -581,7 +582,8 @@ function saveCredentials(credentials) {
     }
 
     var credentialData;
-    if (settings.flowFilePretty) {
+    if (settings.flowFilePretty || (activeProject && settings.flowFilePretty !== false) ) {
+        // Pretty format if option enabled, or using Projects and not explicitly disabled
         credentialData = JSON.stringify(credentials,null,4);
     } else {
         credentialData = JSON.stringify(credentials);