diff --git a/app/models/issue.rb b/app/models/issue.rb
old mode 100644
new mode 100755
index 3d8df79..8ddd66f
--- a/app/models/issue.rb
+++ b/app/models/issue.rb
@@ -1505,8 +1505,15 @@ class Issue < ActiveRecord::Base
   end
 
   # Returns a scope of projects that user can assign the issue to
-  def allowed_target_projects(user=User.current)
-    current_project = new_record? ? nil : project
+  def allowed_target_projects(user=User.current, context=nil)
+    if new_record? && context.is_a?(Project) && !copy?
+      current_project = context.self_and_descendants
+    elsif new_record?
+      current_project = nil
+    else
+      current_project = project
+    end
+
     self.class.allowed_target_projects(user, current_project)
   end
 
@@ -1514,8 +1521,10 @@ class Issue < ActiveRecord::Base
   # If current_project is given, it will be included in the scope
   def self.allowed_target_projects(user=User.current, current_project=nil)
     condition = Project.allowed_to_condition(user, :add_issues)
-    if current_project
+    if current_project.is_a?(Project)
       condition = ["(#{condition}) OR #{Project.table_name}.id = ?", current_project.id]
+    elsif current_project
+      condition = ["(#{condition}) AND #{Project.table_name}.id IN (?)", current_project.map(&:id)]
     end
     Project.where(condition).having_trackers
   end
diff --git a/app/models/project.rb b/app/models/project.rb
old mode 100644
new mode 100755
diff --git a/app/views/issues/_form.html.erb b/app/views/issues/_form.html.erb
old mode 100644
new mode 100755
index 011928d..6c3d30b
--- a/app/views/issues/_form.html.erb
+++ b/app/views/issues/_form.html.erb
@@ -9,8 +9,9 @@
 </p>
 <% end %>
 
-<% if (@issue.safe_attribute?('project_id') || @issue.project_id_changed?) && (!@issue.new_record? || @project.nil? || @issue.copy?) %>
-<p><%= f.select :project_id, project_tree_options_for_select(@issue.allowed_target_projects, :selected => @issue.project), {:required => true},
+<% projects = @issue.allowed_target_projects(User.current, @project) %>
+<% if (@issue.safe_attribute?('project_id') || @issue.project_id_changed?) && (@project.nil? || projects.count > 1 || @issue.copy?) %>
+<p><%= f.select :project_id, project_tree_options_for_select(projects, :selected => @issue.project), {:required => true},
                 :onchange => "updateIssueFrom('#{escape_javascript update_issue_form_path(@project, @issue)}', this)" %></p>
 <% end %>
 
diff --git a/test/functional/issues_controller_test.rb b/test/functional/issues_controller_test.rb
old mode 100644
new mode 100755
index dacbd37..03a4993
--- a/test/functional/issues_controller_test.rb
+++ b/test/functional/issues_controller_test.rb
@@ -1812,7 +1812,7 @@ class IssuesControllerTest < Redmine::ControllerTest
     assert_select 'form#issue-form[action=?]', '/projects/ecookbook/issues'
     assert_select 'form#issue-form' do
       assert_select 'input[name=?]', 'issue[is_private]'
-      assert_select 'select[name=?]', 'issue[project_id]', 0
+      assert_select 'select[name=?]', 'issue[project_id]'
       assert_select 'select[name=?]', 'issue[tracker_id]'
       assert_select 'input[name=?]', 'issue[subject]'
       assert_select 'textarea[name=?]', 'issue[description]'
@@ -1836,6 +1836,30 @@ class IssuesControllerTest < Redmine::ControllerTest
     end
   end
 
+  def test_get_new_should_show_project_selector_for_project_with_subprojects
+    @request.session[:user_id] = 2
+    get :new, :project_id => 1, :tracker_id => 1
+    assert_response :success
+
+    assert_select 'select[name="issue[project_id]"]' do
+      assert_select 'option', 3
+      assert_select 'option[selected=selected]', :text => 'eCookbook'
+      assert_select 'option[value=?]', '5', :text => '  » Private child of eCookbook'
+      assert_select 'option[value=?]', '3', :text => '  » eCookbook Subproject 1'
+
+      # user_id 2 is not allowed to add issues on project_id 4 (it's not a member)
+      assert_select 'option[value=?]', '4', 0
+    end
+  end
+
+  def test_get_new_should_not_show_project_selector_for_project_without_subprojects
+    @request.session[:user_id] = 2
+    get :new, :project_id => 2, :tracker_id => 1
+    assert_response :success
+
+    assert_select 'select[name="issue[project_id]"]', 0
+  end
+
   def test_get_new_with_minimal_permissions
     Role.find(1).update_attribute :permissions, [:add_issues]
     WorkflowTransition.where(:role_id => 1).delete_all
@@ -1846,7 +1870,7 @@ class IssuesControllerTest < Redmine::ControllerTest
 
     assert_select 'form#issue-form' do
       assert_select 'input[name=?]', 'issue[is_private]', 0
-      assert_select 'select[name=?]', 'issue[project_id]', 0
+      assert_select 'select[name=?]', 'issue[project_id]'
       assert_select 'select[name=?]', 'issue[tracker_id]'
       assert_select 'input[name=?]', 'issue[subject]'
       assert_select 'textarea[name=?]', 'issue[description]'
diff --git a/test/unit/issue_test.rb b/test/unit/issue_test.rb
old mode 100644
new mode 100755
index 53833c6..f8fde82
--- a/test/unit/issue_test.rb
+++ b/test/unit/issue_test.rb
@@ -354,12 +354,12 @@ class IssueTest < ActiveSupport::TestCase
         :subject => 'Assignment test',
         :assigned_to => group,
         :is_private => true)
-  
+
       Role.find(2).update! :issues_visibility => 'default'
       issues = Issue.visible(User.find(8)).to_a
       assert issues.any?
       assert issues.include?(issue)
-  
+
       Role.find(2).update! :issues_visibility => 'own'
       issues = Issue.visible(User.find(8)).to_a
       assert issues.any?