diff --git a/app.py b/app.py
index 959cef9..e874233 100644
--- a/app.py
+++ b/app.py
@@ -6184,23 +6184,26 @@ def create_employee():
             contract_id = request.form.get('contract_id', '1').strip()
             
             # Validate required fields
-            if not all([employee_id, first_name, last_name]):
-                flash('Employee ID, First Name, and Last Name are required.', 'error')
-                return render_template('create_employee.html')
+            if not all([employee_id, first_name, last_name, contract_id]):
+                flash('Employee ID, First Name, Last Name, and Project are required.', 'error')
+                projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+                return render_template('create_employee.html', projects=projects)
             
             # Validate employee ID is numeric
             try:
                 employee_id_int = int(employee_id)
                 contract_id_int = int(contract_id)
             except ValueError:
-                flash('Employee ID and Contract ID must be numeric.', 'error')
-                return render_template('create_employee.html')
+                flash('Employee ID must be numeric and Project must be selected.', 'error')
+                projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+                return render_template('create_employee.html', projects=projects)
             
             # Check if employee ID already exists
             existing_employee = Employee.query.filter_by(id=employee_id_int).first()
             if existing_employee:
                 flash(f'Employee with ID {employee_id} already exists.', 'error')
-                return render_template('create_employee.html')
+                projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+                return render_template('create_employee.html', projects=projects)
             
             # Create new employee
             new_employee = Employee(
@@ -6214,9 +6217,11 @@ def create_employee():
             db.session.add(new_employee)
             db.session.commit()
             
-            # Log employee creation
+            # Log employee creation with project info
             try:
-                logger_handler.logger.info(f"Admin user {session['username']} created new employee: {employee_id_int} - {first_name} {last_name}")
+                project = Project.query.get(contract_id_int)
+                project_name = project.name if project else f"Project {contract_id_int}"
+                logger_handler.logger.info(f"Admin user {session['username']} created new employee: {employee_id_int} - {first_name} {last_name} assigned to {project_name}")
             except Exception as log_error:
                 print(f"⚠️ Logging error (non-critical): {log_error}")
             
@@ -6227,9 +6232,12 @@ def create_employee():
             db.session.rollback()
             logger_handler.log_database_error('employee_creation', e)
             flash('Failed to create employee. Please try again.', 'error')
-            return render_template('create_employee.html')
+            projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+            return render_template('create_employee.html', projects=projects)
     
-    return render_template('create_employee.html')
+    # GET request - load the form with projects
+    projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+    return render_template('create_employee.html', projects=projects)
 
 @app.route('/employees/<int:employee_index>/edit', methods=['GET', 'POST'])
 @login_required  
@@ -6249,23 +6257,26 @@ def edit_employee(employee_index):
             contract_id = request.form.get('contract_id', '1').strip()
 
             # Validate required fields
-            if not all([employee_id, first_name, last_name]):
-                flash('Employee ID, First Name, and Last Name are required.', 'error')
-                return render_template('edit_employee.html', employee=employee)
+            if not all([employee_id, first_name, last_name, contract_id]):
+                flash('Employee ID, First Name, Last Name, and Project are required.', 'error')
+                projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+                return render_template('edit_employee.html', employee=employee, projects=projects)
             
             # Validate numeric fields
             try:
                 employee_id_int = int(employee_id)
                 contract_id_int = int(contract_id)
             except ValueError:
-                flash('Employee ID and Contract ID must be numeric.', 'error')
-                return render_template('edit_employee.html', employee=employee)
+                flash('Employee ID must be numeric and Project must be selected.', 'error')
+                projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+                return render_template('edit_employee.html', employee=employee, projects=projects)
             
             # Check if employee ID already exists (but not for this employee)
             existing_employee = Employee.query.filter_by(id=employee_id_int).first()
             if existing_employee and existing_employee.index != employee.index:
                 flash(f'Employee with ID {employee_id} already exists.', 'error')
-                return render_template('edit_employee.html', employee=employee)
+                projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+                return render_template('edit_employee.html', employee=employee, projects=projects)
             
             # Store original values for logging
             original_data = {
@@ -6285,16 +6296,20 @@ def edit_employee(employee_index):
             
             db.session.commit()
             
-            # Log employee update
+            # Log employee update with project info
             try:
-                logger_handler.logger.info(f"Admin user {session['username']} updated employee: {employee_index} - {first_name} {last_name}")
+                project = Project.query.get(contract_id_int)
+                project_name = project.name if project else f"Project {contract_id_int}"
+                logger_handler.logger.info(f"Admin user {session['username']} updated employee: {employee_index} - {first_name} {last_name} assigned to {project_name}")
             except Exception as log_error:
-                print(f"Warning: Logging error (non-critical): {log_error}")
+                print(f"⚠️ Logging error (non-critical): {log_error}")
             
             flash(f'Employee "{first_name} {last_name}" updated successfully.', 'success')
             return redirect(url_for('employees'))
         
-        return render_template('edit_employee.html', employee=employee)
+        # GET request - load the form with projects
+        projects = Project.query.filter_by(active_status=True).order_by(Project.name).all()
+        return render_template('edit_employee.html', employee=employee, projects=projects)
         
     except Exception as e:
         db.session.rollback()
diff --git a/templates/create_employee.html b/templates/create_employee.html
index ddefc3c..80e5253 100644
--- a/templates/create_employee.html
+++ b/templates/create_employee.html
@@ -7,7 +7,7 @@
 <link rel="stylesheet" href="{{ url_for('static', filename='css/employees.css') }}">
 <style>
 .form-container {
-  max-width: 600px;
+  max-width: 800px;
   margin: 0 auto;
   background: #ffffff;
   border-radius: 0.75rem;
@@ -72,7 +72,7 @@
 }
 
 .form-input {
-  width: 100%;
+  width: 50%;
   padding: 0.75rem 1rem;
   border: 2px solid #e2e8f0;
   border-radius: 0.5rem;
@@ -91,6 +91,14 @@
   border-color: #dc2626;
 }
 
+.form-input select {
+  cursor: pointer;
+}
+
+.form-input option {
+  padding: 0.5rem;
+}
+
 .form-help {
   font-size: 0.875rem;
   color: #6b7280;
@@ -173,21 +181,27 @@
           </div>
 
           <div class="form-group">
-            <label for="contract_id" class="form-label">Contract ID</label>
-            <input 
-              type="number" 
+            <label for="contract_id" class="form-label">Project</label>
+            <select 
               id="contract_id" 
               name="contract_id" 
-              class="form-input" 
-              min="1"
-              value="{{ request.form.get('contract_id', '1') }}"
-              placeholder="Enter contract ID"
+              class="form-input"
+              required
             >
+              <option value="">-- Select Project --</option>
+              {% for project in projects %}
+              <option 
+                value="{{ project.id }}" 
+                {% if request.form.get('contract_id') == project.id|string or (not request.form.get('contract_id') and project.id == 1) %}selected{% endif %}
+              >
+                {{ project.name }}
+              </option>
+              {% endfor %}
+            </select>
             <div class="form-help">
-              Default is 1 if not specified
+              Select the project this employee will be assigned to
             </div>
           </div>
-        </div>
 
         <!-- First Name and Last Name Row -->
         <div class="form-row">
@@ -319,6 +333,13 @@ document.addEventListener('DOMContentLoaded', function() {
             this.value = this.value.replace(/^0+/, '');
         }
     });
+
+    const contractIdSelect = document.getElementById('contract_id');
+    contractIdSelect.addEventListener('change', function() {
+        if (this.value) {
+            this.classList.remove('error');
+        }
+    });
 });
 </script>
 {% endblock %}
\ No newline at end of file
diff --git a/templates/edit_employee.html b/templates/edit_employee.html
index a8e6d27..d0281cd 100644
--- a/templates/edit_employee.html
+++ b/templates/edit_employee.html
@@ -6,7 +6,7 @@
 />
 <style>
   .form-container {
-    max-width: 600px;
+    max-width: 800px;
     margin: 0 auto;
     background: #ffffff;
     border-radius: 0.75rem;
@@ -95,7 +95,7 @@
   }
 
   .form-input {
-    width: 100%;
+    width: 50%;
     padding: 0.75rem 1rem;
     border: 2px solid #e2e8f0;
     border-radius: 0.5rem;
@@ -202,17 +202,26 @@
           </div>
 
           <div class="form-group">
-            <label for="contract_id" class="form-label">Contract ID</label>
-            <input
-              type="number"
-              id="contract_id"
-              name="contract_id"
+            <label for="contract_id" class="form-label">Project</label>
+            <select 
+              id="contract_id" 
+              name="contract_id" 
               class="form-input"
-              min="1"
-              value="{{ request.form.get('contract_id', employee.contractId) }}"
-              placeholder="Enter contract ID"
-            />
-            <div class="form-help">Default is 1 if not specified</div>
+              required
+            >
+              <option value="">-- Select Project --</option>
+              {% for project in projects %}
+              <option 
+                value="{{ project.id }}" 
+                {% if request.form.get('contract_id') == project.id|string or (not request.form.get('contract_id') and employee.contractId == project.id) %}selected{% endif %}
+              >
+                {{ project.name }}
+              </option>
+              {% endfor %}
+            </select>
+            <div class="form-help">
+              Select the project this employee will be assigned to
+            </div>
           </div>
         </div>
 
@@ -392,23 +401,20 @@
       }
     });
 
-    // Contract ID validation
-    const contractIdInput = document.getElementById("contract_id");
-    contractIdInput.addEventListener("input", function () {
-      // Remove any non-numeric characters
-      this.value = this.value.replace(/[^0-9]/g, "");
-
-      // Set default value if empty
-      if (!this.value) {
-        this.value = "1";
-      }
-
-      // Remove leading zeros
-      if (this.value.length > 1) {
-        this.value = this.value.replace(/^0+/, "");
+    const contractIdSelect = document.getElementById("contract_id");
+    contractIdSelect.addEventListener("change", function () {
+      if (this.value) {
+        this.classList.remove("error");
+        // Remove the yellow highlight for changes
+        this.style.borderLeft = "";
       }
     });
 
+    if (!contractIdSelect.value) {
+      contractIdSelect.classList.add("error");
+      isValid = false;
+    }
+
     // Highlight changed fields
     function highlightChanges() {
       Object.keys(originalValues).forEach((key) => {