diff --git a/.github/workflows/setup-gcloud-it.yml b/.github/workflows/setup-gcloud-it.yml
index e5c094d1..0c276eb4 100644
--- a/.github/workflows/setup-gcloud-it.yml
+++ b/.github/workflows/setup-gcloud-it.yml
@@ -69,3 +69,22 @@ jobs:
       - name: Verify Exported
         shell: bash
         run: test -f $GOOGLE_APPLICATION_CREDENTIALS
+
+  project_id:
+    name: setup-gcloud with configured project
+    runs-on: ${{ matrix.operating-system }}
+    strategy:
+      fail-fast: false
+      matrix:
+        operating-system: [ubuntu-latest, windows-latest, macos-latest]
+    steps:
+      - uses: actions/checkout@v2
+
+      - name: setup-gcloud
+        uses: ./setup-gcloud/
+        with:
+          project_id: ${{ secrets.SETUP_GCLOUD_IT_PROJECT_ID }}
+
+      - name: Verify project
+        shell: bash
+        run: gcloud config get-value project | grep ${{ secrets.SETUP_GCLOUD_IT_PROJECT_ID }}
diff --git a/action.yml b/action.yml
index 2f4e4741..fc447082 100644
--- a/action.yml
+++ b/action.yml
@@ -40,6 +40,14 @@ inputs:
       value can be raw or base64-encoded.
     required: true
 
+  project_id:
+    description: |-
+      ID of the Google Cloud project. If provided, this will configure gcloud to
+      use this project ID by default for commands. Individual commands can still
+      override the project using the --project flag which takes precedence.
+    default: null
+    required: false
+
   export_default_credentials:
     description: |-
       Export the provided credentials as Google Default Application Credentials.
diff --git a/setup-gcloud/action.yml b/setup-gcloud/action.yml
index cf3d2fc4..a87d793a 100644
--- a/setup-gcloud/action.yml
+++ b/setup-gcloud/action.yml
@@ -40,6 +40,14 @@ inputs:
       value can be raw or base64-encoded.
     required: true
 
+  project_id:
+    description: |-
+      ID of the Google Cloud project. If provided, this will configure gcloud to
+      use this project ID by default for commands. Individual commands can still
+      override the project using the --project flag which takes precedence.
+    default: null
+    required: false
+
   export_default_credentials:
     description: |-
       Export the provided credentials as Google Default Application Credentials.
diff --git a/setup-gcloud/dist/index.js b/setup-gcloud/dist/index.js
index 57c3930e..aab09e8d 100644
--- a/setup-gcloud/dist/index.js
+++ b/setup-gcloud/dist/index.js
@@ -9972,12 +9972,31 @@ function run() {
             let toolPath = toolCache.find('gcloud', version);
             if (!toolPath) {
                 toolPath = yield installGcloudSDK(version);
+                core.info('Successfully installed gcloud Cloud SDK');
+            }
+            // A workaround for https://github.com/actions/toolkit/issues/229
+            // Currently exec on windows runs as cmd shell.
+            let toolCommand = 'gcloud';
+            if (process.platform == 'win32') {
+                toolCommand = 'gcloud.cmd';
+            }
+            // Set the project ID, if given.
+            const projectId = core.getInput('project_id');
+            if (projectId) {
+                yield exec.exec(toolCommand, [
+                    '--quiet',
+                    'config',
+                    'set',
+                    'core/project',
+                    projectId,
+                ]);
+                core.info('Successfully set default project');
             }
             const serviceAccountEmail = core.getInput('service_account_email') || '';
             const serviceAccountKey = core.getInput('service_account_key');
             // if a service account key isn't provided, log an un-authenticated notice
             if (!serviceAccountKey) {
-                core.info('gcloud SDK installed without authentication.');
+                core.info('No credentials provided, skipping authentication');
                 return;
             }
             // Handle base64-encoded credentials
@@ -9998,14 +10017,15 @@ function run() {
                 });
             });
             yield fs_1.promises.writeFile(tmpKeyFilePath, serviceAccountJSON);
-            // A workaround for https://github.com/actions/toolkit/issues/229
-            // Currently exec on windows runs as cmd shell.
-            let toolCommand = 'gcloud';
-            if (process.platform == 'win32') {
-                toolCommand = 'gcloud.cmd';
-            }
-            // authenticate as the specified service account
-            yield exec.exec(`${toolCommand} auth activate-service-account ${serviceAccountEmail} --key-file=${tmpKeyFilePath}`);
+            // Authenticate as the specified service account.
+            yield exec.exec(toolCommand, [
+                '--quiet',
+                'auth',
+                'activate-service-account',
+                serviceAccountEmail,
+                '--key-file',
+                tmpKeyFilePath,
+            ]);
             // Export credentials if requested - these credentials must be exported in
             // the shared workspace directory, since the filesystem must be shared among
             // all steps.
diff --git a/setup-gcloud/src/setup-gcloud.ts b/setup-gcloud/src/setup-gcloud.ts
index d2589ca3..7f0b9d33 100644
--- a/setup-gcloud/src/setup-gcloud.ts
+++ b/setup-gcloud/src/setup-gcloud.ts
@@ -56,6 +56,27 @@ async function run(): Promise<void> {
     let toolPath = toolCache.find('gcloud', version);
     if (!toolPath) {
       toolPath = await installGcloudSDK(version);
+      core.info('Successfully installed gcloud Cloud SDK');
+    }
+
+    // A workaround for https://github.com/actions/toolkit/issues/229
+    // Currently exec on windows runs as cmd shell.
+    let toolCommand = 'gcloud';
+    if (process.platform == 'win32') {
+      toolCommand = 'gcloud.cmd';
+    }
+
+    // Set the project ID, if given.
+    const projectId = core.getInput('project_id');
+    if (projectId) {
+      await exec.exec(toolCommand, [
+        '--quiet',
+        'config',
+        'set',
+        'core/project',
+        projectId,
+      ]);
+      core.info('Successfully set default project');
     }
 
     const serviceAccountEmail = core.getInput('service_account_email') || '';
@@ -63,7 +84,7 @@ async function run(): Promise<void> {
 
     // if a service account key isn't provided, log an un-authenticated notice
     if (!serviceAccountKey) {
-      core.info('gcloud SDK installed without authentication.');
+      core.info('No credentials provided, skipping authentication');
       return;
     }
 
@@ -87,17 +108,15 @@ async function run(): Promise<void> {
     });
     await fs.writeFile(tmpKeyFilePath, serviceAccountJSON);
 
-    // A workaround for https://github.com/actions/toolkit/issues/229
-    // Currently exec on windows runs as cmd shell.
-    let toolCommand = 'gcloud';
-    if (process.platform == 'win32') {
-      toolCommand = 'gcloud.cmd';
-    }
-
-    // authenticate as the specified service account
-    await exec.exec(
-      `${toolCommand} auth activate-service-account ${serviceAccountEmail} --key-file=${tmpKeyFilePath}`,
-    );
+    // Authenticate as the specified service account.
+    await exec.exec(toolCommand, [
+      '--quiet',
+      'auth',
+      'activate-service-account',
+      serviceAccountEmail,
+      '--key-file',
+      tmpKeyFilePath,
+    ]);
 
     // Export credentials if requested - these credentials must be exported in
     // the shared workspace directory, since the filesystem must be shared among