diff --git a/src/openstack_mcp_server/tools/identity_tools.py b/src/openstack_mcp_server/tools/identity_tools.py
index fe08e25..5432a29 100644
--- a/src/openstack_mcp_server/tools/identity_tools.py
+++ b/src/openstack_mcp_server/tools/identity_tools.py
@@ -30,6 +30,7 @@ def register_tools(self, mcp: FastMCP):
         mcp.tool()(self.get_project)
         mcp.tool()(self.create_project)
         mcp.tool()(self.delete_project)
+        mcp.tool()(self.update_project)
 
     def get_regions(self) -> list[Region]:
         """
@@ -319,3 +320,49 @@ def delete_project(self, id: str) -> None:
         conn = get_openstack_conn()
         conn.identity.delete_project(project=id, ignore_missing=False)
         return None
+
+    def update_project(
+        self,
+        id: str,
+        name: str | None = None,
+        description: str | None = None,
+        is_enabled: bool | None = None,
+        domain_id: str | None = None,
+        parent_id: str | None = None,
+    ) -> Project:
+        """
+        Update a project.
+
+        :param id: The ID of the project.
+        :param name: The name of the project.
+        :param description: The description of the project.
+        :param is_enabled: Whether the project is enabled.
+        :param domain_id: The ID of the domain.
+        :param parent_id: The ID of the parent project.
+
+        :return: The updated Project object.
+        """
+        conn = get_openstack_conn()
+
+        args = {}
+        if name is not None:
+            args["name"] = name
+        if description is not None:
+            args["description"] = description
+        if is_enabled is not None:
+            args["is_enabled"] = is_enabled
+        if domain_id is not None:
+            args["domain_id"] = domain_id
+        if parent_id is not None:
+            args["parent_id"] = parent_id
+
+        updated_project = conn.identity.update_project(project=id, **args)
+
+        return Project(
+            id=updated_project.id,
+            name=updated_project.name,
+            description=updated_project.description,
+            is_enabled=updated_project.is_enabled,
+            domain_id=updated_project.domain_id,
+            parent_id=updated_project.parent_id,
+        )
diff --git a/tests/tools/test_identity_tools.py b/tests/tools/test_identity_tools.py
index 94fa649..b78e7ce 100644
--- a/tests/tools/test_identity_tools.py
+++ b/tests/tools/test_identity_tools.py
@@ -983,3 +983,73 @@ def test_delete_project_not_found(self, mock_get_openstack_conn_identity):
             project="project1111111111111111111111111",
             ignore_missing=False,
         )
+
+    def test_update_project_success(self, mock_get_openstack_conn_identity):
+        """Test updating a identity project successfully."""
+        mock_conn = mock_get_openstack_conn_identity
+
+        # Create mock project object
+        mock_project = Mock()
+        mock_project.id = "project1111111111111111111111111"
+        mock_project.name = "ProjectOne"
+        mock_project.description = "Project One description"
+        mock_project.is_enabled = True
+        mock_project.domain_id = "domain1111111111111111111111111"
+        mock_project.parent_id = "parentproject1111111111111111111"
+
+        # Configure mock project.update_project()
+        mock_conn.identity.update_project.return_value = mock_project
+
+        # Test update_project()
+        identity_tools = self.get_identity_tools()
+        result = identity_tools.update_project(
+            id="project1111111111111111111111111",
+            name="ProjectOne",
+            description="Project One description",
+            is_enabled=True,
+            domain_id="domain1111111111111111111111111",
+            parent_id="parentproject1111111111111111111",
+        )
+
+        # Verify results
+        assert result == Project(
+            id="project1111111111111111111111111",
+            name="ProjectOne",
+            description="Project One description",
+            is_enabled=True,
+            domain_id="domain1111111111111111111111111",
+            parent_id="parentproject1111111111111111111",
+        )
+
+        # Verify mock calls
+        mock_conn.identity.update_project.assert_called_once_with(
+            project="project1111111111111111111111111",
+            name="ProjectOne",
+            description="Project One description",
+            is_enabled=True,
+            domain_id="domain1111111111111111111111111",
+            parent_id="parentproject1111111111111111111",
+        )
+
+    def test_update_project_empty_id(self, mock_get_openstack_conn_identity):
+        """Test updating a identity project with an empty ID."""
+        mock_conn = mock_get_openstack_conn_identity
+
+        # Configure mock to raise BadRequestException
+        mock_conn.identity.update_project.side_effect = (
+            exceptions.BadRequestException(
+                "Field required",
+            )
+        )
+
+        # Test update_project()
+        identity_tools = self.get_identity_tools()
+
+        with pytest.raises(
+            exceptions.BadRequestException,
+            match="Field required",
+        ):
+            identity_tools.update_project(id="")
+
+        # Verify mock calls
+        mock_conn.identity.update_project.assert_called_once_with(project="")