diff --git a/HISTORY.rst b/HISTORY.rst
index 9232337..8c6913d 100644
--- a/HISTORY.rst
+++ b/HISTORY.rst
@@ -3,6 +3,13 @@ History
 -------
 
 
+10.2.2 (Unreleased)
++++++++++++++++++++
+
+- New config hide_project_name and argument --hide-project-names for
+  obfuscating project names when sending coding activity to api.
+
+
 10.2.1 (2018-04-26)
 +++++++++++++++++++
 
diff --git a/README.rst b/README.rst
index a714aaf..a51109b 100644
--- a/README.rst
+++ b/README.rst
@@ -61,6 +61,7 @@ format. An example config file with all available options::
     debug = false
     api_key = your-api-key
     hide_filenames = false
+    hide_project_names = false
     exclude =
         ^COMMIT_EDITMSG$
         ^TAG_EDITMSG$
diff --git a/tests/samples/configs/paranoid_projects.cfg b/tests/samples/configs/paranoid_projects.cfg
new file mode 100644
index 0000000..8ca5b44
--- /dev/null
+++ b/tests/samples/configs/paranoid_projects.cfg
@@ -0,0 +1,5 @@
+[settings]
+debug = false
+api_key = c21f8ebd-6a6a-48a0-900b-0870db3d7afe
+api_url = https://api.wakatime.com/api/v1/heartbeats
+hide_project_names = true
diff --git a/tests/samples/output/configs_test_config_file_not_passed_in_command_line_args b/tests/samples/output/configs_test_config_file_not_passed_in_command_line_args
index f427f88..1ebe6ce 100644
--- a/tests/samples/output/configs_test_config_file_not_passed_in_command_line_args
+++ b/tests/samples/output/configs_test_config_file_not_passed_in_command_line_args
@@ -4,8 +4,9 @@ usage: wakatime [-h] [--entity FILE] [--key KEY] [--write] [--plugin PLUGIN]
                 [--proxy PROXY] [--no-ssl-verify] [--project PROJECT]
                 [--alternate-project ALTERNATE_PROJECT] [--language LANGUAGE]
                 [--hostname HOSTNAME] [--disable-offline] [--hide-filenames]
-                [--exclude EXCLUDE] [--exclude-unknown-project]
-                [--include INCLUDE] [--include-only-with-project-file]
-                [--extra-heartbeats] [--log-file LOG_FILE] [--api-url API_URL]
-                [--timeout TIMEOUT] [--config CONFIG] [--verbose] [--version]
+                [--hide-project-names] [--exclude EXCLUDE]
+                [--exclude-unknown-project] [--include INCLUDE]
+                [--include-only-with-project-file] [--extra-heartbeats]
+                [--log-file LOG_FILE] [--api-url API_URL] [--timeout TIMEOUT]
+                [--config CONFIG] [--verbose] [--version]
 wakatime: error: Missing api key. Find your api key from wakatime.com/settings/api-key.
diff --git a/tests/samples/output/configs_test_missing_config_file b/tests/samples/output/configs_test_missing_config_file
index f427f88..1ebe6ce 100644
--- a/tests/samples/output/configs_test_missing_config_file
+++ b/tests/samples/output/configs_test_missing_config_file
@@ -4,8 +4,9 @@ usage: wakatime [-h] [--entity FILE] [--key KEY] [--write] [--plugin PLUGIN]
                 [--proxy PROXY] [--no-ssl-verify] [--project PROJECT]
                 [--alternate-project ALTERNATE_PROJECT] [--language LANGUAGE]
                 [--hostname HOSTNAME] [--disable-offline] [--hide-filenames]
-                [--exclude EXCLUDE] [--exclude-unknown-project]
-                [--include INCLUDE] [--include-only-with-project-file]
-                [--extra-heartbeats] [--log-file LOG_FILE] [--api-url API_URL]
-                [--timeout TIMEOUT] [--config CONFIG] [--verbose] [--version]
+                [--hide-project-names] [--exclude EXCLUDE]
+                [--exclude-unknown-project] [--include INCLUDE]
+                [--include-only-with-project-file] [--extra-heartbeats]
+                [--log-file LOG_FILE] [--api-url API_URL] [--timeout TIMEOUT]
+                [--config CONFIG] [--verbose] [--version]
 wakatime: error: Missing api key. Find your api key from wakatime.com/settings/api-key.
diff --git a/tests/samples/output/main_test_timeout_passed_via_command_line b/tests/samples/output/main_test_timeout_passed_via_command_line
index 5e27b26..bec9d4c 100644
--- a/tests/samples/output/main_test_timeout_passed_via_command_line
+++ b/tests/samples/output/main_test_timeout_passed_via_command_line
@@ -4,8 +4,9 @@ usage: wakatime [-h] [--entity FILE] [--key KEY] [--write] [--plugin PLUGIN]
                 [--proxy PROXY] [--no-ssl-verify] [--project PROJECT]
                 [--alternate-project ALTERNATE_PROJECT] [--language LANGUAGE]
                 [--hostname HOSTNAME] [--disable-offline] [--hide-filenames]
-                [--exclude EXCLUDE] [--exclude-unknown-project]
-                [--include INCLUDE] [--include-only-with-project-file]
-                [--extra-heartbeats] [--log-file LOG_FILE] [--api-url API_URL]
-                [--timeout TIMEOUT] [--config CONFIG] [--verbose] [--version]
+                [--hide-project-names] [--exclude EXCLUDE]
+                [--exclude-unknown-project] [--include INCLUDE]
+                [--include-only-with-project-file] [--extra-heartbeats]
+                [--log-file LOG_FILE] [--api-url API_URL] [--timeout TIMEOUT]
+                [--config CONFIG] [--verbose] [--version]
 wakatime: error: argument --timeout: invalid int value: 'abc'
diff --git a/tests/samples/output/test_help_contents b/tests/samples/output/test_help_contents
index 028f05c..cc2c93d 100644
--- a/tests/samples/output/test_help_contents
+++ b/tests/samples/output/test_help_contents
@@ -4,10 +4,11 @@ usage: wakatime [-h] [--entity FILE] [--key KEY] [--write] [--plugin PLUGIN]
                 [--proxy PROXY] [--no-ssl-verify] [--project PROJECT]
                 [--alternate-project ALTERNATE_PROJECT] [--language LANGUAGE]
                 [--hostname HOSTNAME] [--disable-offline] [--hide-filenames]
-                [--exclude EXCLUDE] [--exclude-unknown-project]
-                [--include INCLUDE] [--include-only-with-project-file]
-                [--extra-heartbeats] [--log-file LOG_FILE] [--api-url API_URL]
-                [--timeout TIMEOUT] [--config CONFIG] [--verbose] [--version]
+                [--hide-project-names] [--exclude EXCLUDE]
+                [--exclude-unknown-project] [--include INCLUDE]
+                [--include-only-with-project-file] [--extra-heartbeats]
+                [--log-file LOG_FILE] [--api-url API_URL] [--timeout TIMEOUT]
+                [--config CONFIG] [--verbose] [--version]
 
 Common interface for the WakaTime api.
 
@@ -49,6 +50,10 @@ optional arguments:
   --disable-offline     Disables offline time logging instead of queuing
                         logged time.
   --hide-filenames      Obfuscate filenames. Will not send file names to api.
+  --hide-project-names  Obfuscate project names. When a project folder is
+                        detected instead of using the folder name as the
+                        project, a .wakatime-project file is created with a
+                        random project name.
   --exclude EXCLUDE     Filename patterns to exclude from logging. POSIX regex
                         syntax. Can be used more than once.
   --exclude-unknown-project
diff --git a/tests/test_configs.py b/tests/test_configs.py
index 52762d3..024babf 100644
--- a/tests/test_configs.py
+++ b/tests/test_configs.py
@@ -459,6 +459,46 @@ class ConfigsTestCase(TestCase):
             self.assertOfflineHeartbeatsSynced()
             self.assertSessionCacheSaved()
 
+    def test_obfuscte_project_names(self):
+        self.patched['wakatime.packages.requests.adapters.HTTPAdapter.send'].return_value = CustomResponse()
+
+        with TemporaryDirectory() as tempdir:
+            shutil.copytree('tests/samples/projects/git', os.path.join(tempdir, 'git'))
+            shutil.move(os.path.join(tempdir, 'git', 'dot_git'), os.path.join(tempdir, 'git', '.git'))
+            entity = os.path.join(tempdir, 'git', 'emptyfile.txt')
+            now = u(int(time.time()))
+            config = 'tests/samples/configs/paranoid_projects.cfg'
+            key = u(uuid.uuid4())
+            dependencies = []
+            generated_proj = 'Icy Bridge 42'
+
+            args = ['--file', entity, '--key', key, '--config', config, '--time', now, '--log-file', '~/.wakatime.log']
+
+            with mock.patch('wakatime.project.generate_project_name') as mock_proj:
+                mock_proj.return_value = generated_proj
+
+                retval = execute(args)
+
+            self.assertEquals(retval, SUCCESS)
+            self.assertNothingPrinted()
+
+            heartbeat = {
+                'language': 'Text only',
+                'lines': 0,
+                'entity': os.path.realpath(entity),
+                'project': generated_proj,
+                'time': float(now),
+                'is_write': False,
+                'type': 'file',
+                'dependencies': dependencies,
+                'user_agent': ANY,
+            }
+            self.assertHeartbeatSent(heartbeat)
+
+            self.assertHeartbeatNotSavedOffline()
+            self.assertOfflineHeartbeatsSynced()
+            self.assertSessionCacheSaved()
+
     @log_capture()
     def test_exclude_file(self, logs):
         logging.disable(logging.NOTSET)
diff --git a/tests/test_project.py b/tests/test_project.py
index 8ffcc1b..1b24800 100644
--- a/tests/test_project.py
+++ b/tests/test_project.py
@@ -15,6 +15,7 @@ from testfixtures import log_capture
 from wakatime.compat import u, open
 from wakatime.constants import API_ERROR, SUCCESS
 from wakatime.exceptions import NotYetImplemented
+from wakatime.project import generate_project_name
 from wakatime.projects.base import BaseProject
 from wakatime.projects.git import Git
 from .utils import ANY, DynamicIterable, TestCase, TemporaryDirectory, CustomResponse, mock, json
@@ -723,3 +724,7 @@ class ProjectTestCase(TestCase):
             self.assertNothingPrinted()
             self.assertNothingLogged(logs)
             self.assertEquals('proj-arg', self.patched['wakatime.offlinequeue.Queue.push'].call_args[0][0]['project'])
+
+    def test_generate_project_name(self):
+        self.assertGreater(len(generate_project_name()), 1)
+        self.assertNotEqual(generate_project_name(), generate_project_name())
diff --git a/wakatime/arguments.py b/wakatime/arguments.py
index 0df2d6a..ba1424f 100644
--- a/wakatime/arguments.py
+++ b/wakatime/arguments.py
@@ -133,6 +133,13 @@ def parse_arguments():
     parser.add_argument('--hidefilenames', dest='hidefilenames',
                         action='store_true',
                         help=argparse.SUPPRESS)
+    parser.add_argument('--hide-project-names', dest='hide_project_names',
+                        action='store_true',
+                        help='Obfuscate project names. When a project ' +
+                             'folder is detected instead of using the ' +
+                             'folder name as the project, a ' +
+                             '.wakatime-project file is created with a ' +
+                             'random project name.')
     parser.add_argument('--exclude', dest='exclude', action='append',
                         help='Filename patterns to exclude from logging. ' +
                              'POSIX regex syntax. Can be used more than once.')
@@ -267,6 +274,8 @@ def parse_arguments():
                 for pattern in option.split("\n"):
                     if pattern.strip() != '':
                         args.hide_filenames.append(pattern)
+    if not args.hide_project_names and configs.has_option('settings', 'hide_project_names'):
+        args.hide_project_names = configs.getboolean('settings', 'hide_project_names')
     if args.offline_deprecated:
         args.offline = False
     if args.offline and configs.has_option('settings', 'offline'):
diff --git a/wakatime/project.py b/wakatime/project.py
index 4350b62..5e88427 100644
--- a/wakatime/project.py
+++ b/wakatime/project.py
@@ -9,8 +9,11 @@
     :license: BSD, see LICENSE for more details.
 """
 
+import os
 import logging
+import random
 
+from .compat import open
 from .projects.git import Git
 from .projects.mercurial import Mercurial
 from .projects.projectfile import ProjectFile
@@ -62,7 +65,7 @@ def get_project_info(configs, heartbeat, data):
                 branch_name = project.branch()
                 break
 
-    if project_name is None:
+    if project_name is None and not data.get('hide_project_names'):
         project_name = data.get('project') or heartbeat.args.project
 
     if project_name is None or branch_name is None:
@@ -76,6 +79,15 @@ def get_project_info(configs, heartbeat, data):
             if project.process():
                 project_name = project_name or project.name()
                 branch_name = branch_name or project.branch()
+                if data.get('hide_project_names'):
+                    branch_name = None
+                    project_name = generate_project_name()
+                    project_file = os.path.join(project.folder(), '.wakatime-project')
+                    try:
+                        with open(project_file, 'w') as fh:
+                            fh.write(project_name)
+                    except IOError:
+                        project_name = None
                 break
 
     if project_name is None:
@@ -88,3 +100,42 @@ def get_configs_for_plugin(plugin_name, configs):
     if configs and configs.has_section(plugin_name):
         return dict(configs.items(plugin_name))
     return None
+
+
+def generate_project_name():
+    """Generates a random project name."""
+
+    adjectives = [
+        'aged', 'ancient', 'autumn', 'billowing', 'bitter', 'black', 'blue', 'bold',
+        'broad', 'broken', 'calm', 'cold', 'cool', 'crimson', 'curly', 'damp',
+        'dark', 'dawn', 'delicate', 'divine', 'dry', 'empty', 'falling', 'fancy',
+        'flat', 'floral', 'fragrant', 'frosty', 'gentle', 'green', 'hidden', 'holy',
+        'icy', 'jolly', 'late', 'lingering', 'little', 'lively', 'long', 'lucky',
+        'misty', 'morning', 'muddy', 'mute', 'nameless', 'noisy', 'odd', 'old',
+        'orange', 'patient', 'plain', 'polished', 'proud', 'purple', 'quiet', 'rapid',
+        'raspy', 'red', 'restless', 'rough', 'round', 'royal', 'shiny', 'shrill',
+        'shy', 'silent', 'small', 'snowy', 'soft', 'solitary', 'sparkling', 'spring',
+        'square', 'steep', 'still', 'summer', 'super', 'sweet', 'throbbing', 'tight',
+        'tiny', 'twilight', 'wandering', 'weathered', 'white', 'wild', 'winter', 'wispy',
+        'withered', 'yellow', 'young'
+    ]
+    nouns = [
+        'art', 'band', 'bar', 'base', 'bird', 'block', 'boat', 'bonus',
+        'bread', 'breeze', 'brook', 'bush', 'butterfly', 'cake', 'cell', 'cherry',
+        'cloud', 'credit', 'darkness', 'dawn', 'dew', 'disk', 'dream', 'dust',
+        'feather', 'field', 'fire', 'firefly', 'flower', 'fog', 'forest', 'frog',
+        'frost', 'glade', 'glitter', 'grass', 'hall', 'hat', 'haze', 'heart',
+        'hill', 'king', 'lab', 'lake', 'leaf', 'limit', 'math', 'meadow',
+        'mode', 'moon', 'morning', 'mountain', 'mouse', 'mud', 'night', 'paper',
+        'pine', 'poetry', 'pond', 'queen', 'rain', 'recipe', 'resonance', 'rice',
+        'river', 'salad', 'scene', 'sea', 'shadow', 'shape', 'silence', 'sky',
+        'smoke', 'snow', 'snowflake', 'sound', 'star', 'sun', 'sun', 'sunset',
+        'surf', 'term', 'thunder', 'tooth', 'tree', 'truth', 'union', 'unit',
+        'violet', 'voice', 'water', 'waterfall', 'wave', 'wildflower', 'wind', 'wood'
+    ]
+    numbers = [str(x) for x in range(10)]
+    return ' '.join([
+        random.choice(adjectives).capitalize(),
+        random.choice(nouns).capitalize(),
+        random.choice(numbers) + random.choice(numbers),
+    ])
diff --git a/wakatime/projects/base.py b/wakatime/projects/base.py
index 4269d39..9a2e1f8 100644
--- a/wakatime/projects/base.py
+++ b/wakatime/projects/base.py
@@ -43,3 +43,8 @@ class BaseProject(object):
         """ Returns the current branch.
         """
         raise NotYetImplemented()
+
+    def folder(self):
+        """ Returns the project's top folder path.
+        """
+        raise NotYetImplemented()
diff --git a/wakatime/projects/git.py b/wakatime/projects/git.py
index 9acdc78..4bddcf0 100644
--- a/wakatime/projects/git.py
+++ b/wakatime/projects/git.py
@@ -25,6 +25,7 @@ class Git(BaseProject):
     _submodule = None
     _project_name = None
     _head_file = None
+    _project_folder = None
 
     def process(self):
         return self._find_git_config_file(self.path)
@@ -40,6 +41,9 @@ class Git(BaseProject):
                 return self._get_branch_from_head_file(line)
         return u('master')
 
+    def folder(self):
+        return self._project_folder
+
     def _find_git_config_file(self, path):
         path = os.path.realpath(path)
         if os.path.isfile(path):
@@ -47,6 +51,7 @@ class Git(BaseProject):
         if os.path.isfile(os.path.join(path, '.git', 'config')):
             self._project_name = os.path.basename(path)
             self._head_file = os.path.join(path, '.git', 'HEAD')
+            self._project_folder = path
             return True
 
         link_path = self._path_from_gitdir_link_file(path)
@@ -56,12 +61,14 @@ class Git(BaseProject):
             if self._is_worktree(link_path):
                 self._project_name = self._project_from_worktree(link_path)
                 self._head_file = os.path.join(link_path, 'HEAD')
+                self._project_folder = path
                 return True
 
             # next check if this is a submodule
             if self._submodules_supported_for_path(path):
                 self._project_name = os.path.basename(path)
                 self._head_file = os.path.join(link_path, 'HEAD')
+                self._project_folder = path
                 return True
 
         split_path = os.path.split(path)
diff --git a/wakatime/projects/mercurial.py b/wakatime/projects/mercurial.py
index 2a77489..b7647a3 100644
--- a/wakatime/projects/mercurial.py
+++ b/wakatime/projects/mercurial.py
@@ -47,6 +47,11 @@ class Mercurial(BaseProject):
                 log.traceback(logging.WARNING)
         return u('default')
 
+    def folder(self):
+        if self.configDir:
+            return os.path.dirname(self.configDir)
+        return None
+
     def _find_hg_config_dir(self, path):
         path = os.path.realpath(path)
         if os.path.isfile(path):
diff --git a/wakatime/projects/subversion.py b/wakatime/projects/subversion.py
index 3b0e32b..f5a6f38 100644
--- a/wakatime/projects/subversion.py
+++ b/wakatime/projects/subversion.py
@@ -41,6 +41,11 @@ class Subversion(BaseProject):
             return None  # pragma: nocover
         return u(self.info['URL'].split('/')[-1].split('\\')[-1])
 
+    def folder(self):
+        if 'Repository Root' not in self.info:
+            return None
+        return self.info['Repository Root']
+
     def _find_binary(self):
         if self.binary_location:
             return self.binary_location