diff --git a/app/assets/javascripts/projects/new_v2/components/app.vue b/app/assets/javascripts/projects/new_v2/components/app.vue
index d4b394b858c0ce605a66838e278d7e969e70c11b..7b7e225064a9a8382f34c79841f569164a39ac29 100644
--- a/app/assets/javascripts/projects/new_v2/components/app.vue
+++ b/app/assets/javascripts/projects/new_v2/components/app.vue
@@ -178,9 +178,10 @@ export default {
         this.currentStep = 1;
       }
     },
-    onSelectNamespace({ id, fullPath }) {
+    onSelectNamespace({ id, fullPath, visibility }) {
       this.namespace.id = id;
       this.namespace.fullPath = fullPath;
+      this.namespace.visibility = visibility;
       this.showValidation = false;
     },
   },
diff --git a/app/assets/javascripts/projects/new_v2/components/project_destination_select.vue b/app/assets/javascripts/projects/new_v2/components/project_destination_select.vue
index a55a61c2139883ad052234650b849f765415b829..9d17c700713620342907bc1f77705c5f09d475f2 100644
--- a/app/assets/javascripts/projects/new_v2/components/project_destination_select.vue
+++ b/app/assets/javascripts/projects/new_v2/components/project_destination_select.vue
@@ -170,7 +170,6 @@ export default {
         fullPath: namespace.fullPath,
         isPersonal: namespace.fullPath === this.userNamespaceFullPath,
       });
-
       this.setNamespace(namespace);
     },
     handleSelectTemplate(id, fullPath) {
diff --git a/app/assets/javascripts/projects/new_v2/components/shared_project_creation_fields.vue b/app/assets/javascripts/projects/new_v2/components/shared_project_creation_fields.vue
index a480eba1063bebad9fa7e78acb5b1964acbe66a8..6def6f74db221454eb0189cff461520d7a9ed798 100644
--- a/app/assets/javascripts/projects/new_v2/components/shared_project_creation_fields.vue
+++ b/app/assets/javascripts/projects/new_v2/components/shared_project_creation_fields.vue
@@ -1,8 +1,21 @@
 <script>
-import { GlFormGroup, GlFormInput, GlFormSelect, GlSprintf, GlLink } from '@gitlab/ui';
+import { GlFormGroup, GlFormInput, GlFormSelect, GlSprintf, GlLink, GlIcon } from '@gitlab/ui';
 import { kebabCase } from 'lodash';
+import { s__ } from '~/locale';
 import { helpPagePath } from '~/helpers/help_page_helper';
 import validation, { initForm } from '~/vue_shared/directives/validation';
+import SingleChoiceSelector from '~/vue_shared/components/single_choice_selector.vue';
+import SingleChoiceSelectorItem from '~/vue_shared/components/single_choice_selector_item.vue';
+import {
+  VISIBILITY_LEVEL_LABELS,
+  VISIBILITY_LEVEL_PRIVATE_STRING,
+  VISIBILITY_LEVEL_INTERNAL_STRING,
+  VISIBILITY_LEVEL_PUBLIC_STRING,
+  VISIBILITY_TYPE_ICON,
+  PROJECT_VISIBILITY_LEVEL_DESCRIPTIONS,
+  VISIBILITY_LEVELS_INTEGER_TO_STRING,
+  VISIBILITY_LEVELS_STRING_TO_INTEGER,
+} from '~/visibility_level/constants';
 import { K8S_OPTION, DEPLOYMENT_TARGET_SELECTIONS } from '../form_constants';
 import NewProjectDestinationSelect from './project_destination_select.vue';
 
@@ -13,11 +26,22 @@ export default {
     GlFormSelect,
     GlSprintf,
     GlLink,
+    GlIcon,
     NewProjectDestinationSelect,
+    SingleChoiceSelector,
+    SingleChoiceSelectorItem,
   },
   directives: {
     validation: validation(),
   },
+  inject: {
+    restrictedVisibilityLevels: {
+      default: [],
+    },
+    defaultProjectVisibility: {
+      default: VISIBILITY_LEVEL_PRIVATE_STRING,
+    },
+  },
   props: {
     namespace: {
       type: Object,
@@ -35,12 +59,19 @@ export default {
       form,
       selectedNamespace: this.namespace,
       selectedTarget: null,
+      visibilityLevels: [],
     };
   },
   computed: {
     isK8sOptionSelected() {
       return this.selectedTarget === K8S_OPTION.value;
     },
+    defaultVisibilityLevel() {
+      return VISIBILITY_LEVELS_INTEGER_TO_STRING[this.defaultProjectVisibility];
+    },
+  },
+  mounted() {
+    this.setVisibilityLevelsOptions();
   },
   methods: {
     updateSlug() {
@@ -48,10 +79,43 @@ export default {
     },
     onSelectNamespace(newNamespace) {
       this.$emit('onSelectNamespace', newNamespace);
+      this.setVisibilityLevelsOptions();
+    },
+    setVisibilityLevelsOptions() {
+      this.visibilityLevels = [
+        this.visibilityLevelInfo(VISIBILITY_LEVEL_PRIVATE_STRING),
+        this.visibilityLevelInfo(VISIBILITY_LEVEL_INTERNAL_STRING),
+        this.visibilityLevelInfo(VISIBILITY_LEVEL_PUBLIC_STRING),
+      ];
+    },
+    visibilityLevelInfo(visibilityLevelString) {
+      const visibilityLevelInteger = VISIBILITY_LEVELS_STRING_TO_INTEGER[visibilityLevelString];
+      let disableMessage = '';
+
+      if (this.restrictedVisibilityLevels.includes(visibilityLevelInteger)) {
+        disableMessage = s__(
+          'VisibilityLevel|This visibility level has been restricted by your administrator.',
+        );
+      } else if (
+        visibilityLevelInteger > VISIBILITY_LEVELS_STRING_TO_INTEGER[this.namespace.visibility]
+      ) {
+        disableMessage = s__(
+          'VisibilityLevel|This visibility level is not allowed because the parent group has a more restrictive visibility level.',
+        );
+      }
+
+      return {
+        title: VISIBILITY_LEVEL_LABELS[visibilityLevelString],
+        description: PROJECT_VISIBILITY_LEVEL_DESCRIPTIONS[visibilityLevelString],
+        icon: VISIBILITY_TYPE_ICON[visibilityLevelString],
+        value: visibilityLevelString,
+        disabled: disableMessage !== '',
+        disabledMessage: disableMessage,
+        id: 1,
+      };
     },
   },
   helpPageK8s: helpPagePath('user/clusters/agent/_index'),
-  K8S_OPTION,
   DEPLOYMENT_TARGET_SELECTIONS,
 };
 </script>
@@ -168,6 +232,30 @@ export default {
       </template>
     </gl-form-group>
 
-    <!-- Visibility Level should be added in: https://gitlab.com/gitlab-org/gitlab/-/issues/514700 -->
+    <gl-form-group :label="s__('ProjectsNew|Visibility Level')">
+      <single-choice-selector :checked="defaultVisibilityLevel" name="project[visibility_level]">
+        <single-choice-selector-item
+          v-for="{
+            title,
+            description,
+            icon,
+            value,
+            disabled,
+            disabledMessage,
+            id,
+          } in visibilityLevels"
+          :id="id"
+          :key="value"
+          :value="value"
+          :description="description"
+          :disabled-message="disabledMessage"
+          :disabled="disabled"
+          :data-testid="`${value}-visibility-level`"
+        >
+          <gl-icon :name="icon" />
+          {{ title }}
+        </single-choice-selector-item>
+      </single-choice-selector>
+    </gl-form-group>
   </div>
 </template>
diff --git a/app/assets/javascripts/projects/new_v2/index.js b/app/assets/javascripts/projects/new_v2/index.js
index 6b7bbb2ae53ee257137dd6f0f7ba9e6b7afbd513..fee9c87089e94581a16933e8027ace5de8731edc 100644
--- a/app/assets/javascripts/projects/new_v2/index.js
+++ b/app/assets/javascripts/projects/new_v2/index.js
@@ -30,6 +30,8 @@ export function initNewProjectForm() {
     canSelectNamespace,
     canCreateProject,
     userProjectLimit,
+    restrictedVisibilityLevels,
+    defaultProjectVisibility,
     importHistoryPath,
     importGitlabEnabled,
     importGitlabImportPath,
@@ -70,6 +72,8 @@ export function initNewProjectForm() {
     canSelectNamespace: parseBoolean(canSelectNamespace),
     canCreateProject: parseBoolean(canCreateProject),
     userProjectLimit: parseInt(userProjectLimit, 10),
+    restrictedVisibilityLevels: JSON.parse(restrictedVisibilityLevels),
+    defaultProjectVisibility,
     importHistoryPath,
     importGitlabEnabled: parseBoolean(importGitlabEnabled),
     importGitlabImportPath,
diff --git a/app/assets/javascripts/visibility_level/constants.js b/app/assets/javascripts/visibility_level/constants.js
index be6ea12119d31091418dc8351029ea2b4b01b47e..d0b2f874790e90145a647fb062352e4a775b955b 100644
--- a/app/assets/javascripts/visibility_level/constants.js
+++ b/app/assets/javascripts/visibility_level/constants.js
@@ -57,6 +57,18 @@ export const ORGANIZATION_VISIBILITY_TYPE = {
   ),
 };
 
+export const PROJECT_VISIBILITY_LEVEL_DESCRIPTIONS = {
+  [VISIBILITY_LEVEL_PUBLIC_STRING]: s__(
+    'VisibilityLevel|Project access must be granted explicitly to each user. If this project is part of a group, access is granted to members of the group.',
+  ),
+  [VISIBILITY_LEVEL_INTERNAL_STRING]: s__(
+    'VisibilityLevel|The project can be accessed by any logged in user except external users.',
+  ),
+  [VISIBILITY_LEVEL_PRIVATE_STRING]: s__(
+    'VisibilityLevel|The project can be accessed without any authentication.',
+  ),
+};
+
 export const GROUP_VISIBILITY_LEVEL_DESCRIPTIONS = {
   [VISIBILITY_LEVEL_PUBLIC_STRING]: s__(
     'VisibilityLevel|The group and any public projects can be viewed without any authentication.',
diff --git a/app/views/projects/new.html.haml b/app/views/projects/new.html.haml
index 4d2bb6b519d776abf83af1c8f937e1096c820bdf..ebfef15ee08508baed762b12d776c1a23b658307 100644
--- a/app/views/projects/new.html.haml
+++ b/app/views/projects/new.html.haml
@@ -25,6 +25,8 @@
     can_select_namespace: current_user.can_select_namespace?.to_s,
     can_create_project: current_user.can_create_project?.to_s,
     user_project_limit: current_user.projects_limit,
+    restricted_visibility_levels: restricted_visibility_levels,
+    default_project_visibility: default_project_visibility,
     import_history_path: import_history_index_path,
     import_gitlab_enabled: gitlab_project_import_enabled?.to_s,
     import_gitlab_import_path: new_import_gitlab_project_path,
diff --git a/spec/frontend/projects/new_v2/components/shared_project_creation_fields_spec.js b/spec/frontend/projects/new_v2/components/shared_project_creation_fields_spec.js
index 3ea8a1b4bd7febfa1ed873deeb87b0881d67cb01..de339f8cc604343795a287846a925aca5efdd1ba 100644
--- a/spec/frontend/projects/new_v2/components/shared_project_creation_fields_spec.js
+++ b/spec/frontend/projects/new_v2/components/shared_project_creation_fields_spec.js
@@ -1,6 +1,7 @@
 import { nextTick } from 'vue';
 import { GlFormInput, GlFormSelect } from '@gitlab/ui';
 import { shallowMountExtended } from 'helpers/vue_test_utils_helper';
+import SingleChoiceSelector from '~/vue_shared/components/single_choice_selector.vue';
 import SharedProjectCreationFields from '~/projects/new_v2/components/shared_project_creation_fields.vue';
 import NewProjectDestinationSelect from '~/projects/new_v2/components/project_destination_select.vue';
 import { DEPLOYMENT_TARGET_SELECTIONS } from '~/projects/new_v2/form_constants';
@@ -16,12 +17,15 @@ describe('Project creation form fields component', () => {
     },
   };
 
-  const createComponent = (props = {}) => {
+  const createComponent = ({ props = {}, provide = {} } = {}) => {
     wrapper = shallowMountExtended(SharedProjectCreationFields, {
       propsData: {
         ...defaultProps,
         ...props,
       },
+      provide: {
+        ...provide,
+      },
       stubs: {
         GlFormInput,
         GlFormSelect,
@@ -29,28 +33,34 @@ describe('Project creation form fields component', () => {
     });
   };
 
-  beforeEach(() => {
-    createComponent();
-  });
-
   const findProjectNameInput = () => wrapper.findByTestId('project-name-input');
   const findProjectSlugInput = () => wrapper.findByTestId('project-slug-input');
   const findNamespaceSelect = () => wrapper.findComponent(NewProjectDestinationSelect);
   const findDeploymentTargetSelect = () => wrapper.findByTestId('deployment-target-select');
   const findKubernetesHelpLink = () => wrapper.findByTestId('kubernetes-help-link');
+  const findVisibilitySelector = () => wrapper.findComponent(SingleChoiceSelector);
+  const findPrivateVisibilityLevelOption = () => wrapper.findByTestId('private-visibility-level');
+  const findInternalVisibilityLevelOption = () => wrapper.findByTestId('internal-visibility-level');
+  const findPublicVisibilityLevelOption = () => wrapper.findByTestId('public-visibility-level');
 
   describe('target select', () => {
     it('renders the optional deployment target select', () => {
+      createComponent();
+
       expect(findDeploymentTargetSelect().exists()).toBe(true);
       expect(findKubernetesHelpLink().exists()).toBe(false);
     });
 
     it('has all the options', () => {
+      createComponent();
+
       expect(findDeploymentTargetSelect().props('options')).toEqual(DEPLOYMENT_TARGET_SELECTIONS);
     });
   });
 
   it('updates project slug according to a project name', async () => {
+    createComponent();
+
     // NOTE: vue3 test needs the .setValue(value) and the vm.$emit('input'),
     // while the vue2 needs either .setValue(value) or vm.$emit('input', value)
     const value = 'My Awesome Project 123';
@@ -62,6 +72,8 @@ describe('Project creation form fields component', () => {
   });
 
   it('emits namespace change', () => {
+    createComponent();
+
     findNamespaceSelect().vm.$emit('onSelectNamespace', {
       id: '2',
       fullPath: 'group/subgroup',
@@ -78,6 +90,8 @@ describe('Project creation form fields component', () => {
 
   describe('validation', () => {
     it('shows an error message when project name is cleared', async () => {
+      createComponent();
+
       findProjectNameInput().setValue('');
       findProjectNameInput().trigger('blur');
       await nextTick();
@@ -87,6 +101,8 @@ describe('Project creation form fields component', () => {
     });
 
     it('shows an error message when slug is cleared', async () => {
+      createComponent();
+
       findProjectSlugInput().setValue('');
       findProjectSlugInput().trigger('blur');
       await nextTick();
@@ -95,4 +111,52 @@ describe('Project creation form fields component', () => {
       expect(formGroup.vm.$attrs['invalid-feedback']).toBe('Please enter project slug.');
     });
   });
+
+  describe('visibility selector', () => {
+    it('renders all levels when there are no restictions and parent is public', async () => {
+      createComponent();
+      await nextTick();
+
+      expect(findPrivateVisibilityLevelOption().props('disabled')).toBe(false);
+      expect(findInternalVisibilityLevelOption().props('disabled')).toBe(false);
+      expect(findPublicVisibilityLevelOption().props('disabled')).toBe(false);
+    });
+
+    it('renders internal visibility level as disabled when it was rescticted by admin', async () => {
+      createComponent({
+        provide: { restrictedVisibilityLevels: [10] },
+      });
+      await nextTick();
+
+      expect(findPrivateVisibilityLevelOption().props('disabled')).toBe(false);
+      expect(findInternalVisibilityLevelOption().props('disabled')).toBe(true);
+      expect(findPublicVisibilityLevelOption().props('disabled')).toBe(false);
+    });
+
+    it('renders public and internal visibility levels as disabled when parent is private', async () => {
+      createComponent({
+        props: {
+          namespace: {
+            id: '1',
+            fullPath: 'root',
+            isPersonal: false,
+            visibility: 'private',
+          },
+        },
+      });
+      await nextTick();
+
+      expect(findPrivateVisibilityLevelOption().props('disabled')).toBe(false);
+      expect(findInternalVisibilityLevelOption().props('disabled')).toBe(true);
+      expect(findPublicVisibilityLevelOption().props('disabled')).toBe(true);
+    });
+
+    it('renders internal visibility level as default when admin set it up', () => {
+      createComponent({
+        provide: { defaultProjectVisibility: 10 },
+      });
+
+      expect(findVisibilitySelector().props('checked')).toBe('internal');
+    });
+  });
 });