diff --git a/db/post_migrate/20220715152108_backfill_project_import_level.rb b/db/post_migrate/20220715152108_backfill_project_import_level.rb
new file mode 100644
index 0000000000000000000000000000000000000000..65a0dc0a58afc6a299bffe21650154912ffb399d
--- /dev/null
+++ b/db/post_migrate/20220715152108_backfill_project_import_level.rb
@@ -0,0 +1,22 @@
+# frozen_string_literal: true
+
+class BackfillProjectImportLevel < Gitlab::Database::Migration[2.0]
+  disable_ddl_transaction!
+  restrict_gitlab_migration gitlab_schema: :gitlab_main
+
+  MIGRATION = 'BackfillProjectImportLevel'
+  INTERVAL = 120.seconds
+
+  def up
+    queue_batched_background_migration(
+      MIGRATION,
+      :namespaces,
+      :id,
+      job_interval: INTERVAL
+    )
+  end
+
+  def down
+    delete_batched_background_migration(MIGRATION, :namespaces, :id, [])
+  end
+end
diff --git a/db/schema_migrations/20220715152108 b/db/schema_migrations/20220715152108
new file mode 100644
index 0000000000000000000000000000000000000000..23d61b453341b88cd265925f08e9bc6197f80df1
--- /dev/null
+++ b/db/schema_migrations/20220715152108
@@ -0,0 +1 @@
+76f4adebfb71dcd51f861097ba441ae5ee3f62eeb2060f147730d4e6c6006402
\ No newline at end of file
diff --git a/lib/gitlab/background_migration/backfill_project_import_level.rb b/lib/gitlab/background_migration/backfill_project_import_level.rb
new file mode 100644
index 0000000000000000000000000000000000000000..06706b729ea96849efde1f0bb83b6c812de7cb7d
--- /dev/null
+++ b/lib/gitlab/background_migration/backfill_project_import_level.rb
@@ -0,0 +1,35 @@
+# frozen_string_literal: true
+# rubocop:disable Style/Documentation
+module Gitlab
+  module BackgroundMigration
+    class BackfillProjectImportLevel < BatchedMigrationJob
+      LEVEL = {
+        Gitlab::Access::NO_ACCESS => [0],
+        Gitlab::Access::DEVELOPER => [2],
+        Gitlab::Access::MAINTAINER => [1],
+        Gitlab::Access::OWNER => [nil]
+      }.freeze
+
+      def perform
+        each_sub_batch(operation_name: :update_import_level) do |sub_batch|
+          update_import_level(sub_batch)
+        end
+      end
+
+      private
+
+      def update_import_level(relation)
+        LEVEL.each do |import_level, creation_level|
+          namespace_ids = relation
+            .where(type: 'Group', project_creation_level: creation_level)
+
+          NamespaceSetting.where(
+            namespace_id: namespace_ids
+          ).update_all(project_import_level: import_level)
+        end
+      end
+    end
+  end
+end
+
+# rubocop:enable Style/Documentation
diff --git a/spec/lib/gitlab/background_migration/backfill_project_import_level_spec.rb b/spec/lib/gitlab/background_migration/backfill_project_import_level_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..ae2964831667992d4f488c14e11a47817752467b
--- /dev/null
+++ b/spec/lib/gitlab/background_migration/backfill_project_import_level_spec.rb
@@ -0,0 +1,123 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+require_migration!
+
+# rubocop:disable Layout/HashAlignment
+RSpec.describe Gitlab::BackgroundMigration::BackfillProjectImportLevel do
+  let(:migration) do
+    described_class.new(
+      start_id:         table(:namespaces).minimum(:id),
+      end_id:           table(:namespaces).maximum(:id),
+      batch_table:      :namespaces,
+      batch_column:     :id,
+      sub_batch_size:   2,
+      pause_ms:         0,
+      connection:       ApplicationRecord.connection
+    )
+  end
+  # rubocop:enable Layout/HashAlignment
+
+  let(:namespaces_table) { table(:namespaces) }
+  let(:namespace_settings_table) { table(:namespace_settings) }
+
+  let!(:user_namespace) do
+    namespaces_table.create!(
+      name: 'user_namespace',
+      path: 'user_namespace',
+      type: 'User',
+      project_creation_level: 100
+    )
+  end
+
+  let!(:group_namespace_nil) do
+    namespaces_table.create!(
+      name: 'group_namespace_nil',
+      path: 'group_namespace_nil',
+      type: 'Group',
+      project_creation_level: nil
+    )
+  end
+
+  let!(:group_namespace_0) do
+    namespaces_table.create!(
+      name: 'group_namespace_0',
+      path: 'group_namespace_0',
+      type: 'Group',
+      project_creation_level: 0
+    )
+  end
+
+  let!(:group_namespace_1) do
+    namespaces_table.create!(
+      name: 'group_namespace_1',
+      path: 'group_namespace_1',
+      type: 'Group',
+      project_creation_level: 1
+    )
+  end
+
+  let!(:group_namespace_2) do
+    namespaces_table.create!(
+      name: 'group_namespace_2',
+      path: 'group_namespace_2',
+      type: 'Group',
+      project_creation_level: 2
+    )
+  end
+
+  let!(:group_namespace_9999) do
+    namespaces_table.create!(
+      name: 'group_namespace_9999',
+      path: 'group_namespace_9999',
+      type: 'Group',
+      project_creation_level: 9999
+    )
+  end
+
+  subject(:perform_migration) { migration.perform }
+
+  before do
+    namespace_settings_table.create!(namespace_id: user_namespace.id)
+    namespace_settings_table.create!(namespace_id: group_namespace_nil.id)
+    namespace_settings_table.create!(namespace_id: group_namespace_0.id)
+    namespace_settings_table.create!(namespace_id: group_namespace_1.id)
+    namespace_settings_table.create!(namespace_id: group_namespace_2.id)
+    namespace_settings_table.create!(namespace_id: group_namespace_9999.id)
+  end
+
+  describe 'Groups' do
+    using RSpec::Parameterized::TableSyntax
+
+    where(:namespace_id, :prev_level, :new_level) do
+      lazy { group_namespace_0.id }   | ::Gitlab::Access::OWNER | ::Gitlab::Access::NO_ACCESS
+      lazy { group_namespace_1.id }   | ::Gitlab::Access::OWNER | ::Gitlab::Access::MAINTAINER
+      lazy { group_namespace_2.id }   | ::Gitlab::Access::OWNER | ::Gitlab::Access::DEVELOPER
+    end
+
+    with_them do
+      it 'backfills the correct project_import_level of Group namespaces' do
+        expect { perform_migration }
+          .to change { namespace_settings_table.find_by(namespace_id: namespace_id).project_import_level }
+          .from(prev_level).to(new_level)
+      end
+    end
+
+    it 'does not update `User` namespaces or values outside range' do
+      expect { perform_migration }
+        .not_to change { namespace_settings_table.find_by(namespace_id: user_namespace.id).project_import_level }
+
+      expect { perform_migration }
+        .not_to change { namespace_settings_table.find_by(namespace_id: group_namespace_9999.id).project_import_level }
+    end
+
+    it 'maintains default import_level if creation_level is nil' do
+      project_import_level = namespace_settings_table.find_by(namespace_id: group_namespace_nil.id).project_import_level
+
+      expect { perform_migration }
+        .not_to change { project_import_level }
+
+      expect(project_import_level).to eq(::Gitlab::Access::OWNER)
+    end
+  end
+end
diff --git a/spec/migrations/backfill_project_import_level_spec.rb b/spec/migrations/backfill_project_import_level_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..c24ddac0730fbcc90137a9098ca3e624c6dbeab3
--- /dev/null
+++ b/spec/migrations/backfill_project_import_level_spec.rb
@@ -0,0 +1,29 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+require_migration!
+
+RSpec.describe BackfillProjectImportLevel do
+  let_it_be(:batched_migration) { described_class::MIGRATION }
+
+  describe '#up' do
+    it 'schedules background jobs for each batch of namespaces' do
+      migrate!
+
+      expect(batched_migration).to have_scheduled_batched_migration(
+        table_name: :namespaces,
+        column_name: :id,
+        interval: described_class::INTERVAL
+      )
+    end
+  end
+
+  describe '#down' do
+    it 'deletes all batched migration records' do
+      migrate!
+      schema_migrate_down!
+
+      expect(batched_migration).not_to have_scheduled_batched_migration
+    end
+  end
+end