diff --git a/backend/src/db/migrations/20251023100246_project-identity.ts b/backend/src/db/migrations/20251023100246_project-identity.ts
new file mode 100644
index 000000000..99bd3edb8
--- /dev/null
+++ b/backend/src/db/migrations/20251023100246_project-identity.ts
@@ -0,0 +1,21 @@
+import { Knex } from "knex";
+import { TableName } from "../schemas";
+
+export async function up(knex: Knex): Promise<void> {
+  const hasProjectIdCol = await knex.schema.hasColumn(TableName.Identity, "projectId");
+  if (!hasProjectIdCol) {
+    await knex.schema.alterTable(TableName.Identity, (t) => {
+      t.string("projectId");
+      t.foreign("projectId").references("id").inTable(TableName.Project).onDelete("CASCADE");
+    });
+  }
+}
+
+export async function down(knex: Knex): Promise<void> {
+  const hasProjectIdCol = await knex.schema.hasColumn(TableName.Identity, "projectId");
+  if (hasProjectIdCol) {
+    await knex.schema.alterTable(TableName.Identity, (t) => {
+      t.dropColumn("projectId");
+    });
+  }
+}
diff --git a/backend/src/db/schemas/identities.ts b/backend/src/db/schemas/identities.ts
index 06c37ff22..0814d665e 100644
--- a/backend/src/db/schemas/identities.ts
+++ b/backend/src/db/schemas/identities.ts
@@ -14,7 +14,8 @@ export const IdentitiesSchema = z.object({
   createdAt: z.date(),
   updatedAt: z.date(),
   hasDeleteProtection: z.boolean().default(false),
-  orgId: z.string().uuid()
+  orgId: z.string().uuid(),
+  projectId: z.string().nullable().optional()
 });
 
 export type TIdentities = z.infer<typeof IdentitiesSchema>;
diff --git a/backend/src/services/scoped-identity/identity-dal.ts b/backend/src/services/scoped-identity/identity-dal.ts
new file mode 100644
index 000000000..0375a1b08
--- /dev/null
+++ b/backend/src/services/scoped-identity/identity-dal.ts
@@ -0,0 +1,185 @@
+import { TDbClient } from "@app/db";
+import { AccessScope, AccessScopeData, IdentitiesSchema, TableName } from "@app/db/schemas";
+import { ormify, selectAllTableCols, sqlNestRelationships } from "@app/lib/knex";
+
+import { buildAuthMethods } from "../identity/identity-fns";
+
+export type TIdentityDALFactory = ReturnType<typeof identityDALFactory>;
+
+export const identityDALFactory = (db: TDbClient) => {
+  const orm = ormify(db, TableName.Identity);
+
+  const getIdentityById = async (scopeData: AccessScopeData, identityId: string) => {
+    const doc = await db
+      .replicaNode()(TableName.Identity)
+      .leftJoin(TableName.IdentityMetadata, (queryBuilder) => {
+        void queryBuilder
+          .on(`${TableName.Identity}.id`, `${TableName.IdentityMetadata}.identityId`)
+          .andOn(`${TableName.Identity}.orgId`, `${TableName.IdentityMetadata}.orgId`);
+      })
+      .leftJoin(
+        TableName.IdentityUniversalAuth,
+        `${TableName.Identity}.id`,
+        `${TableName.IdentityUniversalAuth}.identityId`
+      )
+      .leftJoin(TableName.IdentityGcpAuth, `${TableName.Identity}.id`, `${TableName.IdentityGcpAuth}.identityId`)
+      .leftJoin(
+        TableName.IdentityAliCloudAuth,
+        `${TableName.Identity}.id`,
+        `${TableName.IdentityAliCloudAuth}.identityId`
+      )
+      .leftJoin(TableName.IdentityAwsAuth, `${TableName.Identity}.id`, `${TableName.IdentityAwsAuth}.identityId`)
+      .leftJoin(
+        TableName.IdentityKubernetesAuth,
+        `${TableName.Identity}.id`,
+        `${TableName.IdentityKubernetesAuth}.identityId`
+      )
+      .leftJoin(TableName.IdentityOciAuth, `${TableName.Identity}.id`, `${TableName.IdentityOciAuth}.identityId`)
+      .leftJoin(TableName.IdentityOidcAuth, `${TableName.Identity}.id`, `${TableName.IdentityOidcAuth}.identityId`)
+      .leftJoin(TableName.IdentityAzureAuth, `${TableName.Identity}.id`, `${TableName.IdentityAzureAuth}.identityId`)
+      .leftJoin(TableName.IdentityTokenAuth, `${TableName.Identity}.id`, `${TableName.IdentityTokenAuth}.identityId`)
+      .leftJoin(
+        TableName.IdentityTlsCertAuth,
+        `${TableName.Identity}.id`,
+        `${TableName.IdentityTlsCertAuth}.identityId`
+      )
+      .leftJoin(TableName.IdentityLdapAuth, `${TableName.Identity}.id`, `${TableName.IdentityLdapAuth}.identityId`)
+      .leftJoin(TableName.IdentityJwtAuth, `${TableName.Identity}.id`, `${TableName.IdentityJwtAuth}.identityId`)
+      .where(`${TableName.Identity}.id`, identityId)
+      .where(`${TableName.Identity}.orgId`, scopeData.orgId)
+      .where((qb) => {
+        if (scopeData.scope === AccessScope.Project) {
+          void qb.where(`${TableName.Identity}.projectId`, scopeData.projectId);
+        } else {
+          void qb.whereNull(`${TableName.Identity}.projectId`);
+        }
+      })
+      .select(
+        selectAllTableCols(TableName.Identity),
+        db.ref("id").withSchema(TableName.IdentityMetadata).as("metadataId"),
+        db.ref("key").withSchema(TableName.IdentityMetadata).as("metadataKey"),
+        db.ref("value").withSchema(TableName.IdentityMetadata).as("metadataValue"),
+        db.ref("id").as("uaId").withSchema(TableName.IdentityUniversalAuth),
+        db.ref("id").as("gcpId").withSchema(TableName.IdentityGcpAuth),
+        db.ref("id").as("alicloudId").withSchema(TableName.IdentityAliCloudAuth),
+        db.ref("id").as("awsId").withSchema(TableName.IdentityAwsAuth),
+        db.ref("id").as("kubernetesId").withSchema(TableName.IdentityKubernetesAuth),
+        db.ref("id").as("ociId").withSchema(TableName.IdentityOciAuth),
+        db.ref("id").as("oidcId").withSchema(TableName.IdentityOidcAuth),
+        db.ref("id").as("azureId").withSchema(TableName.IdentityAzureAuth),
+        db.ref("id").as("tokenId").withSchema(TableName.IdentityTokenAuth),
+        db.ref("id").as("jwtId").withSchema(TableName.IdentityJwtAuth),
+        db.ref("id").as("ldapId").withSchema(TableName.IdentityLdapAuth),
+        db.ref("id").as("tlsCertId").withSchema(TableName.IdentityTlsCertAuth)
+      );
+
+    if (!doc) return doc;
+
+    const formattedDoc = sqlNestRelationships({
+      data: doc,
+      key: "id",
+      parentMapper: (el) => {
+        const {
+          uaId,
+          awsId,
+          gcpId,
+          kubernetesId,
+          oidcId,
+          azureId,
+          alicloudId,
+          tokenId,
+          jwtId,
+          ociId,
+          ldapId,
+          tlsCertId
+        } = el;
+        return {
+          ...IdentitiesSchema.parse(el),
+          authMethods: buildAuthMethods({
+            uaId,
+            awsId,
+            gcpId,
+            kubernetesId,
+            oidcId,
+            azureId,
+            tokenId,
+            alicloudId,
+            jwtId,
+            ldapId,
+            ociId,
+            tlsCertId
+          })
+        };
+      },
+      childrenMapper: [
+        {
+          key: "metadataId",
+          label: "metadata" as const,
+          mapper: ({ metadataKey, metadataValue, metadataId }) => ({
+            id: metadataId,
+            key: metadataKey,
+            value: metadataValue
+          })
+        }
+      ]
+    });
+
+    return formattedDoc?.[0];
+  };
+
+  const listIdentities = async (
+    scopeData: AccessScopeData,
+    filter: { limit?: number; offset?: number; search?: string } = {}
+  ) => {
+    const query = db
+      .replicaNode()(TableName.Identity)
+      .leftJoin(TableName.IdentityMetadata, (queryBuilder) => {
+        void queryBuilder
+          .on(`${TableName.Identity}.id`, `${TableName.IdentityMetadata}.identityId`)
+          .andOn(`${TableName.Identity}.orgId`, `${TableName.IdentityMetadata}.orgId`);
+      })
+      .where(`${TableName.Identity}.orgId`, scopeData.orgId)
+      .where((qb) => {
+        if (scopeData.scope === AccessScope.Project) {
+          void qb.where(`${TableName.Identity}.projectId`, scopeData.projectId);
+        } else {
+          void qb.whereNull(`${TableName.Identity}.projectId`);
+        }
+      })
+      .select(
+        selectAllTableCols(TableName.Identity),
+        db.ref("id").withSchema(TableName.IdentityMetadata).as("metadataId"),
+        db.ref("key").withSchema(TableName.IdentityMetadata).as("metadataKey"),
+        db.ref("value").withSchema(TableName.IdentityMetadata).as("metadataValue")
+      )
+      .select(db.raw(`count(distinct ??) over () as ??`, [`${TableName.Identity}.id`, "count"]));
+
+    if (filter.limit) void query.limit(filter.limit);
+    if (filter.offset) void query.offset(filter.offset || 0);
+
+    if (filter.search) void query.whereILike(`${TableName.Identity}.name`, `%${filter.search}%`);
+
+    const docs = await query;
+
+    const formattedDoc = sqlNestRelationships({
+      data: docs,
+      key: "id",
+      parentMapper: (el) => IdentitiesSchema.parse(el),
+      childrenMapper: [
+        {
+          key: "metadataId",
+          label: "metadata" as const,
+          mapper: ({ metadataKey, metadataValue, metadataId }) => ({
+            id: metadataId,
+            key: metadataKey,
+            value: metadataValue
+          })
+        }
+      ]
+    });
+
+    return { docs: formattedDoc, count: Number((docs?.[0] as unknown as { count: number })?.count) };
+  };
+
+  return { ...orm, listIdentities, getIdentityById };
+};
diff --git a/backend/src/services/scoped-identity/identity-service.ts b/backend/src/services/scoped-identity/identity-service.ts
new file mode 100644
index 000000000..b3605bd93
--- /dev/null
+++ b/backend/src/services/scoped-identity/identity-service.ts
@@ -0,0 +1,245 @@
+import { AccessScope, OrgMembershipRole } from "@app/db/schemas";
+import { TLicenseServiceFactory } from "@app/ee/services/license/license-service";
+import { TPermissionServiceFactory } from "@app/ee/services/permission/permission-service-types";
+import { BadRequestError, NotFoundError } from "@app/lib/errors";
+
+import { TIdentityMetadataDALFactory } from "../identity/identity-metadata-dal";
+import { TMembershipRoleDALFactory } from "../membership/membership-role-dal";
+import { TMembershipIdentityDALFactory } from "../membership-identity/membership-identity-dal";
+import { TIdentityDALFactory } from "./identity-dal";
+import {
+  TCreateIdentityDTO,
+  TDeleteIdentityDTO,
+  TGetIdentityByIdDTO,
+  TListIdentityDTO,
+  TUpdateIdentityDTO
+} from "./identity-types";
+import { newOrgIdentityFactory } from "./org/org-identity-factory";
+import { newProjectIdentityFactory } from "./project/project-identity-factory";
+
+type TScopedIdentityServiceFactoryDep = {
+  identityDAL: TIdentityDALFactory;
+  permissionService: TPermissionServiceFactory;
+  licenseService: Pick<TLicenseServiceFactory, "getPlan" | "updateSubscriptionOrgMemberCount">;
+  membershipIdentityDAL: TMembershipIdentityDALFactory;
+  membershipRoleDAL: TMembershipRoleDALFactory;
+  identityMetadataDAL: TIdentityMetadataDALFactory;
+};
+
+export type TScopedIdentityServiceFactory = ReturnType<typeof identityServiceFactory>;
+
+export const identityServiceFactory = ({
+  identityDAL,
+  permissionService,
+  licenseService,
+  membershipIdentityDAL,
+  membershipRoleDAL,
+  identityMetadataDAL
+}: TScopedIdentityServiceFactoryDep) => {
+  const orgFactory = newOrgIdentityFactory({
+    permissionService
+  });
+  const projectFactory = newProjectIdentityFactory({
+    permissionService
+  });
+
+  const scopeFactory = {
+    [AccessScope.Organization]: orgFactory,
+    [AccessScope.Project]: projectFactory,
+    // namespace will get stripped off
+    [AccessScope.Namespace]: orgFactory
+  };
+
+  const createIdentity = async (dto: TCreateIdentityDTO) => {
+    const { scopeData, data } = dto;
+    const factory = scopeFactory[scopeData.scope];
+
+    await factory.onCreateIdentityGuard(dto);
+
+    const plan = await licenseService.getPlan(dto.permission.orgId);
+
+    if (plan?.slug !== "enterprise" && plan?.identityLimit && plan.identitiesUsed >= plan.identityLimit) {
+      // limit imposed on number of identities allowed / number of identities used exceeds the number of identities allowed
+      throw new BadRequestError({
+        message: "Failed to create identity due to identity limit reached. Upgrade plan to create more identities."
+      });
+    }
+
+    const identity = await identityDAL.transaction(async (tx) => {
+      const newIdentity = await identityDAL.create(
+        {
+          name: data.name,
+          hasDeleteProtection: data.hasDeleteProtection,
+          orgId: dto.permission.orgId,
+          projectId: scopeData.scope === AccessScope.Project ? scopeData.projectId : null
+        },
+        tx
+      );
+      const orgMembership = await membershipIdentityDAL.create(
+        {
+          scope: AccessScope.Organization,
+          actorIdentityId: newIdentity.id,
+          scopeOrgId: dto.permission.orgId
+        },
+        tx
+      );
+
+      const newMembershipIds = [orgMembership.id];
+      if (scopeData.scope === AccessScope.Project) {
+        const projectMembership = await membershipIdentityDAL.create(
+          {
+            scope: AccessScope.Project,
+            actorIdentityId: newIdentity.id,
+            scopeOrgId: dto.permission.orgId,
+            scopeProjectId: scopeData.projectId
+          },
+          tx
+        );
+        newMembershipIds.push(projectMembership.id);
+      }
+
+      await membershipRoleDAL.insertMany(
+        newMembershipIds.map((membershipId) => ({
+          membershipId,
+          role: OrgMembershipRole.NoAccess
+        })),
+        tx
+      );
+
+      let insertedMetadata: Array<{
+        id: string;
+        key: string;
+        value: string;
+      }> = [];
+
+      if (data.metadata && data.metadata.length) {
+        const rowsToInsert = data.metadata.map(({ key, value }) => ({
+          identityId: newIdentity.id,
+          orgId: dto.permission.orgId,
+          key,
+          value
+        }));
+
+        insertedMetadata = await identityMetadataDAL.insertMany(rowsToInsert, tx);
+      }
+
+      return {
+        ...newIdentity,
+        authMethods: [],
+        metadata: insertedMetadata
+      };
+    });
+    await licenseService.updateSubscriptionOrgMemberCount(dto.permission.orgId);
+
+    return { identity };
+  };
+
+  const updateIdentity = async (dto: TUpdateIdentityDTO) => {
+    const { scopeData, data } = dto;
+    const factory = scopeFactory[scopeData.scope];
+
+    await factory.onUpdateIdentityGuard(dto);
+    const existingIdentity = await identityDAL.findOne({
+      id: dto.selector.identityId,
+      orgId: dto.permission.orgId,
+      projectId: dto.scopeData.scope === AccessScope.Project ? dto.scopeData.projectId : null
+    });
+    if (!existingIdentity)
+      throw new NotFoundError({ message: `Identity with id ${dto.selector.identityId} not found` });
+
+    const identity = await identityDAL.transaction(async (tx) => {
+      const newIdentity =
+        data?.name || data?.hasDeleteProtection
+          ? await identityDAL.updateById(
+              dto.selector.identityId,
+              { name: data.name, hasDeleteProtection: data.hasDeleteProtection },
+              tx
+            )
+          : existingIdentity;
+
+      let insertedMetadata: Array<{
+        id: string;
+        key: string;
+        value: string;
+      }> = [];
+
+      if (data.metadata) {
+        await identityMetadataDAL.delete({ orgId: dto.permission.orgId, identityId: dto.selector.identityId }, tx);
+
+        if (data.metadata.length) {
+          const rowsToInsert = data.metadata.map(({ key, value }) => ({
+            identityId: newIdentity.id,
+            orgId: dto.permission.orgId,
+            key,
+            value
+          }));
+
+          insertedMetadata = await identityMetadataDAL.insertMany(rowsToInsert, tx);
+        }
+      }
+
+      return {
+        ...newIdentity,
+        metadata: insertedMetadata
+      };
+    });
+
+    return { identity };
+  };
+
+  const deleteIdentity = async (dto: TDeleteIdentityDTO) => {
+    const { scopeData } = dto;
+    const factory = scopeFactory[scopeData.scope];
+
+    await factory.onDeleteIdentityGuard(dto);
+
+    const existingIdentity = await identityDAL.findOne({
+      id: dto.selector.identityId,
+      orgId: dto.permission.orgId,
+      projectId: dto.scopeData.scope === AccessScope.Project ? dto.scopeData.projectId : null
+    });
+    if (!existingIdentity)
+      throw new NotFoundError({ message: `Identity with id ${dto.selector.identityId} not found` });
+
+    const deletedIdentity = await identityDAL.deleteById(dto.selector.identityId);
+
+    await licenseService.updateSubscriptionOrgMemberCount(scopeData.orgId);
+
+    return { identity: deletedIdentity };
+  };
+
+  const getIdentityById = async (dto: TGetIdentityByIdDTO) => {
+    const { scopeData } = dto;
+    const factory = scopeFactory[scopeData.scope];
+
+    await factory.onGetIdentityByIdGuard(dto);
+
+    const identity = await identityDAL.getIdentityById(dto.scopeData, dto.selector.identityId);
+    if (!identity) throw new NotFoundError({ message: `Identity with id ${dto.selector.identityId} not found` });
+
+    return { identity };
+  };
+
+  const listIdentities = async (dto: TListIdentityDTO) => {
+    const { scopeData } = dto;
+    const factory = scopeFactory[scopeData.scope];
+
+    await factory.onListIdentityGuard(dto);
+
+    const identities = await identityDAL.listIdentities(dto.scopeData, {
+      search: dto.data.search,
+      offset: dto.data.offset,
+      limit: dto.data.limit
+    });
+
+    return { identities };
+  };
+
+  return {
+    createIdentity,
+    updateIdentity,
+    deleteIdentity,
+    getIdentityById,
+    listIdentities
+  };
+};
diff --git a/backend/src/services/scoped-identity/identity-types.ts b/backend/src/services/scoped-identity/identity-types.ts
new file mode 100644
index 000000000..4d3e3e0ff
--- /dev/null
+++ b/backend/src/services/scoped-identity/identity-types.ts
@@ -0,0 +1,67 @@
+import { AccessScopeData } from "@app/db/schemas";
+import { OrderByDirection, OrgServiceActor } from "@app/lib/types";
+
+export interface TIdentityFactory {
+  onCreateIdentityGuard: (arg: TCreateIdentityDTO) => Promise<void>;
+  onUpdateIdentityGuard: (arg: TUpdateIdentityDTO) => Promise<void>;
+  onDeleteIdentityGuard: (arg: TDeleteIdentityDTO) => Promise<void>;
+  onListIdentityGuard: (arg: TListIdentityDTO) => Promise<void>;
+  onGetIdentityByIdGuard: (arg: TGetIdentityByIdDTO) => Promise<void>;
+  getScopeField: (scope: AccessScopeData) => { key: "orgId" | "namespaceId" | "projectId"; value: string };
+}
+
+export enum IdentityOrderBy {
+  Name = "name",
+  Role = "role"
+}
+
+export type TCreateIdentityDTO = {
+  permission: OrgServiceActor;
+  scopeData: AccessScopeData;
+  data: {
+    name: string;
+    hasDeleteProtection: boolean;
+    metadata?: { key: string; value: string }[];
+  };
+};
+
+export type TUpdateIdentityDTO = {
+  permission: OrgServiceActor;
+  scopeData: AccessScopeData;
+  selector: {
+    identityId: string;
+  };
+  data: Partial<{
+    name: string;
+    hasDeleteProtection: boolean;
+    metadata?: { key: string; value: string }[];
+  }>;
+};
+
+export type TDeleteIdentityDTO = {
+  permission: OrgServiceActor;
+  scopeData: AccessScopeData;
+  selector: {
+    identityId: string;
+  };
+};
+
+export type TGetIdentityByIdDTO = {
+  permission: OrgServiceActor;
+  scopeData: AccessScopeData;
+  selector: {
+    identityId: string;
+  };
+};
+
+export type TListIdentityDTO = {
+  permission: OrgServiceActor;
+  scopeData: AccessScopeData;
+  data: Partial<{
+    limit: number;
+    offset: number;
+    orderBy: IdentityOrderBy;
+    orderDirection: OrderByDirection;
+    search: string;
+  }>;
+};
diff --git a/backend/src/services/scoped-identity/org/org-identity-factory.ts b/backend/src/services/scoped-identity/org/org-identity-factory.ts
new file mode 100644
index 000000000..cec7a4e66
--- /dev/null
+++ b/backend/src/services/scoped-identity/org/org-identity-factory.ts
@@ -0,0 +1,90 @@
+import { ForbiddenError } from "@casl/ability";
+
+import { AccessScope, OrganizationActionScope } from "@app/db/schemas";
+import { OrgPermissionIdentityActions, OrgPermissionSubjects } from "@app/ee/services/permission/org-permission";
+import { TPermissionServiceFactory } from "@app/ee/services/permission/permission-service-types";
+import { InternalServerError } from "@app/lib/errors";
+
+import { TIdentityFactory } from "../identity-types";
+
+type TOrgIdentityFactoryDep = {
+  permissionService: Pick<TPermissionServiceFactory, "getOrgPermission">;
+};
+
+export const newOrgIdentityFactory = ({ permissionService }: TOrgIdentityFactoryDep): TIdentityFactory => {
+  const getScopeField: TIdentityFactory["getScopeField"] = (scopeData) => {
+    if (scopeData.scope === AccessScope.Organization) {
+      return { key: "orgId" as const, value: scopeData.orgId };
+    }
+    throw new InternalServerError({ message: "Invalid scope provided for the org factory" });
+  };
+
+  const onCreateIdentityGuard: TIdentityFactory["onCreateIdentityGuard"] = async (dto) => {
+    const { permission } = await permissionService.getOrgPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      orgId: dto.permission.orgId,
+      actorAuthMethod: dto.permission.authMethod,
+      actorOrgId: dto.permission.orgId,
+      scope: OrganizationActionScope.Any
+    });
+    ForbiddenError.from(permission).throwUnlessCan(OrgPermissionIdentityActions.Create, OrgPermissionSubjects.Identity);
+  };
+
+  const onUpdateIdentityGuard: TIdentityFactory["onUpdateIdentityGuard"] = async (dto) => {
+    const { permission } = await permissionService.getOrgPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      orgId: dto.permission.orgId,
+      actorAuthMethod: dto.permission.authMethod,
+      actorOrgId: dto.permission.orgId,
+      scope: OrganizationActionScope.Any
+    });
+    ForbiddenError.from(permission).throwUnlessCan(OrgPermissionIdentityActions.Edit, OrgPermissionSubjects.Identity);
+  };
+
+  const onDeleteIdentityGuard: TIdentityFactory["onDeleteIdentityGuard"] = async (dto) => {
+    const { permission } = await permissionService.getOrgPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      orgId: dto.permission.orgId,
+      actorAuthMethod: dto.permission.authMethod,
+      actorOrgId: dto.permission.orgId,
+      scope: OrganizationActionScope.Any
+    });
+    ForbiddenError.from(permission).throwUnlessCan(OrgPermissionIdentityActions.Delete, OrgPermissionSubjects.Identity);
+  };
+
+  const onListIdentityGuard: TIdentityFactory["onListIdentityGuard"] = async (dto) => {
+    const { permission } = await permissionService.getOrgPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      orgId: dto.permission.orgId,
+      actorAuthMethod: dto.permission.authMethod,
+      actorOrgId: dto.permission.orgId,
+      scope: OrganizationActionScope.Any
+    });
+    ForbiddenError.from(permission).throwUnlessCan(OrgPermissionIdentityActions.Read, OrgPermissionSubjects.Identity);
+  };
+
+  const onGetIdentityByIdGuard: TIdentityFactory["onGetIdentityByIdGuard"] = async (dto) => {
+    const { permission } = await permissionService.getOrgPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      orgId: dto.permission.orgId,
+      actorAuthMethod: dto.permission.authMethod,
+      actorOrgId: dto.permission.orgId,
+      scope: OrganizationActionScope.Any
+    });
+    ForbiddenError.from(permission).throwUnlessCan(OrgPermissionIdentityActions.Read, OrgPermissionSubjects.Identity);
+  };
+
+  return {
+    onCreateIdentityGuard,
+    onUpdateIdentityGuard,
+    onDeleteIdentityGuard,
+    onListIdentityGuard,
+    onGetIdentityByIdGuard,
+    getScopeField
+  };
+};
diff --git a/backend/src/services/scoped-identity/project/project-identity-factory.ts b/backend/src/services/scoped-identity/project/project-identity-factory.ts
new file mode 100644
index 000000000..cf6976a5b
--- /dev/null
+++ b/backend/src/services/scoped-identity/project/project-identity-factory.ts
@@ -0,0 +1,110 @@
+import { ForbiddenError } from "@casl/ability";
+
+import { AccessScope, ActionProjectType } from "@app/db/schemas";
+import { TPermissionServiceFactory } from "@app/ee/services/permission/permission-service-types";
+import { ProjectPermissionIdentityActions, ProjectPermissionSub } from "@app/ee/services/permission/project-permission";
+import { InternalServerError } from "@app/lib/errors";
+
+import { TIdentityFactory } from "../identity-types";
+
+type TProjectIdentityFactoryDep = {
+  permissionService: Pick<TPermissionServiceFactory, "getProjectPermission">;
+};
+
+export const newProjectIdentityFactory = ({ permissionService }: TProjectIdentityFactoryDep): TIdentityFactory => {
+  const getScopeField: TIdentityFactory["getScopeField"] = (scopeData) => {
+    if (scopeData.scope === AccessScope.Project) {
+      return { key: "projectId" as const, value: scopeData.projectId };
+    }
+    throw new InternalServerError({ message: "Invalid scope provided for the project factory" });
+  };
+
+  const onCreateIdentityGuard: TIdentityFactory["onCreateIdentityGuard"] = async (dto) => {
+    const scope = getScopeField(dto.scopeData);
+    const { permission } = await permissionService.getProjectPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      actionProjectType: ActionProjectType.Any,
+      actorAuthMethod: dto.permission.authMethod,
+      projectId: scope.value,
+      actorOrgId: dto.permission.orgId
+    });
+    ForbiddenError.from(permission).throwUnlessCan(
+      ProjectPermissionIdentityActions.Create,
+      ProjectPermissionSub.Identity
+    );
+  };
+
+  const onUpdateIdentityGuard: TIdentityFactory["onUpdateIdentityGuard"] = async (dto) => {
+    const scope = getScopeField(dto.scopeData);
+    const { permission } = await permissionService.getProjectPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      actionProjectType: ActionProjectType.Any,
+      actorAuthMethod: dto.permission.authMethod,
+      projectId: scope.value,
+      actorOrgId: dto.permission.orgId
+    });
+    ForbiddenError.from(permission).throwUnlessCan(
+      ProjectPermissionIdentityActions.Edit,
+      ProjectPermissionSub.Identity
+    );
+  };
+
+  const onDeleteIdentityGuard: TIdentityFactory["onDeleteIdentityGuard"] = async (dto) => {
+    const scope = getScopeField(dto.scopeData);
+    const { permission } = await permissionService.getProjectPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      actionProjectType: ActionProjectType.Any,
+      actorAuthMethod: dto.permission.authMethod,
+      projectId: scope.value,
+      actorOrgId: dto.permission.orgId
+    });
+    ForbiddenError.from(permission).throwUnlessCan(
+      ProjectPermissionIdentityActions.Delete,
+      ProjectPermissionSub.Identity
+    );
+  };
+
+  const onListIdentityGuard: TIdentityFactory["onListIdentityGuard"] = async (dto) => {
+    const scope = getScopeField(dto.scopeData);
+    const { permission } = await permissionService.getProjectPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      actionProjectType: ActionProjectType.Any,
+      actorAuthMethod: dto.permission.authMethod,
+      projectId: scope.value,
+      actorOrgId: dto.permission.orgId
+    });
+    ForbiddenError.from(permission).throwUnlessCan(
+      ProjectPermissionIdentityActions.Read,
+      ProjectPermissionSub.Identity
+    );
+  };
+
+  const onGetIdentityByIdGuard: TIdentityFactory["onGetIdentityByIdGuard"] = async (dto) => {
+    const scope = getScopeField(dto.scopeData);
+    const { permission } = await permissionService.getProjectPermission({
+      actor: dto.permission.type,
+      actorId: dto.permission.id,
+      actionProjectType: ActionProjectType.Any,
+      actorAuthMethod: dto.permission.authMethod,
+      projectId: scope.value,
+      actorOrgId: dto.permission.orgId
+    });
+    ForbiddenError.from(permission).throwUnlessCan(
+      ProjectPermissionIdentityActions.Read,
+      ProjectPermissionSub.Identity
+    );
+  };
+
+  return {
+    onCreateIdentityGuard,
+    onUpdateIdentityGuard,
+    onDeleteIdentityGuard,
+    onListIdentityGuard,
+    onGetIdentityByIdGuard,
+    getScopeField
+  };
+};