diff --git a/CHANGELOG b/CHANGELOG
index 68ea866968..62870aee08 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -31,6 +31,7 @@ v 8.9.0 (unreleased)
   - Cache assigned issue and merge request counts in sidebar nav
   - Cache project build count in sidebar nav
   - Reduce number of queries needed to render issue labels in the sidebar
+  - Improve error handling importing projects
 
 v 8.8.3
   - Fix 404 page when viewing TODOs that contain milestones or labels in different projects. !4312
diff --git a/app/models/project.rb b/app/models/project.rb
index 9ccf6a97df..e4a9d17a20 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -1017,4 +1017,16 @@ class Project < ActiveRecord::Base
       builds.running_or_pending.count(:all)
     end
   end
+
+  def mark_import_as_failed(error_message)
+    original_errors = errors.dup
+    sanitized_message = Gitlab::UrlSanitizer.sanitize(error_message)
+
+    import_fail
+    update_column(:import_error, sanitized_message)
+  rescue ActiveRecord::ActiveRecordError => e
+    Rails.logger.error("Error setting import status to failed: #{e.message}. Original error: #{sanitized_message}")
+  ensure
+    @errors = original_errors
+  end
 end
diff --git a/app/services/projects/create_service.rb b/app/services/projects/create_service.rb
index 6728fabea1..61cac5419a 100644
--- a/app/services/projects/create_service.rb
+++ b/app/services/projects/create_service.rb
@@ -56,14 +56,14 @@ module Projects
 
       after_create_actions if @project.persisted?
 
-      @project.add_import_job if @project.import?
-
+      if @project.errors.empty?
+        @project.add_import_job if @project.import?
+      else
+        fail(error: @project.errors.full_messages.join(', '))
+      end
       @project
     rescue => e
-      message = "Unable to save project: #{e.message}"
-      Rails.logger.error(message)
-      @project.errors.add(:base, message) if @project
-      @project
+      fail(error: e.message)
     end
 
     protected
@@ -103,5 +103,19 @@ module Projects
         end
       end
     end
+
+    def fail(error:)
+      message = "Unable to save project. Error: #{error}"
+      message << "Project ID: #{@project.id}" if @project && @project.id
+
+      Rails.logger.error(message)
+
+      if @project && @project.import?
+        @project.errors.add(:base, message)
+        @project.mark_import_as_failed(message)
+      end
+
+      @project
+    end
   end
 end
diff --git a/app/services/projects/import_service.rb b/app/services/projects/import_service.rb
index ef15ef6a47..c4838d31f2 100644
--- a/app/services/projects/import_service.rb
+++ b/app/services/projects/import_service.rb
@@ -39,7 +39,7 @@ module Projects
       begin
         gitlab_shell.import_repository(project.path_with_namespace, project.import_url)
       rescue Gitlab::Shell::Error => e
-        raise Error, e.message
+        raise Error,  "Error importing repository #{project.import_url} into #{project.path_with_namespace} - #{e.message}"
       end
     end
 
diff --git a/app/workers/repository_fork_worker.rb b/app/workers/repository_fork_worker.rb
index f9e3233798..d947f10551 100644
--- a/app/workers/repository_fork_worker.rb
+++ b/app/workers/repository_fork_worker.rb
@@ -15,8 +15,7 @@ class RepositoryForkWorker
     result = gitlab_shell.fork_repository(source_path, target_path)
     unless result
       logger.error("Unable to fork project #{project_id} for repository #{source_path} -> #{target_path}")
-      project.update(import_error: "The project could not be forked.")
-      project.import_fail
+      project.mark_import_as_failed('The project could not be forked.')
       return
     end
 
@@ -24,8 +23,7 @@ class RepositoryForkWorker
 
     unless project.valid_repo?
       logger.error("Project #{project_id} had an invalid repository after fork")
-      project.update(import_error: "The forked repository is invalid.")
-      project.import_fail
+      project.mark_import_as_failed('The forked repository is invalid.')
       return
     end
 
diff --git a/app/workers/repository_import_worker.rb b/app/workers/repository_import_worker.rb
index fbc7ed63c6..7d819fe78f 100644
--- a/app/workers/repository_import_worker.rb
+++ b/app/workers/repository_import_worker.rb
@@ -13,8 +13,7 @@ class RepositoryImportWorker
     result = Projects::ImportService.new(project, current_user).execute
 
     if result[:status] == :error
-      project.update(import_error: Gitlab::UrlSanitizer.sanitize(result[:message]))
-      project.import_fail
+      project.mark_import_as_failed(result[:message])
       return
     end
 
diff --git a/spec/services/projects/import_service_spec.rb b/spec/services/projects/import_service_spec.rb
index 7f2dcdab96..9d90bfceb7 100644
--- a/spec/services/projects/import_service_spec.rb
+++ b/spec/services/projects/import_service_spec.rb
@@ -49,7 +49,7 @@ describe Projects::ImportService, services: true do
         result = subject.execute
 
         expect(result[:status]).to eq :error
-        expect(result[:message]).to eq 'Failed to import the repository'
+        expect(result[:message]).to eq "Error importing repository #{project.import_url} into #{project.path_with_namespace} - Failed to import the repository"
       end
     end