diff --git a/surge/projects.py b/surge/projects.py
index f215201..dffda26 100644
--- a/surge/projects.py
+++ b/surge/projects.py
@@ -23,7 +23,7 @@ class Project(APIResource):
 
     def __init__(self, **kwargs):
         super().__init__()
-        self.__dict__.update(kwargs)
+        self._update(**kwargs)
 
         if self.id is None:
             raise SurgeMissingIDError
@@ -31,6 +31,10 @@ def __init__(self, **kwargs):
         if not (hasattr(self, "name") and self.name):
             raise SurgeMissingAttributeError
 
+
+    def _update(self, **kwargs):
+        self.__dict__.update(kwargs)
+
         if hasattr(self, "created_at") and self.created_at:
             # Convert timestamp str into datetime
             self.created_at = dateutil.parser.parse(self.created_at)
@@ -39,6 +43,7 @@ def __init__(self, **kwargs):
         if hasattr(self, "questions"):
             self.questions = self._convert_questions_to_objects(self.questions)
 
+
     def __str__(self):
         return f'<surge.Project#{self.id} name="{self.name}">'
 
@@ -360,9 +365,9 @@ def update(
         description: str = None,
         params: dict = {},
         api_key: str = None,
-    ):
+    ) -> 'Project':
         """
-        Update an existing project
+        Update an existing project, and updates the project object in-place
 
         Arguments:
             name (str): Name of the project.
@@ -375,7 +380,7 @@ def update(
             num_workers_per_task (int, optional): How many workers work on each task (i.e., how many responses per task).
 
         Returns:
-            project: new Project object
+            project: updated Project object
         """
 
         params = {**params}
@@ -397,7 +402,8 @@ def update(
 
         endpoint = f"{PROJECTS_ENDPOINT}/{self.id}"
         response_json = self.put(endpoint, params, api_key=api_key)
-        return Project(**response_json)
+        self._update(**response_json)
+        return self
 
     def workable_by_surger(self, surger_id, api_key: str = None):
         """
diff --git a/tests/test_projects.py b/tests/test_projects.py
index 6919256..c07231e 100644
--- a/tests/test_projects.py
+++ b/tests/test_projects.py
@@ -459,3 +459,57 @@ def test_update_with_fields_template():
             {"fields_text": "ABC"},
             api_key=None,
         )
+
+
+def test_update_modifies_project_in_place():
+    """Test that update() modifies the project object in-place based on PUT response."""
+    project = Project(
+        id="UPDATE_IN_PLACE", 
+        name="Original Name",
+        status="draft",
+        payment_per_response=0.10
+    )
+    
+    # Store original object id to verify same instance is returned
+    original_object_id = id(project)
+    
+    # Mock the PUT response with updated attributes
+    put_response = {
+        "id": "UPDATE_IN_PLACE",
+        "name": "Updated Name",
+        "status": "launched", 
+        "payment_per_response": 0.25,
+        "description": "New description added",
+        "instructions": "Updated instructions"
+    }
+    
+    with patch.object(Project, "put") as mock_put:
+        mock_put.return_value = put_response
+        
+        # Verify initial state
+        assert project.name == "Original Name"
+        assert project.status == "draft"
+        assert project.payment_per_response == 0.10
+        assert not hasattr(project, "description")
+        assert not hasattr(project, "instructions")
+        
+        # Call update
+        updated_project = project.update(name="Updated Name")
+        
+        # Verify the same object instance is returned
+        assert updated_project is project
+        assert id(updated_project) == original_object_id
+        
+        # Verify project attributes were updated in-place from PUT response
+        assert project.name == "Updated Name"
+        assert project.status == "launched"
+        assert project.payment_per_response == 0.25
+        assert project.description == "New description added"
+        assert project.instructions == "Updated instructions"
+        
+        # Verify PUT was called correctly
+        mock_put.assert_called_once_with(
+            f"{PROJECTS_ENDPOINT}/{project.id}",
+            {"name": "Updated Name"},
+            api_key=None,
+        )