diff --git a/app/controllers/concerns/import_url_params.rb b/app/controllers/concerns/import_url_params.rb
index 765654ca2cb48335d6cf3f1f560315fa6b41e54f..e51e4157f506275be47574e88f281f09ced5d262 100644
--- a/app/controllers/concerns/import_url_params.rb
+++ b/app/controllers/concerns/import_url_params.rb
@@ -2,6 +2,8 @@
 
 module ImportUrlParams
   def import_url_params
+    return {} unless params.dig(:project, :import_url).present?
+
     { import_url: import_params_to_full_url(params[:project]) }
   end
 
diff --git a/changelogs/unreleased/sh-fix-import-url-update.yml b/changelogs/unreleased/sh-fix-import-url-update.yml
new file mode 100644
index 0000000000000000000000000000000000000000..d143bd3473aa9d058f342bb8f17cc854238eae42
--- /dev/null
+++ b/changelogs/unreleased/sh-fix-import-url-update.yml
@@ -0,0 +1,5 @@
+---
+title: Fix project settings not being able to update
+merge_request: 29097
+author:
+type: fixed
diff --git a/spec/controllers/concerns/import_url_params_spec.rb b/spec/controllers/concerns/import_url_params_spec.rb
index fc5dfb5263f7ad84c44e2bf901261cc70bfade24..adbe6e5d3bf40b82cc1dc401015252404918a451 100644
--- a/spec/controllers/concerns/import_url_params_spec.rb
+++ b/spec/controllers/concerns/import_url_params_spec.rb
@@ -8,6 +8,18 @@ describe ImportUrlParams do
     controller.import_url_params
   end
 
+  context 'empty URL' do
+    let(:params) do
+      ActionController::Parameters.new(project: {
+        title: 'Test'
+      })
+    end
+
+    it 'returns empty hash' do
+      expect(import_url_params).to eq({})
+    end
+  end
+
   context 'url and password separately provided' do
     let(:params) do
       ActionController::Parameters.new(project: {