diff --git a/docs/history/hatch.md b/docs/history/hatch.md
index 360cd4663..83d0aaa28 100644
--- a/docs/history/hatch.md
+++ b/docs/history/hatch.md
@@ -32,6 +32,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 
 - Fix nushell activation
 - Better handling of flat storage directory hierarchies for the `virtual` environment type
+- Display useful information when running the `version` command outside of a project rather than erroring
 
 ## [1.7.0](https://github.com/pypa/hatch/releases/tag/hatch-v1.7.0) - 2023-04-03 ## {: #hatch-v1.7.0 }
 
diff --git a/src/hatch/cli/version/__init__.py b/src/hatch/cli/version/__init__.py
index c79d3e264..02fe637e2 100644
--- a/src/hatch/cli/version/__init__.py
+++ b/src/hatch/cli/version/__init__.py
@@ -1,11 +1,24 @@
+from __future__ import annotations
+
+from typing import TYPE_CHECKING
+
 import click
 
+if TYPE_CHECKING:
+    from hatch.cli.application import Application
+
 
 @click.command(short_help="View or set a project's version")
 @click.argument('desired_version', required=False)
 @click.pass_obj
-def version(app, desired_version):
+def version(app: Application, desired_version: str | None):
     """View or set a project's version."""
+    if app.project.root is None:
+        if app.project.chosen_name is None:
+            app.abort('No project detected')
+        else:
+            app.abort(f'Project {app.project.chosen_name} (not a project)')
+
     if 'version' in app.project.metadata.config.get('project', {}):
         if desired_version:
             app.abort('Cannot set version when it is statically defined by the `project.version` field')
diff --git a/tests/cli/version/test_version.py b/tests/cli/version/test_version.py
index 1755c6ef2..80d6d9972 100644
--- a/tests/cli/version/test_version.py
+++ b/tests/cli/version/test_version.py
@@ -6,6 +6,36 @@
 from hatchling.utils.constants import DEFAULT_BUILD_SCRIPT, DEFAULT_CONFIG_FILE
 
 
+class TestNoProject:
+    def test_random_directory(self, hatch, temp_dir, helpers):
+        with temp_dir.as_cwd():
+            result = hatch('version')
+
+        assert result.exit_code == 1, result.output
+        assert result.output == helpers.dedent(
+            """
+            No project detected
+            """
+        )
+
+    def test_configured_project(self, hatch, temp_dir, helpers, config_file):
+        project = 'foo'
+        config_file.model.mode = 'project'
+        config_file.model.project = project
+        config_file.model.projects = {project: str(temp_dir)}
+        config_file.save()
+
+        with temp_dir.as_cwd():
+            result = hatch('version')
+
+        assert result.exit_code == 1, result.output
+        assert result.output == helpers.dedent(
+            """
+            Project foo (not a project)
+            """
+        )
+
+
 def test_incompatible_environment(hatch, temp_dir, helpers):
     project_name = 'My.App'