In the information technology project management literature, much has been written about the types of project failures and reasons for project failure. However, less research has focused on how project managers cope when a project in which they have been managing is considered a failure. In this study, we examine how project managers transition and learn from project failures that are due to termination of the project before it was completed, or due to a project that was completed but had a disappointing result. Specifically, we focus on the concept of liminality that occurs due to project failure, which is a state of ambiguity during a time of transition. The results of this study will be useful in understanding how project managers effectively (or ineffectively) transition to new projects and learn from failure.