In vector lattices, the concept of a projection band is a basic tool. We deal with projection bands in the more general setting of an Archimedean pre-Riesz space X. We relate them to projection bands in a vector lattice cover Y of X. If X is pervasive, then a projection band in X extends to a projection band in Y, whereas the restriction of a projection band B in Y is not a projection band in X, in general. We give conditions under which the restriction of B is a projection band in X. We introduce atoms and discrete elements in X and show that every atom is discrete. The converse implication is true, provided X is pervasive. In this setting, we link atoms in X to atoms in Y. If X contains an atom a> 0 , we show that the principal band generated by a is a projection band. Using atoms in a finite dimensional Archimedean pre-Riesz space X, we establish that X is pervasive if and only if it is a vector lattice.