Agile handles project documentation by emphasizing close collaboration and communication between team members and stakeholders. Agile teams are responsible for ensuring that their work is well-documented, and use regular meetings, such as daily stand-ups and retrospectives, to discuss and resolve any documentation issues that may arise. Additionally, Agile emphasizes the importance of teamwork and fosters a culture of trust and respect among team members, which helps to ensure that everyone is working towards a common goal of delivering well-documented work.