So, I have the following setup in Eclipse (Java):
This is a "transitive dependency". You need on your classpath all classes that are required by any class you use. So you need to have the classes from project 1 in the classpath somehow - you can package them as a .jar, for example. Or you can go to Build Path > Order and Export of Project 2, and mark Project 1 as exported.
An important thing here is that the project dependencies are a mere development "goodie" - when you execute the program standalone (or deploy it to container), the Eclipse project dependencies are gone. So you must ensure your dependencies are met.