diff --git a/client/ayon_core/tools/loader/ui/product_group_dialog.py b/client/ayon_core/tools/loader/ui/product_group_dialog.py
index 70e8f74610..2668c10f9e 100644
--- a/client/ayon_core/tools/loader/ui/product_group_dialog.py
+++ b/client/ayon_core/tools/loader/ui/product_group_dialog.py
@@ -41,14 +41,14 @@ def __init__(self, controller: "LoaderController", parent):
         self._group_btn = group_btn
         self._name_line_edit = name_line_edit
 
-    def set_product_ids(self, project_name, product_ids):
+    def set_product_ids(self, project_name, folder_ids, product_ids):
         self._project_name = project_name
         self._product_ids = product_ids
 
         # Update the product groups
         product_groups = self._controller.get_folder_product_group_names(
-            project_name=self._controller.get_selected_project_name(),
-            folder_ids=self._controller.get_selected_folder_ids()
+            project_name=project_name,
+            folder_ids=folder_ids
         )
         self._name_line_edit.set_options(list(sorted(product_groups)))
 
diff --git a/client/ayon_core/tools/loader/ui/window.py b/client/ayon_core/tools/loader/ui/window.py
index 31c9908b23..70a21716cc 100644
--- a/client/ayon_core/tools/loader/ui/window.py
+++ b/client/ayon_core/tools/loader/ui/window.py
@@ -402,14 +402,18 @@ def _show_group_dialog(self):
         if not project_name:
             return
 
-        product_ids = {
-            i["product_id"]
-            for i in self._products_widget.get_selected_version_info()
-        }
+        product_ids = set()
+        folder_ids = set()
+        for version_info in self._products_widget.get_selected_version_info():
+            product_ids.add(version_info["product_id"])
+            folder_ids.add(version_info["folder_id"])
+
         if not product_ids:
             return
 
-        self._group_dialog.set_product_ids(project_name, product_ids)
+        self._group_dialog.set_product_ids(
+            project_name, folder_ids, product_ids
+        )
         self._group_dialog.show()
 
     def _on_folder_filter_change(self, text):