diff --git a/packaging/tests/tas-restapi/src/test/java/org/alfresco/rest/groups/GroupsTests.java b/packaging/tests/tas-restapi/src/test/java/org/alfresco/rest/groups/GroupsTests.java
index 542f6f135c..4aad49f9c4 100644
--- a/packaging/tests/tas-restapi/src/test/java/org/alfresco/rest/groups/GroupsTests.java
+++ b/packaging/tests/tas-restapi/src/test/java/org/alfresco/rest/groups/GroupsTests.java
@@ -100,13 +100,9 @@ public class GroupsTests extends RestTest
         //GroupCreation:
         restClient.authenticateUser(adminUser).withCoreAPI().usingParams("include=zones").usingGroups().createGroup(groupBodyCreate);
         restClient.assertStatusCodeIs(HttpStatus.CREATED);
-        restClient.authenticateUser(adminUser).withCoreAPI().usingParams("include=zones").usingGroups().createGroup(subgroupBodyCreate);
-        restClient.assertStatusCodeIs(HttpStatus.CREATED);
 
         JsonObject groupMembershipBody = Json.createObjectBuilder().add("id", userModel.getUsername()).add("memberType", "PERSON").build();
         String groupMembershipBodyCreate = groupMembershipBody.toString();
-        JsonObject groupMembershipGroupBody = Json.createObjectBuilder().add("id", "GROUP_"+subGroupName).add("memberType", "GROUP").build();
-        String groupMembershipGroupBodyCreate = groupMembershipGroupBody.toString();
 
         //MembershipCreation:
         //-ve
@@ -122,6 +118,10 @@ public class GroupsTests extends RestTest
         restClient.assertStatusCodeIs(HttpStatus.OK);
 
         //AddChildGroup
+        restClient.authenticateUser(adminUser).withCoreAPI().usingParams("include=zones").usingGroups().createGroup(subgroupBodyCreate);
+        restClient.assertStatusCodeIs(HttpStatus.CREATED);
+        JsonObject groupMembershipGroupBody = Json.createObjectBuilder().add("id", "GROUP_"+subGroupName).add("memberType", "GROUP").build();
+        String groupMembershipGroupBodyCreate = groupMembershipGroupBody.toString();
         restClient.authenticateUser(adminUser).withCoreAPI().usingGroups().createGroupMembership("GROUP_"+groupName, groupMembershipGroupBodyCreate);
         restClient.assertStatusCodeIs(HttpStatus.CREATED);
 
diff --git a/remote-api/src/test/java/org/alfresco/rest/api/tests/GroupsTest.java b/remote-api/src/test/java/org/alfresco/rest/api/tests/GroupsTest.java
index 5f1abee2df..29a5ed46b7 100644
--- a/remote-api/src/test/java/org/alfresco/rest/api/tests/GroupsTest.java
+++ b/remote-api/src/test/java/org/alfresco/rest/api/tests/GroupsTest.java
@@ -1443,8 +1443,11 @@ public class GroupsTest extends AbstractSingleNetworkSiteTest
             assertFalse(createdSubGroup01.getIsRoot());
             assertNotNull(createdSubGroup01.getParentIds());
             assertEquals(subGroup01Parents, createdSubGroup01.getParentIds());
-            assertTrue(createdGroup01.getHasSubgroups());
             assertFalse(createdSubGroup01.getHasSubgroups());
+
+            //validate if parent group now has any subgroup
+            Group group01 = groupsProxy.getGroup(createdGroup01.getId(), null, HttpServletResponse.SC_OK);
+            assertTrue(group01.getHasSubgroups());
         }
 
         // Group id is missing.