diff --git a/erpnext/hr/doctype/department/department.js b/erpnext/hr/doctype/department/department.js
index 963f3615cc5..7db8cfbd601 100644
--- a/erpnext/hr/doctype/department/department.js
+++ b/erpnext/hr/doctype/department/department.js
@@ -2,6 +2,11 @@
 // For license information, please see license.txt
 
 frappe.ui.form.on('Department', {
+	onload: function(frm) {
+		frm.set_query("parent_department", function(){
+			return {"filters": [["Department", "is_group", "=", 1]]};
+		});
+	},
 	refresh: function(frm) {
 		// read-only for root department
 		if(!frm.doc.parent_department && !frm.is_new()) {