diff --git a/erpnext/stock/report/stock_balance/stock_balance.js b/erpnext/stock/report/stock_balance/stock_balance.js
index 434c092a600..36d018c6e7f 100644
--- a/erpnext/stock/report/stock_balance/stock_balance.js
+++ b/erpnext/stock/report/stock_balance/stock_balance.js
@@ -19,6 +19,13 @@ frappe.query_reports["Stock Balance"] = {
 			"reqd": 1,
 			"default": frappe.datetime.get_today()
 		},
+		{
+			"fieldname": "item_group",
+			"label": __("Item Group"),
+			"fieldtype": "Link",
+			"width": "80",
+			"options": "Item Group"
+		},
 		{
 			"fieldname": "item_code",
 			"label": __("Item"),
diff --git a/erpnext/stock/report/stock_balance/stock_balance.py b/erpnext/stock/report/stock_balance/stock_balance.py
index a8db4e09b66..365e52ba84f 100644
--- a/erpnext/stock/report/stock_balance/stock_balance.py
+++ b/erpnext/stock/report/stock_balance/stock_balance.py
@@ -63,12 +63,15 @@ def get_conditions(filters):
 		frappe.throw(_("'From Date' is required"))
 
 	if filters.get("to_date"):
-		conditions += " and posting_date <= '%s'" % frappe.db.escape(filters["to_date"])
+		conditions += " and sle.posting_date <= '%s'" % frappe.db.escape(filters["to_date"])
 	else:
 		frappe.throw(_("'To Date' is required"))
 
+	if filters.get("item_group"):
+		conditions += " and item.item_group = '%s'" % frappe.db.escape(filters.get("item_group"), percent=False)
+		
 	if filters.get("item_code"):
-		conditions += " and item_code = '%s'" % frappe.db.escape(filters.get("item_code"), percent=False)
+		conditions += " and sle.item_code = '%s'" % frappe.db.escape(filters.get("item_code"), percent=False)
 
 	if filters.get("warehouse"):
 		warehouse_details = frappe.db.get_value("Warehouse", filters.get("warehouse"), ["lft", "rgt"], as_dict=1)
@@ -81,10 +84,11 @@ def get_conditions(filters):
 
 def get_stock_ledger_entries(filters):
 	conditions = get_conditions(filters)
-	return frappe.db.sql("""select item_code, warehouse, posting_date, actual_qty, valuation_rate,
-			company, voucher_type, qty_after_transaction, stock_value_difference
+	return frappe.db.sql("""select sle.item_code, warehouse, sle.posting_date, sle.actual_qty, sle.valuation_rate,
+			sle.company, sle.voucher_type, sle.qty_after_transaction, sle.stock_value_difference
 		from `tabStock Ledger Entry` sle force index (posting_sort_index)
-		where docstatus < 2 %s order by posting_date, posting_time, name""" %
+		inner join `tabItem` item on item.name = sle.item_code
+		where sle.docstatus < 2 %s order by sle.posting_date, sle.posting_time, sle.name""" %
 		conditions, as_dict=1)
 
 def get_item_warehouse_map(filters):