diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImpl.java b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImpl.java
index 3fed8e75049..8927ea533d6 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImpl.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImpl.java
@@ -218,7 +218,11 @@ public class GroupManagementServiceImpl implements GroupManagementService {
             log.error(msg, e);
             return Response.status(Response.Status.INTERNAL_SERVER_ERROR).entity(msg).build();
         } catch (GroupNotExistException e) {
-            String msg = "There is another group already exists with name '" + deviceGroup.getName() + "'.";
+            String msg = "Group doesn't exist with ID '" + deviceGroup.getGroupId() + "'.";
+            log.warn(msg);
+            return Response.status(Response.Status.CONFLICT).entity(msg).build();
+        } catch (GroupAlreadyExistException e) {
+            String msg = "Group already exists with name '" + deviceGroup.getName() + "'.";
             log.warn(msg);
             return Response.status(Response.Status.CONFLICT).entity(msg).build();
         }
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/test/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImplTest.java b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/test/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImplTest.java
index 2d430c09f6d..9602d70f559 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/test/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImplTest.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/test/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/GroupManagementServiceImplTest.java
@@ -205,7 +205,7 @@ public class GroupManagementServiceImplTest {
     }
 
     @Test(description = "This method tests the functionality of updateGroup method under various conditions")
-    public void testUpdateGroup() throws GroupManagementException, GroupNotExistException {
+    public void testUpdateGroup() throws GroupManagementException, GroupNotExistException, GroupAlreadyExistException {
         PowerMockito.stub(PowerMockito.method(DeviceMgtAPIUtils.class, "getGroupManagementProviderService"))
                 .toReturn(groupManagementProviderService);
         DeviceGroup deviceGroup = new DeviceGroup();
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/dao/impl/AbstractGroupDAOImpl.java b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/dao/impl/AbstractGroupDAOImpl.java
index 7584b5fea7f..06375ca2a18 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/dao/impl/AbstractGroupDAOImpl.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/dao/impl/AbstractGroupDAOImpl.java
@@ -727,7 +727,7 @@ public abstract class AbstractGroupDAOImpl implements GroupDAO {
             Connection conn = GroupManagementDAOFactory.getConnection();
             String sql =
                     "SELECT ID, DESCRIPTION, GROUP_NAME, OWNER, STATUS, PARENT_PATH FROM DM_GROUP "
-                            + "WHERE GROUP_NAME = ? AND TENANT_ID = ?";
+                            + "WHERE LOWER(GROUP_NAME) = LOWER(?) AND TENANT_ID = ?";
             stmt = conn.prepareStatement(sql);
             stmt.setString(1, groupName);
             stmt.setInt(2, tenantId);
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderService.java b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderService.java
index c5e7417c866..5028f2560b0 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderService.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderService.java
@@ -71,7 +71,8 @@ public interface GroupManagementProviderService {
      * @param groupId of the group.
      * @throws GroupManagementException
      */
-    void updateGroup(DeviceGroup deviceGroup, int groupId) throws GroupManagementException, GroupNotExistException;
+    void updateGroup(DeviceGroup deviceGroup, int groupId)
+            throws GroupManagementException, GroupNotExistException, GroupAlreadyExistException;
 
     /**
      * Delete existing device group.
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderServiceImpl.java b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderServiceImpl.java
index 2db3bd5f584..029191d2468 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderServiceImpl.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/main/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderServiceImpl.java
@@ -132,7 +132,7 @@ public class GroupManagementProviderServiceImpl implements GroupManagementProvid
                 }
                 GroupManagementDAOFactory.commitTransaction();
             } else {
-                throw new GroupAlreadyExistException("Group exist with name " + deviceGroup.getName());
+                throw new GroupAlreadyExistException("Group already exists with name '" + deviceGroup.getName() + "'.");
             }
         } catch (GroupManagementDAOException e) {
             GroupManagementDAOFactory.rollbackTransaction();
@@ -163,7 +163,7 @@ public class GroupManagementProviderServiceImpl implements GroupManagementProvid
      */
     @Override
     public void updateGroup(DeviceGroup deviceGroup, int groupId)
-            throws GroupManagementException, GroupNotExistException {
+            throws GroupManagementException, GroupNotExistException, GroupAlreadyExistException {
         if (deviceGroup == null) {
             String msg = "Received incomplete data for updateGroup";
             log.error(msg);
@@ -177,6 +177,10 @@ public class GroupManagementProviderServiceImpl implements GroupManagementProvid
             GroupManagementDAOFactory.beginTransaction();
             DeviceGroup existingGroup = this.groupDAO.getGroup(groupId, tenantId);
             if (existingGroup != null) {
+                boolean existingGroupName = this.groupDAO.getGroup(deviceGroup.getName(), tenantId) != null;
+                if (existingGroupName) {
+                    throw new GroupAlreadyExistException("Group already exists with name '" + deviceGroup.getName() + "'.");
+                }
                 List<DeviceGroup> groupsToUpdate = new ArrayList<>();
                 String immediateParentID = StringUtils.substringAfterLast(existingGroup.getParentPath(), DeviceGroupConstants.HierarchicalGroup.SEPERATOR);
                 String parentPath = "";
@@ -222,7 +226,7 @@ public class GroupManagementProviderServiceImpl implements GroupManagementProvid
             String msg = "Error occurred while initiating transaction.";
             log.error(msg, e);
             throw new GroupManagementException(msg, e);
-        } catch (GroupNotExistException ex) {
+        } catch (GroupNotExistException | GroupAlreadyExistException ex) {
             throw ex;
         } catch (Exception e) {
             String msg = "Error occurred in updating the device group with ID - '" + groupId + "'.";
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderServiceTest.java b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderServiceTest.java
index 3073b5ee3da..977c1cb62d8 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderServiceTest.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.core/src/test/java/org/wso2/carbon/device/mgt/core/service/GroupManagementProviderServiceTest.java
@@ -103,7 +103,7 @@ public class GroupManagementProviderServiceTest extends BaseDeviceManagementTest
     }
 
     @Test(dependsOnMethods = "createGroup")
-    public void updateGroup() throws GroupManagementException, GroupNotExistException {
+    public void updateGroup() throws GroupManagementException, GroupNotExistException, GroupAlreadyExistException {
         DeviceGroup deviceGroup = groupManagementProviderService.getGroup(TestUtils.createDeviceGroup1().getName(), false);
         deviceGroup.setName(deviceGroup.getName() + "_UPDATED");
         groupManagementProviderService.updateGroup(deviceGroup, deviceGroup.getGroupId());
@@ -116,19 +116,19 @@ public class GroupManagementProviderServiceTest extends BaseDeviceManagementTest
 
     // Rename again to use in different place.
     @Test(dependsOnMethods = "updateGroup")
-    public void updateGroupSecondTime() throws GroupManagementException, GroupNotExistException {
+    public void updateGroupSecondTime() throws GroupManagementException, GroupNotExistException, GroupAlreadyExistException {
         DeviceGroup deviceGroup = groupManagementProviderService.getGroup(TestUtils.createDeviceGroup1().getName() + "_UPDATED", true);
         deviceGroup.setName(TestUtils.createDeviceGroup1().getName());
         groupManagementProviderService.updateGroup(deviceGroup, deviceGroup.getGroupId());
     }
 
-    @Test(dependsOnMethods = "createGroup", expectedExceptions = {GroupManagementException.class, GroupNotExistException.class})
-    public void updateGroupError() throws GroupManagementException, GroupNotExistException {
+    @Test(dependsOnMethods = "createGroup", expectedExceptions = {GroupManagementException.class, GroupNotExistException.class, GroupAlreadyExistException.class})
+    public void updateGroupError() throws GroupManagementException, GroupNotExistException, GroupAlreadyExistException {
         groupManagementProviderService.updateGroup(null, 1);
     }
 
-    @Test(dependsOnMethods = "createGroup", expectedExceptions = {GroupManagementException.class, GroupNotExistException.class})
-    public void updateGroupErrorNotExist() throws GroupManagementException, GroupNotExistException {
+    @Test(dependsOnMethods = "createGroup", expectedExceptions = {GroupManagementException.class, GroupNotExistException.class, GroupAlreadyExistException.class})
+    public void updateGroupErrorNotExist() throws GroupManagementException, GroupNotExistException, GroupAlreadyExistException {
         DeviceGroup deviceGroup = groupManagementProviderService.getGroup(TestUtils.createDeviceGroup2().getName(), false);
         deviceGroup.setName(deviceGroup.getName() + "_UPDATED");
         groupManagementProviderService.updateGroup(deviceGroup, 6);