diff --git a/app/controllers/projects/group_links_controller.rb b/app/controllers/projects/group_links_controller.rb
index ae060abee5c..9eaf26a0dbf 100644
--- a/app/controllers/projects/group_links_controller.rb
+++ b/app/controllers/projects/group_links_controller.rb
@@ -7,7 +7,7 @@ class Projects::GroupLinksController < Projects::ApplicationController
     @group_links = project.project_group_links.all
 
     @skip_groups = @group_links.pluck(:group_id)
-    @skip_groups << project.group.try(:id)
+    @skip_groups << project.namespace_id unless project.personal?
   end
 
   def create
diff --git a/changelogs/unreleased/23961-can-t-share-project-with-groups.yml b/changelogs/unreleased/23961-can-t-share-project-with-groups.yml
new file mode 100644
index 00000000000..b3bfcbda4b7
--- /dev/null
+++ b/changelogs/unreleased/23961-can-t-share-project-with-groups.yml
@@ -0,0 +1,4 @@
+---
+title: Only skip group when it's actually a group in the "Share with group" select
+merge_request: 7262
+author: