diff --git a/src/Components/CreateImageWizardV2/steps/TargetEnvironment/Azure/AzureSourcesSelect.tsx b/src/Components/CreateImageWizardV2/steps/TargetEnvironment/Azure/AzureSourcesSelect.tsx
index 6e22f757..5fe68079 100644
--- a/src/Components/CreateImageWizardV2/steps/TargetEnvironment/Azure/AzureSourcesSelect.tsx
+++ b/src/Components/CreateImageWizardV2/steps/TargetEnvironment/Azure/AzureSourcesSelect.tsx
@@ -68,6 +68,7 @@ export const AzureSourcesSelect = () => {
       (source) => source?.name === sourceName
     )?.id;
     dispatch(changeAzureSource(sourceId || ''));
+    dispatch(changeAzureResourceGroup(''));
     setIsOpen(false);
   };