diff --git a/x-pack/plugins/canvas/public/lib/aeroelastic/layout.js b/x-pack/plugins/canvas/public/lib/aeroelastic/layout.js
index 98234d72d99d8..a8f894c837ded 100644
--- a/x-pack/plugins/canvas/public/lib/aeroelastic/layout.js
+++ b/x-pack/plugins/canvas/public/lib/aeroelastic/layout.js
@@ -182,7 +182,7 @@ const rotationTooltipAnnotation = select(getRotationTooltipAnnotation)(
   cursorPosition
 );
 
-const groupAction = select(getGroupAction)(actionEvent);
+const groupAction = select(getGroupAction)(actionEvent, mouseIsDown);
 
 const groupingTuple = select(getGroupingTuple)(
   configuration,
diff --git a/x-pack/plugins/canvas/public/lib/aeroelastic/layout_functions.js b/x-pack/plugins/canvas/public/lib/aeroelastic/layout_functions.js
index d62fbe21fa0f0..a65488fc15775 100644
--- a/x-pack/plugins/canvas/public/lib/aeroelastic/layout_functions.js
+++ b/x-pack/plugins/canvas/public/lib/aeroelastic/layout_functions.js
@@ -1376,9 +1376,9 @@ export const getSnappedShapes = (
 export const getConstrainedShapesWithPreexistingAnnotations = (snapped, transformed) =>
   snapped.concat(transformed.filter(s => s.type === 'annotation'));
 
-export const getGroupAction = action => {
+export const getGroupAction = (action, mouseIsDown) => {
   const event = action && action.event;
-  return event === 'group' || event === 'ungroup' ? event : null;
+  return !mouseIsDown && (event === 'group' || event === 'ungroup') ? event : null;
 };
 
 export const getGroupedSelectedShapes = ({ selectedShapes }) => selectedShapes;