diff --git a/src/RecoveryServices/RecoveryServices.Backup.Providers/Providers/AzureWorkloadPsBackupProvider.cs b/src/RecoveryServices/RecoveryServices.Backup.Providers/Providers/AzureWorkloadPsBackupProvider.cs
index 819460f20a19..061b0e1c08f2 100644
--- a/src/RecoveryServices/RecoveryServices.Backup.Providers/Providers/AzureWorkloadPsBackupProvider.cs
+++ b/src/RecoveryServices/RecoveryServices.Backup.Providers/Providers/AzureWorkloadPsBackupProvider.cs
@@ -970,6 +970,7 @@ public void RegisterContainer()
             string containerName = (string)ProviderData[ContainerParams.Name];
             string backupManagementType = (string)ProviderData[ContainerParams.BackupManagementType];
             string workloadType = (string)ProviderData[ContainerParams.ContainerType];
+            string vmResourceGroupName = (string)ProviderData[ContainerParams.ResourceGroupName];
             ContainerBase containerBase =
                 (ContainerBase)ProviderData[ContainerParams.Container];
             AzureVmWorkloadContainer container = (AzureVmWorkloadContainer)ProviderData[ContainerParams.Container];
@@ -985,8 +986,14 @@ public void RegisterContainer()
             List<ProtectableContainerResource> unregisteredVmContainers =
                     GetUnRegisteredVmContainers(vaultName, vaultResourceGroupName);
             ProtectableContainerResource unregisteredVmContainer = unregisteredVmContainers.Find(
-                vmContainer => string.Compare(vmContainer.Name.Split(';').Last(),
-                containerName, true) == 0);
+                vmContainer => {
+                    string[] containerNameSplit = vmContainer.Name.Split(';');
+                    int containerNameSplitLen = containerNameSplit.Length;
+                    bool vmNameMatch = string.Compare(containerNameSplit[containerNameSplitLen - 1], containerName, true) == 0;
+                    bool rgNameMatch = string.Compare(containerNameSplit[containerNameSplitLen - 2], vmResourceGroupName, true) == 0;
+                
+                    return vmNameMatch && rgNameMatch;
+                });
 
             if (unregisteredVmContainer != null || container != null)
             {
diff --git a/src/RecoveryServices/RecoveryServices.Backup.Test/ScenarioTests/AzureWorkload/ContainerTests.cs b/src/RecoveryServices/RecoveryServices.Backup.Test/ScenarioTests/AzureWorkload/ContainerTests.cs
index dfa7cbd43c7a..b7e7e5c99558 100644
--- a/src/RecoveryServices/RecoveryServices.Backup.Test/ScenarioTests/AzureWorkload/ContainerTests.cs
+++ b/src/RecoveryServices/RecoveryServices.Backup.Test/ScenarioTests/AzureWorkload/ContainerTests.cs
@@ -47,7 +47,7 @@ public void UnregisterAzureWorkloadContainer()
                 "Unregister-AzureWorkloadContainer"
             );
         }
-                
+
         [Fact]
         [Trait(Category.AcceptanceType, Category.CheckIn)]
         [Trait(TestConstants.Workload, TestConstants.AzureVmWorkload)]
@@ -59,5 +59,17 @@ public void TestAzureVmWorkloadUnDeleteContainer()
                 "Test-AzureVmWorkloadUnDeleteContainer"
             );
         }
+
+        [Fact]
+        [Trait(Category.AcceptanceType, Category.CheckIn)]
+        [Trait(TestConstants.Workload, TestConstants.AzureVmWorkload)]
+        public void TestSQLContainerRegError()
+        {
+            TestRunner.RunTestScript(
+                $"Import-Module {_AzureWorkloadcommonModule.AsAbsoluteLocation()}",
+                $"Import-Module {_AzureWorkloadtestModule.AsAbsoluteLocation()}",
+                "Test-SQLContainerRegError"
+            );
+        }
     }
 }
diff --git a/src/RecoveryServices/RecoveryServices.Backup.Test/ScenarioTests/AzureWorkload/ContainerTests.ps1 b/src/RecoveryServices/RecoveryServices.Backup.Test/ScenarioTests/AzureWorkload/ContainerTests.ps1
index bdcbdc774a29..d45acabf56e6 100644
--- a/src/RecoveryServices/RecoveryServices.Backup.Test/ScenarioTests/AzureWorkload/ContainerTests.ps1
+++ b/src/RecoveryServices/RecoveryServices.Backup.Test/ScenarioTests/AzureWorkload/ContainerTests.ps1
@@ -16,6 +16,40 @@ $containerName = "psbvtsqlvm"
 $resourceGroupName = "pstestwlRG1bca8"
 $vaultName = "pstestwlRSV1bca8"
 $resourceId = "/subscriptions/38304e13-357e-405e-9e9a-220351dcce8c/resourceGroups/pscloudtestrg/providers/Microsoft.Compute/virtualMachines/psbvtsqlvm"
+$sqlRegTestVlt = "utkvlt"
+$sqlRegTestVm = "utkvm"
+$sqlRegTestRg1 = "rg1"
+$sqlRegTestRg2 = "rg2"
+$sqlRegTestVM2Id = "/subscriptions/af95aa3c-30fd-41c6-a938-4b3676fc36fb/resourceGroups/rg2/providers/Microsoft.Compute/virtualMachines/utkvm"
+
+function Test-SQLContainerRegError
+{
+    $vault1 = Get-AzRecoveryServicesVault -ResourceGroupName $sqlRegTestRg1 -Name $sqlRegTestVlt
+    $vault2 = Get-AzRecoveryServicesVault -ResourceGroupName $sqlRegTestRg2 -Name $sqlRegTestVlt
+
+   #$Unregister containers if already registered
+   Get-AzRecoveryServicesBackupContainer `
+         -VaultId $vault1.ID `
+         -ContainerType AzureVMAppContainer `
+         -FriendlyName $sqlRegTestVm | Unregister-AzRecoveryServicesBackupContainer -VaultId $vault1.ID -Force
+
+   Get-AzRecoveryServicesBackupContainer `
+         -VaultId $vault2.ID `
+         -ContainerType AzureVMAppContainer `
+         -FriendlyName $sqlRegTestVm | Unregister-AzRecoveryServicesBackupContainer -VaultId $vault2.ID -Force
+
+    $v = get-azrecoveryservicesvault -ResourceGroupName $sqlRegTestRg2 -Name $sqlRegTestVlt    
+    Set-AzRecoveryServicesVaultContext -Vault $v
+
+    Register-AzRecoveryServicesBackupContainer -ResourceId $sqlRegTestVM2Id -VaultId $v.Id -WorkloadType "MSSQL" -BackupManagementType "AzureWorkload" -Force
+
+    $container = Get-AzRecoveryServicesBackupContainer `
+         -VaultId $vault2.ID `
+         -ContainerType AzureVMAppContainer `
+         -FriendlyName $sqlRegTestVm
+
+    Assert-True { $container.FriendlyName -eq $sqlRegTestVm }
+}
 
 function Test-AzureVmWorkloadUnDeleteContainer
 {
diff --git a/src/RecoveryServices/RecoveryServices.Backup/Cmdlets/Container/RegisterAzureRmRecoveryServicesBackupContainer.cs b/src/RecoveryServices/RecoveryServices.Backup/Cmdlets/Container/RegisterAzureRmRecoveryServicesBackupContainer.cs
index 7b5837363590..719e63c39037 100644
--- a/src/RecoveryServices/RecoveryServices.Backup/Cmdlets/Container/RegisterAzureRmRecoveryServicesBackupContainer.cs
+++ b/src/RecoveryServices/RecoveryServices.Backup/Cmdlets/Container/RegisterAzureRmRecoveryServicesBackupContainer.cs
@@ -88,7 +88,7 @@ public override void ExecuteCmdlet()
         {
             ExecutionBlock(() =>
             {
-                string containerName = Container != null ? Container.Name : ResourceId.Split('/')[8];                
+                string containerName = Container != null ? Container.Name : ResourceId.Split('/')[8];
 
                 ConfirmAction(
                     Force.IsPresent,
@@ -98,10 +98,30 @@ public override void ExecuteCmdlet()
                     {
                         base.ExecuteCmdlet();
 
+                        string vmResourceGroupParsed = null;
                         ResourceIdentifier resourceIdentifier = new ResourceIdentifier(VaultId);
                         string vaultName = resourceIdentifier.ResourceName;
                         string vaultResourceGroupName = resourceIdentifier.ResourceGroupName;
 
+                        if (Container != null)
+                        {
+                            if (Container is AzureVmWorkloadContainer)
+                            {
+                                AzureVmWorkloadContainer azureVmWorkloadContainer = (AzureVmWorkloadContainer)Container;
+                                Dictionary<UriEnums, string> keyValueDict = HelperUtils.ParseUri(azureVmWorkloadContainer.SourceResourceId);
+                                vmResourceGroupParsed = HelperUtils.GetResourceGroupNameFromId(keyValueDict, ResourceId);
+                            }
+                            else
+                            {
+                                vmResourceGroupParsed = vaultResourceGroupName;
+                            }
+                        }
+                        else
+                        {
+                            Dictionary<UriEnums, string> keyValueDict = HelperUtils.ParseUri(ResourceId);
+                            vmResourceGroupParsed = HelperUtils.GetResourceGroupNameFromId(keyValueDict, ResourceId);
+                        }
+
                         PsBackupProviderManager providerManager =
                             new PsBackupProviderManager(new Dictionary<Enum, object>()
                             {
@@ -110,7 +130,8 @@ public override void ExecuteCmdlet()
                                 { ContainerParams.Name, containerName },
                                 { ContainerParams.ContainerType, ServiceClientHelpers.GetServiceClientWorkloadType(WorkloadType).ToString() },
                                 { ContainerParams.BackupManagementType, BackupManagementType.ToString() },
-                                { ContainerParams.Container, Container}
+                                { ContainerParams.Container, Container},
+                                { ContainerParams.ResourceGroupName, vmResourceGroupParsed },
                             }, ServiceClientAdapter);
 
                         IPsBackupProvider psBackupProvider =
diff --git a/src/RecoveryServices/RecoveryServices/ChangeLog.md b/src/RecoveryServices/RecoveryServices/ChangeLog.md
index 7af18370a5b9..e96f9d5e7af4 100644
--- a/src/RecoveryServices/RecoveryServices/ChangeLog.md
+++ b/src/RecoveryServices/RecoveryServices/ChangeLog.md
@@ -19,6 +19,9 @@
 -->
 ## Upcoming Release
 
+## Version 7.8.0
+* Added check to compare the VM resource group in the list of VMs returned for registration
+
 ## Version 7.7.0
 * Fix for reprotect cmdlet in Azure Site Recovery for Azure to Azure provider.
 * Deprecated the `Token` parameter for cross-tenant authentication in MUA scenarios for handling breaking change in Get-AzAccessToken cmdlet, use parameter `SecureToken` going forward.