diff --git a/app/assets/javascripts/host_edit.js b/app/assets/javascripts/host_edit.js
index 742a5ea7ad8e..477e7441f937 100644
--- a/app/assets/javascripts/host_edit.js
+++ b/app/assets/javascripts/host_edit.js
@@ -165,6 +165,16 @@ function update_capabilities(capabilities) {
 
 var stop_pooling;
 
+if (window.location.href.contains('hostgroup')) {
+  document.addEventListener('DOMContentLoaded', function() {
+    const form = document.querySelector('form');
+    form.addEventListener('submit', function() {
+      // // making sure inherited compute resource is included in the form
+      const hostgroup_compute_resource_id = $('#hostgroup_compute_resource_id');
+      hostgroup_compute_resource_id.prop('disabled', false);
+    });
+  });
+}
 function submit_with_all_params() {
   $('form.hostresource-form input[type="submit"]').attr('disabled', true);
   stop_pooling = false;
diff --git a/app/controllers/hostgroups_controller.rb b/app/controllers/hostgroups_controller.rb
index 1bbc7dd24974..ca27a0e46b5e 100644
--- a/app/controllers/hostgroups_controller.rb
+++ b/app/controllers/hostgroups_controller.rb
@@ -30,6 +30,7 @@ def nest
     @hostgroup = Hostgroup.new(:parent_id => @parent.id)
 
     load_vars_for_ajax
+    @hostgroup.compute_resource_id = @parent.compute_resource_id
     @hostgroup.locations = @parent.locations
     @hostgroup.organizations = @parent.organizations
     # Clone any parameters as well
@@ -101,11 +102,12 @@ def csv_columns
   def load_vars_for_ajax
     return unless @hostgroup.present?
 
-    @architecture    = @hostgroup.architecture
-    @operatingsystem = @hostgroup.operatingsystem
-    @domain          = @hostgroup.domain
-    @subnet          = @hostgroup.subnet
-    @realm           = @hostgroup.realm
+    @compute_resource_id = @hostgroup.compute_resource_id
+    @architecture        = @hostgroup.architecture
+    @operatingsystem     = @hostgroup.operatingsystem
+    @domain              = @hostgroup.domain
+    @subnet              = @hostgroup.subnet
+    @realm               = @hostgroup.realm
   end
 
   def users_in_ancestors
@@ -144,11 +146,12 @@ def refresh_hostgroup
   def inherit_parent_attributes
     return unless @parent.present?
 
-    @hostgroup.architecture       ||= @parent.architecture
-    @hostgroup.operatingsystem    ||= @parent.operatingsystem
-    @hostgroup.domain             ||= @parent.domain
-    @hostgroup.subnet             ||= @parent.subnet
-    @hostgroup.realm              ||= @parent.realm
+    @hostgroup.compute_resource_id ||= @parent.compute_resource_id
+    @hostgroup.architecture        ||= @parent.architecture
+    @hostgroup.operatingsystem     ||= @parent.operatingsystem
+    @hostgroup.domain              ||= @parent.domain
+    @hostgroup.subnet              ||= @parent.subnet
+    @hostgroup.realm               ||= @parent.realm
   end
 
   def reset_explicit_attributes
diff --git a/app/helpers/hostgroups_helper.rb b/app/helpers/hostgroups_helper.rb
index 9fdddc637bae..a6c0592ee0f2 100644
--- a/app/helpers/hostgroups_helper.rb
+++ b/app/helpers/hostgroups_helper.rb
@@ -37,4 +37,19 @@ def prioritized_members(list, value_key)
       sort_by { |member| member[:priority] }.
       map { |member_hash| member_hash[value_key] }
   end
+
+  def hostgroup_inherited_by_default?(field, hostgroup)
+    return false if hostgroup.ancestry.nil?
+    return false if params[:action] == 'clone'
+    return true unless params[:hostgroup]
+    !params[:hostgroup][field]
+  end
+
+  def blank_or_inherit_hostgroup_f(f, attr, blank_value: _("no value"))
+    return true unless f.object.respond_to?(:parent_id) && f.object.parent_id
+    inherited_value   = f.object.send(attr)
+    inherited_value   = inherited_value.name_method if inherited_value.present? && inherited_value.respond_to?(:name_method)
+    inherited_value ||= blank_value
+    _("Inherit parent (%s)") % inherited_value
+  end
 end
diff --git a/app/views/hostgroups/_form.html.erb b/app/views/hostgroups/_form.html.erb
index 83b83a069f0c..f21ef6724e74 100644
--- a/app/views/hostgroups/_form.html.erb
+++ b/app/views/hostgroups/_form.html.erb
@@ -1,5 +1,5 @@
 <%= javascript 'host_edit', 'host_edit_interfaces' %>
-<%= form_for @hostgroup, :html => {:class => 'hostresource-form hostgroup-form form-horizontal well', :data => {:id => @hostgroup.try(:id)}} do |f| %>
+<%= form_for @hostgroup, :html => {:class => 'hostresource-form hostgroup-form form-horizontal well', :data => {:id => @hostgroup.try(:id), :submit => 'progress_bar'}} do |f| %>
   <%= base_errors_for @hostgroup %>
 
   <ul class="nav nav-tabs" data-tabs="tabs">
@@ -26,8 +26,16 @@
       <%= text_f f, :name %>
       <%= textarea_f f, :description, :rows => :auto %>
 
-      <%= select_f f, :compute_resource_id, accessible_resource(@hostgroup, :compute_resource), :id, :to_label,
-          { :include_blank => blank_or_inherit_f(f, :compute_resource, blank_value: _('Bare Metal')) },
+      <%= select_f f, :compute_resource_id, 
+          accessible_resource(@hostgroup, :compute_resource), 
+          :id, 
+          :to_label,
+          { 
+            :disable_button_enabled => hostgroup_inherited_by_default?(:compute_resource_id, @hostgroup),
+            :disable_button => _(HostsAndHostgroupsHelper::INHERIT_TEXT),
+            :user_set => user_set?(:compute_resource_id),
+            :include_blank => _('Bare Metal'),
+          },
           { :label => _('Deploy on'),
             :help_inline => :indicator } %>