diff --git a/awx/api/serializers.py b/awx/api/serializers.py
index a98e2271b6..ab91385d44 100644
--- a/awx/api/serializers.py
+++ b/awx/api/serializers.py
@@ -2623,7 +2623,7 @@ class CredentialSerializer(BaseSerializer):
         return ret
 
     def validate_organization(self, org):
-        if self.instance and self.instance.credential_type.kind == 'galaxy' and org is None:
+        if self.instance and (not self.instance.managed) and self.instance.credential_type.kind == 'galaxy' and org is None:
             raise serializers.ValidationError(_("Galaxy credentials must be owned by an Organization."))
         return org