diff --git a/awx/main/models/ad_hoc_commands.py b/awx/main/models/ad_hoc_commands.py
index 7543162080..dfb5993e3a 100644
--- a/awx/main/models/ad_hoc_commands.py
+++ b/awx/main/models/ad_hoc_commands.py
@@ -228,15 +228,14 @@ class AdHocCommand(UnifiedJob, JobNotificationMixin):
 
     @property
     def preferred_instance_groups(self):
-        if self.inventory is not None and self.inventory.organization is not None:
-            organization_groups = [x for x in self.inventory.organization.instance_groups.all()]
-        else:
-            organization_groups = []
+        selected_groups = []
         if self.inventory is not None:
-            inventory_groups = [x for x in self.inventory.instance_groups.all()]
-        else:
-            inventory_groups = []
-        selected_groups = inventory_groups + organization_groups
+            for instance_group in self.inventory.instance_groups.all():
+                selected_groups.append(instance_group)
+            if not getattr(self.inventory, 'prevent_instance_group_fallback', False) and self.inventory.organization is not None:
+                for instance_group in self.inventory.organization.instance_groups.all():
+                    selected_groups.append(instance_group)
+
         if not selected_groups:
             return self.global_instance_groups
         return selected_groups
diff --git a/awx/main/models/inventory.py b/awx/main/models/inventory.py
index 30e50db1ea..f56bd17f4f 100644
--- a/awx/main/models/inventory.py
+++ b/awx/main/models/inventory.py
@@ -1278,15 +1278,19 @@ class InventoryUpdate(UnifiedJob, InventorySourceOptions, JobNotificationMixin,
 
     @property
     def preferred_instance_groups(self):
-        if self.inventory_source.inventory is not None and self.inventory_source.inventory.organization is not None:
-            organization_groups = [x for x in self.inventory_source.inventory.organization.instance_groups.all()]
-        else:
-            organization_groups = []
+        selected_groups = []
         if self.inventory_source.inventory is not None:
-            inventory_groups = [x for x in self.inventory_source.inventory.instance_groups.all()]
-        else:
-            inventory_groups = []
-        selected_groups = inventory_groups + organization_groups
+            # Add the inventory sources IG to the selected IGs first
+            for instance_group in self.inventory_source.inventory.instance_groups.all():
+                selected_groups.append(instance_group)
+            # If the inventory allows for fallback and we have an organization then also append the orgs IGs to the end of the list
+            if (
+                not getattr(self.inventory_source.inventory, 'prevent_instance_group_fallback', False)
+                and self.inventory_source.inventory.organization is not None
+            ):
+                for instance_group in self.inventory_source.inventory.organization.instance_groups.all():
+                    selected_groups.append(instance_group)
+
         if not selected_groups:
             return self.global_instance_groups
         return selected_groups
diff --git a/awx/main/tests/functional/test_instances.py b/awx/main/tests/functional/test_instances.py
index e704de8971..8ce6524d38 100644
--- a/awx/main/tests/functional/test_instances.py
+++ b/awx/main/tests/functional/test_instances.py
@@ -391,6 +391,8 @@ class TestInstanceGroupOrdering:
         assert ad_hoc.preferred_instance_groups == [ig_org]
         inventory.instance_groups.add(ig_inv)
         assert ad_hoc.preferred_instance_groups == [ig_inv, ig_org]
+        inventory.prevent_instance_group_fallback = True
+        assert ad_hoc.preferred_instance_groups == [ig_inv]
 
     def test_inventory_update_instance_groups(self, instance_group_factory, inventory_source, default_instance_group):
         iu = InventoryUpdate.objects.create(inventory_source=inventory_source, source=inventory_source.source)
@@ -404,6 +406,8 @@ class TestInstanceGroupOrdering:
         inventory_source.instance_groups.add(ig_tmp)
         # API does not allow setting IGs on inventory source, so ignore those
         assert iu.preferred_instance_groups == [ig_inv, ig_org]
+        inventory_source.inventory.prevent_instance_group_fallback = True
+        assert iu.preferred_instance_groups == [ig_inv]
 
     def test_job_instance_groups(self, instance_group_factory, inventory, project, default_instance_group):
         jt = JobTemplate.objects.create(inventory=inventory, project=project)