diff --git a/awx/main/tests/inventory.py b/awx/main/tests/inventory.py
index 44f8c48770..455d67de46 100644
--- a/awx/main/tests/inventory.py
+++ b/awx/main/tests/inventory.py
@@ -478,11 +478,15 @@ class InventoryTest(BaseTest):
 
         # just some more groups for kicks
         inva  = Inventory.objects.get(pk=self.inventory_a.pk)
-        Group.objects.create(name='group-X1', inventory=inva)
-        Group.objects.create(name='group-X2', inventory=inva)
-        Group.objects.create(name='group-X3', inventory=inva)
-        Group.objects.create(name='group-X4', inventory=inva)
-        Group.objects.create(name='group-X5', inventory=inva)
+        gx1 = Group.objects.create(name='group-X1', inventory=inva)
+        gx2 = Group.objects.create(name='group-X2', inventory=inva)
+        gx2.parents.add(gx1)
+        gx3 = Group.objects.create(name='group-X3', inventory=inva)
+        gx3.parents.add(gx2)
+        gx4 = Group.objects.create(name='group-X4', inventory=inva)
+        gx4.parents.add(gx3)
+        gx5 = Group.objects.create(name='group-X5', inventory=inva)
+        gx5.parents.add(gx4)
 
         Permission.objects.create(
             inventory       = inva,
@@ -577,6 +581,21 @@ class InventoryTest(BaseTest):
         removed_group = Group.objects.get(pk=result['id'])
         self.assertFalse(removed_group.active)
 
+        # Removing a group from a hierarchy should migrate its children to the
+        # parent.  The group itself will be deleted (marked inactive), and all
+        # relationships removed.
+        url = reverse('main:group_children_list', args=(gx2.pk,))
+        data = {
+            'id': gx3.pk,
+            'disassociate': 1,
+        }
+        with self.current_user(self.super_django_user):
+            response = self.post(url, data, expect=204)
+        gx3 = Group.objects.get(pk=gx3.pk)
+        self.assertFalse(gx3.active)
+        self.assertFalse(gx3 in gx2.children.all())
+        self.assertTrue(gx4 in gx2.children.all())
+
         #########################################################
         # FIXME: TAGS
 
diff --git a/awx/main/views.py b/awx/main/views.py
index fc40bdb834..4d07ded14e 100644
--- a/awx/main/views.py
+++ b/awx/main/views.py
@@ -420,13 +420,26 @@ class GroupChildrenList(SubListCreateAPIView):
         Special case for disassociating a child group from the parent. If the
         child group has no more parents, then automatically mark it inactive.
         '''
-        response = super(GroupChildrenList, self).unattach(request, *args, **kwargs)
-        if response.status_code != status.HTTP_204_NO_CONTENT:
-            return response
-        sub = self.model.objects.get(pk=request.DATA.get('id', None))
-        if sub.parents.filter(active=True).count() == 0:
+        sub_id = request.DATA.get('id', None)
+        if not sub_id:
+            data = dict(msg='"id" is required to disassociate')
+            return Response(data, status=status.HTTP_400_BAD_REQUEST)
+
+        parent = self.get_parent_object()
+        parent_key = getattr(self, 'parent_key', None)
+        relationship = getattr(parent, self.relationship)
+        sub = get_object_or_400(self.model, pk=sub_id)
+
+        if not request.user.can_access(self.parent_model, 'unattach', parent,
+                                       sub, self.relationship):
+            raise PermissionDenied()
+
+        if sub.parents.filter(active=True).exclude(pk=parent.pk).count() == 0:
             sub.mark_inactive()
-        return response
+        else:
+            relationship.remove(sub)
+
+        return Response(status=status.HTTP_204_NO_CONTENT)
 
 class GroupHostsList(SubListCreateAPIView):
     ''' the list of hosts directly below a group '''