diff --git a/awx/ui/client/src/shared/instance-groups-multiselect/instance-groups.partial.html b/awx/ui/client/src/shared/instance-groups-multiselect/instance-groups.partial.html
index ac82763c5a..878b54a3a4 100644
--- a/awx/ui/client/src/shared/instance-groups-multiselect/instance-groups.partial.html
+++ b/awx/ui/client/src/shared/instance-groups-multiselect/instance-groups.partial.html
@@ -1,14 +1,18 @@
 <div class="input-group Form-mixedInputGroup">
-    <span class="input-group-btn">
-        <button type="button" class="Form-lookupButton btn btn-default" ng-click="openInstanceGroupsModal()"
+    <span class="input-group-btn Form-variableHeightButtonGroup">
+        <button type="button" class="Form-lookupButton Form-lookupButton--variableHeight btn btn-default" ng-click="openInstanceGroupsModal()"
             ng-disabled="fieldIsDisabled">
             <i class="fa fa-search"></i>
         </button>
     </span>
     <span id="InstanceGroups" class="form-control Form-textInput Form-textInput--variableHeight input-medium lookup LabelList-lookupTags"
-        ng-disabled="fieldIsDisabled">
-        <div class="LabelList-tagContainer" ng-repeat="tag in instanceGroupsTags">
+        ng-disabled="fieldIsDisabled"
+        ng-class="{'LabelList-lookupTags--disabled' : fieldIsDisabled}">
+        <div ng-if="!fieldIsDisabled" class="LabelList-tagContainer" ng-repeat="tag in instanceGroupsTags">
             <at-tag tag="tag.name" remove-tag="deleteTag(tag)"></at-tag>
         </div>
+        <div ng-if="fieldIsDisabled" class="LabelList-tag" ng-repeat="tag in instanceGroupsTags">
+            <span class="LabelList-name">{{tag.name | sanitize}}</span>
+        </div>
     </span>
 </div>
diff --git a/awx/ui/client/src/templates/labels/labelsList.block.less b/awx/ui/client/src/templates/labels/labelsList.block.less
index 39041117a0..9796abc56f 100644
--- a/awx/ui/client/src/templates/labels/labelsList.block.less
+++ b/awx/ui/client/src/templates/labels/labelsList.block.less
@@ -92,11 +92,6 @@
 .LabelList-lookupTags {
     display: flex;
     padding: 0 12px;
-    overflow-y: hidden;
-}
-
-.LabelList-lookupTags[disabled] {
-    pointer-events: none;
 }
 
 .LabelList-lookupTags--disabled {