diff --git a/pype/settings/entities/item_entities.py b/pype/settings/entities/item_entities.py
index d088b8be83..582206894c 100644
--- a/pype/settings/entities/item_entities.py
+++ b/pype/settings/entities/item_entities.py
@@ -1084,8 +1084,9 @@ class PathEntity(ItemEntity):
         return self.child_obj.items()
 
     def item_initalization(self):
-        if not self.group_item and not self.is_group:
-            self.is_group = True
+        is_group = self.is_group
+        if not self.group_item and not is_group:
+            is_group = True
 
         self.multiplatform = self.schema_data.get("multiplatform", False)
         self.multipath = self.schema_data.get("multipath", False)
@@ -1137,10 +1138,15 @@ class PathEntity(ItemEntity):
 
                 item_schema["children"].append(child_item)
 
-        self.child_obj = self.create_schema_object(item_schema, self)
-        self.valid_value_types = valid_value_types
+        if is_group:
+            self.is_group = False
+            item_schema["is_group"] = True
+        item_schema["label"] = self.schema_data["label"]
 
-    def get_child_path(self, child_obj):
+        self.valid_value_types = valid_value_types
+        self.child_obj = self.create_schema_object(item_schema, self)
+
+    def get_child_path(self, _child_obj):
         return self.path
 
     def set_value(self, value):