diff --git a/pkg/base/k8s/kubeclient.go b/pkg/base/k8s/kubeclient.go
index 79fbdbd6e..badc89451 100644
--- a/pkg/base/k8s/kubeclient.go
+++ b/pkg/base/k8s/kubeclient.go
@@ -228,7 +228,7 @@ func (k *KubeClient) ConstructACRCR(name string, apiACR api.AvailableCapacityRes
 // ConstructLVGCR constructs LogicalVolumeGroup custom resource from api.LogicalVolumeGroup struct
 // Receives a name for k8s ObjectMeta and an instance of api.LogicalVolumeGroup struct
 // Returns an instance of LogicalVolumeGroup CR struct
-func (k *KubeClient) ConstructLVGCR(name string, apiLVG api.LogicalVolumeGroup) *lvgcrd.LogicalVolumeGroup {
+func (k *KubeClient) ConstructLVGCR(name string, apiLVG api.LogicalVolumeGroup, storageGroup string) *lvgcrd.LogicalVolumeGroup {
 	return &lvgcrd.LogicalVolumeGroup{
 		TypeMeta: apisV1.TypeMeta{
 			Kind:       crdV1.LVGKind,
@@ -236,7 +236,7 @@ func (k *KubeClient) ConstructLVGCR(name string, apiLVG api.LogicalVolumeGroup)
 		},
 		ObjectMeta: apisV1.ObjectMeta{
 			Name:   name,
-			Labels: constructDefaultAppMap(),
+			Labels: constructLVGCRLabels(storageGroup),
 		},
 		Spec: apiLVG,
 	}
@@ -427,3 +427,11 @@ func constructDefaultAppMap() (labels map[string]string) {
 	}
 	return
 }
+
+func constructLVGCRLabels(storageGroup string) (labels map[string]string) {
+	labels = constructDefaultAppMap()
+	if storageGroup != "" {
+		labels[crdV1.StorageGroupLabelKey] = storageGroup
+	}
+	return labels
+}
diff --git a/pkg/base/k8s/kubeclient_test.go b/pkg/base/k8s/kubeclient_test.go
index 659d4bb07..2b4034d02 100644
--- a/pkg/base/k8s/kubeclient_test.go
+++ b/pkg/base/k8s/kubeclient_test.go
@@ -496,7 +496,7 @@ var _ = Describe("Constructor methods", func() {
 	})
 	Context("ConstructLVGCR", func() {
 		It("Should return right LogicalVolumeGroup CR", func() {
-			constructedCR := k8sclient.ConstructLVGCR(testLVGName, testApiLVG)
+			constructedCR := k8sclient.ConstructLVGCR(testLVGName, testApiLVG, "")
 			Expect(constructedCR.TypeMeta.Kind).To(Equal(testLVGCR.TypeMeta.Kind))
 			Expect(constructedCR.TypeMeta.APIVersion).To(Equal(testLVGCR.TypeMeta.APIVersion))
 			Expect(constructedCR.ObjectMeta.Name).To(Equal(testLVGCR.ObjectMeta.Name))
diff --git a/pkg/common/ac_operations.go b/pkg/common/ac_operations.go
index 747907349..6fae2e78f 100644
--- a/pkg/common/ac_operations.go
+++ b/pkg/common/ac_operations.go
@@ -33,7 +33,7 @@ import (
 
 // AvailableCapacityOperations is the interface for interact with AvailableCapacity CRs from Controller
 type AvailableCapacityOperations interface {
-	RecreateACToLVGSC(ctx context.Context, sc string, acs ...accrd.AvailableCapacity) *accrd.AvailableCapacity
+	RecreateACToLVGSC(ctx context.Context, sc string, sg string, acs ...accrd.AvailableCapacity) *accrd.AvailableCapacity
 }
 
 // ACOperationsImpl is the basic implementation of AvailableCapacityOperations interface
@@ -56,7 +56,7 @@ func NewACOperationsImpl(k8sClient *k8s.KubeClient, l *logrus.Logger) *ACOperati
 // Concerts first AC to LVG SC and set size of remaining to 0
 // Receives newSC as string (e.g. HDDLVG) and AvailableCapacities where LVG should be based
 // Returns created AC or nil
-func (a *ACOperationsImpl) RecreateACToLVGSC(ctx context.Context, newSC string,
+func (a *ACOperationsImpl) RecreateACToLVGSC(ctx context.Context, newSC string, storageGroup string,
 	acs ...accrd.AvailableCapacity) *accrd.AvailableCapacity {
 	ll := a.log.WithFields(logrus.Fields{
 		"method":   "RecreateACToLVGSC",
@@ -90,7 +90,7 @@ func (a *ACOperationsImpl) RecreateACToLVGSC(ctx context.Context, newSC string,
 	)
 
 	// create LVG CR based on ACs
-	lvg := a.k8sClient.ConstructLVGCR(name, apiLVG)
+	lvg := a.k8sClient.ConstructLVGCR(name, apiLVG, storageGroup)
 	if err = a.k8sClient.CreateCR(ctx, name, lvg); err != nil {
 		ll.Errorf("Unable to create LVG CR: %v", err)
 		return nil
diff --git a/pkg/common/volume_operations.go b/pkg/common/volume_operations.go
index 532fee40e..8784485bd 100644
--- a/pkg/common/volume_operations.go
+++ b/pkg/common/volume_operations.go
@@ -187,7 +187,7 @@ func (vo *VolumeOperationsImpl) handleVolumeCreation(ctx context.Context, log *l
 
 	if ac.Spec.StorageClass != v.StorageClass && util.IsStorageClassLVG(v.StorageClass) {
 		// AC needs to be converted to LogicalVolumeGroup AC, LogicalVolumeGroup doesn't exist yet
-		if ac = vo.acProvider.RecreateACToLVGSC(ctx, v.StorageClass, *ac); ac == nil {
+		if ac = vo.acProvider.RecreateACToLVGSC(ctx, v.StorageClass, ac.Labels[apiV1.StorageGroupLabelKey], *ac); ac == nil {
 			return nil, status.Errorf(codes.Internal,
 				"unable to prepare underlying storage for storage class %s", v.StorageClass)
 		}
diff --git a/pkg/node/volumemgr.go b/pkg/node/volumemgr.go
index f0e878dc3..63d857454 100644
--- a/pkg/node/volumemgr.go
+++ b/pkg/node/volumemgr.go
@@ -913,7 +913,7 @@ func (m *VolumeManager) discoverLVGOnSystemDrive() error {
 			VolumeRefs: lvs,
 			Health:     apiV1.HealthGood,
 		}
-		vgCR = m.k8sClient.ConstructLVGCR(vgCRName, vg)
+		vgCR = m.k8sClient.ConstructLVGCR(vgCRName, vg, "")
 		ctx  = context.WithValue(context.Background(), base.RequestUUID, vg.Name)
 	)
 	m.updateLVGAnnotation(vgCR, vgFreeSpace)
diff --git a/pkg/node/volumemgr_test.go b/pkg/node/volumemgr_test.go
index f0101fae1..8438c7f50 100644
--- a/pkg/node/volumemgr_test.go
+++ b/pkg/node/volumemgr_test.go
@@ -962,7 +962,7 @@ func Test_discoverLVGOnSystemDrive_LVGAlreadyExists(t *testing.T) {
 			Name:      "some-name",
 			Node:      m.nodeID,
 			Locations: []string{"some-uuid"},
-		})
+		}, "")
 		lvgList = lvgcrd.LogicalVolumeGroupList{}
 		err     error
 	)