diff --git a/testng-core/src/test/java/test/cli/github2974/OverrideGroupsCliTest.java b/testng-core/src/test/java/test/cli/github2974/OverrideGroupsCliTest.java
new file mode 100644
index 0000000000..3cca8d0850
--- /dev/null
+++ b/testng-core/src/test/java/test/cli/github2974/OverrideGroupsCliTest.java
@@ -0,0 +1,27 @@
+package test.cli.github2974;
+
+import java.util.List;
+import org.testng.Assert;
+import org.testng.CommandLineArgs;
+import org.testng.TestNG;
+import org.testng.annotations.Test;
+import test.SimpleBaseTest;
+
+public class OverrideGroupsCliTest extends SimpleBaseTest {
+
+  @Test(description = "GITHUB-2974")
+  public void overrideGroupsFromCliInParentChildXml() {
+    TestNG testNG =
+        new TestNG(false) {
+          {
+            CommandLineArgs args = new CommandLineArgs();
+            args.groups = "override_group";
+            args.suiteFiles = List.of(getPathToResource("2974/parent.xml"));
+            configure(args);
+          }
+        };
+    testNG.run();
+    Assert.assertTrue(TwoGroupsTest.NAMES.contains("must run"));
+    Assert.assertFalse(TwoGroupsTest.NAMES.contains("must not run"));
+  }
+}
diff --git a/testng-core/src/test/java/test/cli/github2974/TwoGroupsTest.java b/testng-core/src/test/java/test/cli/github2974/TwoGroupsTest.java
new file mode 100644
index 0000000000..09aa199a8d
--- /dev/null
+++ b/testng-core/src/test/java/test/cli/github2974/TwoGroupsTest.java
@@ -0,0 +1,20 @@
+package test.cli.github2974;
+
+import java.util.ArrayList;
+import java.util.List;
+import org.testng.annotations.Test;
+
+public class TwoGroupsTest {
+
+  public static final List<String> NAMES = new ArrayList<>();
+
+  @Test(groups = {"override_group"})
+  public void test1() {
+    NAMES.add("must run");
+  }
+
+  @Test(groups = {"default_group"})
+  public void test2() {
+    NAMES.add("must not run");
+  }
+}
diff --git a/testng-core/src/test/resources/2974/child.xml b/testng-core/src/test/resources/2974/child.xml
new file mode 100644
index 0000000000..ece3a45a08
--- /dev/null
+++ b/testng-core/src/test/resources/2974/child.xml
@@ -0,0 +1,9 @@
+<!DOCTYPE suite SYSTEM "https://testng.org/testng-1.0.dtd">
+<suite name="child">
+
+  <test name="Tests inherit groups from parent xml">
+    <classes>
+      <class name="test.cli.github2974.TwoGroupsTest"/>
+    </classes>
+  </test>
+</suite>
diff --git a/testng-core/src/test/resources/2974/parent.xml b/testng-core/src/test/resources/2974/parent.xml
new file mode 100644
index 0000000000..66e092208b
--- /dev/null
+++ b/testng-core/src/test/resources/2974/parent.xml
@@ -0,0 +1,12 @@
+<!DOCTYPE suite SYSTEM "https://testng.org/testng-1.0.dtd">
+<suite name="parent suite with default group" parallel="methods" thread-count="1">
+
+    <groups>
+        <run>
+            <include name="default_group"/>
+        </run>
+    </groups>
+    <suite-files>
+        <suite-file path="child.xml"/>
+    </suite-files>
+</suite>
diff --git a/testng-core/src/test/resources/testng.xml b/testng-core/src/test/resources/testng.xml
index 7013764a22..4e3103d835 100644
--- a/testng-core/src/test/resources/testng.xml
+++ b/testng-core/src/test/resources/testng.xml
@@ -109,6 +109,7 @@
       <class name="test.github765.ExcludeSyntheticMethodsFromTemplateCallsTest"/>
       <class name="test.github1405.TestExclusionOfMainMethod"/>
       <class name="test.cli.CliTest"/>
+      <class name="test.cli.github2974.OverrideGroupsCliTest"/>
       <class name="test.thread.ParallelSuiteTest"/>
       <class name="test.simple.IncludedExcludedTest" />
       <class name="test.reports.ReportTest" />