diff --git a/java/com/google/gerrit/server/project/ProjectConfig.java b/java/com/google/gerrit/server/project/ProjectConfig.java
index 54d9176..89038e2 100644
--- a/java/com/google/gerrit/server/project/ProjectConfig.java
+++ b/java/com/google/gerrit/server/project/ProjectConfig.java
@@ -1425,7 +1425,7 @@
           if (group.getUUID() != null) {
             keepGroups.add(group.getUUID());
           }
-          rules.add(rule.asString(needRange));
+          rules.add(rule.toBuilder().setGroup(group).build().asString(needRange));
         }
         rc.setStringList(CAPABILITY, null, permission.getName(), rules);
       }
@@ -1470,7 +1470,7 @@
           if (group.getUUID() != null) {
             keepGroups.add(group.getUUID());
           }
-          rules.add(rule.asString(needRange));
+          rules.add(rule.toBuilder().setGroup(group).build().asString(needRange));
         }
         rc.setStringList(ACCESS, refName, permission.getName(), rules);
       }
diff --git a/javatests/com/google/gerrit/acceptance/api/project/ProjectIT.java b/javatests/com/google/gerrit/acceptance/api/project/ProjectIT.java
index e99a6f5..d5fc1c1 100644
--- a/javatests/com/google/gerrit/acceptance/api/project/ProjectIT.java
+++ b/javatests/com/google/gerrit/acceptance/api/project/ProjectIT.java
@@ -15,6 +15,7 @@
 package com.google.gerrit.acceptance.api.project;
 
 import static com.google.common.truth.Truth.assertThat;
+import static com.google.common.truth.Truth8.assertThat;
 import static com.google.gerrit.acceptance.testsuite.project.TestProjectUpdate.allow;
 import static com.google.gerrit.acceptance.testsuite.project.TestProjectUpdate.block;
 import static com.google.gerrit.server.project.ProjectState.INHERITED_FROM_GLOBAL;
@@ -39,7 +40,9 @@
 import com.google.gerrit.acceptance.config.GerritConfig;
 import com.google.gerrit.acceptance.testsuite.project.ProjectOperations;
 import com.google.gerrit.acceptance.testsuite.request.RequestScopeOperations;
+import com.google.gerrit.entities.AccountGroup;
 import com.google.gerrit.entities.Change;
+import com.google.gerrit.entities.GroupReference;
 import com.google.gerrit.entities.Permission;
 import com.google.gerrit.entities.Project;
 import com.google.gerrit.entities.RefNames;
@@ -55,6 +58,7 @@
 import com.google.gerrit.extensions.client.InheritableBoolean;
 import com.google.gerrit.extensions.client.ProjectState;
 import com.google.gerrit.extensions.client.SubmitType;
+import com.google.gerrit.extensions.common.GroupInfo;
 import com.google.gerrit.extensions.common.ProjectInfo;
 import com.google.gerrit.extensions.events.ChangeIndexedListener;
 import com.google.gerrit.extensions.events.ProjectIndexedListener;
@@ -63,6 +67,7 @@
 import com.google.gerrit.extensions.restapi.ResourceConflictException;
 import com.google.gerrit.extensions.restapi.UnprocessableEntityException;
 import com.google.gerrit.server.config.ProjectConfigEntry;
+import com.google.gerrit.server.git.meta.MetaDataUpdate;
 import com.google.gerrit.server.group.SystemGroupBackend;
 import com.google.gerrit.server.project.ProjectConfig;
 import com.google.inject.AbstractModule;
@@ -70,6 +75,7 @@
 import com.google.inject.Module;
 import java.util.HashMap;
 import java.util.Map;
+import java.util.Optional;
 import org.eclipse.jgit.internal.storage.dfs.InMemoryRepository;
 import org.eclipse.jgit.junit.TestRepository;
 import org.eclipse.jgit.lib.Config;
@@ -939,6 +945,42 @@
                 projectOperations.project(allProjects).getHead(RefNames.REFS_CONFIG).name()));
   }
 
+  @Test
+  public void renamingGroupGetsPersisted() throws Exception {
+    String name = name("Name1");
+    GroupInfo group = gApi.groups().create(name).get();
+
+    // Use group in a permission
+    projectOperations
+        .project(project)
+        .forUpdate()
+        .add(allow(Permission.READ).ref(RefNames.REFS_CONFIG).group(AccountGroup.uuid(group.id)))
+        .update();
+    Optional<String> beforeRename =
+        projectCache.get(project).get().getLocalGroups().stream()
+            .filter(g -> g.getUUID().get().equals(group.id))
+            .map(GroupReference::getName)
+            .findAny();
+    // Groups created with ProjectOperations always have their UUID as local name
+    assertThat(beforeRename).hasValue(group.id);
+
+    // Rename the group directly on the project config
+    String newName = name("Name2");
+    try (MetaDataUpdate md = metaDataUpdateFactory.create(project)) {
+      ProjectConfig config = projectConfigFactory.read(md);
+      config.renameGroup(AccountGroup.uuid(group.id), newName);
+      config.commit(md);
+      projectCache.evict(config.getProject());
+    }
+
+    Optional<String> afterRename =
+        projectCache.get(project).get().getLocalGroups().stream()
+            .filter(g -> g.getUUID().get().equals(group.id))
+            .map(GroupReference::getName)
+            .findAny();
+    assertThat(afterRename).hasValue(newName);
+  }
+
   private CommentLinkInfo commentLinkInfo(String name, String match, String link) {
     CommentLinkInfo info = new CommentLinkInfo();
     info.name = name;