diff --git a/erpnext/hr/doctype/department/department.js b/erpnext/hr/doctype/department/department.js
index 963f3615cc..4185446d12 100644
--- a/erpnext/hr/doctype/department/department.js
+++ b/erpnext/hr/doctype/department/department.js
@@ -2,12 +2,18 @@
 // For license information, please see license.txt
 
 frappe.ui.form.on('Department', {
+	onload: function(frm) {
+		frm.set_query("parent_department", function(){
+	        return { "filters": [["Department", "is_group", "=", 1]]}
+	    });
+	},
 	refresh: function(frm) {
 		// read-only for root department
 		if(!frm.doc.parent_department && !frm.is_new()) {
 			frm.set_read_only();
 			frm.set_intro(__("This is a root department and cannot be edited."));
 		}
+		
 	},
 	validate: function(frm) {
 		if(frm.doc.name=="All Departments") {