diff --git a/Sources/XcodeGenKit/SourceGenerator.swift b/Sources/XcodeGenKit/SourceGenerator.swift
index d89458d7..c6148d18 100644
--- a/Sources/XcodeGenKit/SourceGenerator.swift
+++ b/Sources/XcodeGenKit/SourceGenerator.swift
@@ -288,23 +288,21 @@ class SourceGenerator {
             let isTopLevelGroup = (isBaseGroup && !createIntermediateGroups) || isRootPath
 
             let groupName = name ?? path.lastComponent
-            let groupPath = isTopLevelGroup ?
-                ((try? path.relativePath(from: project.basePath)) ?? path).string :
-                path.lastComponent
-            
-            let relativePath: Path?
-            if let projectDestinationDirectory = projectDestinationDirectory {
-                relativePath = try? path.relativePath(from: projectDestinationDirectory)
+            let groupPath: String
+            if isTopLevelGroup {
+                if let relativePath = try? path.relativePath(from: projectDestinationDirectory ?? project.basePath).string {
+                    groupPath = relativePath
+                } else {
+                    groupPath = path.lastComponent
+                }
             } else {
-                relativePath = Path(groupName)
+                groupPath = path.lastComponent
             }
-            
-            let shouldSetGroupName = (groupName != groupPath) || (relativePath?.string != groupPath)
             let group = PBXGroup(
                 children: children,
                 sourceTree: .group,
-                name: shouldSetGroupName ? groupName : nil,
-                path: relativePath?.string
+                name: groupName != groupPath ? groupName : nil,
+                path: groupPath
             )
             groupReference = addObject(group)
             groupsByPath[path] = groupReference
diff --git a/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift b/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
index e635c48e..85ae81bc 100644
--- a/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
+++ b/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
@@ -1021,7 +1021,7 @@ class ProjectGeneratorTests: XCTestCase {
                     let project = Project(name: "test", targets: [frameworkWithSources])
                     let generator = ProjectGenerator(project: project)
                     let generatedProject = try generator.generateXcodeProject()
-                    let group = generatedProject.pbxproj.groups.first(where: { $0.name == groupName })
+                    let group = generatedProject.pbxproj.groups.first(where: { $0.nameOrPath == groupName })
                     try expect(group?.path) == "App_iOS"
                 }
             }
@@ -1032,7 +1032,7 @@ class ProjectGeneratorTests: XCTestCase {
                     let project = Project(name: "test", targets: [frameworkWithSources])
                     let generator = ProjectGenerator(project: project)
                     let generatedProject = try generator.generateXcodeProject(to: destinationPath)
-                    let group = generatedProject.pbxproj.groups.first(where: { $0.name == groupName })
+                    let group = generatedProject.pbxproj.groups.first(where: { $0.nameOrPath == groupName })
                     try expect(group?.path) == "TestProject/App_iOS"
                 }
             }