diff --git a/smoketest/scripts/cli/test_protocols_bgp.py b/smoketest/scripts/cli/test_protocols_bgp.py
index 03daa34aa4..ea2f561a4d 100755
--- a/smoketest/scripts/cli/test_protocols_bgp.py
+++ b/smoketest/scripts/cli/test_protocols_bgp.py
@@ -1330,6 +1330,27 @@ def _common_config_check(conf, include_ras=True):
         self.assertIn(f'neighbor {ext_neighbors[1]} remote-as external', conf)
         self.assertIn(f'neighbor {ext_neighbors[1]} peer-group {ext_pg_name}', conf)
 
+    def test_bgp_29_peer_group_remote_as_equal_local_as(self):
+        self.cli_set(base_path + ['system-as', ASN])
+        self.cli_set(base_path + ['peer-group', 'OVERLAY', 'local-as', f'{int(ASN) + 1}'])
+        self.cli_set(base_path + ['peer-group', 'OVERLAY', 'remote-as', f'{int(ASN) + 1}'])
+        self.cli_set(base_path + ['peer-group', 'OVERLAY', 'address-family', 'l2vpn-evpn'])
+
+        self.cli_set(base_path + ['peer-group', 'UNDERLAY', 'address-family', 'ipv4-unicast'])
+
+        self.cli_set(base_path + ['neighbor', '10.177.70.62', 'peer-group', 'UNDERLAY'])
+        self.cli_set(base_path + ['neighbor', '10.177.70.62', 'remote-as', 'external'])
+
+        self.cli_set(base_path + ['neighbor', '10.177.75.1', 'peer-group', 'OVERLAY'])
+        self.cli_set(base_path + ['neighbor', '10.177.75.2', 'peer-group', 'OVERLAY'])
+
+        self.cli_commit()
+
+        conf = self.getFRRconfig(f'router bgp {ASN}')
+
+        self.assertIn(f'neighbor OVERLAY remote-as {int(ASN) + 1}', conf)
+        self.assertIn(f'neighbor OVERLAY local-as {int(ASN) + 1}', conf)
+
     def test_bgp_99_bmp(self):
         target_name = 'instance-bmp'
         target_address = '127.0.0.1'
diff --git a/src/conf_mode/protocols_bgp.py b/src/conf_mode/protocols_bgp.py
index 44409c0e34..22f0200992 100755
--- a/src/conf_mode/protocols_bgp.py
+++ b/src/conf_mode/protocols_bgp.py
@@ -333,7 +333,7 @@ def verify(bgp):
                     raise ConfigError('Cannot have local-as same as system-as number')
 
                 # Neighbor AS specified for local-as and remote-as can not be the same
-                if dict_search('remote_as', peer_config) == asn:
+                if dict_search('remote_as', peer_config) == asn and neighbor != 'peer_group':
                      raise ConfigError(f'Neighbor "{peer}" has local-as specified which is '\
                                         'the same as remote-as, this is not allowed!')