diff --git a/src/Storages/StorageDistributed.cpp b/src/Storages/StorageDistributed.cpp
index 237e283d918..22f51e7a5b3 100644
--- a/src/Storages/StorageDistributed.cpp
+++ b/src/Storages/StorageDistributed.cpp
@@ -380,13 +380,16 @@ StoragePtr StorageDistributed::createWithOwnCluster(
 }
 
 
-bool StorageDistributed::canForceGroupByNoMerge(const Context &context, const ASTPtr & query_ptr) const
+bool StorageDistributed::canForceGroupByNoMerge(const Context &context, QueryProcessingStage::Enum to_stage, const ASTPtr & query_ptr) const
 {
     const auto & settings = context.getSettingsRef();
     std::string reason;
 
     if (settings.distributed_group_by_no_merge)
         return true;
+    /// Distributed-over-Distributed (see getQueryProcessingStageImpl())
+    if (to_stage == QueryProcessingStage::WithMergeableState)
+        return false;
     if (!settings.optimize_skip_unused_shards)
         return false;
     if (!has_sharding_key)
@@ -445,7 +448,7 @@ bool StorageDistributed::canForceGroupByNoMerge(const Context &context, const AS
 
 QueryProcessingStage::Enum StorageDistributed::getQueryProcessingStage(const Context &context, QueryProcessingStage::Enum to_stage, const ASTPtr & query_ptr) const
 {
-    if (canForceGroupByNoMerge(context, query_ptr))
+    if (canForceGroupByNoMerge(context, to_stage, query_ptr))
         return QueryProcessingStage::Complete;
 
     auto cluster = getOptimizedCluster(context, query_ptr);
diff --git a/src/Storages/StorageDistributed.h b/src/Storages/StorageDistributed.h
index 05b8b9fb55c..bbebedba1cb 100644
--- a/src/Storages/StorageDistributed.h
+++ b/src/Storages/StorageDistributed.h
@@ -68,8 +68,8 @@ public:
     bool isRemote() const override { return true; }
 
     /// Return true if distributed_group_by_no_merge may be applied.
-    bool canForceGroupByNoMerge(const Context &, const ASTPtr &) const;
-    QueryProcessingStage::Enum getQueryProcessingStage(const Context &, QueryProcessingStage::Enum /*to_stage*/, const ASTPtr &) const override;
+    bool canForceGroupByNoMerge(const Context &, QueryProcessingStage::Enum to_stage, const ASTPtr &) const;
+    QueryProcessingStage::Enum getQueryProcessingStage(const Context &, QueryProcessingStage::Enum to_stage, const ASTPtr &) const override;
 
     Pipes read(
         const Names & column_names,
diff --git a/tests/queries/0_stateless/01247_distributed_group_by_no_merge_GROUP_BY_injective_sharding_key.reference b/tests/queries/0_stateless/01247_distributed_group_by_no_merge_GROUP_BY_injective_sharding_key.reference
index 1807c1b51cc..b8cf0042ed3 100644
--- a/tests/queries/0_stateless/01247_distributed_group_by_no_merge_GROUP_BY_injective_sharding_key.reference
+++ b/tests/queries/0_stateless/01247_distributed_group_by_no_merge_GROUP_BY_injective_sharding_key.reference
@@ -13,6 +13,11 @@ GROUP BY number
 1	1
 1	0
 1	1
+GROUP BY number distributed_group_by_no_merge
+1	0
+1	1
+1	0
+1	1
 GROUP BY number, 1
 1	0
 1	1
@@ -50,3 +55,15 @@ LIMIT
 LIMIT BY
 2	0
 2	1
+GROUP BY (Distributed-over-Distributed)
+4	0
+4	1
+GROUP BY (Distributed-over-Distributed) distributed_group_by_no_merge
+1	0
+1	1
+1	0
+1	1
+1	0
+1	1
+1	0
+1	1
diff --git a/tests/queries/0_stateless/01247_distributed_group_by_no_merge_GROUP_BY_injective_sharding_key.sql b/tests/queries/0_stateless/01247_distributed_group_by_no_merge_GROUP_BY_injective_sharding_key.sql
index 221871bd3e1..56345e23094 100644
--- a/tests/queries/0_stateless/01247_distributed_group_by_no_merge_GROUP_BY_injective_sharding_key.sql
+++ b/tests/queries/0_stateless/01247_distributed_group_by_no_merge_GROUP_BY_injective_sharding_key.sql
@@ -18,6 +18,8 @@ select * from dist_01247;
 
 select 'GROUP BY number';
 select count(), * from dist_01247 group by number;
+select 'GROUP BY number distributed_group_by_no_merge';
+select count(), * from dist_01247 group by number settings distributed_group_by_no_merge=1;
 
 -- dumb, but should work, since "GROUP BY 1" optimized out
 select 'GROUP BY number, 1';
@@ -53,3 +55,8 @@ select count(), * from dist_01247 group by number limit 1 offset 1;
 select 'LIMIT BY';
 select count(), * from dist_01247 group by number limit 0 by number;
 select count(), * from dist_01247 group by number limit 1 by number;
+
+select 'GROUP BY (Distributed-over-Distributed)';
+select count(), * from cluster(test_cluster_two_shards, currentDatabase(), dist_01247) group by number;
+select 'GROUP BY (Distributed-over-Distributed) distributed_group_by_no_merge';
+select count(), * from cluster(test_cluster_two_shards, currentDatabase(), dist_01247) group by number settings distributed_group_by_no_merge=1;