diff --git a/erpnext/controllers/queries.py b/erpnext/controllers/queries.py
index 2284669..0ff329b 100644
--- a/erpnext/controllers/queries.py
+++ b/erpnext/controllers/queries.py
@@ -152,6 +152,9 @@
 def item_query(doctype, txt, searchfield, start, page_len, filters, as_dict=False):
 	conditions = []
 
+	if not filters["item_group"]:
+		filters.pop("item_group", None)
+
 	description_cond = ''
 	if frappe.db.count('Item', cache=True) < 50000:
 		# scan description only if items are less than 50000
diff --git a/erpnext/stock/report/stock_balance/stock_balance.js b/erpnext/stock/report/stock_balance/stock_balance.js
index 07e5f4b..120f879 100644
--- a/erpnext/stock/report/stock_balance/stock_balance.js
+++ b/erpnext/stock/report/stock_balance/stock_balance.js
@@ -40,7 +40,10 @@
 			"options": "Item",
 			"get_query": function() {
 				return {
-					query: "erpnext.controllers.queries.item_query"
+					query: "erpnext.controllers.queries.item_query",
+					filters: {
+						"item_group": frappe.query_report.get_filter_value("item_group")
+					}
 				}
 			}
 		},