diff --git a/torch/distributed/distributed_c10d.py b/torch/distributed/distributed_c10d.py
index ea04cdc86b0..b73ad2b4937 100644
--- a/torch/distributed/distributed_c10d.py
+++ b/torch/distributed/distributed_c10d.py
@@ -5455,7 +5455,7 @@ def new_subgroups(
         )
         subgroups.append(subgroup)
 
-        if rank := get_rank(group=group) in ranks_in_subgroup:
+        if rank := get_rank() in ranks_in_subgroup:
             cur_subgroup = subgroup
             logger.info("Rank %s is assigned to subgroup %s", rank, ranks_in_subgroup)
 
diff --git a/torch/testing/_internal/distributed/distributed_test.py b/torch/testing/_internal/distributed/distributed_test.py
index 797233a8558..71026e4b142 100644
--- a/torch/testing/_internal/distributed/distributed_test.py
+++ b/torch/testing/_internal/distributed/distributed_test.py
@@ -915,6 +915,40 @@ class DistributedTest:
             for subgroup in subgroups:
                 dist.destroy_process_group(subgroup)
 
+        @skip_but_pass_in_sandcastle_if(
+            BACKEND not in DistTestCases.backend_feature["subgroup"],
+            f"The {BACKEND} backend does not support creating subgroups on CUDA devices",
+        )
+        @require_world_size(4)
+        @skip_if_lt_x_gpu(4)
+        def test_new_subgroups_with_group_param(self):
+            # Initialize global test environment
+            self._init_global_test()
+            # Set up GPU devices for each rank
+            init_multigpu_helper(dist.get_world_size(), BACKEND)
+            # Create two subgroups: one with ranks [0,2] and another with ranks [1,3]
+            cur_subgroup, subgroups = dist.new_subgroups_by_enumeration(
+                ranks_per_subgroup_list=[[0, 2], [1, 3]]
+            )
+
+            # Further divide the current subgroup into sub-subgroups of size 1
+            cur_sub_subgroup, sub_subgroups = dist.new_subgroups(
+                group_size=1, group=cur_subgroup
+            )
+            # Verify we have 2 sub-subgroups (one for each rank in the original subgroup)
+            self.assertEqual(len(sub_subgroups), 2)
+            # Verify the current process's sub-subgroup has size 1
+            self.assertEqual(cur_sub_subgroup.size(), 1)
+            # Verify the current process is in its assigned sub-subgroup
+            self.assertFalse(dist._rank_not_in_group(group=cur_sub_subgroup))
+
+            # Clean up by destroying all created process groups
+            for sub_subgroup in sub_subgroups:
+                dist.destroy_process_group(sub_subgroup)
+
+            for subgroup in subgroups:
+                dist.destroy_process_group(subgroup)
+
         @skip_but_pass_in_sandcastle_if(
             BACKEND not in DistTestCases.backend_feature["subgroup"],
             f"The {BACKEND} backend does not support creating subgroups on CUDA devices",