diff --git a/lib/default_hostgroup_managed_host_patch.rb b/lib/default_hostgroup_managed_host_patch.rb
index bed675f..1ffde9d 100644
--- a/lib/default_hostgroup_managed_host_patch.rb
+++ b/lib/default_hostgroup_managed_host_patch.rb
@@ -13,6 +13,12 @@ module ClassMethods
     def importHostAndFacts_with_apply_hostgroup hostname, facts, certname = nil
       host, result = importHostAndFacts_without_apply_hostgroup(hostname, facts, certname)
       Rails.logger.debug "DefaultHostgroup: performing Hostgroup check"
+
+      unless valid_hostgroup?
+        Rails.logger.debug "DefaultHostgroup: Could not find Hostgroup '#{Setting[:default_hostgroup]}'"
+        return host, result
+      end
+
       # host.new_record? will only test for the early return in the core method, a real host
       # will have already been saved at least once.
       if host.present? && !host.new_record? && host.hostgroup.nil? && host.reports.empty?
@@ -22,5 +28,9 @@ def importHostAndFacts_with_apply_hostgroup hostname, facts, certname = nil
       end
       return host, result
     end
+
+    def valid_hostgroup?
+      Hostgroup.find_by_label(Setting[:default_hostgroup]) ? true : false
+    end
   end
 end
diff --git a/test/unit/default_hostgroup_test.rb b/test/unit/default_hostgroup_test.rb
index 1fdc959..8e9cc84 100644
--- a/test/unit/default_hostgroup_test.rb
+++ b/test/unit/default_hostgroup_test.rb
@@ -26,4 +26,12 @@ def setup_hostgroup
     assert_equal @hostgroup, Host.find_by_name('sinn1636.lan').hostgroup
   end
 
+  test "an invalid hostgroup setting does nothing" do
+    setup_hostgroup
+    Setting[:default_hostgroup] = "doesnotexist"
+    raw = parse_json_fixture('/facts.json')
+    assert     Host.importHostAndFacts(raw['name'], raw['facts'])
+    refute Host.find_by_name('sinn1636.lan').hostgroup
+  end
+
 end