diff --git a/docs/changelog.rst b/docs/changelog.rst
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -21,6 +21,8 @@ news
   post push/pull/create repo hooks callbacks
 - implemented #377 Users view for his own permissions on account page
 - #399 added inheritance of permissions for users group on repos groups
+- #401 repository group is automatically pre-selected when adding repos 
+  inside a repository group
 
 fixes
 +++++
diff --git a/rhodecode/controllers/home.py b/rhodecode/controllers/home.py
--- a/rhodecode/controllers/home.py
+++ b/rhodecode/controllers/home.py
@@ -44,7 +44,7 @@ class HomeController(BaseController):
     def index(self):
         c.repos_list = self.scm_model.get_repos()
         c.groups = self.scm_model.get_repos_groups()
-
+        c.group = None
         return render('/index.html')
 
     def repo_switcher(self):
diff --git a/rhodecode/templates/admin/repos/repo_add_base.html b/rhodecode/templates/admin/repos/repo_add_base.html
--- a/rhodecode/templates/admin/repos/repo_add_base.html
+++ b/rhodecode/templates/admin/repos/repo_add_base.html
@@ -29,7 +29,7 @@ ${h.form(url('repos'))}
                  <label for="repo_group">${_('Repository group')}:</label>
              </div>
              <div class="input">
-                 ${h.select('repo_group','',c.repo_groups,class_="medium")}
+                 ${h.select('repo_group',request.GET.get('parent_group'),c.repo_groups,class_="medium")}
                  <span class="help-block">${_('Optional select a group to put this repository into.')}</span>
              </div>
          </div>
diff --git a/rhodecode/templates/index_base.html b/rhodecode/templates/index_base.html
--- a/rhodecode/templates/index_base.html
+++ b/rhodecode/templates/index_base.html
@@ -9,7 +9,11 @@
                 %if h.HasPermissionAny('hg.admin','hg.create.repository')():
                 <ul class="links">
                   <li>
+                  %if c.group:
+                    <span>${h.link_to(_('ADD REPOSITORY'),h.url('admin_settings_create_repository',parent_group=c.group.group_id))}</span>
+                  %else:
                     <span>${h.link_to(_('ADD REPOSITORY'),h.url('admin_settings_create_repository'))}</span>
+                  %endif  
                   </li>
                 </ul>
                 %endif