diff --git a/src/config/vnc_openstack/vnc_openstack/neutron_plugin_db.py b/src/config/vnc_openstack/vnc_openstack/neutron_plugin_db.py
index dac29f86871..6184d7f2f9d 100644
--- a/src/config/vnc_openstack/vnc_openstack/neutron_plugin_db.py
+++ b/src/config/vnc_openstack/vnc_openstack/neutron_plugin_db.py
@@ -2006,10 +2006,9 @@ def _port_vnc_to_neutron(self, port_obj, port_req_memo=None):
 
                 port_q_dict['fixed_ips'].append(ip_q_dict)
 
-        port_q_dict['security_groups'] = []
-        sg_refs = port_obj.get_security_group_refs()
-        for sg_ref in sg_refs or []:
-            port_q_dict['security_groups'].append(sg_ref['uuid'])
+        sg_refs = port_obj.get_security_group_refs() or []
+        port_q_dict['security_groups'] = [ref['uuid'] for ref in sg_refs
+                                          if ref['to'] != SG_NO_RULE_FQ_NAME]
 
         port_q_dict['admin_state_up'] = port_obj.get_id_perms().enable