diff --git a/CHANGELOG.md b/CHANGELOG.md
index d70c3a669a..0c97bc7c79 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,9 @@
 
 # UNRELEASED
 
+*AADGroup
+  * Extraction not longer exports Distribution List or mail enabled security list since these are not supported by the Microsoft Graph API.
+    FIXES [#2587](https://github.com/microsoft/Microsoft365DSC/issues/2587)
 * EXOMailContact
   * Ensures all results are returned from the Export scenario. Currently limited at 1,000 results.
     FIXES [#2672](https://github.com/microsoft/Microsoft365DSC/issues/2672)
diff --git a/Modules/Microsoft365DSC/DSCResources/MSFT_AADGroup/MSFT_AADGroup.psm1 b/Modules/Microsoft365DSC/DSCResources/MSFT_AADGroup/MSFT_AADGroup.psm1
index bd758088f0..b185ff2efe 100644
--- a/Modules/Microsoft365DSC/DSCResources/MSFT_AADGroup/MSFT_AADGroup.psm1
+++ b/Modules/Microsoft365DSC/DSCResources/MSFT_AADGroup/MSFT_AADGroup.psm1
@@ -649,7 +649,7 @@ function Set-TargetResource
                 }
             }
         }
-        else
+        elseif ($MembershipRuleProcessingState -ne 'On')
         {
             Write-Verbose -Message 'Ignoring membership since this is a dynamic group.'
         }
@@ -1016,6 +1016,8 @@ function Export-TargetResource
     try
     {
         [array] $groups = Get-MgGroup -Filter $Filter -All:$true -ErrorAction Stop
+        $groups = $groups | Where-Object -FilterScript {-not ($_.MailEnabled -and ($null -eq $_.GroupTypes -or $_.GroupTypes.Length -eq 0)) -and
+                                                        -not ($_.MailEnabled -and $_.SecurityEnabled)}
         $i = 1
         $dscContent = ''
         Write-Host "`r`n" -NoNewline