diff --git a/src/Runner.Listener/Configuration/ConfigurationManager.cs b/src/Runner.Listener/Configuration/ConfigurationManager.cs
index 4254bbdff50..bd84de8338f 100644
--- a/src/Runner.Listener/Configuration/ConfigurationManager.cs
+++ b/src/Runner.Listener/Configuration/ConfigurationManager.cs
@@ -165,7 +165,7 @@ public async Task ConfigureAsync(CommandSettings command)
             List<TaskAgentPool> agentPools = await _runnerServer.GetAgentPoolsAsync();
             TaskAgentPool defaultPool = agentPools?.Where(x => x.IsInternal).FirstOrDefault();
 
-            if (agentPools?.Where(x => !x.IsHosted).Count() > 1)
+            if (agentPools?.Where(x => !x.IsHosted).Count() > 0)
             {
                 poolName = command.GetRunnerGroupName(defaultPool?.Name);
                 _term.WriteLine();
diff --git a/src/Test/L0/Listener/Configuration/ConfigurationManagerL0.cs b/src/Test/L0/Listener/Configuration/ConfigurationManagerL0.cs
index 706a11cd75a..2fff42c4e02 100644
--- a/src/Test/L0/Listener/Configuration/ConfigurationManagerL0.cs
+++ b/src/Test/L0/Listener/Configuration/ConfigurationManagerL0.cs
@@ -189,5 +189,48 @@ public async Task CanEnsureConfigure()
                 _runnerServer.Verify(x => x.AddAgentAsync(It.IsAny<int>(), It.Is<TaskAgent>(a => a.Labels.Select(x => x.Name).ToHashSet().SetEquals(expectedLabels))), Times.Once);
             }
         }
+
+        [Fact]
+        [Trait("Level", "L0")]
+        [Trait("Category", "ConfigurationManagement")]
+        public async Task ConfigureErrorOnMissingRunnerGroup()
+        {
+            using (TestHostContext tc = CreateTestContext())
+            {
+                var expectedPools = new List<TaskAgentPool>() { new TaskAgentPool(_defaultRunnerGroupName) { Id = _defaultRunnerGroupId, IsInternal = true } };
+                _runnerServer.Setup(x => x.GetAgentPoolsAsync(It.IsAny<string>(), It.IsAny<TaskAgentPoolType>())).Returns(Task.FromResult(expectedPools));
+
+                Tracing trace = tc.GetTrace();
+
+                trace.Info("Creating config manager");
+                IConfigurationManager configManager = new ConfigurationManager();
+                configManager.Initialize(tc);
+
+
+                trace.Info("Preparing command line arguments");
+                var command = new CommandSettings(
+                    tc,
+                    new[]
+                    {
+                       "configure",
+                       "--url", _expectedServerUrl,
+                       "--name", _expectedAgentName,
+                       "--runnergroup", "notexists",
+                       "--work", _expectedWorkFolder,
+                       "--auth", _expectedAuthType,
+                       "--token", _expectedToken,
+                    });
+                trace.Info("Constructed.");
+                _store.Setup(x => x.IsConfigured()).Returns(false);
+                _configMgrAgentSettings = null;
+
+                trace.Info("Ensuring all the required parameters are available in the command line parameter");
+                var ex = await Assert.ThrowsAsync<TaskAgentPoolNotFoundException>(() => configManager.ConfigureAsync(command));
+
+                Assert.Contains("notexists", ex.Message);
+
+                _runnerServer.Verify(x => x.GetAgentPoolsAsync(It.IsAny<string>(), It.Is<TaskAgentPoolType>(p => p == TaskAgentPoolType.Automation)), Times.Exactly(1));
+            }
+        }
     }
 }