diff --git a/python/dask_cudf/dask_cudf/groupby.py b/python/dask_cudf/dask_cudf/groupby.py
index 54f8958c9eb..a56f70e7ae2 100644
--- a/python/dask_cudf/dask_cudf/groupby.py
+++ b/python/dask_cudf/dask_cudf/groupby.py
@@ -685,8 +685,13 @@ def groupby_agg(
             "with `sort=False`, or set `shuffle=True`."
         )
 
+    # Determine required columns to enable column projection
+    required_columns = list(
+        set(gb_cols).union(aggs.keys()).intersection(ddf.columns)
+    )
+
     return aca(
-        [ddf],
+        [ddf[required_columns]],
         chunk=chunk,
         chunk_kwargs=chunk_kwargs,
         combine=combine,
diff --git a/python/dask_cudf/dask_cudf/tests/test_groupby.py b/python/dask_cudf/dask_cudf/tests/test_groupby.py
index e43fead0b63..1f018e79ff7 100644
--- a/python/dask_cudf/dask_cudf/tests/test_groupby.py
+++ b/python/dask_cudf/dask_cudf/tests/test_groupby.py
@@ -130,6 +130,10 @@ def test_groupby_agg(func, aggregation, pdf):
 
     assert_cudf_groupby_layers(actual)
 
+    # groupby.agg should add an explicit getitem layer
+    # to improve/enable column projection
+    assert hlg_layer(actual.dask, "getitem")
+
     dd.assert_eq(expect, actual, check_names=False, check_dtype=check_dtype)