diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 022b33cac10..9ca27a734d8 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -446,3 +446,4 @@ erpnext.patches.v16_0.access_control_for_project_users
 erpnext.patches.v16_0.rename_ar_ap_ageing_filter
 erpnext.patches.v15_0.fix_titles
 erpnext.patches.v16_0.backfill_repost_accounting_ledger_status
+erpnext.patches.v16_0.merge_seeded_item_group_root
diff --git a/erpnext/patches/v16_0/merge_seeded_item_group_root.py b/erpnext/patches/v16_0/merge_seeded_item_group_root.py
new file mode 100644
index 00000000000..95683fc96f0
--- /dev/null
+++ b/erpnext/patches/v16_0/merge_seeded_item_group_root.py
@@ -0,0 +1,23 @@
+import frappe
+from frappe.utils.nestedset import get_root_of
+
+SEEDED_ROOT = "All Item Groups"
+
+
+def execute():
+	"""Collapse the "All Item Groups" node seeded under a pre-existing root.
+
+	Setup seeding always inserted "All Item Groups" as a parentless group. On a
+	site where another app had already created the root (under a translated
+	name), it was re-parented instead, leaving a second group-root holding the
+	standard Item Groups.
+	"""
+	root = get_root_of("Item Group")
+	if not root or root == SEEDED_ROOT:
+		return
+
+	seeded = frappe.db.get_value("Item Group", SEEDED_ROOT, ["parent_item_group", "is_group"], as_dict=True)
+	if not seeded or not seeded.is_group or seeded.parent_item_group != root:
+		return
+
+	frappe.rename_doc("Item Group", SEEDED_ROOT, root, merge=True, show_alert=False)
diff --git a/erpnext/setup/doctype/item_group/test_item_group.py b/erpnext/setup/doctype/item_group/test_item_group.py
index a579fb703da..2f14d1ec925 100644
--- a/erpnext/setup/doctype/item_group/test_item_group.py
+++ b/erpnext/setup/doctype/item_group/test_item_group.py
@@ -1,8 +1,12 @@
 # Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
 # License: GNU General Public License v3. See license.txt
 
+<<<<<<< HEAD
 
 import unittest
+=======
+from unittest.mock import patch
+>>>>>>> e7088d8981 (fix: seed standard Item Groups under the existing tree root)
 
 import frappe
 from frappe.utils.nestedset import (
@@ -16,6 +20,8 @@ from frappe.utils.nestedset import (
 
 test_records = frappe.get_test_records("Item Group")
 
+TRANSLATED_ROOT = "Todos os Grupos de Itens"
+
 
 class TestItem(unittest.TestCase):
 	def test_basic_tree(self, records=None):
@@ -234,3 +240,73 @@ class TestItem(unittest.TestCase):
 			"_Test Item Group B - 3",
 			merge=True,
 		)
+<<<<<<< HEAD
+=======
+
+	def test_preset_records_use_existing_root(self):
+		from erpnext.setup.setup_wizard.operations import install_fixtures
+
+		with patch.object(install_fixtures, "get_root_of", return_value=TRANSLATED_ROOT):
+			records = [
+				r for r in install_fixtures.get_preset_records("India") if r["doctype"] == "Item Group"
+			]
+
+		root_record, *child_records = records
+		self.assertEqual(root_record["item_group_name"], TRANSLATED_ROOT)
+		self.assertTrue(root_record["__condition"]())
+		self.assertEqual({r["parent_item_group"] for r in child_records}, {TRANSLATED_ROOT})
+
+		with patch.object(install_fixtures, "get_root_of", return_value="All Item Groups"):
+			root_record = next(
+				r for r in install_fixtures.get_preset_records("India") if r["doctype"] == "Item Group"
+			)
+		self.assertFalse(root_record["__condition"]())
+
+	def test_patch_merges_seeded_root_into_existing_root(self):
+		from erpnext.patches.v16_0.merge_seeded_item_group_root import execute
+
+		self._nest_root_under(TRANSLATED_ROOT)
+		self.assertEqual(
+			frappe.db.get_value("Item Group", "All Item Groups", "parent_item_group"), TRANSLATED_ROOT
+		)
+
+		execute()
+
+		self.assertFalse(frappe.db.exists("Item Group", "All Item Groups"))
+		self.assertEqual(
+			frappe.get_all("Item Group", filters={"parent_item_group": ("is", "not set")}, pluck="name"),
+			[TRANSLATED_ROOT],
+		)
+		self.assertEqual(
+			frappe.db.get_value("Item Group", "_Test Item Group B", "parent_item_group"), TRANSLATED_ROOT
+		)
+		self.test_basic_tree()
+
+	def _nest_root_under(self, new_root):
+		"""Recreate the tree left behind by seeding a root under a pre-existing one."""
+		frappe.get_doc({"doctype": "Item Group", "item_group_name": new_root, "is_group": 1}).insert()
+
+		ig = frappe.qb.DocType("Item Group")
+		frappe.qb.update(ig).set(ig.parent_item_group, "").where(ig.name == new_root).run()
+		frappe.qb.update(ig).set(ig.parent_item_group, new_root).where(ig.name == "All Item Groups").run()
+		rebuild_tree("Item Group")
+
+	def _move_it_back(self):
+		group_b = frappe.get_doc("Item Group", "_Test Item Group B")
+		group_b.parent_item_group = "All Item Groups"
+		group_b.save()
+		self.test_basic_tree()
+
+	def _get_no_of_children(self, item_group):
+		def get_no_of_children(item_groups, no_of_children):
+			children = []
+			for ig in item_groups:
+				children += frappe.get_all("Item Group", filters={"parent_item_group": ig}, pluck="name")
+
+			if len(children):
+				return get_no_of_children(children, no_of_children + len(children))
+			else:
+				return no_of_children
+
+		return get_no_of_children([item_group], 0)
+>>>>>>> e7088d8981 (fix: seed standard Item Groups under the existing tree root)
diff --git a/erpnext/setup/setup_wizard/operations/install_fixtures.py b/erpnext/setup/setup_wizard/operations/install_fixtures.py
index 0f3356ffa50..8bc1aa515ac 100644
--- a/erpnext/setup/setup_wizard/operations/install_fixtures.py
+++ b/erpnext/setup/setup_wizard/operations/install_fixtures.py
@@ -13,6 +13,7 @@ from frappe.desk.doctype.global_search_settings.global_search_settings import (
 )
 from frappe.desk.page.setup_wizard.setup_wizard import make_records
 from frappe.utils import cstr, getdate
+from frappe.utils.nestedset import get_root_of
 
 from erpnext.accounts.doctype.account.account import RootNotEditable
 from erpnext.regional.address_template.setup import set_up_address_templates
@@ -23,47 +24,53 @@ def read_lines(filename: str) -> list[str]:
 	return (Path(__file__).parent.parent / "data" / filename).read_text().splitlines()
 
 
+<<<<<<< HEAD
 def install(country=None):
+=======
+def get_preset_records(country=None):
+	root_item_group = get_root_of("Item Group") or _("All Item Groups")
+>>>>>>> e7088d8981 (fix: seed standard Item Groups under the existing tree root)
 	records = [
 		# ensure at least an empty Address Template exists for this Country
 		{"doctype": "Address Template", "country": country},
 		# item group
 		{
 			"doctype": "Item Group",
-			"item_group_name": _("All Item Groups"),
+			"item_group_name": root_item_group,
 			"is_group": 1,
 			"parent_item_group": "",
+			"__condition": lambda: not frappe.db.exists("Item Group", root_item_group),
 		},
 		{
 			"doctype": "Item Group",
 			"item_group_name": _("Products"),
 			"is_group": 0,
-			"parent_item_group": _("All Item Groups"),
+			"parent_item_group": root_item_group,
 			"show_in_website": 1,
 		},
 		{
 			"doctype": "Item Group",
 			"item_group_name": _("Raw Material"),
 			"is_group": 0,
-			"parent_item_group": _("All Item Groups"),
+			"parent_item_group": root_item_group,
 		},
 		{
 			"doctype": "Item Group",
 			"item_group_name": _("Services"),
 			"is_group": 0,
-			"parent_item_group": _("All Item Groups"),
+			"parent_item_group": root_item_group,
 		},
 		{
 			"doctype": "Item Group",
 			"item_group_name": _("Sub Assemblies"),
 			"is_group": 0,
-			"parent_item_group": _("All Item Groups"),
+			"parent_item_group": root_item_group,
 		},
 		{
 			"doctype": "Item Group",
 			"item_group_name": _("Consumable"),
 			"is_group": 0,
-			"parent_item_group": _("All Item Groups"),
+			"parent_item_group": root_item_group,
 		},
 		# Stock Entry Type
 		{