diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 022b33cac10e..9ca27a734d81 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 000000000000..95683fc96f02
--- /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 a579fb703da1..09a5e64acd41 100644
--- a/erpnext/setup/doctype/item_group/test_item_group.py
+++ b/erpnext/setup/doctype/item_group/test_item_group.py
@@ -16,6 +16,8 @@
 
 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 +236,46 @@ def test_merge_group_into_leaf(self):
 			"_Test Item Group B - 3",
 			merge=True,
 		)
+
+	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(self.get_root_names(), [TRANSLATED_ROOT])
+		self.assertEqual(
+			frappe.db.get_value("Item Group", "_Test Item Group B", "parent_item_group"), TRANSLATED_ROOT
+		)
+		self.test_basic_tree()
+
+		# restore the original root name for the tests that follow
+		frappe.rename_doc("Item Group", TRANSLATED_ROOT, "All Item Groups")
+		self.assertEqual(self.get_root_names(), ["All Item Groups"])
+		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,
+				"parent_item_group": "All Item Groups",
+			}
+		).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", "parent_item_group")
+
+	def get_root_names(self):
+		return frappe.db.sql_list(
+			"""select name from `tabItem Group` where ifnull(parent_item_group, '')=''"""
+		)
diff --git a/erpnext/setup/setup_wizard/operations/install_fixtures.py b/erpnext/setup/setup_wizard/operations/install_fixtures.py
index 0f3356ffa50e..6197873c6fb2 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.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
@@ -24,46 +25,48 @@ def read_lines(filename: str) -> list[str]:
 
 
 def install(country=None):
+	root_item_group = get_root_of("Item Group") or _("All Item Groups")
 	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
 		{