diff --git a/docs/en_US/release_notes.rst b/docs/en_US/release_notes.rst
index b92bcf67d..35af48567 100644
--- a/docs/en_US/release_notes.rst
+++ b/docs/en_US/release_notes.rst
@@ -9,6 +9,7 @@ for it.
 
 .. toctree::
 
+   release_notes_4_2
    release_notes_4_1
    release_notes_4_0
    release_notes_3_6
diff --git a/docs/en_US/release_notes_4_2.rst b/docs/en_US/release_notes_4_2.rst
index 52497d95e..14203ebe4 100644
--- a/docs/en_US/release_notes_4_2.rst
+++ b/docs/en_US/release_notes_4_2.rst
@@ -14,4 +14,5 @@ Features
 Bug fixes
 *********
 
+| `Bug #3693 <https://redmine.postgresql.org/issues/3693>`_ - Proper error should be thrown when server group is created with existing name.
 | `Bug #3695 <https://redmine.postgresql.org/issues/3695>`_ - Ensure long string should be wrap in alertify dialogs.
\ No newline at end of file
diff --git a/web/pgadmin/browser/server_groups/__init__.py b/web/pgadmin/browser/server_groups/__init__.py
index 5b80eefce..25addfd0e 100644
--- a/web/pgadmin/browser/server_groups/__init__.py
+++ b/web/pgadmin/browser/server_groups/__init__.py
@@ -145,6 +145,7 @@ class ServerGroupView(NodeView):
                 db.session.delete(sg)
                 db.session.commit()
             except Exception as e:
+                db.session.rollback()
                 return make_json_response(
                     status=410, success=0, errormsg=e.message
                 )
@@ -178,10 +179,12 @@ class ServerGroupView(NodeView):
                     servergroup.name = data[u'name']
                 db.session.commit()
             except exc.IntegrityError:
+                db.session.rollback()
                 return bad_request(gettext(
                     "The specified server group already exists."
                 ))
             except Exception as e:
+                db.session.rollback()
                 return make_json_response(
                     status=410, success=0, errormsg=e.message
                 )
@@ -251,11 +254,13 @@ class ServerGroupView(NodeView):
                     )
                 )
             except exc.IntegrityError:
+                db.session.rollback()
                 return bad_request(gettext(
                     "The specified server group already exists."
                 ))
 
             except Exception as e:
+                db.session.rollback()
                 return make_json_response(
                     status=410,
                     success=0,