diff --git a/build/integration/features/contacts-menu.feature b/build/integration/features/contacts-menu.feature
index a9f1f998419..0caea2f2f15 100644
--- a/build/integration/features/contacts-menu.feature
+++ b/build/integration/features/contacts-menu.feature
@@ -103,7 +103,7 @@ Feature: contacts-menu
     And searching for contacts matching with "test"
     Then the list of searched contacts has "0" contacts
 
-  Scenario: users can not be searched by display name when searcher belongs to both a group excluded from sharing and another group
+  Scenario: users can be searched by display name when searcher belongs to both a group excluded from sharing and another group
     Given user "user0" exists
     And group "ExcludedGroup" exists
     And user "user0" belongs to group "ExcludedGroup"
@@ -118,9 +118,10 @@ Feature: contacts-menu
       | value | Test name |
     When Logging in using web as "user0"
     And searching for contacts matching with "test"
-    Then the list of searched contacts has "0" contacts
+    Then the list of searched contacts has "1" contacts
+    And searched contact "0" is named "Test name"
 
-  Scenario: users can not be searched by email when searcher belongs to both a group excluded from sharing and another group
+  Scenario: users can be searched by email when searcher belongs to both a group excluded from sharing and another group
     Given user "user0" exists
     And group "ExcludedGroup" exists
     And user "user0" belongs to group "ExcludedGroup"
@@ -135,7 +136,8 @@ Feature: contacts-menu
       | value | test@example.com |
     When Logging in using web as "user0"
     And searching for contacts matching with "test"
-    Then the list of searched contacts has "0" contacts
+    Then the list of searched contacts has "1" contacts
+    And searched contact "0" is named "user1"
 
   Scenario: users can not be searched by display name when searcher does not belong to a group allowed to share
     Given user "user0" exists
diff --git a/lib/private/Contacts/ContactsMenu/ContactsStore.php b/lib/private/Contacts/ContactsMenu/ContactsStore.php
index 5fa25512c97..f34e10e85d1 100644
--- a/lib/private/Contacts/ContactsMenu/ContactsStore.php
+++ b/lib/private/Contacts/ContactsMenu/ContactsStore.php
@@ -149,7 +149,7 @@ class ContactsStore implements IContactsStore {
 	 *  1. if the `shareapi_allow_share_dialog_user_enumeration` config option is
 	 * enabled it will filter all local users
 	 *  2. if the `shareapi_exclude_groups` config option is enabled and the
-	 * current user is in an excluded group it will filter all local users.
+	 * current user is only in excluded groups it will filter all local users.
 	 *  3. if the `shareapi_only_share_with_group_members` config option is
 	 * enabled it will filter all users which doesn't have a common group
 	 * with the current user.
@@ -184,8 +184,8 @@ class ContactsStore implements IContactsStore {
 			$excludeGroupsList = $decodedExcludeGroups ?? [];
 
 			if ($excludeGroups != 'allow') {
-				if (count(array_intersect($excludeGroupsList, $selfGroups)) !== 0) {
-					// a group of the current user is excluded -> filter all local users
+				if (count($selfGroups) > 0 && count(array_diff($selfGroups, $excludeGroupsList)) === 0) {
+					// all the groups of the current user are excluded -> filter all local users
 					$skipLocal = true;
 				}
 			} else {
diff --git a/tests/lib/Contacts/ContactsMenu/ContactsStoreTest.php b/tests/lib/Contacts/ContactsMenu/ContactsStoreTest.php
index 58b29a61520..d10dc9a3854 100644
--- a/tests/lib/Contacts/ContactsMenu/ContactsStoreTest.php
+++ b/tests/lib/Contacts/ContactsMenu/ContactsStoreTest.php
@@ -195,8 +195,8 @@ class ContactsStoreTest extends TestCase {
 			['yes', '["excludedGroup1"]', ['anotherGroup1'], ['user123', 'user12345']],
 			['yes', '["excludedGroup1"]', ['anotherGroup1', 'anotherGroup2', 'anotherGroup3'], ['user123', 'user12345']],
 			['yes', '["excludedGroup1"]', ['excludedGroup1'], []],
-			['yes', '["excludedGroup1"]', ['anotherGroup1', 'excludedGroup1'], []],
-			['yes', '["excludedGroup1"]', ['excludedGroup1', 'anotherGroup1', 'anotherGroup2', 'anotherGroup3'], []],
+			['yes', '["excludedGroup1"]', ['anotherGroup1', 'excludedGroup1'], ['user123', 'user12345']],
+			['yes', '["excludedGroup1"]', ['excludedGroup1', 'anotherGroup1', 'anotherGroup2', 'anotherGroup3'], ['user123', 'user12345']],
 			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', [], ['user123', 'user12345']],
 			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['anotherGroup1'], ['user123', 'user12345']],
 			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['anotherGroup1', 'anotherGroup2', 'anotherGroup3'], ['user123', 'user12345']],
@@ -204,9 +204,9 @@ class ContactsStoreTest extends TestCase {
 			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['excludedGroup2'], []],
 			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['excludedGroup3'], []],
 			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['excludedGroup1', 'excludedGroup2', 'excludedGroup3'], []],
-			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['anotherGroup1', 'excludedGroup1'], []],
-			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['anotherGroup1', 'excludedGroup2', 'anotherGroup2', 'anotherGroup3'], []],
-			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['excludedGroup3', 'anotherGroup1', 'anotherGroup2', 'anotherGroup3'], []],
+			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['anotherGroup1', 'excludedGroup1'], ['user123', 'user12345']],
+			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['anotherGroup1', 'excludedGroup2', 'anotherGroup2', 'anotherGroup3'], ['user123', 'user12345']],
+			['yes', '["excludedGroup1", "excludedGroup2", "excludedGroup3"]', ['excludedGroup3', 'anotherGroup1', 'anotherGroup2', 'anotherGroup3'], ['user123', 'user12345']],
 			['allow', '[]', [], []],
 			['allow', '["allowedGroup1"]', [], []],
 			['allow', '["allowedGroup1"]', ['anotherGroup1'], []],