diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
index b9377fd97b..202b397d19 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
@@ -27,7 +27,8 @@ const mockGitlabClient = {
     create: jest.fn(),
   },
 };
-jest.mock('@gitbeaker/node', () => ({
+
+jest.mock('@gitbeaker/rest', () => ({
   Gitlab: class {
     constructor() {
       return mockGitlabClient;
@@ -38,8 +39,8 @@ jest.mock('@gitbeaker/node', () => ({
 describe('gitlab:group:ensureExists', () => {
   const mockContext = createMockActionContext();
 
-  afterEach(() => {
-    jest.resetAllMocks();
+  beforeEach(() => {
+    jest.clearAllMocks();
   });
 
   it(`Should ${examples[0].description}`, async () => {
@@ -55,7 +56,7 @@ describe('gitlab:group:ensureExists', () => {
           {
             host: 'gitlab.com',
             token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
+            apiBaseUrl: 'https://gitlab.com/api/v4',
           },
         ],
       },
@@ -114,7 +115,7 @@ describe('gitlab:group:ensureExists', () => {
       'group2',
       'group2',
       {
-        parent_id: 1,
+        parentId: 1,
       },
     );
 
@@ -161,7 +162,7 @@ describe('gitlab:group:ensureExists', () => {
       'group3',
       'group3',
       {
-        parent_id: 2,
+        parentId: 2,
       },
     );
 
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
index 67476494bb..b425a4fac8 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
@@ -25,19 +25,37 @@ const mockGitlabClient = {
     create: jest.fn(),
   },
 };
-// const mockGitlabApi = jest.fn().mockReturnValue(mockGitlabClient);
 
-jest.mock('../util', () => ({
-  getClient: () => mockGitlabClient,
+jest.mock('@gitbeaker/rest', () => ({
+  Gitlab: class {
+    constructor() {
+      return mockGitlabClient;
+    }
+  },
 }));
 
 describe('gitlab:group:ensureExists', () => {
-  const mockContext = createMockActionContext();
-
-  afterEach(() => {
+  beforeEach(() => {
     jest.clearAllMocks();
   });
 
+  const config = new ConfigReader({
+    integrations: {
+      gitlab: [
+        {
+          host: 'gitlab.com',
+          token: 'tokenlols',
+          apiBaseUrl: 'https://gitlab.com/api/v4',
+        },
+      ],
+    },
+  });
+  const integrations = ScmIntegrations.fromConfig(config);
+
+  const action = createGitlabGroupEnsureExistsAction({ integrations });
+
+  const mockContext = createMockActionContext();
+
   it('should create a new group if it does not exists', async () => {
     mockGitlabClient.Groups.search.mockResolvedValue([
       {
@@ -55,25 +73,10 @@ describe('gitlab:group:ensureExists', () => {
       full_path: 'foo/bar',
     });
 
-    const config = new ConfigReader({
-      integrations: {
-        gitlab: [
-          {
-            host: 'gitlab.com',
-            token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
-          },
-        ],
-      },
-    });
-    const integrations = ScmIntegrations.fromConfig(config);
-
-    const action = createGitlabGroupEnsureExistsAction({ integrations });
-
     await action.handler({
       ...mockContext,
       input: {
-        repoUrl: 'gitlab.com',
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foo', 'bar'],
       },
     });
@@ -101,25 +104,10 @@ describe('gitlab:group:ensureExists', () => {
       },
     ]);
 
-    const config = new ConfigReader({
-      integrations: {
-        gitlab: [
-          {
-            host: 'gitlab.com',
-            token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
-          },
-        ],
-      },
-    });
-    const integrations = ScmIntegrations.fromConfig(config);
-
-    const action = createGitlabGroupEnsureExistsAction({ integrations });
-
     await action.handler({
       ...mockContext,
       input: {
-        repoUrl: 'gitlab.com',
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foo', 'bar'],
       },
     });
@@ -130,26 +118,11 @@ describe('gitlab:group:ensureExists', () => {
   });
 
   it('should not call API on dryRun', async () => {
-    const config = new ConfigReader({
-      integrations: {
-        gitlab: [
-          {
-            host: 'gitlab.com',
-            token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
-          },
-        ],
-      },
-    });
-    const integrations = ScmIntegrations.fromConfig(config);
-
-    const action = createGitlabGroupEnsureExistsAction({ integrations });
-
     await action.handler({
       ...mockContext,
       isDryRun: true,
       input: {
-        repoUrl: 'gitlab.com',
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foo', 'bar'],
       },
     });
@@ -168,23 +141,10 @@ describe('gitlab:group:ensureExists', () => {
       },
     ]);
 
-    const config = new ConfigReader({
-      integrations: {
-        gitlab: [
-          {
-            host: 'gitlab.com',
-            token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
-          },
-        ],
-      },
-    });
-    const integrations = ScmIntegrations.fromConfig(config);
-    const action = createGitlabGroupEnsureExistsAction({ integrations });
     await action.handler({
       ...mockContext,
       input: {
-        repoUrl: 'gitlab.com',
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foobar'],
       },
     });
@@ -204,23 +164,10 @@ describe('gitlab:group:ensureExists', () => {
       },
     ]);
 
-    const config = new ConfigReader({
-      integrations: {
-        gitlab: [
-          {
-            host: 'gitlab.com',
-            token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
-          },
-        ],
-      },
-    });
-    const integrations = ScmIntegrations.fromConfig(config);
-    const action = createGitlabGroupEnsureExistsAction({ integrations });
     await action.handler({
       ...mockContext,
       input: {
-        repoUrl: 'gitlab.com',
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foobar'],
         token: 'mysecrettoken',
       },
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
index 31e1d027c2..0a270fc167 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
@@ -19,7 +19,7 @@ import { createTemplateAction } from '@backstage/plugin-scaffolder-node';
 import { GroupSchema } from '@gitbeaker/core/dist/types/resources/Groups';
 import { z } from 'zod';
 import commonGitlabConfig from '../commonGitlabConfig';
-import { getClient } from '../util';
+import { getClient, parseRepoUrl } from '../util';
 import { examples } from './gitlabGroupEnsureExists.examples';
 
 /**
@@ -60,7 +60,10 @@ export const createGitlabGroupEnsureExistsAction = (options: {
       }
 
       const { token, repoUrl, path } = ctx.input;
-      const api = getClient({ host: repoUrl, token, integrations });
+
+      const { host } = parseRepoUrl(repoUrl, integrations);
+
+      const api = getClient({ host, integrations, token });
 
       let currentPath: string | null = null;
       let parent: GroupSchema | null = null;