diff --git a/devstack/lib/ironic b/devstack/lib/ironic
index fa5c45104f..5aa8612bda 100644
--- a/devstack/lib/ironic
+++ b/devstack/lib/ironic
@@ -711,10 +711,10 @@ function cleanup_ironic {
 function configure_ironic_dirs {
     sudo install -d -o $STACK_USER $IRONIC_CONF_DIR $STACK_USER $IRONIC_DATA_DIR \
         $IRONIC_STATE_PATH $IRONIC_TFTPBOOT_DIR $IRONIC_TFTPBOOT_DIR/pxelinux.cfg
-    sudo chown -R $STACK_USER:$LIBVIRT_GROUP $IRONIC_TFTPBOOT_DIR
+    sudo chown -R $STACK_USER:$STACK_USER $IRONIC_TFTPBOOT_DIR
 
     if [[ "$IRONIC_IPXE_ENABLED" == "True" ]] ; then
-        sudo install -d -o $STACK_USER -g $LIBVIRT_GROUP $IRONIC_HTTP_DIR
+        sudo install -d -o $STACK_USER -g $STACK_USER $IRONIC_HTTP_DIR
     fi
 
     if [ ! -f "$IRONIC_PXE_BOOT_IMAGE" ]; then
@@ -862,16 +862,20 @@ function configure_ironic {
         _config_ironic_apache_wsgi
     fi
 
+    if [[ "$os_VENDOR" =~ (Debian|Ubuntu) ]]; then
+        # The groups change with newer libvirt. Older Ubuntu used
+        # 'libvirtd', but now uses libvirt like Debian. Do a quick check
+        # to see if libvirtd group already exists to handle grenade's case.
+        LIBVIRT_GROUP=$(cut -d ':' -f 1 /etc/group | grep 'libvirtd$' || true)
+        LIBVIRT_GROUP=${LIBVIRT_GROUP:-libvirt}
+    else
+        LIBVIRT_GROUP=libvirtd
+    fi
+    if ! getent group $LIBVIRT_GROUP >/dev/null; then
+        sudo groupadd $LIBVIRT_GROUP
+    fi
     # NOTE(vsaienko) Add stack to libvirt group when installing without nova.
     if ! is_service_enabled nova; then
-        if [[ "$os_VENDOR" =~ (Debian) ]]; then
-            LIBVIRT_GROUP=libvirt
-        else
-            LIBVIRT_GROUP=libvirtd
-        fi
-        if ! getent group $LIBVIRT_GROUP >/dev/null; then
-            sudo groupadd $LIBVIRT_GROUP
-        fi
         add_user_to_group $STACK_USER $LIBVIRT_GROUP
     fi
 }