diff --git a/CHANGELOG.md b/CHANGELOG.md
index 507a1af12f..20667d4c6e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,8 @@ CHANGELOG
 **CHANGES**
 - Ubuntu 20.04 is no longer supported.
 
+**BUG FIXES**
+- Fix an issue where Security Group validation failed when a rule contained both IPv4 ranges (IpRanges) and security group references (UserIdGroupPairs).
 
 3.13.0
 ------
diff --git a/cli/src/pcluster/validators/cluster_validators.py b/cli/src/pcluster/validators/cluster_validators.py
index e65921c9e5..82bbdb17a8 100644
--- a/cli/src/pcluster/validators/cluster_validators.py
+++ b/cli/src/pcluster/validators/cluster_validators.py
@@ -534,15 +534,18 @@ def _populate_allowed_src_or_dst(rule, ip_ranges, allowed_security_groups):
     """
     if rule.get("PrefixListIds"):
         return True  # Always assume prefix list is properly set for code simplicity
-    elif rule.get("IpRanges"):
+    if rule.get("IpRanges"):
         ip_ranges.extend(rule.get("IpRanges"))
-        return False  # Ip Ranges have to be checked later. Return False because the rule allowance is not determined.
-    elif rule.get("UserIdGroupPairs"):
+        # Ip Ranges have to be checked later. Return False because the rule allowance is not determined.
+    if rule.get("Ipv4Ranges"):
+        # Currently the describe_security_groups API response syntax contains "IpRanges".
+        # This check is added for future compatibility if API changes to use "Ipv4Ranges"
+        ip_ranges.extend(rule.get("Ipv4Ranges"))
+    if rule.get("UserIdGroupPairs"):
         allowed_security_groups.update(
             {user_id_group_pair.get("GroupId") for user_id_group_pair in rule.get("UserIdGroupPairs")}
         )
         # Security groups have to be checked later. Return False because the rule allowance is not determined.
-        return False
     return False
 
 
diff --git a/cli/tests/pcluster/validators/test_cluster_validators.py b/cli/tests/pcluster/validators/test_cluster_validators.py
index d43479a925..f19c78b078 100644
--- a/cli/tests/pcluster/validators/test_cluster_validators.py
+++ b/cli/tests/pcluster/validators/test_cluster_validators.py
@@ -1306,6 +1306,69 @@ def test_queue_name_validator(name, expected_message):
             r"allows inbound TCP traffic through ports \[111, 2049, 20001, 20002, 20003\]. Missing ports: "
             r"\[2049, 20001, 20002, 20003\]",
         ),
+        (  # working case: The rule has both IpRanges and UserIdGroupPairs. Wrong ip permissions. But SG matches.
+            "LUSTRE",
+            "vpc-06e4ab6c6cEXAMPLE",
+            [
+                {
+                    "IpProtocol": "-1",
+                    "IpRanges": [{"CidrIp": "10.1.1.0/25"}],
+                    "UserIdGroupPairs": [{"UserId": "123456789012", "GroupId": "sg-12345678"}],
+                }
+            ],
+            [
+                {
+                    "IpProtocol": "-1",
+                    "IpRanges": [{"CidrIp": "10.1.1.0/25"}],
+                    "UserIdGroupPairs": [{"UserId": "123456789012", "GroupId": "sg-12345678"}],
+                }
+            ],
+            {frozenset({"sg-12345678"}), frozenset({"sg-12345678", "sg-23456789"})},
+            ["eni-09b9460295ddd4e5f"],
+            None,
+        ),
+        (  # not-working case：The rule has both IpRanges and UserIdGroupPairs. Both don't match.
+            "LUSTRE",
+            "vpc-06e4ab6c6cEXAMPLE",
+            [
+                {
+                    "IpProtocol": "-1",
+                    "IpRanges": [{"CidrIp": "10.1.1.0/25"}],
+                    "UserIdGroupPairs": [{"UserId": "123456789012", "GroupId": "sg-99999999"}],
+                }
+            ],
+            [
+                {
+                    "IpProtocol": "-1",
+                    "IpRanges": [{"CidrIp": "10.1.1.0/25"}],
+                    "UserIdGroupPairs": [{"UserId": "123456789012", "GroupId": "sg-99999999"}],
+                }
+            ],
+            {frozenset({"sg-12345678"}), frozenset({"sg-12345678", "sg-23456789"})},
+            ["eni-09b9460295ddd4e5f"],
+            r"allows inbound and outbound TCP traffic through ports \[988\]",
+        ),
+        (  # working case：IpRanges covers the subnet, but UserIdGroupPairs do not match
+            "LUSTRE",
+            "vpc-06e4ab6c6cEXAMPLE",
+            [
+                {
+                    "IpProtocol": "-1",
+                    "IpRanges": [{"CidrIp": "10.0.0.0/16"}],
+                    "UserIdGroupPairs": [{"UserId": "123456789012", "GroupId": "sg-99999999"}],
+                }
+            ],
+            [
+                {
+                    "IpProtocol": "-1",
+                    "IpRanges": [{"CidrIp": "10.0.0.0/16"}],
+                    "UserIdGroupPairs": [{"UserId": "123456789012", "GroupId": "sg-99999999"}],
+                }
+            ],
+            {frozenset({"sg-12345678"})},
+            ["eni-09b9460295ddd4e5f"],
+            None,
+        ),
     ],
 )
 def test_fsx_network_validator(