diff --git a/packages/nc-gui/components/smartsheet/grid/GroupByLabel.vue b/packages/nc-gui/components/smartsheet/grid/GroupByLabel.vue
index 2e9638e344..977742537e 100644
--- a/packages/nc-gui/components/smartsheet/grid/GroupByLabel.vue
+++ b/packages/nc-gui/components/smartsheet/grid/GroupByLabel.vue
@@ -1,19 +1,27 @@
 <script setup lang="ts">
 import type { ColumnType } from 'nocodb-sdk'
 import { isVirtualCol } from 'nocodb-sdk'
+import { ReadonlyInj, IsGroupByLabelInj } from '#imports'
 
 defineProps<{
   column: ColumnType
   modelValue: any
 }>()
 
-provide(ReadonlyInj, true)
+provide(ReadonlyInj, ref(true))
+provide(IsGroupByLabelInj, ref(true))
 </script>
 
 <template>
   <div class="pointer-events-none">
     <LazySmartsheetRow :row="{ row: { [column.title]: modelValue }, rowMeta: {} }">
-      <LazySmartsheetVirtualCell v-if="isVirtualCol(column)" :model-value="modelValue" class="!text-gray-600" :column="column" />
+      <LazySmartsheetVirtualCell
+        v-if="isVirtualCol(column)"
+        :model-value="modelValue"
+        class="!text-gray-600"
+        :column="column"
+        :read-only="true"
+      />
 
       <LazySmartsheetCell
         v-else
diff --git a/packages/nc-gui/components/virtual-cell/Lookup.vue b/packages/nc-gui/components/virtual-cell/Lookup.vue
index c869bd6f22..c55ae4a4b3 100644
--- a/packages/nc-gui/components/virtual-cell/Lookup.vue
+++ b/packages/nc-gui/components/virtual-cell/Lookup.vue
@@ -25,6 +25,8 @@ const meta = inject(MetaInj, ref())
 
 const cellValue = inject(CellValueInj, ref())
 
+const isGroupByLabel = inject(IsGroupByLabelInj, ref(false))
+
 // Change the row height of the child cell under lookup
 // Other wise things like text will can take multi line tag
 const providedHeightRef = ref(1) as any
@@ -100,7 +102,7 @@ const { showEditNonEditableFieldWarning, showClearNonEditableFieldWarning, activ
   <div
     class="h-full w-full nc-lookup-cell"
     tabindex="-1"
-    :style="{ height: rowHeight && rowHeight !== 1 ? `${rowHeight * 2}rem` : `2.85rem` }"
+    :style="{ height: isGroupByLabel ? undefined : rowHeight && rowHeight !== 1 ? `${rowHeight * 2}rem` : `2.85rem` }"
     @dblclick="activateShowEditNonEditableFieldWarning"
   >
     <div
diff --git a/packages/nc-gui/context/index.ts b/packages/nc-gui/context/index.ts
index a6f1106d99..240adb3e8d 100644
--- a/packages/nc-gui/context/index.ts
+++ b/packages/nc-gui/context/index.ts
@@ -13,6 +13,7 @@ export const IsFormInj: InjectionKey<Ref<boolean>> = Symbol('is-form-injection')
 export const IsSurveyFormInj: InjectionKey<Ref<boolean>> = Symbol('is-survey-form-injection')
 export const IsGridInj: InjectionKey<Ref<boolean>> = Symbol('is-grid-injection')
 export const IsGroupByInj: InjectionKey<Ref<boolean>> = Symbol('is-group-by-injection')
+export const IsGroupByLabelInj: InjectionKey<Ref<boolean>> = Symbol('is-group-by-label-injection')
 export const IsGalleryInj: InjectionKey<Ref<boolean>> = Symbol('is-gallery-injection')
 export const IsKanbanInj: InjectionKey<Ref<boolean>> = Symbol('is-kanban-injection')
 export const IsLockedInj: InjectionKey<Ref<boolean>> = Symbol('is-locked-injection')