Index: src/bp-groups/classes/class-bp-groups-component.php
===================================================================
--- src/bp-groups/classes/class-bp-groups-component.php
+++ src/bp-groups/classes/class-bp-groups-component.php
@@ -296,7 +296,7 @@
 		) );
 
 		// If the user was attempting to access a group, but no group by that name was found, 404.
-		if ( bp_is_groups_component() && empty( $this->current_group ) && bp_current_action() && !in_array( bp_current_action(), $this->forbidden_names ) ) {
+		if ( ! bp_is_groups_directory() && bp_is_groups_component() && empty( $this->current_group ) && bp_current_action() && !in_array( bp_current_action(), $this->forbidden_names ) ) {
 			bp_do_404();
 			return;
 		}