diff --git a/lib/PgSQL_Session.cpp b/lib/PgSQL_Session.cpp
index 086148c38..b4846038c 100644
--- a/lib/PgSQL_Session.cpp
+++ b/lib/PgSQL_Session.cpp
@@ -4470,8 +4470,13 @@ __exit_set_destination_hostgroup:
 		next_query_flagIN = qpo->next_query_flagIN;
 	}
 
-	if (qpo->destination_hostgroup >= 0 && transaction_persistent_hostgroup == -1) {
-		current_hostgroup = qpo->destination_hostgroup;
+	if (transaction_persistent_hostgroup == -1) {
+		if (qpo->destination_hostgroup >= 0) {
+			current_hostgroup = qpo->destination_hostgroup;
+		} else {
+			// No query rule matched - use default hostgroup
+			current_hostgroup = default_hostgroup;
+		}
 	}
 
 	// Hostgroup locking check