diff --git a/awx/api/serializers.py b/awx/api/serializers.py
index 0ba7a7694c..0127c95c60 100644
--- a/awx/api/serializers.py
+++ b/awx/api/serializers.py
@@ -1866,7 +1866,9 @@ class JobOptionsSerializer(LabelsListMixin, BaseSerializer):
             job_type = attrs.get('job_type', self.instance and self.instance.job_type or None)
             if not project and job_type != PERM_INVENTORY_SCAN:
                 raise serializers.ValidationError({'project': _('This field is required.')})
-            if project and playbook and force_text(playbook) not in project.playbook_files:
+            if project and project.scm_type and playbook and force_text(playbook) not in project.playbook_files:
+                raise serializers.ValidationError({'playbook': _('Playbook not found for project.')})
+            if project and not project.scm_type and playbook and force_text(playbook) not in project.playbooks:
                 raise serializers.ValidationError({'playbook': _('Playbook not found for project.')})
             if project and not playbook:
                 raise serializers.ValidationError({'playbook': _('Must select playbook for project.')})