diff --git a/awx_collection/plugins/module_utils/tower_api.py b/awx_collection/plugins/module_utils/tower_api.py
index 2ab6c1c1ab..25b084f227 100644
--- a/awx_collection/plugins/module_utils/tower_api.py
+++ b/awx_collection/plugins/module_utils/tower_api.py
@@ -509,9 +509,10 @@ class TowerModule(AnsibleModule):
         if not endpoint:
             self.fail_json(msg="Unable to create new {0} due to missing endpoint".format(item_type))
 
+        item_url = None
         if existing_item:
             try:
-                existing_item['url']
+                item_url = existing_item['url']
             except KeyError as ke:
                 self.fail_json(msg="Unable to process create of item due to missing data {0}".format(ke))
         else:
@@ -534,6 +535,7 @@ class TowerModule(AnsibleModule):
                         self.json_output['name'] = response['json'][key]
                 self.json_output['id'] = response['json']['id']
                 self.json_output['changed'] = True
+                item_url = response['json']['url']
             else:
                 if 'json' in response and '__all__' in response['json']:
                     self.fail_json(msg="Unable to create {0} {1}: {2}".format(item_type, item_name, response['json']['__all__'][0]))
@@ -545,7 +547,8 @@ class TowerModule(AnsibleModule):
         # Process any associations with this item
         if associations is not None:
             for association_type in associations:
-                self.modify_associations(response, associations[association_type])
+                sub_endpoint = '{0}{1}/'.format(item_url, association_type)
+                self.modify_associations(sub_endpoint, associations[association_type])
 
         # If we have an on_create method and we actually changed something we can call on_create
         if on_create is not None and self.json_output['changed']:
diff --git a/awx_collection/test/awx/test_group.py b/awx_collection/test/awx/test_group.py
index a366a310ba..c00bb1b9e5 100644
--- a/awx_collection/test/awx/test_group.py
+++ b/awx_collection/test/awx/test_group.py
@@ -56,6 +56,27 @@ def test_associate_hosts_and_groups(run_module, admin_user, organization):
     assert set(group.children.all()) == set([child])
 
 
+@pytest.mark.django_db
+def test_associate_on_create(run_module, admin_user, organization):
+    inv = Inventory.objects.create(name='test-inv', organization=organization)
+    child = Group.objects.create(name='test-child', inventory=inv)
+    host = Host.objects.create(name='test-host', inventory=inv)
+
+    result = run_module('tower_group', dict(
+        name='Test Group',
+        inventory='test-inv',
+        hosts=[host.name],
+        groups=[child.name],
+        state='present'
+    ), admin_user)
+    assert not result.get('failed', False), result.get('msg', result)
+    assert result['changed'] is True
+
+    group = Group.objects.get(pk=result['id'])
+    assert set(group.hosts.all()) == set([host])
+    assert set(group.children.all()) == set([child])
+
+
 @pytest.mark.django_db
 def test_tower_group_idempotent(run_module, admin_user):
     # https://github.com/ansible/ansible/issues/46803