diff --git a/packages/ketcher-react/src/script/editor/tool/helper/filterNotInCollapsedSGroup.ts b/packages/ketcher-react/src/script/editor/tool/helper/filterNotInCollapsedSGroup.ts
new file mode 100644
index 0000000000..6c96d116dd
--- /dev/null
+++ b/packages/ketcher-react/src/script/editor/tool/helper/filterNotInCollapsedSGroup.ts
@@ -0,0 +1,40 @@
+import { Struct, FunctionalGroup } from 'ketcher-core'
+
+/**
+ * return only such elements ids that not part of collapsed group
+ * Addition: if an atom in the collapsed SGroup, but is an AttachmentPoint it will be returned as well.
+ */
+export function filterNotInCollapsedSGroup(
+  itemsToFilter: { atoms?: number[]; bonds?: number[] },
+  struct: Struct
+) {
+  return {
+    atoms:
+      itemsToFilter.atoms?.filter((atomId) => {
+        const groupId = struct.getGroupIdFromAtomId(atomId)
+        if (isNotCollapsedSGroup(groupId, struct)) {
+          return true
+        } else {
+          return FunctionalGroup.isAttachmentPointAtom(atomId, struct)
+        }
+      }) ?? [],
+    bonds:
+      itemsToFilter.bonds?.filter((bondId) => {
+        const groupId = struct.getGroupIdFromBondId(bondId)
+        return isNotCollapsedSGroup(groupId, struct)
+      }) ?? []
+  }
+}
+
+function isNotCollapsedSGroup(groupId: number | null, struct: Struct): boolean {
+  if (groupId === null) {
+    return true
+  }
+  const sGroup = struct.sgroups.get(groupId)
+  if (!sGroup) {
+    throw new Error(
+      `sGroup with id = "${groupId}" must be defined, unexpected behaviour`
+    )
+  }
+  return sGroup.checkAttr('expanded', true)
+}
diff --git a/packages/ketcher-react/src/script/editor/tool/paste.ts b/packages/ketcher-react/src/script/editor/tool/paste.ts
index 5489579964..f27afef37f 100644
--- a/packages/ketcher-react/src/script/editor/tool/paste.ts
+++ b/packages/ketcher-react/src/script/editor/tool/paste.ts
@@ -30,6 +30,7 @@ import Editor from '../Editor'
 import { dropAndMerge } from './helper/dropAndMerge'
 import { getGroupIdsFromItemArrays } from './helper/getGroupIdsFromItems'
 import utils from '../shared/utils'
+import { filterNotInCollapsedSGroup } from './helper/filterNotInCollapsedSGroup'
 
 class PasteTool {
   editor: Editor
@@ -180,8 +181,12 @@ class PasteTool {
       )
       this.action = action
       this.editor.update(this.action, true, { resizeCanvas: false })
+      const visiblePasteItems = filterNotInCollapsedSGroup(
+        pasteItems,
+        this.editor.struct()
+      )
 
-      this.mergeItems = getItemsToFuse(this.editor, pasteItems)
+      this.mergeItems = getItemsToFuse(this.editor, visiblePasteItems)
       this.editor.hover(getHoverToFuse(this.mergeItems))
     }
   }
diff --git a/packages/ketcher-react/src/script/editor/tool/select.ts b/packages/ketcher-react/src/script/editor/tool/select.ts
index ed3f54a0df..3fb8fce4a9 100644
--- a/packages/ketcher-react/src/script/editor/tool/select.ts
+++ b/packages/ketcher-react/src/script/editor/tool/select.ts
@@ -48,6 +48,7 @@ import { getGroupIdsFromItemArrays } from './helper/getGroupIdsFromItems'
 import { updateSelectedAtoms } from 'src/script/ui/state/modal/atoms'
 import { updateSelectedBonds } from 'src/script/ui/state/modal/bonds'
 import { hasAtomsOutsideCanvas } from './helper/isAtomOutSideCanvas'
+import { filterNotInCollapsedSGroup } from './helper/filterNotInCollapsedSGroup'
 
 class SelectTool {
   #mode: string
@@ -207,7 +208,11 @@ class SelectTool {
         editor.render.page2obj(event).sub(dragCtx.xy0)
       )
 
-      dragCtx.mergeItems = getItemsToFuse(editor, expSel)
+      const visibleSelectedItems = filterNotInCollapsedSGroup(
+        expSel,
+        this.editor.struct()
+      )
+      dragCtx.mergeItems = getItemsToFuse(editor, visibleSelectedItems)
       editor.hover(getHoverToFuse(dragCtx.mergeItems))
 
       resizeCanvas(rnd, event)