diff --git a/changelogs/unreleased/dz-rename-invalid-groups.yml b/changelogs/unreleased/dz-rename-invalid-groups.yml
new file mode 100644
index 0000000000000000000000000000000000000000..90af42da01c91502db6dcd5c75c757f2dbcf2d69
--- /dev/null
+++ b/changelogs/unreleased/dz-rename-invalid-groups.yml
@@ -0,0 +1,4 @@
+---
+title: Rename groups with .git in the end of the path
+merge_request: 8199
+author: 
diff --git a/db/migrate/20161220141214_remove_dot_git_from_group_names.rb b/db/migrate/20161220141214_remove_dot_git_from_group_names.rb
new file mode 100644
index 0000000000000000000000000000000000000000..bd0e4b2cc07b8eb9fe2c45dd012afe2866becd4c
--- /dev/null
+++ b/db/migrate/20161220141214_remove_dot_git_from_group_names.rb
@@ -0,0 +1,82 @@
+# See http://doc.gitlab.com/ce/development/migration_style_guide.html
+# for more information on how to write migrations for GitLab.
+
+class RemoveDotGitFromGroupNames < ActiveRecord::Migration
+  include Gitlab::Database::MigrationHelpers
+  include Gitlab::ShellAdapter
+
+  # Set this constant to true if this migration requires downtime.
+  DOWNTIME = false
+
+  def up
+    invalid_groups.each do |group|
+      path_was = group['path']
+      path_was_wildcard = quote_string("#{path_was}/%")
+      path = quote_string(rename_path(path_was))
+
+      move_namespace(group['id'], path_was, path)
+
+      execute "UPDATE routes SET path = '#{path}' WHERE source_type = 'Namespace' AND source_id = #{group['id']}"
+      execute "UPDATE namespaces SET path = '#{path}' WHERE id = #{group['id']}"
+
+      select_all("SELECT id, path FROM routes WHERE path LIKE '#{path_was_wildcard}'").each do |route|
+        new_path = "#{path}/#{route['path'].split('/').last}"
+        execute "UPDATE routes SET path = '#{new_path}' WHERE id = #{route['id']}"
+      end
+    end
+  end
+
+  def down
+    # nothing to do here
+  end
+
+  private
+
+  def invalid_groups
+    select_all("SELECT id, path FROM namespaces WHERE type = 'Group' AND path LIKE '%.git'")
+  end
+
+  def route_exists?(path)
+    select_all("SELECT id, path FROM routes WHERE path = '#{quote_string(path)}'").present?
+  end
+
+  # Accepts invalid path like test.git and returns test_git or
+  # test_git1 if test_git already taken
+  def rename_path(path)
+    # To stay closer with original name and reduce risk of duplicates
+    # we rename suffix instead of removing it
+    path = path.sub(/\.git\z/, '_git')
+
+    counter = 0
+    base = path
+
+    while route_exists?(path)
+      counter += 1
+      path = "#{base}#{counter}"
+    end
+
+    path
+  end
+
+  def move_namespace(group_id, path_was, path)
+    repository_storage_paths = select_all("SELECT distinct(repository_storage) FROM projects WHERE namespace_id = #{group_id}").map do |row|
+      Gitlab.config.repositories.storages[row['repository_storage']]
+    end
+
+    # Move the namespace directory in all storages paths used by member projects
+    repository_storage_paths.each do |repository_storage_path|
+      # Ensure old directory exists before moving it
+      gitlab_shell.add_namespace(repository_storage_path, path_was)
+
+      unless gitlab_shell.mv_namespace(repository_storage_path, path_was, path)
+        Rails.logger.error "Exception moving path #{repository_storage_path} from #{path_was} to #{path}"
+
+        # if we cannot move namespace directory we should rollback
+        # db changes in order to prevent out of sync between db and fs
+        raise Exception.new('namespace directory cannot be moved')
+      end
+    end
+
+    Gitlab::UploadsTransfer.new.rename_namespace(path_was, path)
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 14801b581e6e846ce3a2b2934e532d33731da7aa..13a847827cc06c13b68d543215584c13d7125e0f 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -11,7 +11,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema.define(version: 20161213172958) do
+ActiveRecord::Schema.define(version: 20161220141214) do
 
   # These are extensions that must be enabled in order to support this database
   enable_extension "plpgsql"
@@ -854,7 +854,7 @@ ActiveRecord::Schema.define(version: 20161213172958) do
     t.datetime "expires_at"
     t.datetime "created_at", null: false
     t.datetime "updated_at", null: false
-    t.string   "scopes", default: "--- []\n", null: false
+    t.string "scopes", default: "--- []\n", null: false
   end
 
   add_index "personal_access_tokens", ["token"], name: "index_personal_access_tokens_on_token", unique: true, using: :btree