diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9671ffe29a..63978fa573 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,7 @@ CHANGELOG
 - Fix LoginNodes NLB not being publicly accessible when using public subnet with implicit main route table association. 
   See https://github.com/aws/aws-parallelcluster/issues/7173
 - Fix cluster creation failure without Internet access when GPU instances and DCV are used.
+- Fix intermittent cluster creation failure caused by eventual consistency issues when head, compute and login nodes have the same security group.
 
 3.14.1
 ------
diff --git a/cli/src/pcluster/templates/cluster_stack.py b/cli/src/pcluster/templates/cluster_stack.py
index 67a573e6de..66fdf179c5 100644
--- a/cli/src/pcluster/templates/cluster_stack.py
+++ b/cli/src/pcluster/templates/cluster_stack.py
@@ -795,8 +795,17 @@ def _add_storage_security_group(self, storage_cfn_id, storage):
             "Storage": [storage_security_group.ref],
         }
 
+        # Deduplicate SGs to avoid creating identical rules for the same security group.
+        # This prevents EC2 duplicate rule errors which are susceptible to eventual consistency issues.
+        seen_sgs = set()
         for sg_type, sg_refs in target_security_groups.items():
             for sg_ref_id, sg_ref in enumerate(sg_refs):
+                # This conversion is required because sg_ref could either be a string or a CDK token reference.
+                # A CDK token must be converted to a string to make it comparable within the set.
+                sg_key = str(sg_ref)
+                if sg_key in seen_sgs:
+                    continue
+                seen_sgs.add(sg_key)
                 # TODO Scope down ingress rules to allow only traffic on the strictly necessary ports.
                 #      Currently scoped down only on Login nodes to limit blast radius.
                 ingress_protocol = "-1"
diff --git a/cli/tests/pcluster/templates/test_cluster_stack.py b/cli/tests/pcluster/templates/test_cluster_stack.py
index be707d6b6d..d4c7886c67 100644
--- a/cli/tests/pcluster/templates/test_cluster_stack.py
+++ b/cli/tests/pcluster/templates/test_cluster_stack.py
@@ -1374,3 +1374,44 @@ def test_resource_combination_name(
         hash_length=hash_length,
     )
     assert_that(combination_name).is_equal_to(expected_combination_name)
+
+
+def test_storage_security_group_deduplication(mocker, test_datadir):
+    """
+    Test that storage security group rules are deduplicated when head, compute, and login nodes share the same SG.
+
+    When head node, compute nodes, and login nodes all use the same security group (sg-12345678),
+    only one set of ingress/egress rules should be created for that security group, not three separate sets.
+    The deduplicated rule uses the first occurrence's settings (Head node), which uses all protocols (-1).
+    """
+    mock_aws_api(mocker)
+    mock_bucket(mocker)
+    mock_bucket_object_utils(mocker)
+
+    input_yaml = load_yaml_dict(test_datadir / "config-shared-sg.yaml")
+    cluster_config = ClusterSchema(cluster_name="clustername").load(input_yaml)
+
+    generated_template, _ = CDKTemplateBuilder().build_cluster_template(
+        cluster_config=cluster_config, bucket=dummy_cluster_bucket(), stack_name="clustername"
+    )
+
+    # Test both EFS and FSx storage types
+    for storage_type in ["EFS", "FSX"]:
+        storage_sg_ingress_rules = [
+            (name, resource)
+            for name, resource in generated_template["Resources"].items()
+            if resource["Type"] == "AWS::EC2::SecurityGroupIngress"
+            and name.startswith(storage_type)
+            and "SecurityGroup" in name
+        ]
+
+        # Verify deduplication: only 2 rules instead of 4 (Head, Compute, Login share same SG + Storage SG)
+        assert_that(len(storage_sg_ingress_rules)).is_equal_to(2)
+
+        # Verify each unique source security group has exactly one ingress rule
+        source_sgs = {
+            str(rule["Properties"].get("SourceSecurityGroupId"))
+            for _, rule in storage_sg_ingress_rules
+            if rule["Properties"].get("SourceSecurityGroupId")
+        }
+        assert_that(len(storage_sg_ingress_rules)).is_equal_to(len(source_sgs))
diff --git a/cli/tests/pcluster/templates/test_cluster_stack/test_storage_security_group_deduplication/config-shared-sg.yaml b/cli/tests/pcluster/templates/test_cluster_stack/test_storage_security_group_deduplication/config-shared-sg.yaml
new file mode 100644
index 0000000000..a0dfe5e0d4
--- /dev/null
+++ b/cli/tests/pcluster/templates/test_cluster_stack/test_storage_security_group_deduplication/config-shared-sg.yaml
@@ -0,0 +1,46 @@
+Image:
+  Os: alinux2
+HeadNode:
+  InstanceType: t3.micro
+  Ssh:
+    KeyName: ec2-key-name
+  Networking:
+    SubnetId: subnet-12345678
+    SecurityGroups:
+      - sg-12345678
+Scheduling:
+  Scheduler: slurm
+  SlurmQueues:
+    - Name: queue1
+      Networking:
+        SubnetIds:
+          - subnet-12345678
+        SecurityGroups:
+          - sg-12345678
+      ComputeResources:
+        - Name: compute_resource1
+          InstanceType: t3.micro
+          MinCount: 0
+          MaxCount: 10
+LoginNodes:
+  Pools:
+    - Name: login
+      InstanceType: t3.micro
+      Count: 1
+      Networking:
+        SubnetIds:
+          - subnet-12345678
+        SecurityGroups:
+          - sg-12345678
+SharedStorage:
+  - Name: efs
+    StorageType: Efs
+    MountDir: /efs
+    EfsSettings:
+      ThroughputMode: bursting
+  - Name: fsx
+    StorageType: FsxLustre
+    MountDir: /fsx
+    FsxLustreSettings:
+      StorageCapacity: 1200
+      DeploymentType: SCRATCH_2