diff --git a/internal-packages/run-engine/src/run-queue/fairQueueSelectionStrategy.ts b/internal-packages/run-engine/src/run-queue/fairQueueSelectionStrategy.ts
index e46177ec0d..26ef1d8093 100644
--- a/internal-packages/run-engine/src/run-queue/fairQueueSelectionStrategy.ts
+++ b/internal-packages/run-engine/src/run-queue/fairQueueSelectionStrategy.ts
@@ -448,7 +448,7 @@ export class FairQueueSelectionStrategy implements RunQueueSelectionStrategy {
     // Group queues by env
     const queuesByEnv = queues.reduce(
       (acc, queue) => {
-        if (!acc[`${queue.org}:${queue.project}:${queue.env}`]) {
+        if (!acc[queue.env]) {
           acc[queue.env] = [];
         }
         acc[queue.env].push(queue);
diff --git a/internal-packages/run-engine/src/run-queue/tests/fairQueueSelectionStrategy.test.ts b/internal-packages/run-engine/src/run-queue/tests/fairQueueSelectionStrategy.test.ts
index 4f8f9178fe..853f4ac3e0 100644
--- a/internal-packages/run-engine/src/run-queue/tests/fairQueueSelectionStrategy.test.ts
+++ b/internal-packages/run-engine/src/run-queue/tests/fairQueueSelectionStrategy.test.ts
@@ -1021,7 +1021,141 @@ describe("FairDequeuingStrategy", () => {
       expect(selectionPercentages["env-2"]).toBeGreaterThan(40);
 
       // Verify that env-4 (lowest average age) gets selected in less than 20% of iterations
-      expect(selectionPercentages["env-4"] || 0).toBeLessThan(20);
+    expect(selectionPercentages["env-4"] || 0).toBeLessThan(20);
+    }
+  );
+
+  redisTest(
+    "#selectTopEnvs groups queues by environment",
+    async ({ redisOptions: redis }) => {
+      const keyProducer = new RunQueueFullKeyProducer();
+      const strategy = new FairQueueSelectionStrategy({
+        redis,
+        keys: keyProducer,
+        defaultEnvConcurrencyLimit: 5,
+        parentQueueLimit: 100,
+        seed: "group-test",
+        maximumEnvCount: 2,
+      });
+
+      const now = Date.now();
+
+      // env-1 with two queues from different orgs/projects
+      await setupQueue({
+        redis,
+        keyProducer,
+        parentQueue: "parent-queue",
+        score: now - 1000,
+        queueId: "queue-1-old",
+        orgId: "org-a",
+        projectId: "proj-a",
+        envId: "env-1",
+      });
+
+      await setupQueue({
+        redis,
+        keyProducer,
+        parentQueue: "parent-queue",
+        score: now - 10,
+        queueId: "queue-1-new",
+        orgId: "org-b",
+        projectId: "proj-b",
+        envId: "env-1",
+      });
+
+      await setupQueue({
+        redis,
+        keyProducer,
+        parentQueue: "parent-queue",
+        score: now - 400,
+        queueId: "queue-2",
+        orgId: "org-2",
+        projectId: "proj-2",
+        envId: "env-2",
+      });
+
+      await setupQueue({
+        redis,
+        keyProducer,
+        parentQueue: "parent-queue",
+        score: now - 300,
+        queueId: "queue-3",
+        orgId: "org-3",
+        projectId: "proj-3",
+        envId: "env-3",
+      });
+
+      // Setup concurrency limits
+      await setupConcurrency({
+        redis,
+        keyProducer,
+        env: {
+          envId: "env-1",
+          projectId: "proj-a",
+          orgId: "org-a",
+          currentConcurrency: 0,
+          limit: 5,
+        },
+      });
+
+      await setupConcurrency({
+        redis,
+        keyProducer,
+        env: {
+          envId: "env-1",
+          projectId: "proj-b",
+          orgId: "org-b",
+          currentConcurrency: 0,
+          limit: 5,
+        },
+      });
+
+      await setupConcurrency({
+        redis,
+        keyProducer,
+        env: {
+          envId: "env-2",
+          projectId: "proj-2",
+          orgId: "org-2",
+          currentConcurrency: 0,
+          limit: 5,
+        },
+      });
+
+      await setupConcurrency({
+        redis,
+        keyProducer,
+        env: {
+          envId: "env-3",
+          projectId: "proj-3",
+          orgId: "org-3",
+          currentConcurrency: 0,
+          limit: 5,
+        },
+      });
+
+      const envResult = await strategy.distributeFairQueuesFromParentQueue(
+        "parent-queue",
+        "consumer-1"
+      );
+
+      const result = flattenResults(envResult);
+
+      const queuesByEnv = result.reduce(
+        (acc, queueId) => {
+          const envId = keyProducer.envIdFromQueue(queueId);
+          if (!acc[envId]) {
+            acc[envId] = [];
+          }
+          acc[envId].push(queueId);
+          return acc;
+        },
+        {} as Record<string, string[]>
+      );
+
+      expect(Object.keys(queuesByEnv).length).toBe(2);
+      expect(queuesByEnv["env-1"]).toBeDefined();
+      expect(queuesByEnv["env-1"].length).toBe(2);
     }
   );
 });