diff --git a/test/e2e/ui/ui-dag-with-params.yaml b/test/e2e/ui/ui-dag-with-params.yaml
index a954c0a8bb94..9756cda593e3 100644
--- a/test/e2e/ui/ui-dag-with-params.yaml
+++ b/test/e2e/ui/ui-dag-with-params.yaml
@@ -3,24 +3,53 @@ kind: Workflow
 metadata:
   generateName: ui-dag-with-params-
 spec:
-  entrypoint: diamond
+  entrypoint: pipeline
+
   templates:
-  - name: diamond
-    dag:
-      tasks:
-      - name: A
-        template: nested-diamond
-        arguments:
-          parameters: [{name: message, value: A}]
-  - name: nested-diamond
+  - name: echo
     inputs:
       parameters:
       - name: message
+    container:
+      image: alpine:latest
+      command: [echo, "{{inputs.parameters.message}}"]
+
+  - name: subpipeline-a
     dag:
       tasks:
-      - name: A
+      - name: A1
         template: echo
-  - name: echo
-    container:
-      image: alpine:3.7
-      command: [echo, "hello"]
+        arguments:
+          parameters: [{name: message, value: "Hello World!"}]
+      - name: A2
+        template: echo
+        arguments:
+          parameters: [{name: message, value: "Hello World!"}]
+
+  - name: subpipeline-b
+    dag:
+      tasks:
+      - name: B1
+        template: echo
+        arguments:
+          parameters: [{name: message, value: "Hello World!"}]
+      - name: B2
+        template: echo
+        dependencies: [B1]
+        arguments:
+          parameters: [{name: message, value: "Hello World!"}]
+        withItems:
+        - 0
+        - 1
+
+  - name: pipeline
+    dag:
+      tasks:
+      - name: A
+        template: subpipeline-a
+        withItems:
+        - 0
+        - 1
+      - name: B
+        dependencies: [A]
+        template: subpipeline-b
diff --git a/workflow/controller/dag.go b/workflow/controller/dag.go
index 438dc46c2be0..1f5601830751 100644
--- a/workflow/controller/dag.go
+++ b/workflow/controller/dag.go
@@ -251,12 +251,21 @@ func (woc *wfOperationCtx) executeDAGTask(dagCtx *dagContext, taskName string) {
 
 	// All our dependencies were satisfied and successful. It's our turn to run
 
+	taskGroupNode := woc.getNodeByName(nodeName)
+	if taskGroupNode != nil && taskGroupNode.Type != wfv1.NodeTypeTaskGroup {
+		taskGroupNode = nil
+	}
 	// connectDependencies is a helper to connect our dependencies to current task as children
 	connectDependencies := func(taskNodeName string) {
-		if len(task.Dependencies) == 0 {
+		if len(task.Dependencies) == 0 || taskGroupNode != nil {
 			// if we had no dependencies, then we are a root task, and we should connect the
 			// boundary node as our parent
-			woc.addChildNode(dagCtx.boundaryName, taskNodeName)
+			if taskGroupNode == nil {
+				woc.addChildNode(dagCtx.boundaryName, taskNodeName)
+			} else {
+				woc.addChildNode(taskGroupNode.Name, taskNodeName)
+			}
+
 		} else {
 			// Otherwise, add all outbound nodes of our dependencies as parents to this node
 			for _, depName := range task.Dependencies {
@@ -287,6 +296,16 @@ func (woc *wfOperationCtx) executeDAGTask(dagCtx *dagContext, taskName string) {
 		return
 	}
 
+	// If DAG task has withParam of with withSequence then we need to create virtual node of type TaskGroup.
+	// For example, if we had task A with withItems of ['foo', 'bar'] which expanded to ['A(0:foo)', 'A(1:bar)'], we still
+	// need to create a node for A.
+	if len(task.WithItems) > 0 || task.WithParam != "" || task.WithSequence != nil {
+		if taskGroupNode == nil {
+			connectDependencies(nodeName)
+			taskGroupNode = woc.initializeNode(nodeName, wfv1.NodeTypeTaskGroup, task.Template, dagCtx.boundaryID, wfv1.NodeRunning, "")
+		}
+	}
+
 	for _, t := range expandedTasks {
 		node = dagCtx.getTaskNode(t.Name)
 		taskNodeName := dagCtx.taskNodeName(t.Name)
@@ -311,12 +330,8 @@ func (woc *wfOperationCtx) executeDAGTask(dagCtx *dagContext, taskName string) {
 		_, _ = woc.executeTemplate(t.Template, t.Arguments, taskNodeName, dagCtx.boundaryID)
 	}
 
-	// If we expanded the task, we still need to create the task entry for the non-expanded node,
-	// since dependant tasks will look to it, when deciding when to execute. For example, if we had
-	// task A with withItems of ['foo', 'bar'] which expanded to ['A(0:foo)', 'A(1:bar)'], we still
-	// need to create a node for A, after the withItems have completed.
-	if len(task.WithItems) > 0 || task.WithParam != "" || task.WithSequence != nil {
-		nodeStatus := wfv1.NodeSucceeded
+	if taskGroupNode != nil {
+		groupPhase := wfv1.NodeSucceeded
 		for _, t := range expandedTasks {
 			// Add the child relationship from our dependency's outbound nodes to this node.
 			node := dagCtx.getTaskNode(t.Name)
@@ -324,17 +339,10 @@ func (woc *wfOperationCtx) executeDAGTask(dagCtx *dagContext, taskName string) {
 				return
 			}
 			if !node.Successful() {
-				nodeStatus = node.Phase
-			}
-		}
-		woc.initializeNode(nodeName, wfv1.NodeTypeTaskGroup, task.Template, dagCtx.boundaryID, nodeStatus, "")
-		if len(expandedTasks) > 0 {
-			for _, t := range expandedTasks {
-				woc.addChildNode(dagCtx.taskNodeName(t.Name), nodeName)
+				groupPhase = node.Phase
 			}
-		} else {
-			connectDependencies(nodeName)
 		}
+		woc.markNodePhase(taskGroupNode.Name, groupPhase)
 	}
 }
 
diff --git a/workflow/controller/operator.go b/workflow/controller/operator.go
index 792f63a9aef9..41f605714b51 100644
--- a/workflow/controller/operator.go
+++ b/workflow/controller/operator.go
@@ -1180,8 +1180,17 @@ func (woc *wfOperationCtx) executeContainer(nodeName string, tmpl *wfv1.Template
 func (woc *wfOperationCtx) getOutboundNodes(nodeID string) []string {
 	node := woc.wf.Status.Nodes[nodeID]
 	switch node.Type {
-	case wfv1.NodeTypePod, wfv1.NodeTypeSkipped, wfv1.NodeTypeSuspend, wfv1.NodeTypeTaskGroup:
+	case wfv1.NodeTypePod, wfv1.NodeTypeSkipped, wfv1.NodeTypeSuspend:
 		return []string{node.ID}
+	case wfv1.NodeTypeTaskGroup:
+		if len(node.Children) == 0 {
+			return []string{node.ID}
+		}
+		outboundNodes := make([]string, 0)
+		for _, child := range node.Children {
+			outboundNodes = append(outboundNodes, woc.getOutboundNodes(child)...)
+		}
+		return outboundNodes
 	case wfv1.NodeTypeRetry:
 		numChildren := len(node.Children)
 		if numChildren > 0 {