diff --git a/airbyte-integrations/connectors/source-amazon-ads/Dockerfile b/airbyte-integrations/connectors/source-amazon-ads/Dockerfile
index 3ffd3401acb82..230c491297a52 100644
--- a/airbyte-integrations/connectors/source-amazon-ads/Dockerfile
+++ b/airbyte-integrations/connectors/source-amazon-ads/Dockerfile
@@ -13,5 +13,5 @@ ENV AIRBYTE_ENTRYPOINT "python /airbyte/integration_code/main.py"
 ENTRYPOINT ["python", "/airbyte/integration_code/main.py"]
 
 
-LABEL io.airbyte.version=3.1.0
+LABEL io.airbyte.version=3.1.1
 LABEL io.airbyte.name=airbyte/source-amazon-ads
diff --git a/airbyte-integrations/connectors/source-amazon-ads/metadata.yaml b/airbyte-integrations/connectors/source-amazon-ads/metadata.yaml
index 9881c233f8fc9..0433fe6c50c52 100644
--- a/airbyte-integrations/connectors/source-amazon-ads/metadata.yaml
+++ b/airbyte-integrations/connectors/source-amazon-ads/metadata.yaml
@@ -8,7 +8,7 @@ data:
   connectorSubtype: api
   connectorType: source
   definitionId: c6b0a29e-1da9-4512-9002-7bfd0cba2246
-  dockerImageTag: 3.1.0
+  dockerImageTag: 3.1.1
   dockerRepository: airbyte/source-amazon-ads
   githubIssueLabel: source-amazon-ads
   icon: amazonads.svg
diff --git a/airbyte-integrations/connectors/source-amazon-ads/source_amazon_ads/streams/sponsored_products.py b/airbyte-integrations/connectors/source-amazon-ads/source_amazon_ads/streams/sponsored_products.py
index 14b86f888737a..c3b596ae0490c 100644
--- a/airbyte-integrations/connectors/source-amazon-ads/source_amazon_ads/streams/sponsored_products.py
+++ b/airbyte-integrations/connectors/source-amazon-ads/source_amazon_ads/streams/sponsored_products.py
@@ -104,6 +104,13 @@ def parse_response(self, response: requests.Response, **kwargs) -> Iterable[Mapp
                 f"Skip current AdGroup because it does not support request {response.request.url} for "
                 f"{response.request.headers['Amazon-Advertising-API-Scope']} profile: {response.text}"
             )
+        elif response.status_code == HTTPStatus.NOT_FOUND:
+            # 404 Either the specified ad group identifier was not found,
+            # or the specified ad group was found but no associated bid was found.
+            self.logger.warning(
+                f"Skip current AdGroup because the specified ad group has no associated bid {response.request.url} for "
+                f"{response.request.headers['Amazon-Advertising-API-Scope']} profile: {response.text}"
+            )
 
         else:
             response.raise_for_status()
diff --git a/airbyte-integrations/connectors/source-amazon-ads/unit_tests/test_streams.py b/airbyte-integrations/connectors/source-amazon-ads/unit_tests/test_streams.py
index 2a9abb1e4d16e..405d3a5a05ca0 100644
--- a/airbyte-integrations/connectors/source-amazon-ads/unit_tests/test_streams.py
+++ b/airbyte-integrations/connectors/source-amazon-ads/unit_tests/test_streams.py
@@ -72,8 +72,8 @@ def setup_responses(
         )
 
 
-def get_all_stream_records(stream):
-    records = stream.read_records(SyncMode.full_refresh)
+def get_all_stream_records(stream, stream_slice=None):
+    records = stream.read_records(SyncMode.full_refresh, stream_slice=stream_slice)
     return [r for r in records]
 
 
@@ -273,3 +273,20 @@ def test_streams_brands_and_products(config, stream_name, endpoint, profiles_res
     records = get_all_stream_records(test_stream)
     assert records == []
     assert any([endpoint in call.request.url for call in responses.calls])
+
+
+@responses.activate
+def test_sponsored_product_ad_group_bid_recommendations_404_error(caplog, config, profiles_response):
+    setup_responses(profiles_response=profiles_response)
+    responses.add(
+        responses.GET,
+        "https://advertising-api.amazon.com/v2/sp/adGroups/xxx/bidRecommendations",
+        json={"code": "404", "details": "404 Either the specified ad group identifier was not found or the specified ad group was found but no associated bid was found."},
+        status=404,
+    )
+    source = SourceAmazonAds()
+    streams = source.streams(config)
+    test_stream = get_stream_by_name(streams, "sponsored_product_ad_group_bid_recommendations")
+    records = get_all_stream_records(test_stream, stream_slice={'profileId': '1231', 'adGroupId': 'xxx'})
+    assert records == []
+    assert "Skip current AdGroup because the specified ad group has no associated bid" in caplog.text
diff --git a/docs/integrations/sources/amazon-ads.md b/docs/integrations/sources/amazon-ads.md
index 0955fe1e79060..884e4a8f8c817 100644
--- a/docs/integrations/sources/amazon-ads.md
+++ b/docs/integrations/sources/amazon-ads.md
@@ -103,6 +103,7 @@ Information about expected report generation waiting time you may find [here](ht
 
 | Version | Date       | Pull Request                                             | Subject                                                                                                         |
 |:--------|:-----------|:---------------------------------------------------------|:----------------------------------------------------------------------------------------------------------------|
+| 3.1.1   | 2023-08-28 | [29900](https://github.com/airbytehq/airbyte/pull/29900) | Add 404 handling for no assotiated with bid ad groups                                                           |
 | 3.1.0   | 2023-08-08 | [00000](https://github.com/airbytehq/airbyte/pull/00000) | Add `T00030` tactic support for `sponsored_display_report_stream`                                               |
 | 3.0.0   | 2023-07-24 | [27868](https://github.com/airbytehq/airbyte/pull/27868) | Fix attribution report stream schemas                                                                           |
 | 2.3.1   | 2023-07-11 | [28155](https://github.com/airbytehq/airbyte/pull/28155) | Bugfix: validation error when record values are missing                                                         |