diff --git a/lib/modules/manager/bundler/__fixtures__/Gemfile.sourceBlockWithGroups b/lib/modules/manager/bundler/__fixtures__/Gemfile.sourceBlockWithGroups
new file mode 100644
index 00000000000000..2b0dc5ec239fd4
--- /dev/null
+++ b/lib/modules/manager/bundler/__fixtures__/Gemfile.sourceBlockWithGroups
@@ -0,0 +1,12 @@
+source 'https://hub.tech.my.domain.de/artifactory/api/gems/my-gems-prod-local/' do
+  gem 'sfn_my_dep1', "~> 1"
+  gem 'sfn_my_dep2', "~> 1"
+
+  group :test, :development do
+    gem 'internal_test_gem', "~> 1"
+  end
+
+  group :production do
+    gem 'internal_production_gem', "~> 1"
+  end
+end
diff --git a/lib/modules/manager/bundler/extract.spec.ts b/lib/modules/manager/bundler/extract.spec.ts
index fe7916baeebcf1..cbee5d033f7c3e 100644
--- a/lib/modules/manager/bundler/extract.spec.ts
+++ b/lib/modules/manager/bundler/extract.spec.ts
@@ -26,6 +26,9 @@ const sourceBlockWithNewLinesGemfileLock = Fixtures.get(
 const sourceBlockWithNewLinesGemfile = Fixtures.get(
   'Gemfile.sourceBlockWithNewLines',
 );
+const sourceBlockWithGroupsGemfile = Fixtures.get(
+  'Gemfile.sourceBlockWithGroups',
+);
 
 describe('modules/manager/bundler/extract', () => {
   describe('extractPackageFile()', () => {
@@ -124,4 +127,18 @@ describe('modules/manager/bundler/extract', () => {
     expect(res).toMatchSnapshot();
     expect(res?.deps).toHaveLength(2);
   });
+
+  it('parses source blocks with groups in Gemfile', async () => {
+    fs.readLocalFile.mockResolvedValueOnce(sourceBlockWithGroupsGemfile);
+    const res = await extractPackageFile(
+      sourceBlockWithGroupsGemfile,
+      'Gemfile',
+    );
+    expect(res?.deps).toMatchObject([
+      { depName: 'internal_test_gem', currentValue: '"~> 1"' },
+      { depName: 'internal_production_gem', currentValue: '"~> 1"' },
+      { depName: 'sfn_my_dep1', currentValue: '"~> 1"' },
+      { depName: 'sfn_my_dep2', currentValue: '"~> 1"' },
+    ]);
+  });
 });
diff --git a/lib/modules/manager/bundler/extract.ts b/lib/modules/manager/bundler/extract.ts
index 167dcaeccb9600..b204056b5db61f 100644
--- a/lib/modules/manager/bundler/extract.ts
+++ b/lib/modules/manager/bundler/extract.ts
@@ -16,12 +16,70 @@ export async function extractPackageFile(
   content: string,
   packageFile?: string,
 ): Promise<PackageFileContent | null> {
+  let lineNumber: number;
+  async function processGroupBlock(
+    line: string,
+    repositoryUrl?: string,
+    trimGroupLine: boolean = false,
+  ): Promise<void> {
+    const groupMatch = regEx(/^group\s+(.*?)\s+do/).exec(line);
+    if (groupMatch) {
+      const depTypes = groupMatch[1]
+        .split(',')
+        .map((group) => group.trim())
+        .map((group) => group.replace(regEx(/^:/), ''));
+
+      const groupLineNumber = lineNumber;
+      let groupContent = '';
+      let groupLine = '';
+
+      while (
+        lineNumber < lines.length &&
+        (trimGroupLine ? groupLine.trim() !== 'end' : groupLine !== 'end')
+      ) {
+        lineNumber += 1;
+        groupLine = lines[lineNumber];
+
+        // istanbul ignore if
+        if (!is.string(groupLine)) {
+          logger.debug(
+            { content, packageFile, type: 'groupLine' },
+            'Bundler parsing error',
+          );
+          groupLine = 'end';
+        }
+        if (trimGroupLine ? groupLine.trim() !== 'end' : groupLine !== 'end') {
+          groupContent += formatContent(groupLine);
+        }
+      }
+
+      const groupRes = await extractPackageFile(groupContent);
+      if (groupRes) {
+        res.deps = res.deps.concat(
+          groupRes.deps.map((dep) => {
+            const depObject = {
+              ...dep,
+              depTypes,
+              managerData: {
+                lineNumber:
+                  Number(dep.managerData?.lineNumber) + groupLineNumber + 1,
+              },
+            };
+            if (repositoryUrl) {
+              depObject.registryUrls = [repositoryUrl];
+            }
+            return depObject;
+          }),
+        );
+      }
+    }
+  }
   const res: PackageFileContent = {
     registryUrls: [],
     deps: [],
   };
   const lines = content.split(newlineRegex);
-  for (let lineNumber = 0; lineNumber < lines.length; lineNumber += 1) {
+  for (lineNumber = 0; lineNumber < lines.length; lineNumber += 1) {
     const line = lines[lineNumber];
     let sourceMatch: RegExpMatchArray | null = null;
     for (const delimiter of delimiters) {
@@ -61,44 +119,9 @@ export async function extractPackageFile(
       dep.datasource = RubyGemsDatasource.id;
       res.deps.push(dep);
     }
-    const groupMatch = regEx(/^group\s+(.*?)\s+do/).exec(line);
-    if (groupMatch) {
-      const depTypes = groupMatch[1]
-        .split(',')
-        .map((group) => group.trim())
-        .map((group) => group.replace(regEx(/^:/), ''));
-      const groupLineNumber = lineNumber;
-      let groupContent = '';
-      let groupLine = '';
-      while (lineNumber < lines.length && groupLine !== 'end') {
-        lineNumber += 1;
-        groupLine = lines[lineNumber];
-        // istanbul ignore if
-        if (!is.string(groupLine)) {
-          logger.debug(
-            { content, packageFile, type: 'groupLine' },
-            'Bundler parsing error',
-          );
-          groupLine = 'end';
-        }
-        if (groupLine !== 'end') {
-          groupContent += formatContent(groupLine);
-        }
-      }
-      const groupRes = await extractPackageFile(groupContent);
-      if (groupRes) {
-        res.deps = res.deps.concat(
-          groupRes.deps.map((dep) => ({
-            ...dep,
-            depTypes,
-            managerData: {
-              lineNumber:
-                Number(dep.managerData?.lineNumber) + groupLineNumber + 1,
-            },
-          })),
-        );
-      }
-    }
+
+    await processGroupBlock(line);
+
     for (const delimiter of delimiters) {
       const sourceBlockMatch = regEx(
         `^source\\s+${delimiter}(.*?)${delimiter}\\s+do`,
@@ -108,6 +131,7 @@ export async function extractPackageFile(
         const sourceLineNumber = lineNumber;
         let sourceContent = '';
         let sourceLine = '';
+
         while (lineNumber < lines.length && sourceLine.trim() !== 'end') {
           lineNumber += 1;
           sourceLine = lines[lineNumber];
@@ -119,11 +143,16 @@ export async function extractPackageFile(
             );
             sourceLine = 'end';
           }
-          if (sourceLine !== 'end') {
+
+          await processGroupBlock(sourceLine.trim(), repositoryUrl, true);
+
+          if (sourceLine.trim() !== 'end') {
             sourceContent += formatContent(sourceLine);
           }
         }
+
         const sourceRes = await extractPackageFile(sourceContent);
+
         if (sourceRes) {
           res.deps = res.deps.concat(
             sourceRes.deps.map((dep) => ({