diff --git a/lib/stopwatch-names.h b/lib/stopwatch-names.h
index de6fca4ccc..08cb0159a7 100644
--- a/lib/stopwatch-names.h
+++ b/lib/stopwatch-names.h
@@ -30,5 +30,6 @@
 #define LFLOWS_IGMP_STOPWATCH_NAME "lflows_igmp"
 #define LFLOWS_DP_GROUPS_STOPWATCH_NAME "lflows_dp_groups"
 #define LFLOWS_TO_SB_STOPWATCH_NAME "lflows_to_sb"
+#define PORT_GROUP_RUN_STOPWATCH_NAME "port_group_run"
 
 #endif
diff --git a/northd/en-lflow.c b/northd/en-lflow.c
index 7187cf959f..7f6a7872b2 100644
--- a/northd/en-lflow.c
+++ b/northd/en-lflow.c
@@ -35,6 +35,8 @@ lflow_get_input_data(struct engine_node *node,
                      struct lflow_input *lflow_input)
 {
     struct northd_data *northd_data = engine_get_input_data("northd", node);
+    struct port_group_data *pg_data =
+        engine_get_input_data("port_group", node);
     lflow_input->nbrec_bfd_table =
         EN_OVSDB_GET(engine_get_input("NB_bfd", node));
     lflow_input->sbrec_bfd_table =
@@ -55,7 +57,7 @@ lflow_get_input_data(struct engine_node *node,
     lflow_input->lr_datapaths = &northd_data->lr_datapaths;
     lflow_input->ls_ports = &northd_data->ls_ports;
     lflow_input->lr_ports = &northd_data->lr_ports;
-    lflow_input->ls_port_groups = &northd_data->ls_port_groups;
+    lflow_input->ls_port_groups = &pg_data->ls_port_groups;
     lflow_input->meter_groups = &northd_data->meter_groups;
     lflow_input->lbs = &northd_data->lbs;
     lflow_input->features = &northd_data->features;
diff --git a/northd/en-northd.c b/northd/en-northd.c
index 044fa70190..6fb0597144 100644
--- a/northd/en-northd.c
+++ b/northd/en-northd.c
@@ -74,8 +74,6 @@ northd_get_input_data(struct engine_node *node,
         EN_OVSDB_GET(engine_get_input("NB_load_balancer", node));
     input_data->nbrec_load_balancer_group_table =
         EN_OVSDB_GET(engine_get_input("NB_load_balancer_group", node));
-    input_data->nbrec_port_group_table =
-        EN_OVSDB_GET(engine_get_input("NB_port_group", node));
     input_data->nbrec_meter_table =
         EN_OVSDB_GET(engine_get_input("NB_meter", node));
     input_data->nbrec_acl_table =
@@ -105,8 +103,6 @@ northd_get_input_data(struct engine_node *node,
         EN_OVSDB_GET(engine_get_input("SB_load_balancer", node));
     input_data->sbrec_service_monitor_table =
         EN_OVSDB_GET(engine_get_input("SB_service_monitor", node));
-    input_data->sbrec_port_group_table =
-        EN_OVSDB_GET(engine_get_input("SB_port_group", node));
     input_data->sbrec_meter_table =
         EN_OVSDB_GET(engine_get_input("SB_meter", node));
     input_data->sbrec_dns_table =
diff --git a/northd/en-port-group.c b/northd/en-port-group.c
index b83926c351..2c36410246 100644
--- a/northd/en-port-group.c
+++ b/northd/en-port-group.c
@@ -17,8 +17,10 @@
 #include <config.h>
 
 #include "openvswitch/vlog.h"
+#include "stopwatch.h"
 
 #include "en-port-group.h"
+#include "lib/stopwatch-names.h"
 #include "northd.h"
 
 VLOG_DEFINE_THIS_MODULE(en_port_group);
@@ -235,3 +237,57 @@ ls_port_group_record_destroy(struct ls_port_group *ls_pg,
     }
 }
 
+/* Incremental processing implementation. */
+static struct port_group_input
+port_group_get_input_data(struct engine_node *node)
+{
+    struct northd_data *northd_data = engine_get_input_data("northd", node);
+
+    return (struct port_group_input) {
+        .nbrec_port_group_table =
+            EN_OVSDB_GET(engine_get_input("NB_port_group", node)),
+        .sbrec_port_group_table =
+            EN_OVSDB_GET(engine_get_input("SB_port_group", node)),
+        .ls_ports = &northd_data->ls_ports,
+    };
+}
+
+void *
+en_port_group_init(struct engine_node *node OVS_UNUSED,
+                   struct engine_arg *arg OVS_UNUSED)
+{
+    struct port_group_data *pg_data = xmalloc(sizeof *pg_data);
+
+    ls_port_group_table_init(&pg_data->ls_port_groups);
+    return pg_data;
+}
+
+void
+en_port_group_cleanup(void *data_)
+{
+    struct port_group_data *data = data_;
+
+    ls_port_group_table_destroy(&data->ls_port_groups);
+}
+
+void
+en_port_group_run(struct engine_node *node, void *data_)
+{
+    const struct engine_context *eng_ctx = engine_get_context();
+    struct port_group_input input_data = port_group_get_input_data(node);
+    struct port_group_data *data = data_;
+
+    stopwatch_start(PORT_GROUP_RUN_STOPWATCH_NAME, time_msec());
+
+    ls_port_group_table_clear(&data->ls_port_groups);
+    ls_port_group_table_build(&data->ls_port_groups,
+                              input_data.nbrec_port_group_table,
+                              input_data.ls_ports);
+
+    ls_port_group_table_sync(&data->ls_port_groups,
+                             input_data.sbrec_port_group_table,
+                             eng_ctx->ovnsb_idl_txn);
+
+    stopwatch_stop(PORT_GROUP_RUN_STOPWATCH_NAME, time_msec());
+    engine_set_node_state(node, EN_UPDATED);
+}
diff --git a/northd/en-port-group.h b/northd/en-port-group.h
index 2c8e01f51f..5cbf6c6c4a 100644
--- a/northd/en-port-group.h
+++ b/northd/en-port-group.h
@@ -60,4 +60,25 @@ void ls_port_group_table_build(struct ls_port_group_table *ls_port_groups,
 void ls_port_group_table_sync(const struct ls_port_group_table *ls_port_groups,
                               const struct sbrec_port_group_table *,
                               struct ovsdb_idl_txn *ovnsb_txn);
+
+/* Incremental processing implementation. */
+struct port_group_input {
+    /* Northbound table references. */
+    const struct nbrec_port_group_table *nbrec_port_group_table;
+
+    /* Southbound table references. */
+    const struct sbrec_port_group_table *sbrec_port_group_table;
+
+    /* northd node references. */
+    const struct hmap *ls_ports;
+};
+
+struct port_group_data {
+    struct ls_port_group_table ls_port_groups;
+};
+
+void *en_port_group_init(struct engine_node *, struct engine_arg *);
+void en_port_group_cleanup(void *data);
+void en_port_group_run(struct engine_node *, void *data);
+
 #endif /* EN_PORT_GROUP_H */
diff --git a/northd/inc-proc-northd.c b/northd/inc-proc-northd.c
index d328deb222..6d5f9e8d16 100644
--- a/northd/inc-proc-northd.c
+++ b/northd/inc-proc-northd.c
@@ -137,6 +137,7 @@ static ENGINE_NODE(mac_binding_aging_waker, "mac_binding_aging_waker");
 static ENGINE_NODE(northd_output, "northd_output");
 static ENGINE_NODE(sync_to_sb, "sync_to_sb");
 static ENGINE_NODE(sync_to_sb_addr_set, "sync_to_sb_addr_set");
+static ENGINE_NODE(port_group, "port_group");
 static ENGINE_NODE(fdb_aging, "fdb_aging");
 static ENGINE_NODE(fdb_aging_waker, "fdb_aging_waker");
 
@@ -145,7 +146,6 @@ void inc_proc_northd_init(struct ovsdb_idl_loop *nb,
 {
     /* Define relationships between nodes where first argument is dependent
      * on the second argument */
-    engine_add_input(&en_northd, &en_nb_port_group, NULL);
     engine_add_input(&en_northd, &en_nb_load_balancer, NULL);
     engine_add_input(&en_northd, &en_nb_load_balancer_group, NULL);
     engine_add_input(&en_northd, &en_nb_acl, NULL);
@@ -157,7 +157,6 @@ void inc_proc_northd_init(struct ovsdb_idl_loop *nb,
 
     engine_add_input(&en_northd, &en_sb_sb_global, NULL);
     engine_add_input(&en_northd, &en_sb_chassis, NULL);
-    engine_add_input(&en_northd, &en_sb_port_group, NULL);
     engine_add_input(&en_northd, &en_sb_mirror, NULL);
     engine_add_input(&en_northd, &en_sb_meter, NULL);
     engine_add_input(&en_northd, &en_sb_datapath_binding, NULL);
@@ -194,6 +193,7 @@ void inc_proc_northd_init(struct ovsdb_idl_loop *nb,
     engine_add_input(&en_lflow, &en_sb_multicast_group, NULL);
     engine_add_input(&en_lflow, &en_sb_igmp_group, NULL);
     engine_add_input(&en_lflow, &en_northd, lflow_northd_handler);
+    engine_add_input(&en_lflow, &en_port_group, NULL);
 
     engine_add_input(&en_sync_to_sb_addr_set, &en_nb_address_set,
                      sync_to_sb_addr_set_nb_address_set_handler);
@@ -202,11 +202,20 @@ void inc_proc_northd_init(struct ovsdb_idl_loop *nb,
     engine_add_input(&en_sync_to_sb_addr_set, &en_northd, NULL);
     engine_add_input(&en_sync_to_sb_addr_set, &en_sb_address_set, NULL);
 
+    engine_add_input(&en_port_group, &en_nb_port_group, NULL);
+    engine_add_input(&en_port_group, &en_sb_port_group, NULL);
+    /* No need for an explicit handler for northd changes.  Port changes
+     * that affect port_groups trigger updates to the NB.Port_Group
+     * table too (because of the explicit dependency in the schema). */
+    engine_add_input(&en_port_group, &en_northd, engine_noop_handler);
+
     /* en_sync_to_sb engine node syncs the SB database tables from
      * the NB database tables.
-     * Right now this engine only syncs the SB Address_Set table.
+     * Right now this engine syncs the SB Address_Set and Port_Group
+     * tables.
      */
     engine_add_input(&en_sync_to_sb, &en_sync_to_sb_addr_set, NULL);
+    engine_add_input(&en_sync_to_sb, &en_port_group, NULL);
 
     engine_add_input(&en_sync_from_sb, &en_northd,
                      sync_from_sb_northd_handler);
diff --git a/northd/northd.c b/northd/northd.c
index 04da75fa96..b695153805 100644
--- a/northd/northd.c
+++ b/northd/northd.c
@@ -17238,7 +17238,6 @@ northd_init(struct northd_data *data)
     ovn_datapaths_init(&data->lr_datapaths);
     hmap_init(&data->ls_ports);
     hmap_init(&data->lr_ports);
-    ls_port_group_table_init(&data->ls_port_groups);
     shash_init(&data->meter_groups);
     hmap_init(&data->lbs);
     hmap_init(&data->lb_groups);
@@ -17270,8 +17269,6 @@ northd_destroy(struct northd_data *data)
     }
     hmap_destroy(&data->lb_groups);
 
-    ls_port_group_table_destroy(&data->ls_port_groups);
-
     struct shash_node *node;
     SHASH_FOR_EACH_SAFE (node, &data->meter_groups) {
         shash_delete(&data->meter_groups, node);
@@ -17410,9 +17407,6 @@ ovnnb_db_run(struct northd_input *input_data,
                        ods_size(&data->ls_datapaths),
                        ods_size(&data->lr_datapaths));
     build_ipam(&data->ls_datapaths.datapaths, &data->ls_ports);
-    ls_port_group_table_build(&data->ls_port_groups,
-                              input_data->nbrec_port_group_table,
-                              &data->ls_ports);
     build_lrouter_groups(&data->lr_ports, &data->lr_list);
     build_ip_mcast(ovnsb_txn, input_data->sbrec_ip_multicast_table,
                    input_data->sbrec_ip_mcast_by_dp,
@@ -17430,9 +17424,6 @@ ovnnb_db_run(struct northd_input *input_data,
 
     sync_lbs(ovnsb_txn, input_data->sbrec_load_balancer_table,
              &data->ls_datapaths, &data->lbs);
-    ls_port_group_table_sync(&data->ls_port_groups,
-                             input_data->sbrec_port_group_table,
-                             ovnsb_txn);
     sync_meters(ovnsb_txn, input_data->nbrec_meter_table,
                 input_data->nbrec_acl_table, input_data->sbrec_meter_table,
                 &data->meter_groups);
diff --git a/northd/northd.h b/northd/northd.h
index da93a7c6a5..ba28ec63af 100644
--- a/northd/northd.h
+++ b/northd/northd.h
@@ -31,7 +31,6 @@ struct northd_input {
     const struct nbrec_load_balancer_table *nbrec_load_balancer_table;
     const struct nbrec_load_balancer_group_table
         *nbrec_load_balancer_group_table;
-    const struct nbrec_port_group_table *nbrec_port_group_table;
     const struct nbrec_meter_table *nbrec_meter_table;
     const struct nbrec_acl_table *nbrec_acl_table;
     const struct nbrec_static_mac_binding_table
@@ -50,7 +49,6 @@ struct northd_input {
     const struct sbrec_fdb_table *sbrec_fdb_table;
     const struct sbrec_load_balancer_table *sbrec_load_balancer_table;
     const struct sbrec_service_monitor_table *sbrec_service_monitor_table;
-    const struct sbrec_port_group_table *sbrec_port_group_table;
     const struct sbrec_meter_table *sbrec_meter_table;
     const struct sbrec_dns_table *sbrec_dns_table;
     const struct sbrec_ip_multicast_table *sbrec_ip_multicast_table;
@@ -109,7 +107,6 @@ struct northd_data {
     struct ovn_datapaths lr_datapaths;
     struct hmap ls_ports;
     struct hmap lr_ports;
-    struct ls_port_group_table ls_port_groups;
     struct shash meter_groups;
     struct hmap lbs;
     struct hmap lb_groups;
diff --git a/tests/ovn-northd.at b/tests/ovn-northd.at
index d5be3be75b..1a12513d7a 100644
--- a/tests/ovn-northd.at
+++ b/tests/ovn-northd.at
@@ -8923,11 +8923,9 @@ check as northd ovn-appctl -t NORTHD_TYPE inc-engine/clear-stats
 check ovn-nbctl add port_group pg1 ports ${p1_uuid}
 wait_column '20.0.0.4' Address_Set addresses name=pg1_ip4
 
-# There should be recompute of the sync_to_sb_addr_set engine node since northd engine changes.
-# There will be another recompute when the update message is received from the sb ovsdb-server.
-# Once we add I-P for Port_Groups, there should be no recompute here.
-recompute_stat=$(as northd ovn-appctl -t NORTHD_TYPE inc-engine/show-stats sync_to_sb_addr_set recompute)
-AT_CHECK([test $recompute_stat -ge 1])
+# There should be no recompute of the sync_to_sb_addr_set engine node.
+AT_CHECK([as northd ovn-appctl -t NORTHD_TYPE inc-engine/show-stats sync_to_sb_addr_set recompute], [0], [0
+])
 
 # No change, no recompute
 check as northd ovn-appctl -t NORTHD_TYPE inc-engine/clear-stats
