diff --git a/changelogs/fragments/1736-elb_target_group_property.yml b/changelogs/fragments/1736-elb_target_group_property.yml
new file mode 100644
index 00000000000..7a760816add
--- /dev/null
+++ b/changelogs/fragments/1736-elb_target_group_property.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - elb_target_group - ensure ``AvailabilityZone`` is kept in target definitions when ``Id`` and ``Port`` are passed (https://github.com/ansible-collections/community.aws/issues/1736).
diff --git a/plugins/modules/elb_target_group.py b/plugins/modules/elb_target_group.py
index f9849264200..854876e0710 100644
--- a/plugins/modules/elb_target_group.py
+++ b/plugins/modules/elb_target_group.py
@@ -729,9 +729,12 @@ def create_or_update_target_group(connection, module):
 
                     if add_instances:
                         instances_to_add = []
-                        for target in params['Targets']:
-                            if target['Id'] in add_instances:
-                                instances_to_add.append({'Id': target['Id'], 'Port': target['Port']})
+                        for target in params["Targets"]:
+                            if target["Id"] in add_instances:
+                                tmp_item = {"Id": target["Id"], "Port": target["Port"]}
+                                if target.get("AvailabilityZone"):
+                                    tmp_item["AvailabilityZone"] = target["AvailabilityZone"]
+                                instances_to_add.append(tmp_item)
 
                         changed = True
                         try:
diff --git a/tests/integration/targets/elb_target/tasks/ec2_target.yml b/tests/integration/targets/elb_target/tasks/ec2_target.yml
index 4a99c41a8b0..611aca26f13 100644
--- a/tests/integration/targets/elb_target/tasks/ec2_target.yml
+++ b/tests/integration/targets/elb_target/tasks/ec2_target.yml
@@ -168,14 +168,8 @@
         tags:
           Name: "{{ resource_prefix }}-inst"
         user_data: |
-          #cloud-config
-          package_upgrade: true
-          package_update: true
-          packages:
-            - httpd
-          runcmd:
-            - "service httpd start"
-            - echo "HELLO ANSIBLE" > /var/www/html/index.html
+          #!/bin/bash
+          sudo nohup python3 -m http.server 80 &
       register: ec2
 
     - set_fact:
@@ -480,6 +474,46 @@
           - not result.changed
           - not result.target_health_descriptions
 
+    - name: create ip target group
+      elb_target_group:
+        name: "{{ tg_name }}-ip"
+        health_check_port: 443
+        protocol: tcp
+        port: 443
+        vpc_id: "{{ vpc.vpc.id }}"
+        state: present
+        target_type: ip
+      register: result
+
+    - name: ip target group must be created
+      assert:
+        that:
+          - result.changed
+          - result.target_type == 'ip'
+
+    - name: "mobify ip target group with AvailabilityZone: all"
+      elb_target_group:
+        name: "{{ tg_name }}-ip"
+        health_check_port: 443
+        protocol: tcp
+        port: 443
+        vpc_id: "{{ vpc.vpc.id }}"
+        state: present
+        target_type: ip
+        wait: false
+        modify_targets: true
+        targets:
+          - Id: 192.168.178.32
+            Port: 443
+            AvailabilityZone: all
+      register: result
+
+    - name: ip target group must be modified
+      assert:
+        that:
+          - result.changed
+          - result.load_balancing_cross_zone_enabled == 'use_load_balancer_configuration'
+
   # ============================================================
 
   always:
@@ -533,6 +567,7 @@
         - "{{ tg_used_name }}"
         - "{{ tg_tcpudp_name }}"
         - "{{ tg_name }}-nlb"
+        - "{{ tg_name }}-ip"
       ignore_errors: true
 
     - name: remove routing rules