diff --git a/apis/ec2/v1alpha2/zz_generated.deepcopy.go b/apis/ec2/v1alpha2/zz_generated.deepcopy.go
index 9187df3c3..d90c6d34f 100644
--- a/apis/ec2/v1alpha2/zz_generated.deepcopy.go
+++ b/apis/ec2/v1alpha2/zz_generated.deepcopy.go
@@ -4789,6 +4789,16 @@ func (in *SecurityGroupRuleParameters) DeepCopyInto(out *SecurityGroupRuleParame
 		*out = new(string)
 		**out = **in
 	}
+	if in.SourceSecurityGroupIDRef != nil {
+		in, out := &in.SourceSecurityGroupIDRef, &out.SourceSecurityGroupIDRef
+		*out = new(v1.Reference)
+		**out = **in
+	}
+	if in.SourceSecurityGroupIDSelector != nil {
+		in, out := &in.SourceSecurityGroupIDSelector, &out.SourceSecurityGroupIDSelector
+		*out = new(v1.Selector)
+		(*in).DeepCopyInto(*out)
+	}
 	if in.ToPort != nil {
 		in, out := &in.ToPort, &out.ToPort
 		*out = new(float64)
diff --git a/apis/ec2/v1alpha2/zz_generated.resolvers.go b/apis/ec2/v1alpha2/zz_generated.resolvers.go
index 732c50596..4d3106330 100644
--- a/apis/ec2/v1alpha2/zz_generated.resolvers.go
+++ b/apis/ec2/v1alpha2/zz_generated.resolvers.go
@@ -780,6 +780,22 @@ func (mg *SecurityGroupRule) ResolveReferences(ctx context.Context, c client.Rea
 	mg.Spec.ForProvider.SecurityGroupID = reference.ToPtrValue(rsp.ResolvedValue)
 	mg.Spec.ForProvider.SecurityGroupIDRef = rsp.ResolvedReference
 
+	rsp, err = r.Resolve(ctx, reference.ResolutionRequest{
+		CurrentValue: reference.FromPtrValue(mg.Spec.ForProvider.SourceSecurityGroupID),
+		Extract:      reference.ExternalName(),
+		Reference:    mg.Spec.ForProvider.SourceSecurityGroupIDRef,
+		Selector:     mg.Spec.ForProvider.SourceSecurityGroupIDSelector,
+		To: reference.To{
+			List:    &SecurityGroupList{},
+			Managed: &SecurityGroup{},
+		},
+	})
+	if err != nil {
+		return errors.Wrap(err, "mg.Spec.ForProvider.SourceSecurityGroupID")
+	}
+	mg.Spec.ForProvider.SourceSecurityGroupID = reference.ToPtrValue(rsp.ResolvedValue)
+	mg.Spec.ForProvider.SourceSecurityGroupIDRef = rsp.ResolvedReference
+
 	return nil
 }
 
diff --git a/apis/ec2/v1alpha2/zz_securitygrouprule_types.go b/apis/ec2/v1alpha2/zz_securitygrouprule_types.go
index 485869d7e..94db06b37 100755
--- a/apis/ec2/v1alpha2/zz_securitygrouprule_types.go
+++ b/apis/ec2/v1alpha2/zz_securitygrouprule_types.go
@@ -67,9 +67,16 @@ type SecurityGroupRuleParameters struct {
 	// +kubebuilder:validation:Optional
 	Self *bool `json:"self,omitempty" tf:"self,omitempty"`
 
+	// +crossplane:generate:reference:type=SecurityGroup
 	// +kubebuilder:validation:Optional
 	SourceSecurityGroupID *string `json:"sourceSecurityGroupId,omitempty" tf:"source_security_group_id,omitempty"`
 
+	// +kubebuilder:validation:Optional
+	SourceSecurityGroupIDRef *v1.Reference `json:"sourceSecurityGroupIdRef,omitempty" tf:"-"`
+
+	// +kubebuilder:validation:Optional
+	SourceSecurityGroupIDSelector *v1.Selector `json:"sourceSecurityGroupIdSelector,omitempty" tf:"-"`
+
 	// +kubebuilder:validation:Required
 	ToPort *float64 `json:"toPort" tf:"to_port,omitempty"`
 
diff --git a/config/ec2/config.go b/config/ec2/config.go
index c1612d22c..3a7c33698 100644
--- a/config/ec2/config.go
+++ b/config/ec2/config.go
@@ -245,6 +245,9 @@ func Configure(p *config.Provider) {
 		r.References["security_group_id"] = config.Reference{
 			Type: "SecurityGroup",
 		}
+		r.References["source_security_group_id"] = config.Reference{
+			Type: "SecurityGroup",
+		}
 	})
 
 	p.AddResourceConfigurator("aws_vpc_ipv4_cidr_block_association", func(r *config.Resource) {
diff --git a/package/crds/ec2.aws.jet.crossplane.io_securitygrouprules.yaml b/package/crds/ec2.aws.jet.crossplane.io_securitygrouprules.yaml
index 0871e723c..56d1674f9 100644
--- a/package/crds/ec2.aws.jet.crossplane.io_securitygrouprules.yaml
+++ b/package/crds/ec2.aws.jet.crossplane.io_securitygrouprules.yaml
@@ -114,6 +114,29 @@ spec:
                     type: boolean
                   sourceSecurityGroupId:
                     type: string
+                  sourceSecurityGroupIdRef:
+                    description: A Reference to a named object.
+                    properties:
+                      name:
+                        description: Name of the referenced object.
+                        type: string
+                    required:
+                    - name
+                    type: object
+                  sourceSecurityGroupIdSelector:
+                    description: A Selector selects an object.
+                    properties:
+                      matchControllerRef:
+                        description: MatchControllerRef ensures an object with the
+                          same controller reference as the selecting object is selected.
+                        type: boolean
+                      matchLabels:
+                        additionalProperties:
+                          type: string
+                        description: MatchLabels ensures an object with matching labels
+                          is selected.
+                        type: object
+                    type: object
                   toPort:
                     type: number
                   type: