diff --git a/usr.sbin/ctld/ctl.conf.5 b/usr.sbin/ctld/ctl.conf.5
--- a/usr.sbin/ctld/ctl.conf.5
+++ b/usr.sbin/ctld/ctl.conf.5
@@ -567,7 +567,7 @@
 
 	"iqn.2012-06.com.example:target1" {
 		auth-group = ag0
-		portal-group { name = pg0 }
+		portal-group = pg0
 		lun = [
 			{ number = 0, name = example_1 },
 			{
diff --git a/usr.sbin/ctld/uclparse.c b/usr.sbin/ctld/uclparse.c
--- a/usr.sbin/ctld/uclparse.c
+++ b/usr.sbin/ctld/uclparse.c
@@ -197,6 +197,20 @@
 	const ucl_object_t *portal_group, *auth_group;
 	const char *ag_name;
 
+	/*
+	 * If the value is a single string, assume it is a
+	 * portal-group name.
+	 */
+	if (obj->type == UCL_STRING)
+		return (target_add_portal_group(target,
+		    ucl_object_tostring(obj), NULL));
+
+	if (obj->type != UCL_OBJECT) {
+		log_warnx("portal-group section in target \"%s\" must be "
+		    "an object or string", target->t_name);
+		return (false);
+	}
+
 	portal_group = ucl_object_find_key(obj, "name");
 	if (!portal_group || portal_group->type != UCL_STRING) {
 		log_warnx("portal-group section in target \"%s\" is missing "
@@ -890,11 +904,6 @@
 		}
 
 		if (strcmp(key, "portal-group") == 0) {
-			if (obj->type == UCL_OBJECT) {
-				if (!uclparse_target_portal_group(target, obj))
-					return (false);
-			}
-
 			if (obj->type == UCL_ARRAY) {
 				while ((tmp = ucl_iterate_object(obj, &it2,
 				    true))) {
@@ -902,6 +911,9 @@
 					    tmp))
 						return (false);
 				}
+			} else {
+				if (!uclparse_target_portal_group(target, obj))
+					return (false);
 			}
 		}