diff --git a/cli/running/running.go b/cli/running/running.go
index 875e636a5..15985302f 100644
--- a/cli/running/running.go
+++ b/cli/running/running.go
@@ -385,9 +385,14 @@ func collectInstancesFromAppDir(appDir string, selectedInstName string,
 	for inst := range instParams {
 		instance := InstanceCtx{AppDir: appDir, ClusterConfigPath: appDirFiles.clusterCfgPath}
 		instance.InstName = getInstanceName(inst, instance.ClusterConfigPath != "")
+		instance.AppName = filepath.Base(appDir)
 		if selectedInstName != "" && instance.InstName != selectedInstName {
 			continue
 		}
+		if instance.InstName == instance.AppName {
+			log.Debugf("Skipping %q instance since it is an application name", instance.InstName)
+			continue
+		}
 		log.Debugf("Instance %q", instance.InstName)
 
 		if instance.Configuration, err = loadInstanceConfig(instance.ClusterConfigPath,
@@ -396,7 +401,6 @@ func collectInstancesFromAppDir(appDir string, selectedInstName string,
 				"config %q: %w", instance.InstName, instance.ClusterConfigPath, err)
 		}
 
-		instance.AppName = filepath.Base(appDir)
 		instance.SingleApp = false
 		if instance.InstanceScript, err = findInstanceScriptInAppDir(appDir, instance.InstName,
 			appDirFiles.clusterCfgPath, appDirFiles.defaultLuaPath); err != nil {
diff --git a/test/integration/running/multi_app/app1/instances.yml b/test/integration/running/multi_app/app1/instances.yml
index 54e9bae51..33609ec8d 100644
--- a/test/integration/running/multi_app/app1/instances.yml
+++ b/test/integration/running/multi_app/app1/instances.yml
@@ -1,3 +1,6 @@
+app1:
+  cluster-cookie: cookie
+
 router:
 
 master:
diff --git a/test/integration/running/test_running.py b/test/integration/running/test_running.py
index 67fa0d5a7..2d66f6d15 100644
--- a/test/integration/running/test_running.py
+++ b/test/integration/running/test_running.py
@@ -508,6 +508,7 @@ def test_no_args_usage(tt_cmd):
             assert start_rc == 0
             assert re.search(r"Starting an instance \[app1:(router|master|replica)\]", start_out)
             assert re.search(r"Starting an instance \[app2\]", start_out)
+            assert "app1:app1" not in start_out
 
             # Check status.
             inst_enabled_dir = os.path.join(test_app_path, "instances_enabled")
@@ -524,6 +525,7 @@ def test_no_args_usage(tt_cmd):
             status_rc, status_out = run_command_and_get_output(status_cmd, cwd=test_app_path)
             assert status_rc == 0
             status_out = extract_status(status_out)
+            assert len(status_out) == 4
             assert status_out['app1:router']["STATUS"] == "RUNNING"
             assert status_out['app1:master']["STATUS"] == "RUNNING"
             assert status_out['app1:replica']["STATUS"] == "RUNNING"
@@ -544,6 +546,7 @@ def test_no_args_usage(tt_cmd):
                              r"has been terminated.", stop_out)
             assert re.search(r"The Instance app2 \(PID = \d+\) "
                              r"has been terminated.", stop_out)
+            assert "app1:app1" not in stop_out
 
 
 def test_running_env_variables(tt_cmd, tmpdir_with_cfg):