Magento: Downloadable products not displayed in Associated Products tab in Grouped Product

Scenario:

– I created downloadable products.
– Then I created a grouped product.
– But, when I go to the ‘Associated Products’ tab in product add/edit page for Grouped product, I don’t see the downloadable products that I created before in the list.

Cause/Solution:

– Edit downloadable product
– Go to Downloadable Information tab (the last tab in the list)
– Click Links section
– Set ‘Links can be purchased separately’ = No

Now, you the product will be listed in the Associated products section of Grouped product.