diff --git a/packages/node_modules/@node-red/editor-client/src/js/nodes.js b/packages/node_modules/@node-red/editor-client/src/js/nodes.js
index 5c0004d8c..5afd10529 100644
--- a/packages/node_modules/@node-red/editor-client/src/js/nodes.js
+++ b/packages/node_modules/@node-red/editor-client/src/js/nodes.js
@@ -500,6 +500,9 @@ RED.nodes = (function() {
         if (n.d === true) {
             node.d = true;
         }
+        if (n.g) {
+            node.g = n.g;
+        }
         if (node.type == "unknown") {
             for (var p in n._orig) {
                 if (n._orig.hasOwnProperty(p)) {
@@ -547,6 +550,9 @@ RED.nodes = (function() {
                 }
             }
         }
+        if (n.type === "group") {
+            node.nodes = node.nodes.map(function(n) { return n.id });
+        }
         if (n._def.category != "config") {
             node.x = n.x;
             node.y = n.y;
@@ -735,6 +741,11 @@ RED.nodes = (function() {
                 nns.push(convertSubflow(subflows[i], exportCredentials));
             }
         }
+        for (i in groups) {
+            if (groups.hasOwnProperty(i)) {
+                nns.push(convertNode(groups[i]));
+            }
+        }
         for (i in configNodes) {
             if (configNodes.hasOwnProperty(i)) {
                 nns.push(convertNode(configNodes[i], exportCredentials));
@@ -861,6 +872,7 @@ RED.nodes = (function() {
             if (n.type != "workspace" &&
                 n.type != "tab" &&
                 n.type != "subflow" &&
+                n.type != "group" &&
                 !registry.getNodeType(n.type) &&
                 n.type.substring(0,8) != "subflow:" &&
                 unknownTypes.indexOf(n.type)==-1) {
@@ -910,6 +922,7 @@ RED.nodes = (function() {
         var node_map = {};
         var new_nodes = [];
         var new_links = [];
+        var new_groups = [];
         var nid;
         var def;
         var configNode;
@@ -1077,20 +1090,25 @@ RED.nodes = (function() {
                         y:parseFloat(n.y || 0),
                         z:n.z,
                         type:0,
-                        wires:n.wires||[],
-                        inputLabels: n.inputLabels,
-                        outputLabels: n.outputLabels,
-                        icon: n.icon,
                         info: n.info,
                         changed:false,
                         _config:{}
-                    };
+                    }
+                    if (n.type !== "group") {
+                        node.wires = n.wires||[];
+                        node.inputLabels = n.inputLabels;
+                        node.outputLabels = n.outputLabels;
+                        node.icon = n.icon;
+                    }
                     if (n.hasOwnProperty('l')) {
                         node.l = n.l;
                     }
                     if (n.hasOwnProperty('d')) {
                         node.d = n.d;
                     }
+                    if (n.hasOwnProperty('g')) {
+                        node.g = n.g;
+                    }
                     if (createNewIds) {
                         if (subflow_blacklist[n.z]) {
                             continue;
@@ -1127,7 +1145,17 @@ RED.nodes = (function() {
                     }
                     node.type = n.type;
                     node._def = def;
-                    if (n.type.substring(0,7) === "subflow") {
+                    if (node.type === "group") {
+                        node._def = RED.group.def;
+                        for (d in node._def.defaults) {
+                            if (node._def.defaults.hasOwnProperty(d) && d !== 'inputs' && d !== 'outputs') {
+                                node[d] = n[d];
+                                node._config[d] = JSON.stringify(n[d]);
+                            }
+                        }
+                        node._config.x = node.x;
+                        node._config.y = node.y;
+                    } else if (n.type.substring(0,7) === "subflow") {
                         var parentId = n.type.split(":")[1];
                         var subflow = subflow_blacklist[parentId]||subflow_map[parentId]||getSubflow(parentId);
                         if (createNewIds) {
@@ -1217,13 +1245,19 @@ RED.nodes = (function() {
                             }
                         }
                     }
-                    addNode(node);
-                    RED.editor.validateNode(node);
+                    if (node.type !== "group") {
+                        addNode(node);
+                        RED.editor.validateNode(node);
+                    } else {
+                        addGroup(node);
+                    }
                     node_map[n.id] = node;
                     // If an 'unknown' config node, it will not have been caught by the
                     // proper config node handling, so needs adding to new_nodes here
                     if (node.type === "unknown" || node._def.category !== "config") {
                         new_nodes.push(node);
+                    } else if (node.type === "group") {
+                        new_groups.push(node);
                     }
                 }
             }
@@ -1258,6 +1292,11 @@ RED.nodes = (function() {
                 }
                 delete n.wires;
             }
+            if (n.g && node_map[n.g]) {
+                n.g = node_map[n.g].id;
+            } else {
+                delete n.g
+            }
             for (var d3 in n._def.defaults) {
                 if (n._def.defaults.hasOwnProperty(d3)) {
                     if (n._def.defaults[d3].type && node_map[n[d3]]) {
@@ -1326,6 +1365,17 @@ RED.nodes = (function() {
                 delete n.status.wires;
             }
         }
+        for (i=0;i<new_groups.length;i++) {
+            n = new_groups[i];
+            if (n.g && node_map[n.g]) {
+                n.g = node_map[n.g].id;
+            } else {
+                delete n.g;
+            }
+            n.nodes = n.nodes.map(function(id) {
+                return node_map[id];
+            })
+        }
 
         RED.workspaces.refresh();
         return [new_nodes,new_links,new_workspaces,new_subflows,missingWorkspace];
diff --git a/packages/node_modules/@node-red/editor-client/src/js/ui/group.js b/packages/node_modules/@node-red/editor-client/src/js/ui/group.js
index e4aaf699e..0c00ea0c8 100644
--- a/packages/node_modules/@node-red/editor-client/src/js/ui/group.js
+++ b/packages/node_modules/@node-red/editor-client/src/js/ui/group.js
@@ -37,7 +37,8 @@ RED.group = (function() {
     var groupDef = {
         defaults:{
             name:{value:""},
-            style:{value:{}}
+            style:{value:{}},
+            nodes:{value:[]}
         },
         category: "config",
         oneditprepare: function() {
diff --git a/packages/node_modules/@node-red/editor-client/src/js/ui/view.js b/packages/node_modules/@node-red/editor-client/src/js/ui/view.js
index 4d99f7b87..2dec5a11a 100755
--- a/packages/node_modules/@node-red/editor-client/src/js/ui/view.js
+++ b/packages/node_modules/@node-red/editor-client/src/js/ui/view.js
@@ -1390,13 +1390,15 @@ if (DEBUG_EVENTS) { console.warn("canvasMouseUp", mouse_mode); }
             if (!d3.event.shiftKey) {
                 clearSelection();
             }
+            var selectedGroups = [];
             activeNodes.forEach(function(n) {
                 if (n.z == RED.workspaces.active() && !n.selected) {
                     if (n.x > x && n.x < x2 && n.y > y && n.y < y2) {
                         if (n.g) {
                             var group = RED.nodes.group(n.g);
                             if (!group.selected) {
-                                selectGroup(RED.nodes.group(n.g),true);
+                                selectGroup(group,true);
+                                selectedGroups.push(group)
                             }
                         } else {
                             n.selected = true;
@@ -1406,6 +1408,17 @@ if (DEBUG_EVENTS) { console.warn("canvasMouseUp", mouse_mode); }
                     }
                 }
             });
+            var selectionChanged = false;
+            do {
+                selectionChanged = false;
+                selectedGroups.forEach(function(g) {
+                    if (g.g && g.selected && RED.nodes.group(g.g).selected) {
+                        g.selected = false;
+                        selectionChanged = true;
+                    }
+                })
+            } while(selectionChanged);
+
             if (activeSubflow) {
                 activeSubflow.in.forEach(function(n) {
                     n.selected = (n.x > x && n.x < x2 && n.y > y && n.y < y2);
@@ -1550,11 +1563,16 @@ if (DEBUG_EVENTS) { console.warn("canvasMouseUp", mouse_mode); }
         if (mouse_mode === RED.state.SELECTING_NODE && selectNodesOptions.single) {
             return;
         }
-
+        exitActiveGroup();
         activeGroups.forEach(function(g) {
-            selectGroup(g, true);
-            if (!g.selected) {
-                g.selected = true;
+            if (!g.g) {
+                selectGroup(g, true);
+                if (!g.selected) {
+                    g.selected = true;
+                    g.dirty = true;
+                }
+            } else {
+                g.selected = false;
                 g.dirty = true;
             }
         })
@@ -1940,8 +1958,16 @@ if (DEBUG_EVENTS) { console.warn("clearSelection", mouse_mode); }
                     nodes = nodes.concat(RED.nodes.filterNodes({z:n.id}));
                 }
             });
-        } else if (moving_set.length > 0) {
-            nodes = moving_set.map(function(n) { return n.n });
+        } else {
+            if (moving_set.length > 0) {
+                nodes = moving_set.map(function(n) { return n.n });
+            }
+            var groups = activeGroups.filter(function(g) { return g.selected && !g.active });
+            while (groups.length > 0) {
+                var group = groups.shift();
+                nodes.push(group);
+                groups = groups.concat(group.nodes.filter(function(n) { return n.type === "group" }))
+            }
         }
 
         if (nodes.length > 0) {
@@ -1966,6 +1992,7 @@ if (DEBUG_EVENTS) { console.warn("clearSelection", mouse_mode); }
                 }
             }
             clipboard = JSON.stringify(nns);
+            console.log(nns);
             RED.notify(RED._("clipboard.nodeCopied",{count:nns.length}),{id:"clipboard"});
         }
     }
@@ -4536,5 +4563,6 @@ if (DEBUG_EVENTS) { console.warn("nodeMouseDown", mouse_mode,d); }
             chart.scrollLeft(chart.scrollLeft()+x);
             chart.scrollTop(chart.scrollTop()+y)
         }
+        ,ms: function() { return moving_set }
     };
 })();
diff --git a/packages/node_modules/@node-red/runtime/lib/nodes/flows/util.js b/packages/node_modules/@node-red/runtime/lib/nodes/flows/util.js
index b6074d792..e06cc5ede 100644
--- a/packages/node_modules/@node-red/runtime/lib/nodes/flows/util.js
+++ b/packages/node_modules/@node-red/runtime/lib/nodes/flows/util.js
@@ -85,6 +85,7 @@ module.exports = {
         flow.subflows = {};
         flow.configs = {};
         flow.flows = {};
+        flow.groups = {};
         flow.missingTypes = [];
 
         config.forEach(function(n) {
@@ -95,8 +96,12 @@ module.exports = {
                 flow.flows[n.id].configs = {};
                 flow.flows[n.id].nodes = {};
             }
+            if (n.type === 'group') {
+                flow.groups[n.id] = n;
+            }
         });
 
+        // TODO: why a separate forEach? this can be merged with above
         config.forEach(function(n) {
             if (n.type === 'subflow') {
                 flow.subflows[n.id] = n;
@@ -108,7 +113,7 @@ module.exports = {
         var linkWires = {};
         var linkOutNodes = [];
         config.forEach(function(n) {
-            if (n.type !== 'subflow' && n.type !== 'tab') {
+            if (n.type !== 'subflow' && n.type !== 'tab' && n.type !== 'group') {
                 var subflowDetails = subflowInstanceRE.exec(n.type);
 
                 if ( (subflowDetails && !flow.subflows[subflowDetails[1]]) || (!subflowDetails && !typeRegistry.get(n.type)) ) {
@@ -163,7 +168,7 @@ module.exports = {
 
         var addedTabs = {};
         config.forEach(function(n) {
-            if (n.type !== 'subflow' && n.type !== 'tab') {
+            if (n.type !== 'subflow' && n.type !== 'tab' && n.type !== 'group') {
                 for (var prop in n) {
                     if (n.hasOwnProperty(prop) && prop !== 'id' && prop !== 'wires' && prop !== 'type' && prop !== '_users' && flow.configs.hasOwnProperty(n[prop])) {
                         // This property references a global config node