diff --git a/integration-tests/test_hub.py b/integration-tests/test_hub.py
index 550e1ab..48ad4d7 100644
--- a/integration-tests/test_hub.py
+++ b/integration-tests/test_hub.py
@@ -10,6 +10,7 @@ import pwd
 import grp
 import sys
 import subprocess
+from os import system
 from tljh.normalize import generate_system_username
 
 
@@ -141,6 +142,48 @@ async def test_long_username():
         raise
 
 
+@pytest.mark.asyncio
+async def test_user_group_adding():
+    """
+    User logs in, and we check if they are added to the specified group.
+    """
+    # This *must* be localhost, not an IP
+    # aiohttp throws away cookies if we are connecting to an IP!
+    hub_url = 'http://localhost'
+    username = secrets.token_hex(8)
+    groups = {"somegroup": [username]}
+    # Create the group we want to add the user to
+    system('groupadd somegroup')
+
+    assert 0 == await (await asyncio.create_subprocess_exec(*TLJH_CONFIG_PATH, 'set', 'auth.type', 'dummyauthenticator.DummyAuthenticator')).wait()
+    assert 0 == await (await asyncio.create_subprocess_exec(*TLJH_CONFIG_PATH, 'add-item', 'users.groups.somegroup', username)).wait()
+    assert 0 == await (await asyncio.create_subprocess_exec(*TLJH_CONFIG_PATH, 'reload')).wait()
+
+    try:
+        async with User(username, hub_url, partial(login_dummy, password='')) as u:
+                await u.login()
+                await u.ensure_server()
+
+                # Assert that the user exists
+                system_username = generate_system_username(f'jupyter-{username}')
+                assert pwd.getpwnam(system_username) is not None
+
+                # Assert that the user was added to the specified group
+                assert f'jupyter-{username}' in grp.getgrnam('somegroup').gr_mem
+
+                await u.stop_server()
+                # Delete the group
+                system('groupdel somegroup')
+    except:
+        # If we have any errors, print jupyterhub logs before exiting
+        subprocess.check_call([
+            'journalctl',
+            '-u', 'jupyterhub',
+            '--no-pager'
+        ])
+        raise
+
+
 @pytest.mark.asyncio
 async def test_idle_server_culled():
     """
diff --git a/tests/test_configurer.py b/tests/test_configurer.py
index a2ef1e2..3cc3c20 100644
--- a/tests/test_configurer.py
+++ b/tests/test_configurer.py
@@ -130,6 +130,24 @@ def test_auth_dummy():
     assert c.DummyAuthenticator.password == 'test'
 
 
+def test_user_groups():
+    """
+    Test setting user groups
+    """
+    c = apply_mock_config({
+        'users': {
+            'groups': {
+                "g1": ["u1", "u2"],
+                "g1": ["u3", "u4"]
+            },
+        }
+    })
+    assert c.UserCreatingSpawner.user_groups == {
+                "g1": ["u1", "u2"],
+                "g1": ["u3", "u4"]
+            }
+
+
 def test_auth_firstuse():
     """
     Test setting FirstUse Authenticator options
diff --git a/tljh/configurer.py b/tljh/configurer.py
index 2e549db..b045f2b 100644
--- a/tljh/configurer.py
+++ b/tljh/configurer.py
@@ -27,6 +27,7 @@ default = {
         'allowed': [],
         'banned': [],
         'admin': [],
+        'groups': {}
     },
     'limits': {
         'memory': None,
@@ -93,6 +94,7 @@ def apply_config(config_overrides, c):
 
     update_auth(c, tljh_config)
     update_userlists(c, tljh_config)
+    update_usergroups(c, tljh_config)
     update_limits(c, tljh_config)
     update_user_environment(c, tljh_config)
     update_user_account_config(c, tljh_config)
@@ -168,6 +170,14 @@ def update_userlists(c, config):
     c.Authenticator.admin_users = set(users['admin'])
 
 
+def update_usergroups(c, config):
+    """
+    Set user groups
+    """
+    users = config['users']
+    c.UserCreatingSpawner.user_groups = users['groups']
+
+
 def update_limits(c, config):
     """
     Set user server limits
diff --git a/tljh/jupyterhub_config.py b/tljh/jupyterhub_config.py
index 7f11bfa..11ee138 100644
--- a/tljh/jupyterhub_config.py
+++ b/tljh/jupyterhub_config.py
@@ -13,12 +13,16 @@ from tljh.normalize import generate_system_username
 from tljh.yaml import yaml
 from jupyterhub_traefik_proxy import TraefikTomlProxy
 
+from traitlets import Any
+
 class UserCreatingSpawner(SystemdSpawner):
     """
     SystemdSpawner with user creation on spawn.
 
     FIXME: Remove this somehow?
     """
+    user_groups = Any(config=True)
+
     def start(self):
         """
         Perform system user activities before starting server
@@ -34,6 +38,10 @@ class UserCreatingSpawner(SystemdSpawner):
             user.ensure_user_group(system_username, 'jupyterhub-admins')
         else:
             user.remove_user_group(system_username, 'jupyterhub-admins')
+        if self.user_groups:
+            for group, users in self.user_groups.items():
+                if self.user.name in users:
+                    user.ensure_user_group(system_username, group)
         return super().start()
 
 c.JupyterHub.spawner_class = UserCreatingSpawner