diff --git a/tools/test-js-with-node b/tools/test-js-with-node
index 149c1e3f07..4f36f3e7fb 100755
--- a/tools/test-js-with-node
+++ b/tools/test-js-with-node
@@ -114,6 +114,7 @@ EXEMPT_FILES = make_set(
         "web/src/giphy.js",
         "web/src/giphy_state.ts",
         "web/src/global.ts",
+        "web/src/group_setting_pill.ts",
         "web/src/hash_util.ts",
         "web/src/hashchange.js",
         "web/src/hbs.d.ts",
diff --git a/web/src/group_setting_pill.ts b/web/src/group_setting_pill.ts
new file mode 100644
index 0000000000..67ecb103ed
--- /dev/null
+++ b/web/src/group_setting_pill.ts
@@ -0,0 +1,104 @@
+import assert from "minimalistic-assert";
+
+import render_input_pill from "../templates/input_pill.hbs";
+
+import * as group_permission_settings from "./group_permission_settings";
+import * as input_pill from "./input_pill";
+import type {InputPillConfig} from "./input_pill";
+import type {GroupSettingPill, GroupSettingPillContainer} from "./typeahead_helper";
+import * as user_group_pill from "./user_group_pill";
+import type {UserGroupPill} from "./user_group_pill";
+import * as user_groups from "./user_groups";
+import * as user_pill from "./user_pill";
+
+function check_group_allowed_for_setting(group_item: UserGroupPill, setting_name: string): boolean {
+    const group_setting_config = group_permission_settings.get_group_permission_setting_config(
+        setting_name,
+        "group",
+    );
+
+    assert(group_setting_config !== undefined);
+
+    const group = user_groups.get_user_group_from_id(group_item.group_id);
+    if (!group.is_system_group) {
+        if (group_setting_config.require_system_group) {
+            return false;
+        }
+
+        return true;
+    }
+
+    return user_groups.check_system_user_group_allowed_for_setting(
+        group.name,
+        group_setting_config,
+        true,
+    );
+}
+
+export function create_item_from_text(
+    text: string,
+    current_items: GroupSettingPill[],
+    pill_config?: InputPillConfig,
+): GroupSettingPill | undefined {
+    const group_item = user_group_pill.create_item_from_group_name(text, current_items);
+    if (group_item) {
+        const setting_name = pill_config?.setting_name;
+        assert(setting_name !== undefined);
+        if (check_group_allowed_for_setting(group_item, setting_name)) {
+            return group_item;
+        }
+
+        return undefined;
+    }
+
+    return user_pill.create_item_from_email(text, current_items);
+}
+
+export function get_text_from_item(item: GroupSettingPill): string {
+    let text: string;
+    switch (item.type) {
+        case "user_group":
+            text = user_group_pill.get_group_name_from_item(item);
+            break;
+        case "user":
+            text = user_pill.get_email_from_item(item);
+            break;
+    }
+    return text;
+}
+
+export function get_display_value_from_item(item: GroupSettingPill): string {
+    if (item.type === "user_group") {
+        return user_group_pill.display_pill(user_groups.get_user_group_from_id(item.group_id));
+    }
+    assert(item.type === "user");
+    return user_pill.get_display_value_from_item(item);
+}
+
+export function generate_pill_html(item: GroupSettingPill): string {
+    if (item.type === "user_group") {
+        return render_input_pill({
+            display_value: get_display_value_from_item(item),
+            group_id: item.group_id,
+        });
+    }
+    assert(item.type === "user");
+    return user_pill.generate_pill_html(item);
+}
+
+export function create_pills(
+    $pill_container: JQuery,
+    setting_name: string,
+): GroupSettingPillContainer {
+    const pill_widget = input_pill.create<GroupSettingPill>({
+        $container: $pill_container,
+        create_item_from_text,
+        get_text_from_item,
+        get_display_value_from_item,
+        generate_pill_html,
+        pill_config: {
+            setting_name,
+        },
+    });
+    return pill_widget;
+}
diff --git a/web/src/input_pill.ts b/web/src/input_pill.ts
index faae34c061..428192a8c3 100644
--- a/web/src/input_pill.ts
+++ b/web/src/input_pill.ts
@@ -13,6 +13,7 @@ import * as util from "./util";
 
 export type InputPillConfig = {
     exclude_inaccessible_users?: boolean;
+    setting_name?: string;
 };
 
 type InputPillCreateOptions<ItemType> = {
diff --git a/web/src/typeahead_helper.ts b/web/src/typeahead_helper.ts
index 8056a3a4f7..f22c76cd0d 100644
--- a/web/src/typeahead_helper.ts
+++ b/web/src/typeahead_helper.ts
@@ -37,6 +37,9 @@ export type UserOrMentionPillData = UserOrMention & {
 export type CombinedPill = StreamPill | UserGroupPill | UserPill;
 export type CombinedPillContainer = InputPillContainer<CombinedPill>;
 
+export type GroupSettingPill = UserGroupPill | UserPill;
+export type GroupSettingPillContainer = InputPillContainer<GroupSettingPill>;
+
 export function build_highlight_regex(query: string): RegExp {
     const regex = new RegExp("(" + _.escapeRegExp(query) + ")", "ig");
     return regex;
diff --git a/web/src/user_groups.ts b/web/src/user_groups.ts
index 9408e0a33a..0a03ef0285 100644
--- a/web/src/user_groups.ts
+++ b/web/src/user_groups.ts
@@ -13,7 +13,7 @@ import type {
     StateData,
     user_group_schema,
 } from "./state_data";
-import {current_user} from "./state_data";
+import {current_user, realm} from "./state_data";
 import type {UserOrMention} from "./typeahead_helper";
 import type {UserGroupUpdateEvent} from "./types";
 
@@ -342,6 +342,7 @@ function get_display_name_for_system_group_option(setting_name: string, name: st
 export function check_system_user_group_allowed_for_setting(
     group_name: string,
     group_setting_config: GroupPermissionSetting,
+    for_new_settings_ui = false,
 ): boolean {
     const {
         allow_internet_group,
@@ -359,7 +360,7 @@ export function check_system_user_group_allowed_for_setting(
         return false;
     }
 
-    if (!allow_nobody_group && group_name === "role:nobody") {
+    if ((!allow_nobody_group || for_new_settings_ui) && group_name === "role:nobody") {
         return false;
     }
 
@@ -371,6 +372,18 @@ export function check_system_user_group_allowed_for_setting(
         return false;
     }
 
+    if (
+        group_name === "role:fullmembers" &&
+        for_new_settings_ui &&
+        realm.realm_waiting_period_threshold === 0
+    ) {
+        // We hide the full members group in the typeahead when
+        // there is no separation between member and full member
+        // users due to organization not having set a waiting
+        // period for member users to become full members.
+        return false;
+    }
+
     return true;
 }