diff --git a/static/js/ui_init.js b/static/js/ui_init.js
index eb4cf31cca..1718e983e5 100644
--- a/static/js/ui_init.js
+++ b/static/js/ui_init.js
@@ -99,6 +99,7 @@ import * as ui from "./ui";
 import * as unread from "./unread";
 import * as unread_ui from "./unread_ui";
 import * as user_groups from "./user_groups";
+import * as user_group_settings_ui from "./user_groups_settings_ui";
 import {initialize_user_settings, user_settings} from "./user_settings";
 import * as user_status from "./user_status";
 import * as user_status_ui from "./user_status_ui";
@@ -623,6 +624,7 @@ export function initialize_everything() {
     user_topics.initialize();
     muted_users.initialize();
     stream_settings_ui.initialize();
+    user_group_settings_ui.initialize();
     stream_list.initialize();
     condense.initialize();
     spoilers.initialize();
diff --git a/static/js/user_group_create.js b/static/js/user_group_create.js
new file mode 100644
index 0000000000..27f5b00778
--- /dev/null
+++ b/static/js/user_group_create.js
@@ -0,0 +1,189 @@
+import $ from "jquery";
+
+import * as channel from "./channel";
+import {$t, $t_html} from "./i18n";
+import * as loading from "./loading";
+import * as ui_report from "./ui_report";
+import * as user_group_create_members from "./user_group_create_members";
+import * as user_group_create_members_data from "./user_group_create_members_data";
+import * as user_groups from "./user_groups";
+import * as user_group_settings_ui from "./user_groups_settings_ui";
+
+class UserGroupMembershipError {
+    report_no_members_to_user_group() {
+        $("#user_group_membership_error").text(
+            $t({defaultMessage: "You cannot create a user_group with no members!"}),
+        );
+        $("#user_group_membership_error").show();
+    }
+
+    clear_errors() {
+        $("#user_group_membership_error").hide();
+    }
+}
+const user_group_membership_error = new UserGroupMembershipError();
+
+class UserGroupNameError {
+    report_already_exists() {
+        $("#user_group_name_error").text(
+            $t({defaultMessage: "A user group with this name already exists"}),
+        );
+        $("#user_group_name_error").show();
+    }
+
+    clear_errors() {
+        $("#user_group_name_error").hide();
+    }
+
+    report_empty_user_group() {
+        $("#user_group_name_error").text($t({defaultMessage: "A user group needs to have a name"}));
+        $("#user_group_name_error").show();
+    }
+
+    select() {
+        $("#create_user_group_name").trigger("focus").trigger("select");
+    }
+
+    pre_validate(user_group_name) {
+        if (user_group_name && user_groups.get_user_group_from_name(user_group_name)) {
+            this.report_already_exists();
+            return;
+        }
+
+        this.clear_errors();
+    }
+
+    validate_for_submit(user_group_name) {
+        if (!user_group_name) {
+            this.report_empty_user_group();
+            this.select();
+            return false;
+        }
+
+        if (user_groups.get_user_group_from_name(user_group_name)) {
+            this.report_already_exists();
+            this.select();
+            return false;
+        }
+
+        return true;
+    }
+}
+const user_group_name_error = new UserGroupNameError();
+
+export function create_user_group_clicked() {
+    // this changes the tab switcher (settings/preview) which isn't necessary
+    // to a add new stream title.
+    user_group_settings_ui.show_user_group_settings_pane.create_user_group();
+    $(".group-row.active").removeClass("active");
+
+    show_new_user_group_modal();
+    $("#create_user_group_name").trigger("focus");
+}
+
+function clear_error_display() {
+    user_group_name_error.clear_errors();
+    $(".user_group_create_info").hide();
+    user_group_membership_error.clear_errors();
+}
+
+export function show_new_user_group_modal() {
+    $("#user-group-creation").removeClass("hide");
+    $(".right .settings").hide();
+
+    user_group_create_members.build_widgets();
+
+    clear_error_display();
+}
+
+function create_user_group() {
+    const data = {};
+    const group_name = $("#create_user_group_name").val().trim();
+    const description = $("#create_user_group_description").val().trim();
+
+    // Even though we already check to make sure that while typing the user cannot enter
+    // newline characters (by pressing the Enter key) it would still be possible to copy
+    // and paste over a description with newline characters in it. Prevent that.
+    if (description.includes("\n")) {
+        ui_report.client_error(
+            $t_html({defaultMessage: "The group description cannot contain newline characters."}),
+            $(".user_group_create_info"),
+        );
+        return undefined;
+    }
+    data.name = group_name;
+    data.description = description;
+
+    const user_ids = user_group_create_members.get_principals();
+    data.members = JSON.stringify(user_ids);
+
+    loading.make_indicator($("#user_group_creating_indicator"), {
+        text: $t({defaultMessage: "Creating group..."}),
+    });
+
+    return channel.post({
+        url: "/json/user_groups/create",
+        data,
+        success() {
+            $("#create_user_group_name").val("");
+            $("#create_user_group_description").val("");
+            user_group_create_members.clear_member_list();
+            ui_report.success(
+                $t_html({defaultMessage: "User group successfully created!"}),
+                $(".user_group_create_info"),
+            );
+            loading.destroy_indicator($("#user_group_creating_indicator"));
+            // TODO: The rest of the work should be done via the create event we will get for user group.
+        },
+        error(xhr) {
+            ui_report.error(
+                $t_html({defaultMessage: "Error creating user group."}),
+                xhr,
+                $(".user_group_create_info"),
+            );
+            loading.destroy_indicator($("#user_group_creating_indicator"));
+        },
+    });
+}
+
+export function set_up_handlers() {
+    const $people_to_add_holder = $("#people_to_add_in_group").expectOne();
+    user_group_create_members.create_handlers($people_to_add_holder);
+
+    const $container = $("#user-group-creation").expectOne();
+
+    $container.on("click", ".finalize_create_user_group", (e) => {
+        e.preventDefault();
+        clear_error_display();
+
+        const group_name = $("#create_user_group_name").val().trim();
+        const name_ok = user_group_name_error.validate_for_submit(group_name);
+
+        if (!name_ok) {
+            return;
+        }
+
+        const principals = user_group_create_members_data.get_principals();
+        if (principals.length === 0) {
+            user_group_membership_error.report_no_members_to_user_group();
+            return;
+        }
+
+        create_user_group();
+    });
+
+    $container.on("input", "#create_user_group_name", () => {
+        const user_group_name = $("#create_user_group_name").val().trim();
+
+        // This is an inexpensive check.
+        user_group_name_error.pre_validate(user_group_name);
+    });
+
+    // Do not allow the user to enter newline characters while typing out the
+    // group's description during it's creation.
+    $container.on("keydown", "#create_user_group_description", (e) => {
+        if (e.key === "Enter") {
+            e.preventDefault();
+        }
+    });
+}
diff --git a/static/js/user_group_create_members.js b/static/js/user_group_create_members.js
new file mode 100644
index 0000000000..b168d0019c
--- /dev/null
+++ b/static/js/user_group_create_members.js
@@ -0,0 +1,121 @@
+import $ from "jquery";
+
+import render_new_user_group_user from "../templates/stream_settings/new_stream_user.hbs";
+import render_new_user_group_users from "../templates/user_group_settings/new_user_group_users.hbs";
+
+import * as add_subscribers_pill from "./add_subscribers_pill";
+import * as ListWidget from "./list_widget";
+import {page_params} from "./page_params";
+import * as people from "./people";
+import * as settings_data from "./settings_data";
+import * as user_group_create_members_data from "./user_group_create_members_data";
+
+let pill_widget;
+let all_users_list_widget;
+
+export function get_principals() {
+    return user_group_create_members_data.get_principals();
+}
+
+function redraw_member_list() {
+    all_users_list_widget.replace_list_data(user_group_create_members_data.sorted_user_ids());
+}
+
+function add_user_ids(user_ids) {
+    user_group_create_members_data.add_user_ids(user_ids);
+    redraw_member_list();
+}
+
+function add_all_users() {
+    const user_ids = user_group_create_members_data.get_all_user_ids();
+    add_user_ids(user_ids);
+}
+
+function remove_user_ids(user_ids) {
+    user_group_create_members_data.remove_user_ids(user_ids);
+    redraw_member_list();
+}
+
+export function clear_member_list() {
+    user_group_create_members_data.initialize_with_current_user();
+    redraw_member_list();
+}
+
+function build_pill_widget({$parent_container}) {
+    const $pill_container = $parent_container.find(".pill-container");
+    const get_potential_members = user_group_create_members_data.get_potential_members;
+
+    pill_widget = add_subscribers_pill.create({
+        $pill_container,
+        get_potential_subscribers: get_potential_members,
+    });
+}
+
+export function create_handlers($container) {
+    $container.on("click", ".add_all_users_to_user_group", (e) => {
+        e.preventDefault();
+        add_all_users();
+        $(".add-user-list-filter").trigger("focus");
+    });
+
+    $container.on("click", ".remove_potential_subscriber", (e) => {
+        e.preventDefault();
+        const $elem = $(e.target);
+        const user_id = Number.parseInt($elem.attr("data-user-id"), 10);
+        remove_user_ids([user_id]);
+    });
+
+    function add_users({pill_user_ids}) {
+        add_user_ids(pill_user_ids);
+        pill_widget.clear();
+    }
+
+    add_subscribers_pill.set_up_handlers({
+        get_pill_widget: () => pill_widget,
+        $parent_container: $container,
+        pill_selector: ".add_subscribers_container .input",
+        button_selector: ".add_subscribers_container button.add-subscriber-button",
+        action: add_users,
+    });
+}
+
+export function build_widgets() {
+    const $add_people_container = $("#people_to_add_in_group");
+    $add_people_container.html(render_new_user_group_users({}));
+
+    const $simplebar_container = $add_people_container.find(".member_list_container");
+
+    build_pill_widget({$parent_container: $add_people_container});
+
+    user_group_create_members_data.initialize_with_current_user();
+    const current_user_id = page_params.user_id;
+
+    all_users_list_widget = ListWidget.create($("#create_user_group_members"), [current_user_id], {
+        name: "new_user_group_add_users",
+        $parent_container: $add_people_container,
+        modifier(user_id) {
+            const user = people.get_by_user_id(user_id);
+            const item = {
+                show_email: settings_data.show_email(),
+                email: people.get_visible_email(user),
+                user_id,
+                full_name: user.full_name,
+                is_current_user: user_id === current_user_id,
+                disabled: user_id === current_user_id,
+            };
+            return render_new_user_group_user(item);
+        },
+        filter: {
+            $element: $("#people_to_add_in_group .add-user-list-filter"),
+            predicate(user_id, search_term) {
+                const user = people.get_by_user_id(user_id);
+                return people.build_person_matcher(search_term)(user);
+            },
+        },
+        $simplebar_container,
+        html_selector: (user_id) => {
+            const user = people.get_by_user_id(user_id);
+            return $(`#${CSS.escape("user_checkbox_" + user.user_id)}`);
+        },
+    });
+}
diff --git a/static/js/user_group_create_members_data.js b/static/js/user_group_create_members_data.js
new file mode 100644
index 0000000000..171f24ee59
--- /dev/null
+++ b/static/js/user_group_create_members_data.js
@@ -0,0 +1,51 @@
+import {page_params} from "./page_params";
+import * as people from "./people";
+
+let user_id_set;
+
+export function initialize_with_current_user() {
+    const current_user_id = page_params.user_id;
+    user_id_set = new Set();
+    user_id_set.add(current_user_id);
+}
+
+export function sorted_user_ids() {
+    const users = people.get_users_from_ids(Array.from(user_id_set));
+    people.sort_but_pin_current_user_on_top(users);
+    return users.map((user) => user.user_id);
+}
+
+export function get_all_user_ids() {
+    const potential_members = people.get_realm_users();
+    const user_ids = potential_members.map((user) => user.user_id);
+    // sort for determinism
+    user_ids.sort((a, b) => a - b);
+    return user_ids;
+}
+
+export function get_principals() {
+    // Return list of user ids which were selected by user.
+    return Array.from(user_id_set);
+}
+
+export function get_potential_members() {
+    const potential_members = people.get_realm_users();
+    return potential_members.filter((user) => !user_id_set.has(user.user_id));
+}
+
+export function add_user_ids(user_ids) {
+    for (const user_id of user_ids) {
+        if (!user_id_set.has(user_id)) {
+            const user = people.get_by_user_id(user_id);
+            if (user) {
+                user_id_set.add(user_id);
+            }
+        }
+    }
+}
+
+export function remove_user_ids(user_ids) {
+    for (const user_id of user_ids) {
+        user_id_set.delete(user_id);
+    }
+}
diff --git a/static/js/user_groups_settings_ui.js b/static/js/user_groups_settings_ui.js
index 76e65f1500..e633b6088a 100644
--- a/static/js/user_groups_settings_ui.js
+++ b/static/js/user_groups_settings_ui.js
@@ -4,11 +4,13 @@ import render_browse_user_groups_list_item from "../templates/user_group_setting
 import render_user_group_settings_overlay from "../templates/user_group_settings/user_group_settings_overlay.hbs";
 
 import * as browser_history from "./browser_history";
+import {$t} from "./i18n";
 import * as ListWidget from "./list_widget";
 import * as overlays from "./overlays";
 import * as people from "./people";
 import * as settings_data from "./settings_data";
 import * as ui from "./ui";
+import * as user_group_create from "./user_group_create";
 import * as user_groups from "./user_groups";
 
 export function set_up_click_handlers() {
@@ -25,6 +27,26 @@ export function set_up_click_handlers() {
     });
 }
 
+export const show_user_group_settings_pane = {
+    nothing_selected() {
+        $(".settings, #user-group-creation").hide();
+        $(".nothing-selected").show();
+        $("#groups_overlay .user-group-info-title").text(
+            $t({defaultMessage: "User group settings"}),
+        );
+    },
+    create_user_group() {
+        $(".nothing-selected, .settings, #user-group-creation").hide();
+        $("#user-group-creation").show();
+        $("#groups_overlay .user-group-info-title").text($t({defaultMessage: "Create user group"}));
+    },
+};
+
+export function open_create_user_group() {
+    user_group_create.create_user_group_clicked();
+    browser_history.update("#groups/new");
+}
+
 export function setup_page(callback) {
     function populate_and_fill() {
         const template_data = {
@@ -63,6 +85,7 @@ export function setup_page(callback) {
         });
 
         set_up_click_handlers();
+        user_group_create.set_up_handlers();
 
         // show the "User group settings" header by default.
         $(".display-type #user_group_settings_title").show();
@@ -75,6 +98,13 @@ export function setup_page(callback) {
     populate_and_fill();
 }
 
+export function initialize() {
+    $("#manage_groups_container").on("click", ".create_user_group_button", (e) => {
+        e.preventDefault();
+        open_create_user_group();
+    });
+}
+
 export function launch() {
     setup_page(() => {
         overlays.open_overlay({
diff --git a/static/styles/dark_theme.css b/static/styles/dark_theme.css
index 4a94f2fd67..99243257a0 100644
--- a/static/styles/dark_theme.css
+++ b/static/styles/dark_theme.css
@@ -424,6 +424,10 @@ body.dark-theme {
         #stream-creation
         #stream_creation_form
         #stream_creating_indicator:not(:empty),
+    #groups_overlay
+        #user-group-creation
+        #user_group_creation_form
+        #user_group_creating_indicator:not(:empty),
     .emoji-info-popover
         .emoji-popover
         .emoji-popover-emoji:not(.reacted):focus {
@@ -663,6 +667,8 @@ body.dark-theme {
     .user-groups-container .left,
     .subscriber-list-box,
     .subscriber-list-box .subscriber_list_container .subscriber-list tr,
+    .member-list-box,
+    .member-list-box .member_list_container .member-list tr,
     #subscription_overlay .subsection-parent div,
     #subscription_overlay .radio-input-parent,
     #stream_privacy_modal .radio-input-parent,
diff --git a/static/styles/subscriptions.css b/static/styles/subscriptions.css
index 4ca3db5a01..5cf6986eb4 100644
--- a/static/styles/subscriptions.css
+++ b/static/styles/subscriptions.css
@@ -96,10 +96,12 @@
     }
 }
 
+#create_user_group_description,
 #create_stream_description {
     width: calc(100% - 15px);
 }
 
+.user_group_creation_error,
 .stream_creation_error {
     display: none;
     margin-left: 2px;
@@ -107,26 +109,30 @@
 }
 
 /* TODO: Unify with settings.css definition */
-h3.stream_setting_subsection_title {
+h3.stream_setting_subsection_title,
+h3.user_group_setting_subsection_title {
     display: inline-block;
     font-size: 1.5em;
     font-weight: normal;
     line-height: 1.5;
 }
 
-h4.stream_setting_subsection_title {
+h4.stream_setting_subsection_title,
+h4.user_group_setting_subsection_title {
     display: inline-block;
     font-size: 1.35em;
     font-weight: normal;
     line-height: 1.5;
 }
 
+.member-list-box,
 .subscriber-list-box {
     text-align: center;
     border-left: 1px solid hsl(0, 0%, 87%);
     border-right: 1px solid hsl(0, 0%, 87%);
     border-radius: 4px;
 
+    .member_list_container,
     .subscriber_list_container {
         position: relative;
         /* 2*45px (settings header) + 38px(tab-container row) + 20px (margin for .inner-box) + 134px (add user input and search widget area) = 282px */
@@ -135,6 +141,7 @@ h4.stream_setting_subsection_title {
         text-align: left;
         -webkit-overflow-scrolling: touch;
 
+        .member-list,
         .subscriber-list {
             width: 100%;
             margin: auto;
@@ -206,7 +213,8 @@ h4.stream_setting_subsection_title {
     padding-right: 8px;
 }
 
-.subscriber_list_add {
+.subscriber_list_add,
+.member_list_add {
     width: 100%;
     margin: 0 0 10px;
 
@@ -225,7 +233,8 @@ h4.stream_setting_subsection_title {
     }
 }
 
-.subscriber_list_add .form-inline {
+.subscriber_list_add .form-inline,
+.member_list_add .form-inline {
     margin-bottom: 0;
 }
 
@@ -485,6 +494,7 @@ h4.stream_setting_subsection_title {
     font-weight: 400;
 }
 
+.user-group-creation-body,
 .stream-creation-body {
     section.block {
         margin-bottom: 20px;
@@ -661,7 +671,9 @@ h4.stream_setting_subsection_title {
     color: hsl(0, 0%, 67%);
 }
 
+#groups_overlay,
 #subscription_overlay {
+    #user-group-creation,
     #stream-creation {
         max-height: calc(100% - 102px);
         overflow: auto;
@@ -675,14 +687,17 @@ h4.stream_setting_subsection_title {
             padding-top: 9px;
         }
 
+        .user-group-creation-body,
         .stream-creation-body {
             padding: 15px;
         }
 
+        .add_all_users_to_user_group,
         .add_all_users_to_stream {
             margin-left: 10px;
         }
 
+        .create_user_group_member_list_header,
         .create_stream_subscriber_list_header {
             margin-top: 10px;
             margin-bottom: 3px;
@@ -697,9 +712,11 @@ h4.stream_setting_subsection_title {
             float: right;
         }
 
+        #user_group_creation_form,
         #stream_creation_form {
             margin: 0;
 
+            #user_group_creating_indicator,
             #stream_creating_indicator {
                 &:not(:empty) {
                     position: absolute;
diff --git a/static/templates/user_group_settings/new_user_group_users.hbs b/static/templates/user_group_settings/new_user_group_users.hbs
new file mode 100644
index 0000000000..b7bd449b3e
--- /dev/null
+++ b/static/templates/user_group_settings/new_user_group_users.hbs
@@ -0,0 +1,27 @@
+<div class="member_list_add float-left">
+    {{> ../stream_settings/add_subscribers_form}}
+</div>
+<br />
+
+{{t "Do you want to add everyone?"}}
+<button class="add_all_users_to_user_group small button rounded sea-green">{{t 'Add all users'}}</button>
+
+<div class="create_member_list_header">
+    <h4 class="user_group_setting_subsection_title">{{t 'Members' }}</h4>
+    <input class="add-user-list-filter" name="user_list_filter" type="text"
+      autocomplete="off" placeholder="{{t 'Filter members' }}" />
+</div>
+
+<div class="member-list-box">
+    <div class="member_list_container" data-simplebar>
+        <table class="member-list table table-striped">
+            <thead class="table-sticky-headers">
+                <th>{{t "Name" }}</th>
+                <th>{{t "Email" }}</th>
+                <th>{{t "User ID" }}</th>
+                <th>{{t "Action" }}</th>
+            </thead>
+            <tbody id="create_user_group_members" class="member_table"></tbody>
+        </table>
+    </div>
+</div>
diff --git a/static/templates/user_group_settings/user_group_creation_form.hbs b/static/templates/user_group_settings/user_group_creation_form.hbs
new file mode 100644
index 0000000000..42ccbac087
--- /dev/null
+++ b/static/templates/user_group_settings/user_group_creation_form.hbs
@@ -0,0 +1,35 @@
+<div class="hide" id="user-group-creation" tabindex="-1" role="dialog"
+  aria-label="{{t 'User group creation' }}">
+    <form id="user_group_creation_form">
+        <div class="alert user_group_create_info"></div>
+        <div id="user_group_creating_indicator"></div>
+        <div class="user-group-creation-body">
+            <section class="block">
+                <label for="create_user_group_name">
+                    {{t "User group name" }}
+                </label>
+                <input type="text" name="user_group_name" id="create_user_group_name"
+                  placeholder="{{t 'User group name' }}" value="" autocomplete="off" />
+                <div id="user_group_name_error" class="user_group_creation_error"></div>
+            </section>
+            <section class="block">
+                <label for="create_user_group_description">
+                    {{t "User group description" }}
+                </label>
+                <input type="text" name="user_group_description" id="create_user_group_description"
+                  placeholder="{{t 'User group description' }}" value="" autocomplete="off" />
+            </section>
+            <section class="block">
+                <label for="people_to_add_in_group">
+                    <h4 class="user_group_setting_subsection_title">{{t "Choose members" }}</h4>
+                </label>
+                <div id="user_group_membership_error" class="user_group_creation_error"></div>
+                <div class="controls" id="people_to_add_in_group"></div>
+            </section>
+        </div>
+        <div class="modal-footer">
+            <button class="button small white rounded" data-dismiss="modal">{{t "Cancel" }}</button>
+            <button class="finalize_create_user_group button small sea-green rounded" type="submit">{{t "Create" }}</button>
+        </div>
+    </form>
+</div>
diff --git a/static/templates/user_group_settings/user_group_settings_overlay.hbs b/static/templates/user_group_settings/user_group_settings_overlay.hbs
index 3d3d6edb59..5290efb483 100644
--- a/static/templates/user_group_settings/user_group_settings_overlay.hbs
+++ b/static/templates/user_group_settings/user_group_settings_overlay.hbs
@@ -37,6 +37,7 @@
                 <div id="user_group_settings" class="settings" data-simplebar data-simplebar-auto-hide="false">
                     {{!-- edit user group here --}}
                 </div>
+                {{> user_group_creation_form }}
             </div>
         </div>
     </div>
diff --git a/tools/test-js-with-node b/tools/test-js-with-node
index 929e2f35eb..148009154f 100755
--- a/tools/test-js-with-node
+++ b/tools/test-js-with-node
@@ -200,6 +200,9 @@ EXEMPT_FILES = make_set(
         "static/js/unread_ops.js",
         "static/js/unread_ui.js",
         "static/js/upload_widget.ts",
+        "static/js/user_group_create.js",
+        "static/js/user_group_create_members.js",
+        "static/js/user_group_create_members_data.js",
         "static/js/user_groups_settings_ui.js",
         "static/js/user_profile.js",
         "static/js/user_settings.ts",