diff --git a/fuelclient/cli/actions/__init__.py b/fuelclient/cli/actions/__init__.py
index d8136e4..ea12ac6 100644
--- a/fuelclient/cli/actions/__init__.py
+++ b/fuelclient/cli/actions/__init__.py
@@ -25,6 +25,7 @@ from fuelclient.cli.actions.interrupt import ResetAction
 from fuelclient.cli.actions.interrupt import StopAction
 from fuelclient.cli.actions.network import NetworkAction
 from fuelclient.cli.actions.node import NodeAction
+from fuelclient.cli.actions.nodegroup import NodeGroupAction
 from fuelclient.cli.actions.release import ReleaseAction
 from fuelclient.cli.actions.role import RoleAction
 from fuelclient.cli.actions.settings import SettingsAction
@@ -49,7 +50,8 @@ actions_tuple = (
     SnapshotAction,
     HealthCheckAction,
     UserAction,
-    PluginAction
+    PluginAction,
+    NodeGroupAction
 )
 
 actions = dict(
diff --git a/fuelclient/cli/actions/node.py b/fuelclient/cli/actions/node.py
index 53cad77..84579e9 100644
--- a/fuelclient/cli/actions/node.py
+++ b/fuelclient/cli/actions/node.py
@@ -33,7 +33,7 @@ class NodeAction(Action):
     """
     action_name = "node"
     acceptable_keys = ("id", "status", "name", "cluster", "ip",
-                       "mac", "roles", "pending_roles", "online")
+                       "mac", "roles", "pending_roles", "online", "group_id")
 
     def __init__(self):
         super(NodeAction, self).__init__()
@@ -49,7 +49,7 @@ class NodeAction(Action):
                 Args.get_delete_from_db_arg(
                     "Delete specific nodes only from fuel db.\n"
                     "User should still delete node from cobbler"),
-                Args.get_provision_arg("Provision specific nodes.")
+                Args.get_provision_arg("Provision specific nodes."),
             ),
             group(
                 Args.get_default_arg(
diff --git a/fuelclient/cli/actions/nodegroup.py b/fuelclient/cli/actions/nodegroup.py
new file mode 100644
index 0000000..2354618
--- /dev/null
+++ b/fuelclient/cli/actions/nodegroup.py
@@ -0,0 +1,106 @@
+#    Copyright 2014 Mirantis, Inc.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+from fuelclient.cli.actions.base import Action
+from fuelclient.cli.actions.base import check_all
+import fuelclient.cli.arguments as Args
+from fuelclient.cli.arguments import group
+from fuelclient.cli.error import ActionException
+from fuelclient.cli.formatting import format_table
+from fuelclient.objects.node import Node
+from fuelclient.objects.nodegroup import NodeGroup
+from fuelclient.objects.nodegroup import NodeGroupCollection
+
+
+class NodeGroupAction(Action):
+    """Show or modify node groups
+    """
+    action_name = "nodegroup"
+    acceptable_keys = ("id", "cluster", "name")
+
+    def __init__(self):
+        super(NodeGroupAction, self).__init__()
+        self.args = (
+            Args.get_env_arg(),
+            Args.get_list_arg("List all node groups."),
+            Args.get_name_arg("Name of new node group."),
+            Args.get_group_arg("ID of node group."),
+            Args.get_node_arg("List of nodes to assign specified group to."),
+            group(
+                Args.get_create_arg(
+                    "Create a new node group in the specified environment."
+                ),
+                Args.get_assign_arg(
+                    "Download current network configuration."),
+                Args.get_delete_arg(
+                    "Verify current network configuration."),
+            )
+        )
+        self.flag_func_map = (
+            ("create", self.create),
+            ("delete", self.delete),
+            ("assign", self.assign),
+            (None, self.list)
+        )
+
+    def create(self, params):
+        """Create a new node group
+               fuel --env 1 nodegroup --create --name "group 1"
+        """
+        NodeGroup.create(params.name, int(params.env))
+
+    def delete(self, params):
+        """Delete the specified node groups
+               fuel --env 1 nodegroup --delete --group 1
+               fuel --env 1 nodegroup --delete --group 2,3,4
+        """
+        ngs = NodeGroup.get_by_ids(params.group)
+        for n in ngs:
+            if n.name == "default":
+                raise ActionException(
+                    "Default node groups cannot be deleted."
+                )
+            NodeGroup.delete(n.id)
+
+    @check_all("env")
+    def assign(self, params):
+        """Assign nodes to specified node group:
+                fuel --env 1 nodegroup --assign --node 1 --group 1
+                fuel --env 1 nodegroup --assign --node 2,3,4 --group 1
+        """
+        nodes = [n.id for n in map(Node, params.node)]
+        ngs = map(NodeGroup, params.group)
+        if len(ngs) > 1:
+            raise ActionException(
+                "Nodes can only be assigned to one node group."
+            )
+        NodeGroup.assign(ngs[0].id, nodes)
+
+    def list(self, params):
+        """To list all available node groups:
+                fuel nodegroup
+
+            To filter them by environment:
+                fuel --env-id 1 nodegroup
+        """
+        group_collection = NodeGroupCollection.get_all()
+        if params.env:
+            group_collection.filter_by_env_id(int(params.env))
+        self.serializer.print_to_output(
+            group_collection.data,
+            format_table(
+                group_collection.data,
+                acceptable_keys=self.acceptable_keys,
+            )
+        )
diff --git a/fuelclient/cli/arguments.py b/fuelclient/cli/arguments.py
index ce8cac6..d3536be 100644
--- a/fuelclient/cli/arguments.py
+++ b/fuelclient/cli/arguments.py
@@ -337,6 +337,14 @@ def get_delete_arg(help_msg):
     return get_boolean_arg("delete", help=help_msg)
 
 
+def get_assign_arg(help_msg):
+    return get_boolean_arg("assign", help=help_msg)
+
+
+def get_group_arg(help_msg):
+    return get_set_type_arg("group", help=help_msg)
+
+
 def get_release_arg(help_msg, required=False):
     return get_int_arg(
         "release",
diff --git a/fuelclient/objects/nodegroup.py b/fuelclient/objects/nodegroup.py
new file mode 100644
index 0000000..bd99365
--- /dev/null
+++ b/fuelclient/objects/nodegroup.py
@@ -0,0 +1,87 @@
+#    Copyright 2014 Mirantis, Inc.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+from operator import attrgetter
+
+from fuelclient.objects.base import BaseObject
+
+
+class NodeGroup(BaseObject):
+
+    class_api_path = "nodegroups/"
+    instance_api_path = "nodegroups/{0}/"
+
+    @property
+    def env_id(self):
+        return self.get_fresh_data()["cluster"]
+
+    @property
+    def name(self):
+        return self.get_fresh_data()["name"]
+
+    @classmethod
+    def create(cls, name, cluster_id):
+        return cls.connection.post_request(
+            cls.class_api_path,
+            {'cluster_id': cluster_id, 'name': name},
+        )
+
+    @classmethod
+    def delete(cls, group_id):
+        return cls.connection.delete_request(
+            cls.instance_api_path.format(group_id)
+        )
+
+    @classmethod
+    def assign(cls, group_id, nodes):
+        return cls.connection.post_request(
+            cls.instance_api_path.format(group_id),
+            nodes
+        )
+
+
+class NodeGroupCollection(object):
+
+    def __init__(self, groups):
+        self.collection = groups
+
+    @classmethod
+    def init_with_ids(cls, ids):
+        return cls(map(NodeGroup, ids))
+
+    @classmethod
+    def init_with_data(cls, data):
+        return cls(map(NodeGroup.init_with_data, data))
+
+    def __str__(self):
+        return "node groups [{0}]".format(
+            ", ".join(map(lambda n: str(n.id), self.collection))
+        )
+
+    def __iter__(self):
+        return iter(self.collection)
+
+    @property
+    def data(self):
+        return map(attrgetter("data"), self.collection)
+
+    @classmethod
+    def get_all(cls):
+        return cls(NodeGroup.get_all())
+
+    def filter_by_env_id(self, env_id):
+        self.collection = filter(
+            lambda group: group.env_id == env_id,
+            self.collection
+        )