diff --git a/docs/configuration/optional-settings.md b/docs/configuration/optional-settings.md
index 88dd809182d..a88322badbc 100644
--- a/docs/configuration/optional-settings.md
+++ b/docs/configuration/optional-settings.md
@@ -447,6 +447,15 @@ Default width (in pixels) of a unit within a rack elevation.
 
 ---
 
+## REMOTE_AUTH_AUTO_CREATE_GROUPS
+
+Default: `False`
+
+If `True`, NetBox will automatically create local groups to mirror
+remote user groups (requires `REMOTE_AUTH_GROUP_SYNC_ENABLED`).
+
+---
+
 ## REMOTE_AUTH_AUTO_CREATE_USER
 
 Default: `False`
diff --git a/netbox/netbox/authentication.py b/netbox/netbox/authentication.py
index 653fad3b055..18007c26784 100644
--- a/netbox/netbox/authentication.py
+++ b/netbox/netbox/authentication.py
@@ -104,17 +104,32 @@ class RemoteUserBackend(_RemoteUserBackend):
     def create_unknown_user(self):
         return settings.REMOTE_AUTH_AUTO_CREATE_USER
 
+    @property
+    def create_unknown_groups(self):
+        return settings.REMOTE_AUTH_AUTO_CREATE_GROUPS
+
     def configure_groups(self, user, remote_groups):
         logger = logging.getLogger('netbox.authentication.RemoteUserBackend')
 
-        # Assign default groups to the user
+        # Assign remote groups to the user
         group_list = []
         for name in remote_groups:
             try:
-                group_list.append(Group.objects.get(name=name))
+                if self.create_unknown_groups:
+                    group, created = Group._default_manager.get_or_create(name=name)
+                    if created:
+                        logger.debug(f"Created group {name}")
+                else:
+                    group = Group.objects.get(name=name)
+
+                group_list.append(group)
             except Group.DoesNotExist:
-                logging.error(
-                    f"Could not assign group {name} to remotely-authenticated user {user}: Group not found")
+                if settings.REMOTE_AUTH_AUTO_CREATE_GROUPS:
+                    group_list.append(Group.objects.create(name=name))
+                else:
+                    logging.error(
+                        f"Could not assign group {name} to remotely-authenticated user {user}: Group not found")
+
         if group_list:
             user.groups.set(group_list)
             logger.debug(
diff --git a/netbox/netbox/settings.py b/netbox/netbox/settings.py
index 35e0c6714cb..85a559a379f 100644
--- a/netbox/netbox/settings.py
+++ b/netbox/netbox/settings.py
@@ -115,6 +115,7 @@
 RACK_ELEVATION_DEFAULT_UNIT_HEIGHT = getattr(configuration, 'RACK_ELEVATION_DEFAULT_UNIT_HEIGHT', 22)
 RACK_ELEVATION_DEFAULT_UNIT_WIDTH = getattr(configuration, 'RACK_ELEVATION_DEFAULT_UNIT_WIDTH', 220)
 REMOTE_AUTH_AUTO_CREATE_USER = getattr(configuration, 'REMOTE_AUTH_AUTO_CREATE_USER', False)
+REMOTE_AUTH_AUTO_CREATE_GROUPS = getattr(configuration, 'REMOTE_AUTH_AUTO_CREATE_GROUPS', False)
 REMOTE_AUTH_BACKEND = getattr(configuration, 'REMOTE_AUTH_BACKEND', 'netbox.authentication.RemoteUserBackend')
 REMOTE_AUTH_DEFAULT_GROUPS = getattr(configuration, 'REMOTE_AUTH_DEFAULT_GROUPS', [])
 REMOTE_AUTH_DEFAULT_PERMISSIONS = getattr(configuration, 'REMOTE_AUTH_DEFAULT_PERMISSIONS', {})
diff --git a/netbox/netbox/tests/test_authentication.py b/netbox/netbox/tests/test_authentication.py
index 7fc12b4fd41..ae4a3ff5f08 100644
--- a/netbox/netbox/tests/test_authentication.py
+++ b/netbox/netbox/tests/test_authentication.py
@@ -176,6 +176,50 @@ def test_remote_auth_default_permissions(self):
         self.assertTrue(new_user.has_perms(
             ['dcim.add_site', 'dcim.change_site']))
 
+    @override_settings(
+        REMOTE_AUTH_ENABLED=True,
+        REMOTE_AUTH_AUTO_CREATE_USER=True,
+        REMOTE_AUTH_AUTO_CREATE_GROUPS=True,
+        REMOTE_AUTH_GROUP_SYNC_ENABLED=True,
+        LOGIN_REQUIRED=True
+    )
+    def test_remote_auth_auto_create_groups(self):
+        """
+        Test auto creating groups with group sync enabled.
+        """
+
+        group_names = (
+            'Group 1',
+            'Group 2',
+            'Group 3',
+        )
+
+        headers = {
+            'HTTP_REMOTE_USER': 'remoteuser2',
+            'HTTP_REMOTE_USER_GROUP': '|'.join(group_names),
+        }
+
+        self.assertTrue(settings.REMOTE_AUTH_ENABLED)
+        self.assertTrue(settings.REMOTE_AUTH_AUTO_CREATE_USER)
+        self.assertTrue(settings.REMOTE_AUTH_AUTO_CREATE_GROUPS)
+        self.assertTrue(settings.REMOTE_AUTH_GROUP_SYNC_ENABLED)
+        self.assertEqual(settings.REMOTE_AUTH_HEADER, 'HTTP_REMOTE_USER')
+        self.assertEqual(settings.REMOTE_AUTH_GROUP_HEADER,
+                         'HTTP_REMOTE_USER_GROUP')
+        self.assertEqual(settings.REMOTE_AUTH_GROUP_SEPARATOR, '|')
+
+        response = self.client.get(reverse('home'), follow=True, **headers)
+        self.assertEqual(response.status_code, 200)
+
+        new_user = User.objects.get(username='remoteuser2')
+        self.assertEqual(int(self.client.session.get(
+            '_auth_user_id')), new_user.pk, msg='Authentication failed')
+
+        self.assertListEqual(
+            group_names,
+            [g.name for g in new_user.groups.all()],
+        )
+
     @override_settings(
         REMOTE_AUTH_ENABLED=True,
         REMOTE_AUTH_AUTO_CREATE_USER=True,