diff --git a/cloud/openstack/os_group.py b/cloud/openstack/os_group.py
new file mode 100644
index 00000000000..4f317abccd3
--- /dev/null
+++ b/cloud/openstack/os_group.py
@@ -0,0 +1,167 @@
+#!/usr/bin/python
+# Copyright (c) 2016 IBM
+#
+# This module is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# This software is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# You should have received a copy of the GNU General Public License
+# along with this software.  If not, see <http://www.gnu.org/licenses/>.
+
+
+try:
+    import shade
+    HAS_SHADE = True
+except ImportError:
+    HAS_SHADE = False
+
+DOCUMENTATION = '''
+---
+module: os_group
+short_description: Manage OpenStack Identity Groups
+extends_documentation_fragment: openstack
+version_added: "2.1"
+author: "Monty Taylor (@emonty), David Shrewsbury (@Shrews)"
+description:
+    - Manage OpenStack Identity Groups. Groups can be created, deleted or
+      updated. Only the I(description) value can be updated.
+options:
+   name:
+     description:
+        - Group name
+     required: true
+   description:
+     description:
+        - Group description
+     required: false
+     default: None
+   state:
+     description:
+       - Should the resource be present or absent.
+     choices: [present, absent]
+     default: present
+requirements:
+    - "python >= 2.6"
+    - "shade"
+'''
+
+EXAMPLES = '''
+# Create a group named "demo"
+- os_group:
+    cloud: mycloud
+    state: present
+    name: demo
+    description: "Demo Group"
+
+# Update the description on existing "demo" group
+- os_group:
+    cloud: mycloud
+    state: present
+    name: demo
+    description: "Something else"
+
+# Delete group named "demo"
+- os_group:
+    cloud: mycloud
+    state: absent
+    name: demo
+'''
+
+RETURN = '''
+group:
+    description: Dictionary describing the group.
+    returned: On success when I(state) is 'present'.
+    type: dictionary
+    contains:
+        id:
+            description: Unique group ID
+            type: string
+            sample: "ee6156ff04c645f481a6738311aea0b0"
+        name:
+            description: Group name
+            type: string
+            sample: "demo"
+        description:
+            description: Group description
+            type: string
+            sample: "Demo Group"
+        domain_id:
+            description: Domain for the group
+            type: string
+            sample: "default"
+'''
+
+
+def _system_state_change(state, description, group):
+    if state == 'present' and not group:
+        return True
+    if state == 'present' and description is not None and group.description != description:
+        return True
+    if state == 'absent' and group:
+        return True
+    return False
+
+
+def main():
+    argument_spec = openstack_full_argument_spec(
+        name=dict(required=True),
+        description=dict(required=False, default=None),
+        state=dict(default='present', choices=['absent', 'present']),
+    )
+
+    module_kwargs = openstack_module_kwargs()
+    module = AnsibleModule(argument_spec,
+                           supports_check_mode=True,
+                           **module_kwargs)
+
+    if not HAS_SHADE:
+        module.fail_json(msg='shade is required for this module')
+
+    name = module.params.pop('name')
+    description = module.params.pop('description')
+    state = module.params.pop('state')
+
+    try:
+        cloud = shade.operator_cloud(**module.params)
+        group = cloud.get_group(name)
+
+        if module.check_mode:
+            module.exit_json(changed=_system_state_change(state, description, group))
+
+        if state == 'present':
+            if group is None:
+                group = cloud.create_group(
+                    name=name, description=description)
+                changed = True
+            else:
+                if description is not None and group.description != description:
+                    group = cloud.update_group(
+                        group.id, description=description)
+                    changed = True
+                else:
+                    changed = False
+            module.exit_json(changed=changed, group=group)
+
+        elif state == 'absent':
+            if group is None:
+                changed=False
+            else:
+                cloud.delete_group(group.id)
+                changed=True
+            module.exit_json(changed=changed)
+
+    except shade.OpenStackCloudException as e:
+        module.fail_json(msg=str(e))
+
+
+from ansible.module_utils.basic import *
+from ansible.module_utils.openstack import *
+
+if __name__ == '__main__':
+    main()