diff --git a/changelogs/fragments/57688-netbox-groups.yaml b/changelogs/fragments/57688-netbox-groups.yaml
new file mode 100644
index 00000000000..864ddb7f6e7
--- /dev/null
+++ b/changelogs/fragments/57688-netbox-groups.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+ - netbox - Fix missing implementation of `groups` option (https://github.com/ansible/ansible/issues/57688)
diff --git a/lib/ansible/plugins/inventory/netbox.py b/lib/ansible/plugins/inventory/netbox.py
index 9de0b9738c4..f6d7c4622c3 100644
--- a/lib/ansible/plugins/inventory/netbox.py
+++ b/lib/ansible/plugins/inventory/netbox.py
@@ -434,8 +434,9 @@ class InventoryModule(BaseInventoryPlugin, Constructable):
 
             # Composed variables
             self._set_composite_vars(self.get_option('compose'), host, hostname, strict=strict)
+
             # Complex groups based on jinja2 conditionals, hosts that meet the conditional are added to group
-            self._set_composite_vars(self.get_option('compose'), host, hostname, strict=strict)
+            self._add_host_to_composed_groups(self.get_option('groups'), host, hostname, strict=strict)
 
             # Create groups based on variable values and add the corresponding hosts to it
             self._add_host_to_keyed_groups(self.get_option('keyed_groups'), host, hostname, strict=strict)