diff --git a/docs/source/tutorials/provider-specific-setup/providers/azuread.md b/docs/source/tutorials/provider-specific-setup/providers/azuread.md
index 7528159e..09359d69 100644
--- a/docs/source/tutorials/provider-specific-setup/providers/azuread.md
+++ b/docs/source/tutorials/provider-specific-setup/providers/azuread.md
@@ -31,3 +31,20 @@ AzureAdOAuthenticator expands OAuthenticator with the following config that may
 be relevant to read more about in the configuration reference:
 
 - {attr}`.AzureAdOAuthenticator.tenant_id`
+
+## Loading user groups
+
+The `AzureAdOAuthenticator` can load the group-membership of users from the access token.
+This is done by setting the `AzureAdOAuthenticator.groups_claim` to the name of the claim that contains the
+group-membership.
+
+```python
+c.JupyterHub.authenticator_class = "azuread"
+
+# {...} other settings (see above)
+
+c.AzureAdOAuthenticator.manage_groups = True
+c.AzureAdOAuthenticator.user_groups_claim = 'groups'  # this is the default
+```
+
+This requires Azure AD to be configured to include the group-membership in the access token.
diff --git a/oauthenticator/azuread.py b/oauthenticator/azuread.py
index 399c704b..48359864 100644
--- a/oauthenticator/azuread.py
+++ b/oauthenticator/azuread.py
@@ -21,6 +21,16 @@ def _login_service_default(self):
     def _username_claim_default(self):
         return "name"
 
+    user_groups_claim = Unicode(
+        "groups",
+        config=True,
+        help="""
+        Name of claim containing user group memberships.
+
+        Will populate JupyterHub groups if Authenticator.manage_groups is True.
+        """,
+    )
+
     tenant_id = Unicode(
         config=True,
         help="""
@@ -44,6 +54,15 @@ def _authorize_url_default(self):
     def _token_url_default(self):
         return f"https://login.microsoftonline.com/{self.tenant_id}/oauth2/token"
 
+    async def update_auth_model(self, auth_model, **kwargs):
+        auth_model = await super().update_auth_model(auth_model, **kwargs)
+
+        if getattr(self, "manage_groups", False):
+            user_info = auth_model["auth_state"][self.user_auth_state_key]
+            auth_model["groups"] = user_info[self.user_groups_claim]
+
+        return auth_model
+
     async def token_to_user(self, token_info):
         id_token = token_info['id_token']
         decoded = jwt.decode(
diff --git a/oauthenticator/tests/test_azuread.py b/oauthenticator/tests/test_azuread.py
index 46d9395b..b3537dd5 100644
--- a/oauthenticator/tests/test_azuread.py
+++ b/oauthenticator/tests/test_azuread.py
@@ -7,6 +7,7 @@
 from unittest import mock
 
 import jwt
+import pytest
 from pytest import fixture, mark
 from traitlets.config import Config
 
@@ -44,6 +45,17 @@ def user_model(tenant_id, client_id, name):
             "tid": tenant_id,
             "nonce": "123523",
             "aio": "Df2UVXL1ix!lMCWMSOJBcFatzcGfvFGhjKv8q5g0x732dR5MB5BisvGQO7YWByjd8iQDLq!eGbIDakyp5mnOrcdqHeYSnltepQmRp6AIZ8jY",
+            "groups": [
+                "96000b2c-7333-4f6e-a2c3-e7608fa2d131",
+                "a992b3d5-1966-4af4-abed-6ef021417be4",
+                "ceb90a42-030f-44f1-a0c7-825b572a3b07",
+            ],
+            # different from 'groups' for tests
+            "grp": [
+                "96000b2c-7333-4f6e-a2c3",
+                "a992b3d5-1966-4af4-abed",
+                "ceb90a42-030f-44f1-a0c7",
+            ],
         },
         os.urandom(5),
     )
@@ -103,6 +115,23 @@ def user_model(tenant_id, client_id, name):
             True,
             None,
         ),
+        # test user_groups_claim
+        (
+            "30",
+            {"allow_all": True, "manage_groups": True},
+            True,
+            None,
+        ),
+        (
+            "31",
+            {
+                "allow_all": True,
+                "manage_groups": True,
+                "user_groups_claim": "grp",
+            },
+            True,
+            None,
+        ),
     ],
 )
 async def test_azuread(
@@ -119,6 +148,12 @@ async def test_azuread(
     c.AzureAdOAuthenticator.client_id = str(uuid.uuid1())
     c.AzureAdOAuthenticator.client_secret = str(uuid.uuid1())
     authenticator = AzureAdOAuthenticator(config=c)
+    manage_groups = False
+    if "manage_groups" in class_config:
+        if hasattr(authenticator, "manage_groups"):
+            manage_groups = authenticator.manage_groups
+        else:
+            pytest.skip("manage_groups requires jupyterhub 2.2")
 
     handled_user_model = user_model(
         tenant_id=authenticator.tenant_id,
@@ -130,7 +165,10 @@ async def test_azuread(
 
     if expect_allowed:
         assert auth_model
-        assert set(auth_model) == {"name", "admin", "auth_state"}
+        expected_keys = {"name", "admin", "auth_state"}
+        if manage_groups:
+            expected_keys.add("groups")
+        assert set(auth_model) == expected_keys
         assert auth_model["admin"] == expect_admin
         auth_state = auth_model["auth_state"]
         assert json.dumps(auth_state)
@@ -138,6 +176,9 @@ async def test_azuread(
         user_info = auth_state[authenticator.user_auth_state_key]
         assert user_info["aud"] == authenticator.client_id
         assert auth_model["name"] == user_info[authenticator.username_claim]
+        if manage_groups:
+            groups = auth_model['groups']
+            assert groups == user_info[authenticator.user_groups_claim]
     else:
         assert auth_model == None