diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/beans/PolicyWrapper.java b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/beans/PolicyWrapper.java
index c0c768eeb2..e7ef0c0e6e 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/beans/PolicyWrapper.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/beans/PolicyWrapper.java
@@ -21,6 +21,7 @@ package org.wso2.carbon.device.mgt.jaxrs.beans;
 import io.swagger.annotations.ApiModel;
 import io.swagger.annotations.ApiModelProperty;
 import org.wso2.carbon.device.mgt.common.DeviceIdentifier;
+import org.wso2.carbon.policy.mgt.common.DeviceGroupWrapper;
 
 import javax.validation.constraints.Size;
 import java.util.List;
@@ -75,6 +76,10 @@ public class PolicyWrapper {
             required = true)
     private List<String> users;
 
+    @ApiModelProperty(name = "deviceGroups", value = "Lists out the groups on whose devices the policy is enforced",
+            required = true)
+    private List<DeviceGroupWrapper> deviceGroups;
+
     public Profile getProfile() {
         return profile;
     }
@@ -147,4 +152,12 @@ public class PolicyWrapper {
         this.users = users;
     }
 
+    public List<DeviceGroupWrapper> getDeviceGroups() {
+        return deviceGroups;
+    }
+
+    public void setDeviceGroups(List<DeviceGroupWrapper> deviceGroups) {
+        this.deviceGroups = deviceGroups;
+    }
+
 }
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/PolicyManagementServiceImpl.java b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/PolicyManagementServiceImpl.java
index 3934ceedf1..16e7a8eb06 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/PolicyManagementServiceImpl.java
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.api/src/main/java/org/wso2/carbon/device/mgt/jaxrs/service/impl/PolicyManagementServiceImpl.java
@@ -122,6 +122,7 @@ public class PolicyManagementServiceImpl implements PolicyManagementService {
         policy.setRoles(policyWrapper.getRoles());
         policy.setUsers(policyWrapper.getUsers());
         policy.setCompliance(policyWrapper.getCompliance());
+        policy.setDeviceGroups(policyWrapper.getDeviceGroups());
         //TODO iterates the device identifiers to create the object. need to implement a proper DAO layer here.
         List<Device> devices = new ArrayList<Device>();
         List<DeviceIdentifier> deviceIdentifiers = policyWrapper.getDeviceIdentifiers();
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/modules/business-controllers/group.js b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/modules/business-controllers/group.js
index 5862f6bc8e..fefd73bd0b 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/modules/business-controllers/group.js
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/modules/business-controllers/group.js
@@ -79,4 +79,30 @@ var groupModule = {};
         );
     };
 
+    groupModule.getGroups = function () {
+        var permissions = userModule.getUIPermissions();
+        if (permissions.LIST_ALL_GROUPS) {
+            endPoint = deviceServiceEndpoint + "/admin/groups";
+        } else if (permissions.LIST_GROUPS) {
+            endPoint = deviceServiceEndpoint + "/groups";
+        } else {
+            log.error("Access denied for user: " + carbonUser.username);
+            return -1;
+        }
+        return serviceInvokers.XMLHttp.get(
+            endPoint, function (responsePayload) {
+                var data = JSON.parse(responsePayload.responseText);
+                if(data) {
+                    return data.deviceGroups;
+                } else {
+                    return [];
+                }
+            },
+            function (responsePayload) {
+                log.error(responsePayload);
+                return -1;
+            }
+        );
+    };
+
 }(groupModule));
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.hbs b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.hbs
index 50d5548c1d..32e124a9a4 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.hbs
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.hbs
@@ -1,5 +1,7 @@
 {{#zone "content"}}
     {{#if isAuthorized}}
+        <span id="logged-in-user" class="hidden" data-username="{{user.username}}" data-domain="{{user.domain}}"
+              data-tenant-id="{{user.tenantId}}"></span>
         <div class="row">
             <div class="col-md-12">
 
@@ -188,6 +190,26 @@
                                             </div>
                                         </div>
                                     {{/if}}
+                                    {{#if isAuthorizedViewGroups}}
+                                        <label class="wr-input-label">
+                                            Select Groups
+                                        </label>
+                                        <div id="groups-select-field" class="select-users">
+                                            <div class="wr-input-control">
+                                                <div class="cus-col-50">
+                                                    <!--suppress HtmlFormInputWithoutLabel -->
+                                                    <select id="groups-input" class="form-control select2"
+                                                            multiple="multiple">
+                                                        <option value="NONE" selected>NONE</option>
+                                                        {{#each groups}}
+                                                            <option>{{this.name}}</option>
+                                                        {{/each}}
+                                                    </select>
+                                                </div>
+                                                <br class="c-both"/>
+                                            </div>
+                                        </div>
+                                    {{/if}}
                                     <br>
                                     <label class="wr-input-label" title="">
                                         Set an action upon non-compliance
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.js b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.js
index 0db5aa6a4c..f467aa9222 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.js
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.js
@@ -23,12 +23,15 @@ function onRequest(context) {
     var utility = require("/app/modules/utility.js").utility;
     var userModule = require("/app/modules/business-controllers/user.js")["userModule"];
     var deviceModule = require("/app/modules/business-controllers/device.js")["deviceModule"];
+    var groupModule = require("/app/modules/business-controllers/group.js")["groupModule"];
     var types = {};
 
     types.isAuthorized = userModule.isAuthorized("/permission/admin/device-mgt/policies/manage");
     types.isAuthorizedViewUsers = userModule.isAuthorized("/permission/admin/device-mgt/roles/view");
     types.isAuthorizedViewRoles = userModule.isAuthorized("/permission/admin/device-mgt/users/view");
+    types.isAuthorizedViewGroups = userModule.isAuthorized("/permission/admin/device-mgt/groups/view");
     types["types"] = [];
+
     var typesListResponse = deviceModule.getDeviceTypes();
     if (typesListResponse["status"] == "success") {
         for (var type in typesListResponse["content"]["deviceTypes"]) {
@@ -48,5 +51,14 @@ function onRequest(context) {
             }
         }
     }
+
+    var user = userModule.getCarbonUser();
+    types["user"] = {username: user.username, domain: user.domain, tenantId: user.tenantId};
+    var roles = userModule.getRoles();
+    if (roles["status"] == "success") {
+        types["roles"] = roles["content"];
+    }
+    types["groups"] = groupModule.getGroups();
+    
     return types;
 }
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/public/js/policy-create.js b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/public/js/policy-create.js
index f2fc06b55d..b66dfd7566 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/public/js/policy-create.js
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/public/js/policy-create.js
@@ -59,6 +59,35 @@ var disableInlineError = function (inputField, errorMsg, errorSign) {
     }
 };
 
+function loadGroups(callback) {
+    invokerUtil.get(
+        "/api/device-mgt/v1.0/groups",
+        function (data) {
+            data = JSON.parse(data);
+            callback(data.deviceGroups);
+        });
+}
+
+var createDeviceGroupWrapper = function (selectedGroups) {
+    var groupObjects = [];
+    loadGroups(function (deviceGroups) {
+        var tenantId = $("#logged-in-user").data("tenant-id");
+        for (var index in deviceGroups) {
+            if(deviceGroups.hasOwnProperty(index)) {
+                var deviceGroupWrapper = {};
+                if (selectedGroups.indexOf(deviceGroups[index].name) > -1) {
+                    deviceGroupWrapper.id = deviceGroups[index].id;
+                    deviceGroupWrapper.name = deviceGroups[index].name;
+                    deviceGroupWrapper.owner = deviceGroups[index].owner;
+                    deviceGroupWrapper.tenantId = tenantId;
+                    groupObjects.push(deviceGroupWrapper);
+                }
+            }
+        }
+    });
+    return groupObjects;
+};
+
 /**
  *clear inline validation messages.
  */
@@ -161,6 +190,11 @@ stepForwardFrom["policy-criteria"] = function () {
             }
         }
     });
+    policy["selectedGroups"] = $("#groups-input").val();
+    if (policy["selectedGroups"].length > 1 || policy["selectedGroups"][0] !== "NONE") {
+        policy["selectedGroups"] = createDeviceGroupWrapper(policy["selectedGroups"]);
+    }
+
     policy["selectedNonCompliantAction"] = $("#action-input").find(":selected").data("action");
     policy["selectedOwnership"] = $("#ownership-input").val();
     //updating next-page wizard title with selected platform
@@ -347,6 +381,10 @@ var savePolicy = function (policy, isActive, serviceURL) {
         payload["roles"] = [];
     }
 
+    if(policy["selectedGroups"]) {
+        payload["deviceGroups"] = policy["selectedGroups"];
+    }
+
     invokerUtil.post(
         serviceURL,
         payload,
@@ -461,6 +499,16 @@ $(document).ready(function () {
         }
     });
 
+    $("#groups-input").select2({
+        "tags": false
+    }).on("select2:select", function (e) {
+        if (e.params.data.id == "NONE") {
+            $(this).val("NONE").trigger("change");
+        } else {
+            $("option[value=NONE]", this).prop("selected", false).parent().trigger("change");
+        }
+    });
+
     //Policy wizard stepper
     $(".wizard-stepper").click(function () {
         // button clicked here can be either a continue button or a back button.
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/edit.hbs b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/edit.hbs
index c4ae63c6b0..5863d6ba76 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/edit.hbs
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/edit.hbs
@@ -1,5 +1,7 @@
 {{#zone "content"}}
     {{#if isAuthorized }}
+        <span id="logged-in-user" class="hidden" data-username="{{user.username}}" data-domain="{{user.domain}}"
+              data-tenant-id="{{user.tenantId}}"></span>
         <div class="row">
             <div class="col-md-12">
 
@@ -135,46 +137,72 @@
                                         <br class="c-both"/>
                                     </div>
                                     <div class="wr-input-control">
-                                        <label class="wr-input-control radio light">
-                                            <input id="user-roles-radio-btn" type="radio" name="select-users-radio-btn"
-                                                   class="select-users-radio" checked/>
-                                            <span class="helper">Set user role(s)</span>
-                                        </label>
-                                        <label class="wr-input-control radio light" rel="assetfilter">
-                                            <input id="users-radio-btn" type="radio" name="select-users-radio-btn"
-                                                   class="select-users-radio"/>
-                                            <span class="helper">Set user(s)</span>
-                                        </label>
+                                        {{#if isAuthorizedViewRoles}}
+                                            <label class="wr-input-control radio light">
+                                                <input id="user-roles-radio-btn" type="radio"
+                                                       name="select-users-radio-btn"
+                                                       class="select-users-radio" checked/>
+                                                <span class="helper">Set user role(s)</span>
+                                            </label>
+                                        {{/if}}
+                                        {{#if isAuthorizedViewUsers}}
+                                            <label class="wr-input-control radio light" rel="assetfilter">
+                                                <input id="users-radio-btn" type="radio" name="select-users-radio-btn"
+                                                       class="select-users-radio"/>
+                                                <span class="helper">Set user(s)</span>
+                                            </label>
+                                        {{/if}}
                                     </div>
-                                    <div id="user-roles-select-field" class="select-users">
-                                        <div class="wr-input-control">
-                                            <div class="cus-col-50">
-                                                <select id="user-roles-input" class="form-control select2"
-                                                        multiple="multiple">
-                                                    <option value="ANY" selected>ANY</option>
-                                                    {{#each roles}}
-                                                        <option>{{this}}</option>
-                                                    {{/each}}
-                                                </select>
+                                    {{#if isAuthorizedViewRoles}}
+                                        <div id="user-roles-select-field" class="select-users">
+                                            <div class="wr-input-control">
+                                                <div class="cus-col-50">
+                                                    <!--suppress HtmlFormInputWithoutLabel -->
+                                                    <select id="user-roles-input" class="form-control select2"
+                                                            multiple="multiple">
+                                                        <option value="ANY" selected>ANY</option>
+                                                        {{#each roles}}
+                                                            <option>{{this}}</option>
+                                                        {{/each}}
+                                                    </select>
+                                                </div>
+                                                <br class="c-both"/>
                                             </div>
-                                            <br class="c-both"/>
                                         </div>
-                                    </div>
-                                    <div id="users-select-field" class="select-users">
-                                        <div class="wr-input-control">
-                                            <div class="cus-col-50">
-                                                <select id="users-input" class="form-control select2"
-                                                        multiple="multiple">
-                                                    <option value="ANY" selected>ANY</option>
-                                                    {{#each users}}
-                                                        <option>{{username}}</option>
-                                                    {{/each}}
-                                                </select>
+                                    {{/if}}
+                                    {{#if isAuthorizedViewUsers}}
+                                        <div id="users-select-field" class="select-users">
+                                            <div class="wr-input-control">
+                                                <div class="cus-col-50">
+                                                    <!--suppress HtmlFormInputWithoutLabel -->
+                                                    <select id="users-input" class="form-control select2"
+                                                            multiple="multiple">
+                                                    </select>
+                                                </div>
+                                                <br class="c-both"/>
                                             </div>
-                                            <br class="c-both"/>
                                         </div>
-                                    </div>
-                                    <br>
+                                    {{/if}}
+                                    {{#if isAuthorizedViewGroups}}
+                                        <label class="wr-input-label">
+                                            Select Groups
+                                        </label>
+                                        <div id="groups-select-field" class="select-users">
+                                            <div class="wr-input-control">
+                                                <div class="cus-col-50">
+                                                    <!--suppress HtmlFormInputWithoutLabel -->
+                                                    <select id="groups-input" class="form-control select2"
+                                                            multiple="multiple">
+                                                        <option value="NONE" selected>NONE</option>
+                                                        {{#each groups}}
+                                                            <option>{{this.name}}</option>
+                                                        {{/each}}
+                                                    </select>
+                                                </div>
+                                                <br class="c-both"/>
+                                            </div>
+                                        </div>
+                                    {{/if}}
                                     <label class="wr-input-label" title="">
                                         Set an action upon non-compliance
                                     </label>
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/edit.js b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/edit.js
index a3daa79dc4..cdaf4ae8b4 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/edit.js
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/edit.js
@@ -18,9 +18,9 @@
 
 function onRequest(context) {
     var log = new Log("policy-view-edit-unit backend js");
-    log.debug("calling policy-view-edit-unit");
 
     var userModule = require("/app/modules/business-controllers/user.js")["userModule"];
+    var groupModule = require("/app/modules/business-controllers/group.js")["groupModule"];
 
     var rolesResult = userModule.getRoles();
     if (rolesResult.status == "success") {
@@ -32,9 +32,15 @@ function onRequest(context) {
         context.users = usersResult.content;
     }
 
+    context["groups"] = groupModule.getGroups();
+
+    var user = userModule.getCarbonUser();
+    context["user"] = {username: user.username, domain: user.domain, tenantId: user.tenantId};
+
     context.isAuthorized = userModule.isAuthorized("/permission/admin/device-mgt/policies/manage");
     context.isAuthorizedViewUsers = userModule.isAuthorized("/permission/admin/device-mgt/roles/view");
     context.isAuthorizedViewRoles = userModule.isAuthorized("/permission/admin/device-mgt/users/view");
+    context.isAuthorizedViewGroups = userModule.isAuthorized("/permission/admin/device-mgt/groups/view");
 
     return context;
 }
\ No newline at end of file
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/public/js/policy-edit.js b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/public/js/policy-edit.js
index 6f5d3baa08..258194b488 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/public/js/policy-edit.js
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.edit/public/js/policy-edit.js
@@ -63,6 +63,35 @@ var disableInlineError = function (inputField, errorMsg, errorSign) {
     }
 };
 
+function loadGroups(callback) {
+    invokerUtil.get(
+        "/api/device-mgt/v1.0/groups",
+        function (data) {
+            data = JSON.parse(data);
+            callback(data.deviceGroups);
+        });
+}
+
+var createDeviceGroupWrapper = function (selectedGroups) {
+    var groupObjects = [];
+    loadGroups(function (deviceGroups) {
+        var tenantId = $("#logged-in-user").data("tenant-id");
+        for (var index in deviceGroups) {
+            if(deviceGroups.hasOwnProperty(index)) {
+                var deviceGroupWrapper = {};
+                if (selectedGroups.indexOf(deviceGroups[index].name) > -1) {
+                    deviceGroupWrapper.id = deviceGroups[index].id;
+                    deviceGroupWrapper.name = deviceGroups[index].name;
+                    deviceGroupWrapper.owner = deviceGroups[index].owner;
+                    deviceGroupWrapper.tenantId = tenantId;
+                    groupObjects.push(deviceGroupWrapper);
+                }
+            }
+        }
+    });
+    return groupObjects;
+};
+
 /**
  *clear inline validation messages.
  */
@@ -96,12 +125,14 @@ skipStep["policy-platform"] = function (policyPayloadObj) {
     var userRoleInput = $("#user-roles-input");
     var ownershipInput = $("#ownership-input");
     var userInput = $("#users-input");
+    var groupsInput = $("#groups-input");
     var actionInput = $("#action-input");
     var policyNameInput = $("#policy-name-input");
     var policyDescriptionInput = $("#policy-description-input");
 
     currentlyEffected["roles"] = policyPayloadObj.roles;
     currentlyEffected["users"] = policyPayloadObj.users;
+    currentlyEffected["groups"] = policyPayloadObj.deviceGroups;
 
     if (currentlyEffected["roles"].length > 0) {
         $("#user-roles-radio-btn").prop("checked", true);
@@ -114,6 +145,10 @@ skipStep["policy-platform"] = function (policyPayloadObj) {
         $("#user-roles-select-field").hide();
         userInput.val(currentlyEffected["users"]).trigger("change");
     }
+    
+    if(currentlyEffected["groups"].length > 0) {
+        groupsInput.val(currentlyEffected["groups"]).trigger("change");
+    }
 
     ownershipInput.val(policyPayloadObj.ownershipType);
     actionInput.val(policyPayloadObj.compliance);
@@ -186,6 +221,11 @@ stepForwardFrom["policy-criteria"] = function () {
             }
         }
     });
+    policy["selectedGroups"] = $("#groups-input").val();
+    if (policy["selectedGroups"].length > 1 || policy["selectedGroups"][0] !== "NONE") {
+        policy["selectedGroups"] = createDeviceGroupWrapper(policy["selectedGroups"]);
+    }
+
     policy["selectedNonCompliantAction"] = $("#action-input").find(":selected").data("action");
     policy["selectedOwnership"] = $("#ownership-input").val();
     // updating next-page wizard title with selected platform
@@ -382,6 +422,10 @@ var updatePolicy = function (policy, state) {
         payload["roles"] = [];
     }
 
+    if(policy["selectedGroups"]) {
+        payload["deviceGroups"] = policy["selectedGroups"];
+    }
+
     var serviceURL = "/api/device-mgt/v1.0/policies/" + getParameterByName("id");
     invokerUtil.put(
         serviceURL,
@@ -476,6 +520,16 @@ $(document).ready(function () {
         }
     });
 
+    $("#groups-input").select2({
+        "tags": false
+    }).on("select2:select", function (e) {
+        if (e.params.data.id == "NONE") {
+            $(this).val("NONE").trigger("change");
+        } else {
+            $("option[value=NONE]", this).prop("selected", false).parent().trigger("change");
+        }
+    });
+
     $("#users-input").select2({
         "tags": false
     }).on("select2:select", function (e) {