diff --git a/lib/ansible/modules/cloud/vmware/vmware_drs_group.py b/lib/ansible/modules/cloud/vmware/vmware_drs_group.py
new file mode 100644
index 00000000000..ba8c767b9ab
--- /dev/null
+++ b/lib/ansible/modules/cloud/vmware/vmware_drs_group.py
@@ -0,0 +1,578 @@
+#!/usr/bin/python
+# -*- coding: utf-8 -*-
+
+# Copyright: (c) 2018, Karsten Kaj Jakobsen <kj@patientsky.com>
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import absolute_import, division, print_function
+
+__metaclass__ = type
+
+ANSIBLE_METADATA = {
+    'metadata_version': '1.1',
+    'status': ['preview'],
+    'supported_by': 'community'
+}
+
+DOCUMENTATION = r'''
+---
+author:
+  - "Karsten Kaj Jakobsen (@karstenjakobsen)"
+description:
+  - "This module can be used to create VM/Host groups in a given cluster. Creates a vm group if C(vms) is set. Creates a host group if C(hosts) is set."
+extends_documentation_fragment: vmware.documentation
+module: vmware_drs_group
+notes:
+  - "Tested on vSphere 6.5 and 6.7"
+options:
+  cluster_name:
+    description:
+      - "Cluster to create vm/host group."
+    required: true
+  datacenter:
+    aliases:
+      - datacenter_name
+    description:
+      - "Datacenter to search for given cluster. If not set, we use first cluster we encounter with C(cluster_name)."
+    required: false
+  group_name:
+    description:
+      - "The name of the group to create or remove."
+    required: true
+  hosts:
+    description:
+      - "List of hosts to create in group."
+      - "Required only if C(vms) is not set."
+    required: false
+  state:
+    choices:
+      - present
+      - absent
+    default: present
+    description:
+      - "If set to C(present) and the group doesn't exists then the group will be created."
+      - "If set to C(absent) and the group exists then the groupwill be deleted."
+    required: true
+  vms:
+    description:
+      - "List of vms to create in group."
+      - "Required only if C(hosts) is not set."
+    required: false
+requirements:
+  - "python >= 2.6"
+  - PyVmomi
+short_description: "Creates vm/host group in a given cluster."
+version_added: "2.8"
+'''
+
+EXAMPLES = r'''
+---
+- name: "Create DRS VM group"
+  delegate_to: localhost
+  vmware_drs_group:
+    hostname: "{{ vcenter_hostname }}"
+    password: "{{ vcenter_password }}"
+    username: "{{ vcenter_username }}"
+    cluster_name: DC0_C0
+    datacenter_name: DC0
+    group_name: TEST_VM_01
+    vms:
+      - DC0_C0_RP0_VM0
+      - DC0_C0_RP0_VM1
+    state: present
+
+- name: "Create DRS Host group"
+  delegate_to: localhost
+  vmware_drs_group:
+    hostname: "{{ vcenter_hostname }}"
+    password: "{{ vcenter_password }}"
+    username: "{{ vcenter_username }}"
+    cluster_name: DC0_C0
+    datacenter_name: DC0
+    group_name: TEST_HOST_01
+    hosts:
+      - DC0_C0_H0
+      - DC0_C0_H1
+      - DC0_C0_H2
+    state: absent
+
+- name: "Delete DRS Host group"
+  delegate_to: localhost
+  vmware_drs_group:
+    hostname: "{{ vcenter_hostname }}"
+    password: "{{ vcenter_password }}"
+    username: "{{ vcenter_username }}"
+    cluster_name: DC0_C0
+    datacenter_name: DC0
+    group_name: TEST_HOST_01
+    state: absent
+
+'''
+
+RETURN = r'''
+drs_group_facts:
+    description: Metadata about DRS group created
+    returned: always
+    type: dict
+    sample:
+        "drs_group_facts": {
+        "changed": true,
+        "failed": false,
+        "msg": "Created host group TEST_HOST_01 successfully",
+        "result": {
+            "DC0_C0": [
+                {
+                    "group_name": "TEST_HOST_01",
+                    "hosts": [
+                        "DC0_C0_H0",
+                        "DC0_C0_H1",
+                        "DC0_C0_H2"
+                    ],
+                    "type": "host"
+                }
+            ]
+        }
+    }
+'''
+
+try:
+    from pyVmomi import vim
+except ImportError:
+    pass
+
+from ansible.module_utils.basic import AnsibleModule
+from ansible.module_utils.vmware import (PyVmomi, vmware_argument_spec,
+                                         wait_for_task, find_cluster_by_name,
+                                         find_vm_by_id, find_datacenter_by_name, find_vm_by_name)
+
+
+class VmwareDrsGroupManager(PyVmomi):
+    """
+    Class to manage DRS groups
+    """
+
+    def __init__(self, module, cluster_name, group_name, state,
+                 datacenter_name=None, vm_list=None, host_list=None):
+        """
+        Init
+        """
+
+        super(VmwareDrsGroupManager, self).__init__(module)
+
+        self.__datacenter_name = datacenter_name
+        self.__datacenter_obj = None
+        self.__cluster_name = cluster_name
+        self.__cluster_obj = None
+        self.__group_name = group_name
+        self.__group_obj = None
+        self.__operation = None
+        self.__vm_list = vm_list
+        self.__vm_obj_list = []
+        self.__host_list = host_list
+        self.__host_obj_list = []
+        self.__msg = 'Nothing to see here...'
+        self.__result = dict()
+        self.__changed = False
+        self.__state = state
+
+        if datacenter_name is not None:
+
+            self.__datacenter_obj = find_datacenter_by_name(self.content, self.__datacenter_name)
+
+            if self.__datacenter_obj is None and module.check_mode is False:
+                raise Exception("Datacenter '%s' not found" % self.__datacenter_name)
+
+        self.__cluster_obj = find_cluster_by_name(content=self.content,
+                                                  cluster_name=self.__cluster_name,
+                                                  datacenter=self.__datacenter_obj)
+
+        # Throw error if cluster does not exist
+        if self.__cluster_obj is None:
+            if module.check_mode is False:
+                raise Exception("Cluster '%s' not found" % self.__cluster_name)
+        else:
+            # get group
+            self.__group_obj = self.__get_group_by_name()
+            # Set result here. If nothing is to be updated, result is already set
+            self.__set_result(self.__group_obj)
+
+        # Dont populate lists if we are deleting group
+        if state == 'present':
+
+            if self.__group_obj:
+                self.__operation = 'edit'
+            else:
+                self.__operation = 'add'
+
+            if self.__vm_list is not None:
+                self.__set_vm_obj_list(vm_list=self.__vm_list)
+
+            if self.__host_list is not None:
+                self.__set_host_obj_list(host_list=self.__host_list)
+        else:
+            self.__operation = 'remove'
+
+    def get_msg(self):
+        """
+        Returns message for Ansible result
+        Args: none
+
+        Returns: string
+        """
+        return self.__msg
+
+    def get_result(self):
+        """
+        Returns result for Ansible
+        Args: none
+
+        Returns: dict
+        """
+        return self.__result
+
+    def __set_result(self, group_obj):
+        """
+        Creates result for successfull run
+        Args:
+            group_obj: group pbject
+
+        Returns: None
+
+        """
+        self.__result = dict()
+
+        if (self.__cluster_obj is not None) and (group_obj is not None):
+            self.__result[self.__cluster_obj.name] = []
+            self.__result[self.__cluster_obj.name].append(self.__normalize_group_data(group_obj))
+
+    def get_changed(self):
+        """
+        Returns if anything changed
+        Args: none
+
+        Returns: boolean
+        """
+        return self.__changed
+
+    def __set_vm_obj_list(self, vm_list=None, cluster_obj=None):
+        """
+        Function pupulate vm object list from list of vms
+        Args:
+            vm_list: List of vm names
+
+        Returns: None
+
+        """
+
+        if vm_list is None:
+            vm_list = self.__vm_list
+
+        if cluster_obj is None:
+            cluster_obj = self.__cluster_obj
+
+        if vm_list is not None:
+
+            for vm in vm_list:
+
+                if self.module.check_mode is False:
+
+                    # Get host data
+                    vm_obj = find_vm_by_id(content=self.content, vm_id=vm,
+                                           vm_id_type='vm_name', cluster=cluster_obj)
+
+                    if vm_obj is None:
+                        raise Exception("VM %s does not exist in cluster %s" % (vm,
+                                                                                self.__cluster_name))
+
+                    self.__vm_obj_list.append(vm_obj)
+
+    def __set_host_obj_list(self, host_list=None):
+        """
+        Function pupulate host object list from list of hostnames
+        Args:
+            host_list: List of host names
+
+        Returns: None
+
+        """
+
+        if host_list is None:
+            host_list = self.__host_list
+
+        if host_list is not None:
+
+            for host in host_list:
+
+                if self.module.check_mode is False:
+
+                    # Get host data
+                    host_obj = self.find_hostsystem_by_name(host)
+
+                    if host_obj is None and self.module.check_mode is False:
+                        raise Exception("ESXi host %s does not exist in cluster %s" % (host, self.__cluster_name))
+
+                    self.__host_obj_list.append(host_obj)
+
+    def __get_group_by_name(self, group_name=None, cluster_obj=None):
+        """
+        Function to get group by name
+        Args:
+            group_name: Name of group
+            cluster_obj: vim Cluster object
+
+        Returns: Group Object if found or None
+
+        """
+
+        if group_name is None:
+            group_name = self.__group_name
+
+        if cluster_obj is None:
+            cluster_obj = self.__cluster_obj
+
+        # Allow for group check even if dry run
+        if self.module.check_mode and cluster_obj is None:
+            return None
+
+        for group in cluster_obj.configurationEx.group:
+            if group.name == group_name:
+                return group
+
+        # No group found
+        return None
+
+    def __populate_vm_host_list(self, group_name=None, cluster_obj=None, host_group=False):
+        """
+        Return all VM/Host names using given group name
+        Args:
+            group_name: group name
+            cluster_obj: Cluster managed object
+            host_group: True if we want only host name from group
+
+        Returns: List of VM/Host names belonging to given group object
+
+        """
+        obj_name_list = []
+
+        if group_name is None:
+            group_name = self.__group_name
+
+        if cluster_obj is None:
+            cluster_obj = self.__cluster_obj
+
+        if not all([group_name, cluster_obj]):
+            return obj_name_list
+
+        group = self.__group_obj
+
+        if not host_group and isinstance(group, vim.cluster.VmGroup):
+            obj_name_list = [vm.name for vm in group.vm]
+
+        elif host_group and isinstance(group, vim.cluster.HostGroup):
+            obj_name_list = [host.name for host in group.host]
+
+        return obj_name_list
+
+    def __check_if_vms_hosts_changed(self, group_name=None, cluster_obj=None, host_group=False):
+        """
+        Function to check if VMs/Hosts changed
+        Args:
+            group_name: Name of group
+            cluster_obj: vim Cluster object
+            host_group: True if we want to check hosts, else check vms
+
+        Returns: Bool
+
+        """
+
+        if group_name is None:
+            group_name = self.__group_name
+
+        if cluster_obj is None:
+            cluster_obj = self.__cluster_obj
+
+        list_a = self.__host_list if host_group else self.__vm_list
+        list_b = self.__populate_vm_host_list(host_group=host_group)
+
+        # By casting lists as a set, you remove duplicates and order doesn't count. Comparing sets is also much faster and more efficient than comparing lists.
+        if set(list_a) == set(list_b):
+            return False
+        else:
+            return True
+
+    def __create_host_group(self):
+
+        # Check if anything has changed when editing
+        if self.__operation == 'add' or (self.__operation == 'edit' and self.__check_if_vms_hosts_changed(host_group=True)):
+
+            group = vim.cluster.HostGroup()
+            group.name = self.__group_name
+            group.host = self.__host_obj_list
+
+            group_spec = vim.cluster.GroupSpec(info=group, operation=self.__operation)
+            config_spec = vim.cluster.ConfigSpecEx(groupSpec=[group_spec])
+
+            if not self.module.check_mode:
+                task = self.__cluster_obj.ReconfigureEx(config_spec, modify=True)
+                wait_for_task(task)
+
+            # Set new result since something changed
+            self.__set_result(group)
+            self.__changed = True
+
+        if self.__operation == 'edit':
+            self.__msg = "Updated host group %s successfully" % (self.__group_name)
+        else:
+            self.__msg = "Created host group %s successfully" % (self.__group_name)
+
+    def __create_vm_group(self):
+
+        # Check if anything has changed when editing
+        if self.__operation == 'add' or (self.__operation == 'edit' and self.__check_if_vms_hosts_changed()):
+
+            group = vim.cluster.VmGroup()
+
+            group.name = self.__group_name
+            group.vm = self.__vm_obj_list
+
+            group_spec = vim.cluster.GroupSpec(info=group, operation=self.__operation)
+            config_spec = vim.cluster.ConfigSpecEx(groupSpec=[group_spec])
+
+            # Check if dry run
+            if not self.module.check_mode:
+                task = self.__cluster_obj.ReconfigureEx(config_spec, modify=True)
+                wait_for_task(task)
+
+            self.__set_result(group)
+            self.__changed = True
+
+        if self.__operation == 'edit':
+            self.__msg = "Updated vm group %s successfully" % (self.__group_name)
+        else:
+            self.__msg = "Created vm group %s successfully" % (self.__group_name)
+
+    def __normalize_group_data(self, group_obj):
+        """
+        Return human readable group spec
+        Args:
+            group_obj: Group object
+
+        Returns: DRS group object fact
+
+        """
+        if not all([group_obj]):
+            return {}
+
+        # Check if group is a host group
+        if hasattr(group_obj, 'host'):
+            return dict(
+                group_name=group_obj.name,
+                hosts=self.__host_list,
+                type="host"
+            )
+        else:
+            return dict(
+                group_name=group_obj.name,
+                vms=self.__vm_list,
+                type="vm"
+            )
+
+    def create_drs_group(self):
+        """
+        Function to create a DRS host/vm group
+        """
+
+        if self.__vm_list is None:
+            self.__create_host_group()
+        elif self.__host_list is None:
+            self.__create_vm_group()
+        else:
+            raise Exception('Failed, no hosts or vms defined')
+
+    def delete_drs_group(self):
+        """
+        Function to delete a DRS host/vm group
+        """
+
+        if self.__group_obj is not None:
+
+            self.__changed = True
+
+            # Check if dry run
+            if not self.module.check_mode:
+
+                group_spec = vim.cluster.GroupSpec(removeKey=self.__group_name, operation=self.__operation)
+                config_spec = vim.cluster.ConfigSpecEx(groupSpec=[group_spec])
+
+                task = self.__cluster_obj.ReconfigureEx(config_spec, modify=True)
+                wait_for_task(task)
+
+        # Dont throw error if group does not exist. Simply set changed = False
+        if self.__changed:
+            self.__msg = "Deleted group `%s` successfully" % (self.__group_name)
+        else:
+            self.__msg = "DRS group `%s` does not exists or already deleted" % (self.__group_name)
+
+
+def main():
+    """
+    Main function
+    """
+
+    argument_spec = vmware_argument_spec()
+
+    argument_spec.update(
+        state=dict(type='str', default='present', choices=['present', 'absent']),
+        datacenter=dict(type='str', required=False, aliases=['datacenter_name']),
+        cluster_name=dict(type='str', required=True),
+        group_name=dict(type='str', required=True),
+        vms=dict(type='list'),
+        hosts=dict(type='list')
+    )
+
+    required_if = [
+        ['state', 'absent', ['group_name']]
+    ]
+
+    module = AnsibleModule(
+        argument_spec=argument_spec,
+        required_if=required_if,
+        supports_check_mode=True,
+        mutually_exclusive=[['vms', 'hosts']],
+        required_one_of=[['vms', 'hosts']]
+    )
+
+    try:
+        # Create instance of VmwareDrsGroupManager
+        vmware_drs_group = VmwareDrsGroupManager(module=module,
+                                                 datacenter_name=module.params.get('datacenter', None),
+                                                 cluster_name=module.params['cluster_name'],
+                                                 group_name=module.params['group_name'],
+                                                 vm_list=module.params['vms'],
+                                                 host_list=module.params['hosts'],
+                                                 state=module.params['state'])
+
+        if module.params['state'] == 'present':
+            # Add DRS group
+            vmware_drs_group.create_drs_group()
+        elif module.params['state'] == 'absent':
+            # Delete DRS group
+            vmware_drs_group.delete_drs_group()
+
+        # Set results
+        results = dict(msg=vmware_drs_group.get_msg(),
+                       failed=False,
+                       changed=vmware_drs_group.get_changed(),
+                       result=vmware_drs_group.get_result())
+
+    except Exception as error:
+        results = dict(failed=True, msg="Error: %s" % error)
+
+    if results['failed']:
+        module.fail_json(**results)
+    else:
+        module.exit_json(**results)
+
+
+if __name__ == "__main__":
+    main()
diff --git a/test/integration/targets/vmware_drs_group/aliases b/test/integration/targets/vmware_drs_group/aliases
new file mode 100644
index 00000000000..def56b54029
--- /dev/null
+++ b/test/integration/targets/vmware_drs_group/aliases
@@ -0,0 +1,2 @@
+shippable/vcenter/group1
+cloud/vcenter
\ No newline at end of file
diff --git a/test/integration/targets/vmware_drs_group/tasks/main.yml b/test/integration/targets/vmware_drs_group/tasks/main.yml
new file mode 100644
index 00000000000..c94f5ebe0ae
--- /dev/null
+++ b/test/integration/targets/vmware_drs_group/tasks/main.yml
@@ -0,0 +1,99 @@
+# Test code for the vmware_drs_group module
+# Copyright: (c) 2018, Karsten Kaj Jakobsen <kj@patientsky.com>
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+- name: Store the vcenter container ip
+  set_fact:
+    vcsim: "{{ lookup('env', 'vcenter_host') }}"
+- debug: var=vcsim
+
+- name: Wait for Flask controller to come up online
+  wait_for:
+    host: "{{ vcsim }}"
+    port: 5000
+    state: started
+
+- name: Kill vcsim
+  uri:
+    url: http://{{ vcsim }}:5000/killall
+
+- name: Start vcsim
+  uri:
+    url: http://{{ vcsim }}:5000/spawn?cluster=2
+  register: vcsim_instance
+
+- name: Wait for Flask controller to come up online
+  wait_for:
+    host: "{{ vcsim }}"
+    port: 443
+    state: started
+
+- debug: var=vcsim_instance
+
+- name: "Create DRS VM group"
+  vmware_drs_group:
+    # Login creds
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance['json']['username'] }}"
+    password: "{{ vcsim_instance['json']['password'] }}"
+    validate_certs: False
+    # Options
+    cluster_name: DC0_C0
+    datacenter_name: DC0
+    group_name: TEST_VM_01
+    vms:
+      - DC0_C0_RP0_VM0
+      - DC0_C0_RP0_VM1
+    state: present
+  register: drs_vm_group_01_results
+
+- debug: var=drs_vm_group_01_results
+
+- assert:
+    that:
+      - "drs_vm_group_01_results.changed"
+
+- name: "Create DRS Host group"
+  vmware_drs_group:
+    # Login creds
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance['json']['username'] }}"
+    password: "{{ vcsim_instance['json']['password'] }}"
+    validate_certs: False
+    # Options
+    cluster_name: DC0_C0
+    datacenter_name: DC0
+    group_name: TEST_HOST_01
+    hosts:
+      - DC0_C0_H0
+      - DC0_C0_H1
+      - DC0_C0_H2
+    state: present
+  register: drs_host_group_01_results
+
+- debug: var=drs_host_group_01_results
+
+- assert:
+    that:
+      - "drs_host_group_01_results.changed"
+
+- name: "Delete DRS Host group"
+  vmware_drs_group:
+    # Login creds
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance['json']['username'] }}"
+    password: "{{ vcsim_instance['json']['password'] }}"
+    validate_certs: False
+    # Options
+    cluster_name: DC0_C0
+    datacenter_name: DC0
+    group_name: TEST_HOST_01
+    hosts: []
+    state: absent
+  register: drs_host_group_01_delete_results
+
+- debug: var=drs_host_group_01_delete_results
+
+- assert:
+    that:
+      - "drs_host_group_01_delete_results.changed"
\ No newline at end of file