diff --git a/client/src/app/components/HookFormPFFields/HookFormPFAddLabels.tsx b/client/src/app/components/HookFormPFFields/HookFormPFAddLabels.tsx
new file mode 100644
index 000000000..aa8cff660
--- /dev/null
+++ b/client/src/app/components/HookFormPFFields/HookFormPFAddLabels.tsx
@@ -0,0 +1,144 @@
+import React from "react";
+
+import {
+  Card,
+  FormHelperText,
+  HelperText,
+  HelperTextItem,
+  Label,
+  LabelGroup,
+  Stack,
+  StackItem,
+  TextInput,
+} from "@patternfly/react-core";
+import type { FieldValues, Path } from "react-hook-form";
+
+import {
+  type BaseHookFormPFGroupControllerProps,
+  HookFormPFGroupController,
+  extractGroupControllerProps,
+} from "./HookFormPFGroupController";
+
+export type HookFormPFAddLabelsProps<
+  TFieldValues extends FieldValues,
+  TName extends Path<TFieldValues>,
+> = BaseHookFormPFGroupControllerProps<TFieldValues, TName> & {
+  /**
+   * Placeholder text for the label input.
+   */
+  inputPlaceholder?: string;
+  /**
+   * Aria-label for the label input.
+   */
+  inputAriaLabel?: string;
+  /**
+   * Restricted labels for adding, f.e Product inside SBOM create group form.
+   */
+  restrictedLabels?: string[];
+};
+
+export const HookFormPFAddLabels = <
+  TFieldValues extends FieldValues = FieldValues,
+  TName extends Path<TFieldValues> = Path<TFieldValues>,
+>(
+  props: HookFormPFAddLabelsProps<TFieldValues, TName>,
+) => {
+  const { extractedProps, remainingProps } = extractGroupControllerProps<
+    TFieldValues,
+    TName,
+    HookFormPFAddLabelsProps<TFieldValues, TName>
+  >(props);
+
+  const {
+    inputPlaceholder = "Add label",
+    inputAriaLabel = "add-label-input",
+    restrictedLabels = [],
+  } = remainingProps as {
+    inputPlaceholder?: string;
+    inputAriaLabel?: string;
+    restrictedLabels?: string[];
+  };
+
+  const [newLabel, setNewLabel] = React.useState<string>("");
+  const [labelError, setLabelError] = React.useState<string | null>(null);
+
+  return (
+    <HookFormPFGroupController<TFieldValues, TName>
+      {...extractedProps}
+      renderInput={({ field: { value, onChange } }) => {
+        const labels = (value ?? []) as string[];
+
+        const handleAdd = () => {
+          const trimmed = newLabel.trim();
+          if (!trimmed) {
+            return;
+          }
+          if (restrictedLabels.includes(trimmed)) {
+            setLabelError(`The label '${trimmed}' is reserved`);
+            return;
+          }
+          if (labels.includes(trimmed)) {
+            setLabelError("Label already exists");
+            return;
+          }
+          onChange([...labels, trimmed]);
+          setNewLabel("");
+          setLabelError(null);
+        };
+
+        const handleDelete = (labelToRemove: string) => {
+          onChange(labels.filter((l) => l !== labelToRemove));
+        };
+
+        return (
+          <Stack hasGutter>
+            <StackItem>Add metadata labels</StackItem>
+            <StackItem>
+              <Card style={{ padding: 10, minHeight: 100, borderRadius: 8 }}>
+                <LabelGroup numLabels={10}>
+                  {labels.map((label) => (
+                    <Label
+                      key={label}
+                      color="blue"
+                      onClose={() => handleDelete(label)}
+                    >
+                      {label}
+                    </Label>
+                  ))}
+                </LabelGroup>
+              </Card>
+            </StackItem>
+            <StackItem>
+              <TextInput
+                value={newLabel}
+                aria-label={inputAriaLabel}
+                placeholder={inputPlaceholder}
+                onChange={(_event, value) => {
+                  setNewLabel(value);
+                  if (labelError) {
+                    setLabelError(null);
+                  }
+                }}
+                onKeyDown={(event) => {
+                  if (event.key === "Enter") {
+                    event.preventDefault();
+                    handleAdd();
+                  }
+                }}
+              />
+              {labelError && (
+                <FormHelperText>
+                  <HelperText>
+                    <HelperTextItem variant="error">
+                      {labelError}
+                    </HelperTextItem>
+                  </HelperText>
+                </FormHelperText>
+              )}
+            </StackItem>
+          </Stack>
+        );
+      }}
+    />
+  );
+};
diff --git a/client/src/app/components/HookFormPFFields/HookFormPFGroupController.tsx b/client/src/app/components/HookFormPFFields/HookFormPFGroupController.tsx
index 0fe28575f..c94805a0a 100644
--- a/client/src/app/components/HookFormPFFields/HookFormPFGroupController.tsx
+++ b/client/src/app/components/HookFormPFFields/HookFormPFGroupController.tsx
@@ -22,6 +22,14 @@ export interface BaseHookFormPFGroupControllerProps<
   TName extends Path<TFieldValues>,
 > {
   control: Control<TFieldValues>;
+  /**
+   * Extra props forwarded directly to react-hook-form's Controller
+   * (e.g. rules, defaultValue, shouldUnregister, disabled, etc.).
+   */
+  controllerProps?: Omit<
+    ControllerProps<TFieldValues, TName>,
+    "render" | "name" | "control"
+  >;
   label?: React.ReactNode;
   labelIcon?: React.ReactElement;
   name: TName;
@@ -45,6 +53,7 @@ export const HookFormPFGroupController = <
   TName extends Path<TFieldValues> = Path<TFieldValues>,
 >({
   control,
+  controllerProps,
   label,
   labelIcon,
   name,
@@ -59,6 +68,7 @@ export const HookFormPFGroupController = <
   <Controller<TFieldValues, TName>
     control={control}
     name={name}
+    {...controllerProps}
     render={({ field, fieldState, formState }) => {
       const { isDirty, isTouched, error } = fieldState;
       const shouldDisplayError =
@@ -107,6 +117,7 @@ export const extractGroupControllerProps = <
 } => {
   const {
     control,
+    controllerProps,
     label,
     labelIcon,
     name,
@@ -121,6 +132,7 @@ export const extractGroupControllerProps = <
   return {
     extractedProps: {
       control,
+      controllerProps,
       labelIcon,
       label,
       name,
diff --git a/client/src/app/components/HookFormPFFields/index.ts b/client/src/app/components/HookFormPFFields/index.ts
index b8a01668b..a45a9f9f0 100644
--- a/client/src/app/components/HookFormPFFields/index.ts
+++ b/client/src/app/components/HookFormPFFields/index.ts
@@ -2,3 +2,4 @@ export * from "./HookFormPFGroupController";
 export * from "./HookFormPFTextInput";
 export * from "./HookFormPFTextArea";
 export * from "./HookFormPFSelect";
+export * from "./HookFormPFAddLabels";
diff --git a/client/src/app/pages/sbom-list/components/SBOMGroupFormModal.tsx b/client/src/app/pages/sbom-list/components/SBOMGroupFormModal.tsx
new file mode 100644
index 000000000..95a65fbd7
--- /dev/null
+++ b/client/src/app/pages/sbom-list/components/SBOMGroupFormModal.tsx
@@ -0,0 +1,210 @@
+import React from "react";
+
+import {
+  Button,
+  ButtonVariant,
+  ExpandableSection,
+  Form,
+  FormSelectOption,
+  Modal,
+  ModalBody,
+  ModalFooter,
+  ModalHeader,
+  Radio,
+  Stack,
+  StackItem,
+} from "@patternfly/react-core";
+import { useForm } from "react-hook-form";
+
+import {
+  HookFormPFGroupController,
+  HookFormPFSelect,
+  HookFormPFTextArea,
+  HookFormPFTextInput,
+} from "@app/components/HookFormPFFields";
+import { HookFormPFAddLabels } from "@app/components/HookFormPFFields/HookFormPFAddLabels";
+
+type SBOMGroupFormValues = {
+  name: string;
+  parentGroup?: string;
+  isProduct: "yes" | "no";
+  description?: string;
+  labels: string[];
+};
+
+export interface SBOMGroupFormModalProps {
+  isOpen: boolean;
+  onClose: () => void;
+  onSubmit: (values: SBOMGroupFormValues) => void | Promise<void>;
+  initialValues?: Partial<SBOMGroupFormValues>;
+  type?: "Create" | "Edit";
+}
+
+export const SBOMGroupFormModal: React.FC<SBOMGroupFormModalProps> = ({
+  isOpen,
+  onClose,
+  onSubmit,
+  initialValues,
+  type = "Create",
+}) => {
+  const defaultValues: SBOMGroupFormValues = {
+    name: "",
+    parentGroup: "",
+    isProduct: "no",
+    description: "",
+    labels: [],
+  };
+
+  const [isAdvancedExpanded, setIsAdvancedExpanded] =
+    React.useState<boolean>(false);
+
+  const {
+    control,
+    handleSubmit,
+    reset,
+    formState: { isSubmitting, isValid, isValidating },
+  } = useForm<SBOMGroupFormValues>({
+    defaultValues: {
+      ...defaultValues,
+      ...initialValues,
+    },
+  });
+
+  React.useEffect(() => {
+    if (isOpen) {
+      reset({
+        ...defaultValues,
+        ...initialValues,
+      });
+    }
+  }, [isOpen, initialValues, reset]);
+
+  const onSubmitHandler = (values: SBOMGroupFormValues) => {
+    onSubmit(values);
+  };
+
+  const parentGroups: string[] = [];
+
+  return (
+    <Modal
+      variant="small"
+      isOpen={isOpen}
+      onClose={onClose}
+      aria-label={`${type} group`}
+    >
+      <ModalHeader title={`${type} group`} />
+      <ModalBody>
+        <Form id="sbom-group-form" onSubmit={handleSubmit(onSubmitHandler)}>
+          <HookFormPFTextInput
+            control={control}
+            controllerProps={{
+              rules: { required: "This field is required" },
+            }}
+            name="name"
+            label="Group name"
+            fieldId="group-name"
+            isRequired
+            placeholder="Enter group name"
+          />
+
+          <HookFormPFSelect
+            control={control}
+            name="parentGroup"
+            label="Parent group"
+            fieldId="parent-group"
+            placeholder="Select parent group"
+            helperText="Leave blank if this group does not have a parent"
+          >
+            {parentGroups.map((groupName) => (
+              <FormSelectOption
+                key={groupName}
+                value={groupName}
+                label={groupName}
+              />
+            ))}
+          </HookFormPFSelect>
+
+          <HookFormPFGroupController
+            control={control}
+            name="isProduct"
+            fieldId="is-product"
+            label="Is this group a product?"
+            controllerProps={{
+              rules: { required: "This field is required" },
+            }}
+            isRequired
+            renderInput={({ field: { name, value, onChange } }) => (
+              <Stack hasGutter>
+                <StackItem>
+                  <Radio
+                    id="is-product-yes"
+                    name={name}
+                    label="Yes"
+                    isChecked={value === "yes"}
+                    onChange={() => {
+                      onChange("yes");
+                    }}
+                  />
+                </StackItem>
+                <StackItem>
+                  <Radio
+                    id="is-product-no"
+                    name={name}
+                    label="No"
+                    isChecked={value === "no"}
+                    onChange={() => {
+                      onChange("no");
+                    }}
+                  />
+                </StackItem>
+              </Stack>
+            )}
+          />
+
+          <HookFormPFTextArea
+            control={control}
+            name="description"
+            label="Description"
+            fieldId="description"
+            resizeOrientation="vertical"
+            placeholder="Brief description of the group"
+          />
+
+          <ExpandableSection
+            toggleText="Advanced"
+            onToggle={(_event, val) => setIsAdvancedExpanded(val)}
+            isExpanded={isAdvancedExpanded}
+          >
+            <HookFormPFAddLabels
+              control={control}
+              name="labels"
+              fieldId="labels"
+              label="Labels"
+              restrictedLabels={["Product"]}
+            />
+          </ExpandableSection>
+        </Form>
+      </ModalBody>
+      <ModalFooter>
+        <Button
+          type="submit"
+          form="sbom-group-form"
+          aria-label={`${type} btn`}
+          variant={ButtonVariant.primary}
+          isDisabled={!isValid || isSubmitting || isValidating}
+        >
+          {type}
+        </Button>
+        <Button
+          type="button"
+          aria-label="Cancel"
+          variant={ButtonVariant.link}
+          isDisabled={isSubmitting || isValidating}
+          onClick={onClose}
+        >
+          Cancel
+        </Button>
+      </ModalFooter>
+    </Modal>
+  );
+};
diff --git a/client/src/app/pages/sbom-list/sbom-toolbar.tsx b/client/src/app/pages/sbom-list/sbom-toolbar.tsx
index ae0e9c4c5..90f715171 100644
--- a/client/src/app/pages/sbom-list/sbom-toolbar.tsx
+++ b/client/src/app/pages/sbom-list/sbom-toolbar.tsx
@@ -16,6 +16,7 @@ import { ToolbarBulkSelector } from "@app/components/ToolbarBulkSelector";
 import { Paths } from "@app/Routes";
 
 import { SbomSearchContext } from "./sbom-context";
+import { SBOMGroupFormModal } from "./components/SBOMGroupFormModal";
 
 interface SbomToolbarProps {
   showFilters?: boolean;
@@ -28,6 +29,10 @@ export const SbomToolbar: React.FC<SbomToolbarProps> = ({
 }) => {
   const navigate = useNavigate();
 
+  const [createGroupOpened, setCreateGroupOpened] =
+    React.useState<boolean>(false);
+  const closeCreateGroup = () => setCreateGroupOpened(false);
+
   const {
     tableControls,
     bulkSelection: {
@@ -50,53 +55,65 @@ export const SbomToolbar: React.FC<SbomToolbarProps> = ({
   } = bulkSelectionControls;
 
   return (
-    <Toolbar {...toolbarProps} aria-label="sbom-toolbar">
-      <ToolbarContent>
-        {showBulkSelector && (
-          <ToolbarBulkSelector {...toolbarBulkSelectorProps} />
-        )}
-        {showFilters && <FilterToolbar {...filterToolbarProps} />}
-        {showActions && (
-          <>
-            <ToolbarItem>
-              <Button variant="primary">Create group</Button>
-            </ToolbarItem>
-            <ToolbarItem>
-              <Button variant="secondary" isDisabled>
-                Add to group
-              </Button>
-            </ToolbarItem>
-            <ToolbarItem>
-              <KebabDropdown
-                ariaLabel="SBOM actions"
-                dropdownItems={[
-                  <DropdownItem
-                    key="upload-sbom"
-                    component="button"
-                    onClick={() => navigate(Paths.sbomUpload)}
-                  >
-                    Upload SBOM
-                  </DropdownItem>,
-                  <DropdownItem
-                    key="scan-sbom"
-                    component="button"
-                    onClick={() => navigate(Paths.sbomScan)}
-                  >
-                    Generate vulnerability report
-                  </DropdownItem>,
-                ]}
-              />
-            </ToolbarItem>
-          </>
-        )}
-        <ToolbarItem {...paginationToolbarItemProps}>
-          <SimplePagination
-            idPrefix="sbom-table"
-            isTop
-            paginationProps={paginationProps}
-          />
-        </ToolbarItem>
-      </ToolbarContent>
-    </Toolbar>
+    <>
+      <Toolbar {...toolbarProps} aria-label="sbom-toolbar">
+        <ToolbarContent>
+          {showBulkSelector && (
+            <ToolbarBulkSelector {...toolbarBulkSelectorProps} />
+          )}
+          {showFilters && <FilterToolbar {...filterToolbarProps} />}
+          {showActions && (
+            <>
+              <ToolbarItem>
+                <Button
+                  variant="primary"
+                  onClick={() => setCreateGroupOpened(true)}
+                >
+                  Create group
+                </Button>
+              </ToolbarItem>
+              <ToolbarItem>
+                <Button variant="secondary" isDisabled>
+                  Add to group
+                </Button>
+              </ToolbarItem>
+              <ToolbarItem>
+                <KebabDropdown
+                  ariaLabel="SBOM actions"
+                  dropdownItems={[
+                    <DropdownItem
+                      key="upload-sbom"
+                      component="button"
+                      onClick={() => navigate(Paths.sbomUpload)}
+                    >
+                      Upload SBOM
+                    </DropdownItem>,
+                    <DropdownItem
+                      key="scan-sbom"
+                      component="button"
+                      onClick={() => navigate(Paths.sbomScan)}
+                    >
+                      Generate vulnerability report
+                    </DropdownItem>,
+                  ]}
+                />
+              </ToolbarItem>
+            </>
+          )}
+          <ToolbarItem {...paginationToolbarItemProps}>
+            <SimplePagination
+              idPrefix="sbom-table"
+              isTop
+              paginationProps={paginationProps}
+            />
+          </ToolbarItem>
+        </ToolbarContent>
+      </Toolbar>
+      <SBOMGroupFormModal
+        isOpen={createGroupOpened}
+        onClose={closeCreateGroup}
+        onSubmit={(val) => console.log(val)}
+      />
+    </>
   );
 };