diff --git a/scm-ui/src/groups/modules/groups.js b/scm-ui/src/groups/modules/groups.js
index 92484ddba4..be0fc97615 100644
--- a/scm-ui/src/groups/modules/groups.js
+++ b/scm-ui/src/groups/modules/groups.js
@@ -83,3 +83,74 @@ export function fetchGroupsFailure(url: string, error: Error): Action {
     }
   };
 }
+
+
+//reducer
+function extractGroupsByNames(
+  groups: Groups[],
+  groupNames: string[],
+  oldGroupsByNames: Object
+) {
+  const groupsByNames = {};
+
+  for (let group of groups) {
+    groupsByNames[group.name] = group;
+  }
+
+  for (let groupName in oldGroupsByNames) {
+    groupsByNames[groupName] = oldGroupsByNames[groupName];
+  }
+  return groupsByNames;
+}
+
+
+const reducerByName = (state: any, groupname: string, newGroupState: any) => {
+  const newGroupsByNames = {
+    ...state,
+    [groupname]: newGroupState
+  };
+
+  return newGroupsByNames;
+};
+
+function listReducer(state: any = {}, action: any = {}) {
+  switch (action.type) {
+    case FETCH_GROUPS_SUCCESS:
+      const groups = action.payload._embedded.groups;
+      const groupNames = groups.map(group => group.name);
+      return {
+        ...state,
+        entries: groupNames,
+        entry: {
+          groupCreatePermission: action.payload._links.create ? true : false,
+          page: action.payload.page,
+          pageTotal: action.payload.pageTotal,
+          _links: action.payload._links
+        }
+      };
+
+    default:
+      return state;
+  }
+}
+
+function byNamesReducer(state: any = {}, action: any = {}) {
+  switch (action.type) {
+    // Fetch all groups actions
+    case FETCH_GROUPS_SUCCESS:
+      const groups = action.payload._embedded.groups;
+      const groupNames = groups.map(group => group.name);
+      const byNames = extractGroupsByNames(groups, groupNames, state.byNames);
+      return {
+        ...byNames
+      };
+
+    default:
+      return state;
+  }
+}
+
+export default combineReducers({
+  list: listReducer,
+  byNames: byNamesReducer
+});
diff --git a/scm-ui/src/groups/modules/groups.test.js b/scm-ui/src/groups/modules/groups.test.js
index 82c6a9d4ee..da0d3e97de 100644
--- a/scm-ui/src/groups/modules/groups.test.js
+++ b/scm-ui/src/groups/modules/groups.test.js
@@ -3,17 +3,66 @@ import configureMockStore from "redux-mock-store";
 import thunk from "redux-thunk";
 import fetchMock from "fetch-mock";
 
-import {fetchGroups,
+import reducer, {
+  fetchGroups,
   FETCH_GROUPS_PENDING,
   FETCH_GROUPS_SUCCESS,
-  FETCH_GROUPS_FAILURE
+  FETCH_GROUPS_FAILURE,
+  fetchGroupsSuccess
 } from "./groups"
 const GROUPS_URL = "/scm/api/rest/v2/groups";
 
 const groupZaphod = {
+  creationDate: "2018-07-31T08:39:07.860Z",
+  description: "This is a group",
+  name: "zaphodGroup",
+  type: "xml",
+  properties: {},
+  members: ["userZaphod"],
+  _links: {
+    self: {
+      href: "http://localhost:3000/scm/api/rest/v2/groups/zaphodGroup"
+    },
+    delete: {
+      href: "http://localhost:3000/scm/api/rest/v2/groups/zaphodGroup"
+    },
+    update: {
+      href:"http://localhost:3000/scm/api/rest/v2/groups/zaphodGroup"
+    }
+  },
+  _embedded: {
+    members: [{
+      name:"userZaphod",
+      _links: {
+        self :{
+          href: "http://localhost:3000/scm/api/rest/v2/users/userZaphod"
+        }
+      }
+    }]
+  }
 };
 
 const groupFord = {
+  creationDate: "2018-07-31T08:39:07.860Z",
+  description: "This is a group",
+  name: "fordGroup",
+  type: "xml",
+  properties: {},
+  members: [],
+  _links: {
+    self: {
+      href: "http://localhost:3000/scm/api/rest/v2/groups/fordGroup"
+    },
+    delete: {
+      href: "http://localhost:3000/scm/api/rest/v2/groups/fordGroup"
+    },
+    update: {
+      href:"http://localhost:3000/scm/api/rest/v2/groups/fordGroup"
+    }
+  },
+  _embedded: {
+    members: []
+  }
 };
 
 const responseBody = {
@@ -43,9 +92,6 @@ const response = {
   responseBody
 };
 
-
-const error = new Error("KAPUTT");
-
 describe("groups fetch()", () => {
   const mockStore = configureMockStore([thunk]);
   afterEach(() => {
@@ -85,3 +131,54 @@ describe("groups fetch()", () => {
     });
   });
 });
+
+describe("groups reducer", () => {
+
+  it("should update state correctly according to FETCH_USERS_SUCCESS action", () => {
+    const newState = reducer({}, fetchGroupsSuccess(responseBody));
+
+    expect(newState.list).toEqual({
+      entries: ["zaphodGroup", "fordGroup"],
+      entry: {
+        groupCreatePermission: true,
+        page: 0,
+        pageTotal: 1,
+        _links: responseBody._links
+      }
+    });
+
+    expect(newState.byNames).toEqual({
+      zaphodGroup: groupZaphod,
+      fordGroup: groupFord
+    });
+
+    expect(newState.list.entry.groupCreatePermission).toBeTruthy();
+  });
+
+  it("should set groupCreatePermission to true if update link is present", () => {
+    const newState = reducer({}, fetchGroupsSuccess(responseBody));
+
+    expect(newState.list.entry.groupCreatePermission).toBeTruthy();
+  });
+
+  it("should not replace whole byNames map when fetching users", () => {
+    const oldState = {
+      byNames: {
+        fordGroup: groupFord
+      }
+    };
+
+    const newState = reducer(oldState, fetchGroupsSuccess(responseBody));
+    expect(newState.byNames["zaphodGroup"]).toBeDefined();
+    expect(newState.byNames["fordGroup"]).toBeDefined();
+  });
+
+  it("should set userCreatePermission to true if create link is present", () => {
+    const newState = reducer({}, fetchGroupsSuccess(responseBody));
+
+    expect(newState.list.entry.groupCreatePermission).toBeTruthy();
+    expect(newState.list.entries).toEqual(["zaphodGroup", "fordGroup"]);
+    expect(newState.byNames["fordGroup"]).toBeTruthy();
+    expect(newState.byNames["zaphodGroup"]).toBeTruthy();
+  });
+});