diff --git a/lib/api/groups.rb b/lib/api/groups.rb
index 64b998ab455..12227c886b2 100644
--- a/lib/api/groups.rb
+++ b/lib/api/groups.rb
@@ -60,7 +60,17 @@ module API
 
       def find_group_projects(params)
         group = find_group!(params[:id])
-        projects = GroupProjectsFinder.new(group: group, current_user: current_user, params: project_finder_params).execute
+        options = {
+          only_owned: !params[:include_shared],
+          include_subgroups: params[:include_subgroups]
+        }
+
+        projects = GroupProjectsFinder.new(
+          group: group,
+          current_user: current_user,
+          params: project_finder_params,
+          options: options
+        ).execute
         projects = projects.with_issues_available_for_user(current_user) if params[:with_issues_enabled]
         projects = projects.with_merge_requests_enabled if params[:with_merge_requests_enabled]
         projects = reorder_projects(projects)
@@ -201,6 +211,8 @@ module API
         optional :starred, type: Boolean, default: false, desc: 'Limit by starred status'
         optional :with_issues_enabled, type: Boolean, default: false, desc: 'Limit by enabled issues feature'
         optional :with_merge_requests_enabled, type: Boolean, default: false, desc: 'Limit by enabled merge requests feature'
+        optional :include_subgroups, type: Boolean, default: false, desc: 'Includes projects in subgroups of this group'
+        optional :include_shared, type: Boolean, default: true, desc: 'Include projects shared to this group'
 
         use :pagination
         use :with_custom_attributes
diff --git a/spec/requests/api/groups_spec.rb b/spec/requests/api/groups_spec.rb
index 3802b5c6848..fe47d23ad3c 100644
--- a/spec/requests/api/groups_spec.rb
+++ b/spec/requests/api/groups_spec.rb
@@ -502,6 +502,32 @@ describe API::Groups do
         expect(json_response.first['name']).to eq(public_project.name)
       end
 
+      it 'returns projects excluding shared' do
+        create(:project_group_link, project: create(:project), group: group1)
+        create(:project_group_link, project: create(:project), group: group1)
+        create(:project_group_link, project: create(:project), group: group1)
+
+        get api("/groups/#{group1.id}/projects", user1), include_shared: false
+
+        expect(response).to have_gitlab_http_status(200)
+        expect(response).to include_pagination_headers
+        expect(json_response).to be_an(Array)
+        expect(json_response.length).to eq(2)
+      end
+
+      it 'returns projects including those in subgroups' do
+        subgroup = create(:group, parent: group1)
+        create(:project, group: subgroup)
+        create(:project, group: subgroup)
+
+        get api("/groups/#{group1.id}/projects", user1), include_subgroups: true
+
+        expect(response).to have_gitlab_http_status(200)
+        expect(response).to include_pagination_headers
+        expect(json_response).to be_an(Array)
+        expect(json_response.length).to eq(4)
+      end
+
       it "does not return a non existing group" do
         get api("/groups/1328/projects", user1)