diff --git a/app/assets/javascripts/dispatcher.js b/app/assets/javascripts/dispatcher.js
index ffd8d494a40..81267c68cfc 100644
--- a/app/assets/javascripts/dispatcher.js
+++ b/app/assets/javascripts/dispatcher.js
@@ -396,6 +396,7 @@ import PerformanceBar from './performance_bar';
           initSettingsPanels();
           break;
         case 'projects:settings:ci_cd:show':
+        case 'groups:settings:ci_cd:show':
           new gl.ProjectVariables();
           break;
         case 'ci:lints:create':
diff --git a/app/controllers/groups/settings/ci_cd_controller.rb b/app/controllers/groups/settings/ci_cd_controller.rb
new file mode 100644
index 00000000000..0142ad8278c
--- /dev/null
+++ b/app/controllers/groups/settings/ci_cd_controller.rb
@@ -0,0 +1,24 @@
+module Groups
+  module Settings
+    class CiCdController < Groups::ApplicationController
+      before_action :authorize_admin_pipeline!
+
+      def show
+        define_secret_variables
+      end
+
+      private
+
+      def define_secret_variables
+        @variable = Ci::GroupVariable.new(group: group)
+          .present(current_user: current_user)
+        @variables = group.variables.order_key_asc
+          .map { |variable| variable.present(current_user: current_user) }
+      end
+
+      def authorize_admin_pipeline!
+        return render_404 unless can?(current_user, :admin_pipeline, group)
+      end
+    end
+  end
+end
diff --git a/app/controllers/groups/variables_controller.rb b/app/controllers/groups/variables_controller.rb
new file mode 100644
index 00000000000..6fba9dab2a7
--- /dev/null
+++ b/app/controllers/groups/variables_controller.rb
@@ -0,0 +1,57 @@
+module Groups
+  class VariablesController < Groups::ApplicationController
+    before_action :variable, only: [:show, :update, :destroy]
+    before_action :authorize_admin_build!
+
+    def index
+      redirect_to group_settings_ci_cd_path(group)
+    end
+
+    def show
+    end
+
+    def update
+      if variable.update(group_params)
+        redirect_to group_variables_path(group),
+                    notice: 'Variable was successfully updated.'
+      else
+        render "show"
+      end
+    end
+
+    def create
+      new_variable = Ci::GroupVariable.new(group_params)
+
+      if new_variable.valid? && group.variables << new_variable
+        redirect_to group_settings_ci_cd_path(group),
+                    notice: 'Variables were successfully updated.'
+      else
+        @variable = new_variable.present(current_user: current_user)
+        render "show"
+      end
+    end
+
+    def destroy
+      variable.destroy
+
+      redirect_to group_settings_ci_cd_path(group),
+                  status: 302,
+                  notice: 'Variable was successfully removed.'
+    end
+
+    private
+
+    def authorize_admin_build!
+      return render_404 unless can?(current_user, :admin_build, group)
+    end
+
+    def group_params
+      params.require(:variable)
+        .permit([:key, :value, :protected])
+    end
+
+    def variable
+      @variable ||= group.variables.find(params[:id]).present(current_user: current_user)
+    end
+  end
+end
diff --git a/app/controllers/projects/settings/ci_cd_controller.rb b/app/controllers/projects/settings/ci_cd_controller.rb
index 24fe78bc1bd..ea7ceb3eaa5 100644
--- a/app/controllers/projects/settings/ci_cd_controller.rb
+++ b/app/controllers/projects/settings/ci_cd_controller.rb
@@ -21,7 +21,10 @@ module Projects
       end
 
       def define_secret_variables
-        @variable = Ci::Variable.new
+        @variable = Ci::Variable.new(project: project)
+          .present(current_user: current_user)
+        @variables = project.variables.order_key_asc
+          .map { |variable| variable.present(current_user: current_user) }
       end
 
       def define_triggers_variables
diff --git a/app/controllers/projects/variables_controller.rb b/app/controllers/projects/variables_controller.rb
index 326d31ecec2..716e1347604 100644
--- a/app/controllers/projects/variables_controller.rb
+++ b/app/controllers/projects/variables_controller.rb
@@ -1,53 +1,50 @@
 class Projects::VariablesController < Projects::ApplicationController
+  before_action :variable, only: [:show, :update, :destroy]
   before_action :authorize_admin_build!
 
   layout 'project_settings'
 
   def index
-    redirect_to project_settings_ci_cd_path(@project)
+    redirect_to namespace_project_settings_ci_cd_path(@project.namespace, @project)
   end
 
   def show
-    @variable = @project.variables.find(params[:id])
   end
 
   def update
-    @variable = @project.variables.find(params[:id])
-
-    if @variable.update_attributes(variable_params)
-      redirect_to project_variables_path(project), notice: 'Variable was successfully updated.'
+    if @variable.update(project_params)
+      redirect_to namespace_project_variables_path(project.namespace, project), notice: 'Variable was successfully updated.'
     else
-      render action: "show"
+      render "show"
     end
   end
 
   def create
-    @variable = @project.variables.new(variable_params)
+    @variable = Ci::Variable.new(project_params)
 
-    if @variable.save
-      flash[:notice] = 'Variables were successfully updated.'
-      redirect_to project_settings_ci_cd_path(project)
+    if @variable.valid? && @project.variables << @variable
+      redirect_to namespace_project_settings_ci_cd_path(project.namespace, project), notice: 'Variables were successfully updated.'
     else
       render "show"
     end
   end
 
   def destroy
-    @key = @project.variables.find(params[:id])
-    @key.destroy
+    variable.destroy
 
-    redirect_to project_settings_ci_cd_path(project),
+    redirect_to namespace_project_settings_ci_cd_path(project.namespace, project),
                 status: 302,
                 notice: 'Variable was successfully removed.'
   end
 
   private
 
-  def variable_params
-    params.require(:variable).permit(*variable_params_attributes)
+  def project_params
+    params.require(:variable)
+      .permit([:id, :key, :value, :protected, :_destroy])
   end
 
-  def variable_params_attributes
-    %i[id key value protected _destroy]
+  def variable
+    @variable ||= project.variables.find(params[:id]).present(current_user: current_user)
   end
 end
diff --git a/app/models/ci/build.rb b/app/models/ci/build.rb
index ba2ecbf82a2..25e75a19f37 100644
--- a/app/models/ci/build.rb
+++ b/app/models/ci/build.rb
@@ -200,6 +200,7 @@ module Ci
       variables += project.deployment_variables if has_environment?
       variables += yaml_variables
       variables += user_variables
+      variables += project.group.secret_variables_for(ref, project).map(&:to_runner_variable) if project.group
       variables += secret_variables(environment: environment)
       variables += trigger_request.user_variables if trigger_request
       variables += persisted_environment_variables if environment
diff --git a/app/models/ci/group_variable.rb b/app/models/ci/group_variable.rb
new file mode 100644
index 00000000000..f64bc245a67
--- /dev/null
+++ b/app/models/ci/group_variable.rb
@@ -0,0 +1,13 @@
+module Ci
+  class GroupVariable < ActiveRecord::Base
+    extend Ci::Model
+    include HasVariable
+    include Presentable
+
+    belongs_to :group
+
+    validates :key, uniqueness: { scope: :group_id }
+
+    scope :unprotected, -> { where(protected: false) }
+  end
+end
diff --git a/app/models/ci/variable.rb b/app/models/ci/variable.rb
index 0b8d0ff881a..cf0fe04ddaf 100644
--- a/app/models/ci/variable.rb
+++ b/app/models/ci/variable.rb
@@ -2,6 +2,7 @@ module Ci
   class Variable < ActiveRecord::Base
     extend Ci::Model
     include HasVariable
+    include Presentable
 
     belongs_to :project
 
diff --git a/app/models/group.rb b/app/models/group.rb
index b93fce6100d..f625b8c250c 100644
--- a/app/models/group.rb
+++ b/app/models/group.rb
@@ -22,6 +22,7 @@ class Group < Namespace
   has_many :shared_projects, through: :project_group_links, source: :project
   has_many :notification_settings, dependent: :destroy, as: :source # rubocop:disable Cop/ActiveRecordDependent
   has_many :labels, class_name: 'GroupLabel'
+  has_many :variables, class_name: 'Ci::GroupVariable'
 
   validate :avatar_type, if: ->(user) { user.avatar.present? && user.avatar_changed? }
   validate :visibility_level_allowed_by_projects
@@ -248,6 +249,13 @@ class Group < Namespace
     }
   end
 
+  def secret_variables_for(ref, project)
+    variables = []
+    variables += parent.secret_variables_for(ref, project) if has_parent?
+    variables += project.protected_for?(ref) ? self.variables : self.variables.unprotected
+    variables
+  end
+
   protected
 
   def update_two_factor_requirement
diff --git a/app/policies/group_policy.rb b/app/policies/group_policy.rb
index dcb37416ca3..6defab75fce 100644
--- a/app/policies/group_policy.rb
+++ b/app/policies/group_policy.rb
@@ -31,6 +31,8 @@ class GroupPolicy < BasePolicy
   rule { master }.policy do
     enable :create_projects
     enable :admin_milestones
+    enable :admin_pipeline
+    enable :admin_build
   end
 
   rule { owner }.policy do
diff --git a/app/presenters/ci/group_variable_presenter.rb b/app/presenters/ci/group_variable_presenter.rb
new file mode 100644
index 00000000000..81fea106a5c
--- /dev/null
+++ b/app/presenters/ci/group_variable_presenter.rb
@@ -0,0 +1,25 @@
+module Ci
+  class GroupVariablePresenter < Gitlab::View::Presenter::Delegated
+    presents :variable
+
+    def placeholder
+      'GROUP_VARIABLE'
+    end
+
+    def form_path
+      if variable.persisted?
+        group_variable_path(group, variable)
+      else
+        group_variables_path(group)
+      end
+    end
+
+    def edit_path
+      group_variable_path(group, variable)
+    end
+
+    def delete_path
+      group_variable_path(group, variable)
+    end
+  end
+end
diff --git a/app/presenters/ci/variable_presenter.rb b/app/presenters/ci/variable_presenter.rb
new file mode 100644
index 00000000000..3f14d972c50
--- /dev/null
+++ b/app/presenters/ci/variable_presenter.rb
@@ -0,0 +1,25 @@
+module Ci
+  class VariablePresenter < Gitlab::View::Presenter::Delegated
+    presents :variable
+
+    def placeholder
+      'PROJECT_VARIABLE'
+    end
+
+    def form_path
+      if variable.persisted?
+        namespace_project_variable_path(project.namespace, project, variable)
+      else
+        namespace_project_variables_path(project.namespace, project)
+      end
+    end
+
+    def edit_path
+      namespace_project_variable_path(project.namespace, project, variable)
+    end
+
+    def delete_path
+      namespace_project_variable_path(project.namespace, project, variable)
+    end
+  end
+end
diff --git a/app/views/projects/variables/_content.html.haml b/app/views/ci/variables/_content.html.haml
similarity index 100%
rename from app/views/projects/variables/_content.html.haml
rename to app/views/ci/variables/_content.html.haml
diff --git a/app/views/projects/variables/_form.html.haml b/app/views/ci/variables/_form.html.haml
similarity index 68%
rename from app/views/projects/variables/_form.html.haml
rename to app/views/ci/variables/_form.html.haml
index 0a70a301cb4..eebd0955c80 100644
--- a/app/views/projects/variables/_form.html.haml
+++ b/app/views/ci/variables/_form.html.haml
@@ -1,12 +1,12 @@
-= form_for [@project.namespace.becomes(Namespace), @project, @variable] do |f|
+= form_for @variable, as: :variable, url: @variable.form_path do |f|
   = form_errors(@variable)
 
   .form-group
     = f.label :key, "Key", class: "label-light"
-    = f.text_field :key, class: "form-control", placeholder: "PROJECT_VARIABLE", required: true
+    = f.text_field :key, class: "form-control", placeholder: @variable.placeholder, required: true
   .form-group
     = f.label :value, "Value", class: "label-light"
-    = f.text_area :value, class: "form-control", placeholder: "PROJECT_VARIABLE"
+    = f.text_area :value, class: "form-control", placeholder: @variable.placeholder
   .form-group
     .checkbox
       = f.label :protected do
diff --git a/app/views/projects/variables/_index.html.haml b/app/views/ci/variables/_index.html.haml
similarity index 60%
rename from app/views/projects/variables/_index.html.haml
rename to app/views/ci/variables/_index.html.haml
index 5e6786f6698..007c2344b5a 100644
--- a/app/views/projects/variables/_index.html.haml
+++ b/app/views/ci/variables/_index.html.haml
@@ -1,16 +1,16 @@
 .row.prepend-top-default.append-bottom-default
   .col-lg-4
-    = render "projects/variables/content"
+    = render "ci/variables/content"
   .col-lg-8
     %h5.prepend-top-0
       Add a variable
-    = render "projects/variables/form", btn_text: "Add new variable"
+    = render "ci/variables/form", btn_text: "Add new variable"
     %hr
     %h5.prepend-top-0
-      Your variables (#{@project.variables.size})
-    - if @project.variables.empty?
+      Your variables (#{@variables.size})
+    - if @variables.empty?
       %p.settings-message.text-center.append-bottom-0
         No variables found, add one with the form above.
     - else
-      = render "projects/variables/table"
+      = render "ci/variables/table"
       %button.btn.btn-info.js-btn-toggle-reveal-values{ "data-status" => 'hidden' } Reveal Values
diff --git a/app/views/ci/variables/_show.html.haml b/app/views/ci/variables/_show.html.haml
new file mode 100644
index 00000000000..2bfb290629d
--- /dev/null
+++ b/app/views/ci/variables/_show.html.haml
@@ -0,0 +1,9 @@
+- page_title "Variables"
+
+.row.prepend-top-default.append-bottom-default
+  .col-lg-3
+    = render "ci/variables/content"
+  .col-lg-9
+    %h5.prepend-top-0
+      Update variable
+    = render "ci/variables/form", btn_text: "Save variable"
diff --git a/app/views/projects/variables/_table.html.haml b/app/views/ci/variables/_table.html.haml
similarity index 65%
rename from app/views/projects/variables/_table.html.haml
rename to app/views/ci/variables/_table.html.haml
index 4ce6a828812..71a0b56c4f4 100644
--- a/app/views/projects/variables/_table.html.haml
+++ b/app/views/ci/variables/_table.html.haml
@@ -11,18 +11,18 @@
       %th Protected
       %th
     %tbody
-      - @project.variables.order_key_asc.each do |variable|
+      - @variables.each do |variable|
         - if variable.id?
           %tr
             %td.variable-key= variable.key
             %td.variable-value{ "data-value" => variable.value }******
             %td.variable-protected= Gitlab::Utils.boolean_to_yes_no(variable.protected)
             %td.variable-menu
-              = link_to project_variable_path(@project, variable), class: "btn btn-transparent btn-variable-edit" do
+              = link_to variable.edit_path, class: "btn btn-transparent btn-variable-edit" do
                 %span.sr-only
                   Update
                 = icon("pencil")
-              = link_to project_variable_path(@project, variable), class: "btn btn-transparent btn-variable-delete", method: :delete, data: { confirm: "Are you sure?" } do
+              = link_to variable.delete_path, class: "btn btn-transparent btn-variable-delete", method: :delete, data: { confirm: "Are you sure?" } do
                 %span.sr-only
                   Remove
                 = icon("trash")
diff --git a/app/views/groups/_settings_head.html.haml b/app/views/groups/_settings_head.html.haml
index 2454e7355a7..623d233a46a 100644
--- a/app/views/groups/_settings_head.html.haml
+++ b/app/views/groups/_settings_head.html.haml
@@ -12,3 +12,8 @@
           = link_to projects_group_path(@group), title: 'Projects' do
             %span
               Projects
+
+        = nav_link(controller: :ci_cd) do
+          = link_to group_settings_ci_cd_path(@group), title: 'Pipelines' do
+            %span
+              Pipelines
diff --git a/app/views/groups/settings/ci_cd/show.html.haml b/app/views/groups/settings/ci_cd/show.html.haml
new file mode 100644
index 00000000000..bf36baf48ab
--- /dev/null
+++ b/app/views/groups/settings/ci_cd/show.html.haml
@@ -0,0 +1,4 @@
+- page_title "Pipelines"
+= render "groups/settings_head"
+
+= render 'ci/variables/index'
diff --git a/app/views/groups/variables/show.html.haml b/app/views/groups/variables/show.html.haml
new file mode 100644
index 00000000000..df533952b76
--- /dev/null
+++ b/app/views/groups/variables/show.html.haml
@@ -0,0 +1 @@
+= render 'ci/variables/show'
diff --git a/app/views/projects/settings/ci_cd/show.html.haml b/app/views/projects/settings/ci_cd/show.html.haml
index 00ccc3ec41e..6afb38c5709 100644
--- a/app/views/projects/settings/ci_cd/show.html.haml
+++ b/app/views/projects/settings/ci_cd/show.html.haml
@@ -3,6 +3,6 @@
 = render "projects/settings/head"
 
 = render 'projects/runners/index'
-= render 'projects/variables/index'
+= render 'ci/variables/index'
 = render 'projects/triggers/index'
 = render 'projects/pipelines_settings/show'
diff --git a/app/views/projects/variables/show.html.haml b/app/views/projects/variables/show.html.haml
index 297a53ca98c..df533952b76 100644
--- a/app/views/projects/variables/show.html.haml
+++ b/app/views/projects/variables/show.html.haml
@@ -1,9 +1 @@
-- page_title "Variables"
-
-.row.prepend-top-default.append-bottom-default
-  .col-lg-3
-    = render "content"
-  .col-lg-9
-    %h5.prepend-top-0
-      Update variable
-    = render "form", btn_text: "Save variable"
+= render 'ci/variables/show'
diff --git a/changelogs/unreleased/feature-intermediate-12729-group-secret-variables.yml b/changelogs/unreleased/feature-intermediate-12729-group-secret-variables.yml
new file mode 100644
index 00000000000..333895ffba9
--- /dev/null
+++ b/changelogs/unreleased/feature-intermediate-12729-group-secret-variables.yml
@@ -0,0 +1,4 @@
+---
+title: Add Group secret variables
+merge_request: 12582
+author:
diff --git a/config/routes/group.rb b/config/routes/group.rb
index 11cdff55ed8..bd04ad51076 100644
--- a/config/routes/group.rb
+++ b/config/routes/group.rb
@@ -23,6 +23,12 @@ scope(path: 'groups/*group_id',
   resources :labels, except: [:show] do
     post :toggle_subscription, on: :member
   end
+
+  namespace :settings do
+    resource :ci_cd, only: [:show], controller: 'ci_cd'
+  end
+
+  resources :variables, only: [:index, :show, :update, :create, :destroy]
 end
 
 scope(path: 'groups/*id',
diff --git a/db/migrate/20170525130346_create_group_variables_table.rb b/db/migrate/20170525130346_create_group_variables_table.rb
new file mode 100644
index 00000000000..eaa38dbc40d
--- /dev/null
+++ b/db/migrate/20170525130346_create_group_variables_table.rb
@@ -0,0 +1,23 @@
+class CreateGroupVariablesTable < ActiveRecord::Migration
+  DOWNTIME = false
+
+  def up
+    create_table :ci_group_variables do |t|
+      t.string :key, null: false
+      t.text :value
+      t.text :encrypted_value
+      t.string :encrypted_value_salt
+      t.string :encrypted_value_iv
+      t.integer :group_id, null: false
+      t.boolean :protected, default: false, null: false
+
+      t.timestamps_with_timezone null: false
+    end
+
+    add_index :ci_group_variables, [:group_id, :key], unique: true
+  end
+
+  def down
+    drop_table :ci_group_variables
+  end
+end
diff --git a/db/migrate/20170525130758_add_foreign_key_to_group_variables.rb b/db/migrate/20170525130758_add_foreign_key_to_group_variables.rb
new file mode 100644
index 00000000000..0146235c5ba
--- /dev/null
+++ b/db/migrate/20170525130758_add_foreign_key_to_group_variables.rb
@@ -0,0 +1,15 @@
+class AddForeignKeyToGroupVariables < ActiveRecord::Migration
+  include Gitlab::Database::MigrationHelpers
+
+  DOWNTIME = false
+
+  disable_ddl_transaction!
+
+  def up
+    add_concurrent_foreign_key :ci_group_variables, :namespaces, column: :group_id
+  end
+
+  def down
+    remove_foreign_key :ci_group_variables, column: :group_id
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index a47a6ae9a98..f4d83a4dd9c 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -253,6 +253,20 @@ ActiveRecord::Schema.define(version: 20170703102400) do
   add_index "ci_builds", ["updated_at"], name: "index_ci_builds_on_updated_at", using: :btree
   add_index "ci_builds", ["user_id"], name: "index_ci_builds_on_user_id", using: :btree
 
+  create_table "ci_group_variables", force: :cascade do |t|
+    t.string "key", null: false
+    t.text "value"
+    t.text "encrypted_value"
+    t.string "encrypted_value_salt"
+    t.string "encrypted_value_iv"
+    t.integer "group_id", null: false
+    t.boolean "protected", default: false, null: false
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
+  end
+
+  add_index "ci_group_variables", ["group_id", "key"], name: "index_ci_group_variables_on_group_id_and_key", unique: true, using: :btree
+
   create_table "ci_pipeline_schedules", force: :cascade do |t|
     t.string "description"
     t.string "ref"
@@ -1550,6 +1564,7 @@ ActiveRecord::Schema.define(version: 20170703102400) do
   add_foreign_key "ci_builds", "ci_pipelines", column: "auto_canceled_by_id", name: "fk_a2141b1522", on_delete: :nullify
   add_foreign_key "ci_builds", "ci_stages", column: "stage_id", name: "fk_3a9eaa254d", on_delete: :cascade
   add_foreign_key "ci_builds", "projects", name: "fk_befce0568a", on_delete: :cascade
+  add_foreign_key "ci_group_variables", "namespaces", column: "group_id", name: "fk_33ae4d58d8", on_delete: :cascade
   add_foreign_key "ci_pipeline_schedules", "projects", name: "fk_8ead60fcc4", on_delete: :cascade
   add_foreign_key "ci_pipeline_schedules", "users", column: "owner_id", name: "fk_9ea99f58d2", on_delete: :nullify
   add_foreign_key "ci_pipelines", "ci_pipeline_schedules", column: "pipeline_schedule_id", name: "fk_3d34ab2e06", on_delete: :nullify
diff --git a/doc/ci/variables/README.md b/doc/ci/variables/README.md
index 3501aae75ec..ee3349d9526 100644
--- a/doc/ci/variables/README.md
+++ b/doc/ci/variables/README.md
@@ -10,7 +10,8 @@ The variables can be overwritten and they take precedence over each other in
 this order:
 
 1. [Trigger variables][triggers] (take precedence over all)
-1. [Secret variables](#secret-variables) or [protected secret variables](#protected-secret-variables)
+1. [Project-level secret variables](#project-level-secret-variables)
+1. [Group-level secret variables](#group-level-secret-variables)
 1. YAML-defined [job-level variables](../yaml/README.md#job-variables)
 1. YAML-defined [global variables](../yaml/README.md#variables)
 1. [Deployment variables](#deployment-variables)
@@ -138,7 +139,7 @@ script:
   - 'eval $LS_CMD'  # will execute 'ls -al $TMP_DIR'
 ```
 
-## Secret variables
+## Project-level secret variables
 
 >**Notes:**
 - This feature requires GitLab Runner 0.4.0 or higher.
@@ -158,7 +159,8 @@ Secret variables can be added by going to your project's
 **Settings ➔ Pipelines**, then finding the section called
 **Secret variables**.
 
-Once you set them, they will be available for all subsequent pipelines.
+Once you set them, they will be available for all subsequent pipelines. You can also
+[protect your variables](#protected-secret-variables).
 
 ### Protected secret variables
 
@@ -176,6 +178,19 @@ Protected variables can be added by going to your project's
 
 Once you set them, they will be available for all subsequent pipelines.
 
+## Group-level secret variables
+
+>**Notes:**
+This feature requires GitLab 9.4 or higher.
+
+You can also define variables per Group. The essential functionality is exactly the
+same with [project-level secret variables](#project-level-secret-variables). You
+can also [protect your variables](#protected-secret-variables).
+
+Secret variables can be added by going to your group's
+**Settings ➔ Pipelines**, then finding the section called
+**Secret variables**.
+
 ## Deployment variables
 
 >**Note:**
diff --git a/lib/gitlab/path_regex.rb b/lib/gitlab/path_regex.rb
index 10eb99fb461..f0d5e3f7bc0 100644
--- a/lib/gitlab/path_regex.rb
+++ b/lib/gitlab/path_regex.rb
@@ -129,6 +129,8 @@ module Gitlab
       pipeline_quota
       projects
       subgroups
+      settings
+      variables
     ].freeze
 
     ILLEGAL_PROJECT_PATH_WORDS = PROJECT_WILDCARD_ROUTES
diff --git a/spec/controllers/groups/settings/ci_cd_controller_spec.rb b/spec/controllers/groups/settings/ci_cd_controller_spec.rb
new file mode 100644
index 00000000000..2e0efb57c74
--- /dev/null
+++ b/spec/controllers/groups/settings/ci_cd_controller_spec.rb
@@ -0,0 +1,20 @@
+require 'spec_helper'
+
+describe Groups::Settings::CiCdController do
+  let(:group) { create(:group) }
+  let(:user) { create(:user) }
+
+  before do
+    group.add_master(user)
+    sign_in(user)
+  end
+
+  describe 'GET #show' do
+    it 'renders show with 200 status code' do
+      get :show, group_id: group
+
+      expect(response).to have_http_status(200)
+      expect(response).to render_template(:show)
+    end
+  end
+end
diff --git a/spec/controllers/groups/variables_controller_spec.rb b/spec/controllers/groups/variables_controller_spec.rb
new file mode 100644
index 00000000000..c11fe93ffca
--- /dev/null
+++ b/spec/controllers/groups/variables_controller_spec.rb
@@ -0,0 +1,56 @@
+require 'spec_helper'
+
+describe Groups::VariablesController do
+  let(:group) { create(:group) }
+  let(:user) { create(:user) }
+
+  before do
+    sign_in(user)
+    group.add_master(user)
+  end
+
+  describe 'POST #create' do
+    context 'variable is valid' do
+      it 'shows a success flash message' do
+        post :create, group_id: group, variable: { key: "one", value: "two" }
+
+        expect(flash[:notice]).to include 'Variables were successfully updated.'
+        expect(response).to redirect_to(group_settings_ci_cd_path(group))
+      end
+    end
+
+    context 'variable is invalid' do
+      it 'renders show' do
+        post :create, group_id: group, variable: { key: "..one", value: "two" }
+
+        expect(response).to render_template("groups/variables/show")
+      end
+    end
+  end
+
+  describe 'POST #update' do
+    let(:variable) { create(:ci_group_variable) }
+
+    context 'updating a variable with valid characters' do
+      before do
+        group.variables << variable
+      end
+
+      it 'shows a success flash message' do
+        post :update, group_id: group,
+                      id: variable.id, variable: { key: variable.key, value: 'two' }
+
+        expect(flash[:notice]).to include 'Variable was successfully updated.'
+        expect(response).to redirect_to(group_variables_path(group))
+      end
+
+      it 'renders the action #show if the variable key is invalid' do
+        post :update, group_id: group,
+                      id: variable.id, variable: { key: '?', value: variable.value }
+
+        expect(response).to have_http_status(200)
+        expect(response).to render_template :show
+      end
+    end
+  end
+end
diff --git a/spec/controllers/projects/variables_controller_spec.rb b/spec/controllers/projects/variables_controller_spec.rb
index a0ecc756653..0304ea6f93c 100644
--- a/spec/controllers/projects/variables_controller_spec.rb
+++ b/spec/controllers/projects/variables_controller_spec.rb
@@ -21,7 +21,7 @@ describe Projects::VariablesController do
     end
 
     context 'variable is invalid' do
-      it 'shows an alert flash message' do
+      it 'renders show' do
         post :create, namespace_id: project.namespace.to_param, project_id: project,
                       variable: { key: "..one", value: "two" }
 
@@ -35,7 +35,6 @@ describe Projects::VariablesController do
 
     context 'updating a variable with valid characters' do
       before do
-        variable.project_id = project.id
         project.variables << variable
       end
 
diff --git a/spec/factories/ci/group_variables.rb b/spec/factories/ci/group_variables.rb
new file mode 100644
index 00000000000..565ced9eb1a
--- /dev/null
+++ b/spec/factories/ci/group_variables.rb
@@ -0,0 +1,12 @@
+FactoryGirl.define do
+  factory :ci_group_variable, class: Ci::GroupVariable do
+    sequence(:key) { |n| "VARIABLE_#{n}" }
+    value 'VARIABLE_VALUE'
+
+    trait(:protected) do
+      protected true
+    end
+
+    group factory: :group
+  end
+end
diff --git a/spec/features/group_variables_spec.rb b/spec/features/group_variables_spec.rb
new file mode 100644
index 00000000000..37814ba6238
--- /dev/null
+++ b/spec/features/group_variables_spec.rb
@@ -0,0 +1,78 @@
+require 'spec_helper'
+
+feature 'Group variables', js: true do
+  let(:user) { create(:user) }
+  let(:group) { create(:group) }
+
+  background do
+    group.add_master(user)
+    gitlab_sign_in(user)
+  end
+
+  context 'when user creates a new variable' do
+    background do
+      visit group_settings_ci_cd_path(group)
+      fill_in 'variable_key', with: 'AAA'
+      fill_in 'variable_value', with: 'AAA123'
+      find(:css, "#variable_protected").set(true)
+      click_on 'Add new variable'
+    end
+
+    scenario 'user sees the created variable' do
+      page.within('.variables-table') do
+        expect(find(".variable-key")).to have_content('AAA')
+        expect(find(".variable-value")).to have_content('******')
+        expect(find(".variable-protected")).to have_content('Yes')
+      end
+      click_on 'Reveal Values'
+      page.within('.variables-table') do
+        expect(find(".variable-value")).to have_content('AAA123')
+      end
+    end
+  end
+
+  context 'when user edits a variable' do
+    background do
+      create(:ci_group_variable, key: 'AAA', value: 'AAA123', protected: true,
+                                 group: group)
+
+      visit group_settings_ci_cd_path(group)
+
+      page.within('.variable-menu') do
+        click_on 'Update'
+      end
+
+      fill_in 'variable_key', with: 'BBB'
+      fill_in 'variable_value', with: 'BBB123'
+      find(:css, "#variable_protected").set(false)
+      click_on 'Save variable'
+    end
+
+    scenario 'user sees the updated variable' do
+      page.within('.variables-table') do
+        expect(find(".variable-key")).to have_content('BBB')
+        expect(find(".variable-value")).to have_content('******')
+        expect(find(".variable-protected")).to have_content('No')
+      end
+    end
+  end
+
+  context 'when user deletes a variable' do
+    background do
+      create(:ci_group_variable, key: 'BBB', value: 'BBB123', protected: false,
+                                 group: group)
+
+      visit group_settings_ci_cd_path(group)
+
+      page.within('.variable-menu') do
+        page.accept_alert 'Are you sure?' do
+          click_on 'Remove'
+        end
+      end
+    end
+
+    scenario 'user does not see the deleted variable' do
+      expect(page).to have_no_css('.variables-table')
+    end
+  end
+end
diff --git a/spec/features/variables_spec.rb b/spec/features/variables_spec.rb
index 1a2dedf27eb..a7c24c7d718 100644
--- a/spec/features/variables_spec.rb
+++ b/spec/features/variables_spec.rb
@@ -82,7 +82,7 @@ describe 'Project variables', js: true do
 
   it 'deletes variable' do
     page.within('.variables-table') do
-      find('.btn-variable-delete').click
+      click_on 'Remove'
     end
 
     expect(page).not_to have_selector('variables-table')
@@ -90,7 +90,7 @@ describe 'Project variables', js: true do
 
   it 'edits variable' do
     page.within('.variables-table') do
-      find('.btn-variable-edit').click
+      click_on 'Update'
     end
 
     expect(page).to have_content('Update variable')
@@ -104,7 +104,7 @@ describe 'Project variables', js: true do
 
   it 'edits variable with empty value' do
     page.within('.variables-table') do
-      find('.btn-variable-edit').click
+      click_on 'Update'
     end
 
     expect(page).to have_content('Update variable')
@@ -117,7 +117,7 @@ describe 'Project variables', js: true do
 
   it 'edits variable to be protected' do
     page.within('.variables-table') do
-      find('.btn-variable-edit').click
+      click_on 'Update'
     end
 
     expect(page).to have_content('Update variable')
@@ -132,7 +132,7 @@ describe 'Project variables', js: true do
     project.variables.first.update(protected: true)
 
     page.within('.variables-table') do
-      find('.btn-variable-edit').click
+      click_on 'Update'
     end
 
     expect(page).to have_content('Update variable')
diff --git a/spec/models/ci/build_spec.rb b/spec/models/ci/build_spec.rb
index 431fcda165d..cf6d356c524 100644
--- a/spec/models/ci/build_spec.rb
+++ b/spec/models/ci/build_spec.rb
@@ -1356,6 +1356,59 @@ describe Ci::Build, :models do
       end
     end
 
+    context 'when group secret variable is defined' do
+      let(:secret_variable) do
+        { key: 'SECRET_KEY', value: 'secret_value', public: false }
+      end
+
+      let(:group) { create(:group, :access_requestable) }
+
+      before do
+        build.project.update(group: group)
+
+        create(:ci_group_variable,
+               secret_variable.slice(:key, :value).merge(group: group))
+      end
+
+      it { is_expected.to include(secret_variable) }
+    end
+
+    context 'when group protected variable is defined' do
+      let(:protected_variable) do
+        { key: 'PROTECTED_KEY', value: 'protected_value', public: false }
+      end
+
+      let(:group) { create(:group, :access_requestable) }
+
+      before do
+        build.project.update(group: group)
+
+        create(:ci_group_variable,
+               :protected,
+               protected_variable.slice(:key, :value).merge(group: group))
+      end
+
+      context 'when the branch is protected' do
+        before do
+          create(:protected_branch, project: build.project, name: build.ref)
+        end
+
+        it { is_expected.to include(protected_variable) }
+      end
+
+      context 'when the tag is protected' do
+        before do
+          create(:protected_tag, project: build.project, name: build.ref)
+        end
+
+        it { is_expected.to include(protected_variable) }
+      end
+
+      context 'when the ref is not protected' do
+        it { is_expected.not_to include(protected_variable) }
+      end
+    end
+
     context 'when build is for triggers' do
       let(:trigger) { create(:ci_trigger, project: project) }
       let(:trigger_request) { create(:ci_trigger_request_with_variables, pipeline: pipeline, trigger: trigger) }
diff --git a/spec/models/ci/group_variable_spec.rb b/spec/models/ci/group_variable_spec.rb
new file mode 100644
index 00000000000..24b914face9
--- /dev/null
+++ b/spec/models/ci/group_variable_spec.rb
@@ -0,0 +1,31 @@
+require 'spec_helper'
+
+describe Ci::GroupVariable, models: true do
+  subject { build(:ci_group_variable) }
+
+  it { is_expected.to include_module(HasVariable) }
+  it { is_expected.to include_module(Presentable) }
+  it { is_expected.to validate_uniqueness_of(:key).scoped_to(:group_id) }
+
+  describe '.unprotected' do
+    subject { described_class.unprotected }
+
+    context 'when variable is protected' do
+      before do
+        create(:ci_group_variable, :protected)
+      end
+
+      it 'returns nothing' do
+        is_expected.to be_empty
+      end
+    end
+
+    context 'when variable is not protected' do
+      let(:variable) { create(:ci_group_variable, protected: false) }
+
+      it 'returns the variable' do
+        is_expected.to contain_exactly(variable)
+      end
+    end
+  end
+end
diff --git a/spec/models/ci/variable_spec.rb b/spec/models/ci/variable_spec.rb
index 4ffbfa6c130..890ffaae494 100644
--- a/spec/models/ci/variable_spec.rb
+++ b/spec/models/ci/variable_spec.rb
@@ -3,10 +3,9 @@ require 'spec_helper'
 describe Ci::Variable, models: true do
   subject { build(:ci_variable) }
 
-  let(:secret_value) { 'secret' }
-
   describe 'validations' do
     it { is_expected.to include_module(HasVariable) }
+    it { is_expected.to include_module(Presentable) }
     it { is_expected.to validate_uniqueness_of(:key).scoped_to(:project_id, :environment_scope) }
   end
 
diff --git a/spec/models/group_spec.rb b/spec/models/group_spec.rb
index 4de1683b21c..dab33aa4418 100644
--- a/spec/models/group_spec.rb
+++ b/spec/models/group_spec.rb
@@ -13,6 +13,7 @@ describe Group, models: true do
     it { is_expected.to have_many(:shared_projects).through(:project_group_links) }
     it { is_expected.to have_many(:notification_settings).dependent(:destroy) }
     it { is_expected.to have_many(:labels).class_name('GroupLabel') }
+    it { is_expected.to have_many(:variables).class_name('Ci::GroupVariable') }
     it { is_expected.to have_many(:uploads).dependent(:destroy) }
     it { is_expected.to have_one(:chat_team) }
 
@@ -418,4 +419,62 @@ describe Group, models: true do
       expect(calls).to eq 2
     end
   end
+
+  describe '#secret_variables_for' do
+    let(:project) { create(:empty_project, group: group) }
+
+    let!(:secret_variable) do
+      create(:ci_group_variable, value: 'secret', group: group)
+    end
+
+    let!(:protected_variable) do
+      create(:ci_group_variable, :protected, value: 'protected', group: group)
+    end
+
+    subject { group.secret_variables_for('ref', project) }
+
+    shared_examples 'ref is protected' do
+      it 'contains all the variables' do
+        is_expected.to contain_exactly(secret_variable, protected_variable)
+      end
+    end
+
+    context 'when the ref is not protected' do
+      before do
+        stub_application_setting(
+          default_branch_protection: Gitlab::Access::PROTECTION_NONE)
+      end
+
+      it 'contains only the secret variables' do
+        is_expected.to contain_exactly(secret_variable)
+      end
+    end
+
+    context 'when the ref is a protected branch' do
+      before do
+        create(:protected_branch, name: 'ref', project: project)
+      end
+
+      it_behaves_like 'ref is protected'
+    end
+
+    context 'when the ref is a protected tag' do
+      before do
+        create(:protected_tag, name: 'ref', project: project)
+      end
+
+      it_behaves_like 'ref is protected'
+    end
+
+    context 'when group has a child' do
+      let!(:group_child) { create(:group, :access_requestable, parent: group) }
+      let!(:variable_child) { create(:ci_group_variable, group: group_child) }
+
+      subject { group_child.secret_variables_for('ref', project) }
+
+      it 'returns all variables belong to the group and parent groups' do
+        is_expected.to contain_exactly(secret_variable, protected_variable, variable_child)
+      end
+    end
+  end
 end
diff --git a/spec/presenters/ci/group_variable_presenter_spec.rb b/spec/presenters/ci/group_variable_presenter_spec.rb
new file mode 100644
index 00000000000..d404028405b
--- /dev/null
+++ b/spec/presenters/ci/group_variable_presenter_spec.rb
@@ -0,0 +1,63 @@
+require 'spec_helper'
+
+describe Ci::GroupVariablePresenter do
+  include Gitlab::Routing.url_helpers
+
+  let(:group) { create(:group) }
+  let(:variable) { create(:ci_group_variable, group: group) }
+
+  subject(:presenter) do
+    described_class.new(variable)
+  end
+
+  it 'inherits from Gitlab::View::Presenter::Delegated' do
+    expect(described_class.superclass).to eq(Gitlab::View::Presenter::Delegated)
+  end
+
+  describe '#initialize' do
+    it 'takes a variable and optional params' do
+      expect { presenter }.not_to raise_error
+    end
+
+    it 'exposes variable' do
+      expect(presenter.variable).to eq(variable)
+    end
+
+    it 'forwards missing methods to variable' do
+      expect(presenter.key).to eq(variable.key)
+    end
+  end
+
+  describe '#placeholder' do
+    subject { described_class.new(variable).placeholder }
+
+    it { is_expected.to eq('GROUP_VARIABLE') }
+  end
+
+  describe '#form_path' do
+    context 'when variable is persisted' do
+      subject { described_class.new(variable).form_path }
+
+      it { is_expected.to eq(group_variable_path(group, variable)) }
+    end
+
+    context 'when variable is not persisted' do
+      let(:variable) { build(:ci_group_variable, group: group) }
+      subject { described_class.new(variable).form_path }
+
+      it { is_expected.to eq(group_variables_path(group)) }
+    end
+  end
+
+  describe '#edit_path' do
+    subject { described_class.new(variable).edit_path }
+
+    it { is_expected.to eq(group_variable_path(group, variable)) }
+  end
+
+  describe '#delete_path' do
+    subject { described_class.new(variable).delete_path }
+
+    it { is_expected.to eq(group_variable_path(group, variable)) }
+  end
+end
diff --git a/spec/presenters/ci/variable_presenter_spec.rb b/spec/presenters/ci/variable_presenter_spec.rb
new file mode 100644
index 00000000000..3b615c4bf36
--- /dev/null
+++ b/spec/presenters/ci/variable_presenter_spec.rb
@@ -0,0 +1,63 @@
+require 'spec_helper'
+
+describe Ci::VariablePresenter do
+  include Gitlab::Routing.url_helpers
+
+  let(:project) { create(:empty_project) }
+  let(:variable) { create(:ci_variable, project: project) }
+
+  subject(:presenter) do
+    described_class.new(variable)
+  end
+
+  it 'inherits from Gitlab::View::Presenter::Delegated' do
+    expect(described_class.superclass).to eq(Gitlab::View::Presenter::Delegated)
+  end
+
+  describe '#initialize' do
+    it 'takes a variable and optional params' do
+      expect { presenter }.not_to raise_error
+    end
+
+    it 'exposes variable' do
+      expect(presenter.variable).to eq(variable)
+    end
+
+    it 'forwards missing methods to variable' do
+      expect(presenter.key).to eq(variable.key)
+    end
+  end
+
+  describe '#placeholder' do
+    subject { described_class.new(variable).placeholder }
+
+    it { is_expected.to eq('PROJECT_VARIABLE') }
+  end
+
+  describe '#form_path' do
+    context 'when variable is persisted' do
+      subject { described_class.new(variable).form_path }
+
+      it { is_expected.to eq(namespace_project_variable_path(project.namespace, project, variable)) }
+    end
+
+    context 'when variable is not persisted' do
+      let(:variable) { build(:ci_variable, project: project) }
+      subject { described_class.new(variable).form_path }
+
+      it { is_expected.to eq(namespace_project_variables_path(project.namespace, project)) }
+    end
+  end
+
+  describe '#edit_path' do
+    subject { described_class.new(variable).edit_path }
+
+    it { is_expected.to eq(namespace_project_variable_path(project.namespace, project, variable)) }
+  end
+
+  describe '#delete_path' do
+    subject { described_class.new(variable).delete_path }
+
+    it { is_expected.to eq(namespace_project_variable_path(project.namespace, project, variable)) }
+  end
+end