diff --git a/app/assets/javascripts/filterable_list.js b/app/assets/javascripts/filterable_list.js
index 6d516a253bb..9e91f72b2ea 100644
--- a/app/assets/javascripts/filterable_list.js
+++ b/app/assets/javascripts/filterable_list.js
@@ -6,10 +6,11 @@ import _ from 'underscore';
  */
 
 export default class FilterableList {
-  constructor(form, filter, holder) {
+  constructor(form, filter, holder, filterInputField = 'filter_groups') {
     this.filterForm = form;
     this.listFilterElement = filter;
     this.listHolderElement = holder;
+    this.filterInputField = filterInputField;
     this.isBusy = false;
   }
 
@@ -32,10 +33,10 @@ export default class FilterableList {
   onFilterInput() {
     const $form = $(this.filterForm);
     const queryData = {};
-    const filterGroupsParam = $form.find('[name="filter_groups"]').val();
+    const filterGroupsParam = $form.find(`[name="${this.filterInputField}"]`).val();
 
     if (filterGroupsParam) {
-      queryData.filter_groups = filterGroupsParam;
+      queryData[this.filterInputField] = filterGroupsParam;
     }
 
     this.filterResults(queryData);
diff --git a/app/assets/javascripts/groups/components/app.vue b/app/assets/javascripts/groups/components/app.vue
new file mode 100644
index 00000000000..fdec34f5dab
--- /dev/null
+++ b/app/assets/javascripts/groups/components/app.vue
@@ -0,0 +1,191 @@
+<script>
+/* global Flash */
+
+import eventHub from '../event_hub';
+import { getParameterByName } from '../../lib/utils/common_utils';
+import loadingIcon from '../../vue_shared/components/loading_icon.vue';
+import { COMMON_STR } from '../constants';
+
+import groupsComponent from './groups.vue';
+
+export default {
+  components: {
+    loadingIcon,
+    groupsComponent,
+  },
+  props: {
+    store: {
+      type: Object,
+      required: true,
+    },
+    service: {
+      type: Object,
+      required: true,
+    },
+    hideProjects: {
+      type: Boolean,
+      required: true,
+    },
+  },
+  data() {
+    return {
+      isLoading: true,
+      isSearchEmpty: false,
+      searchEmptyMessage: '',
+    };
+  },
+  computed: {
+    groups() {
+      return this.store.getGroups();
+    },
+    pageInfo() {
+      return this.store.getPaginationInfo();
+    },
+  },
+  methods: {
+    fetchGroups({ parentId, page, filterGroupsBy, sortBy, updatePagination }) {
+      return this.service.getGroups(parentId, page, filterGroupsBy, sortBy)
+                .then((res) => {
+                  if (updatePagination) {
+                    this.updatePagination(res.headers);
+                  }
+
+                  return res;
+                })
+                .then(res => res.json())
+                .catch(() => {
+                  this.isLoading = false;
+                  $.scrollTo(0);
+
+                  Flash(COMMON_STR.FAILURE);
+                });
+    },
+    fetchAllGroups() {
+      const page = getParameterByName('page') || null;
+      const sortBy = getParameterByName('sort') || null;
+      const filterGroupsBy = getParameterByName('filter') || null;
+
+      this.isLoading = true;
+      // eslint-disable-next-line promise/catch-or-return
+      this.fetchGroups({
+        page,
+        filterGroupsBy,
+        sortBy,
+        updatePagination: true,
+      }).then((res) => {
+        this.isLoading = false;
+        this.updateGroups(res, Boolean(filterGroupsBy));
+      });
+    },
+    fetchPage(page, filterGroupsBy, sortBy) {
+      this.isLoading = true;
+
+      // eslint-disable-next-line promise/catch-or-return
+      this.fetchGroups({
+        page,
+        filterGroupsBy,
+        sortBy,
+        updatePagination: true,
+      }).then((res) => {
+        this.isLoading = false;
+        $.scrollTo(0);
+
+        const currentPath = gl.utils.mergeUrlParams({ page }, window.location.href);
+        window.history.replaceState({
+          page: currentPath,
+        }, document.title, currentPath);
+
+        this.updateGroups(res);
+      });
+    },
+    toggleChildren(group) {
+      const parentGroup = group;
+      if (!parentGroup.isOpen) {
+        if (parentGroup.children.length === 0) {
+          parentGroup.isChildrenLoading = true;
+          // eslint-disable-next-line promise/catch-or-return
+          this.fetchGroups({
+            parentId: parentGroup.id,
+          }).then((res) => {
+            this.store.setGroupChildren(parentGroup, res);
+          }).catch(() => {
+            parentGroup.isChildrenLoading = false;
+          });
+        } else {
+          parentGroup.isOpen = true;
+        }
+      } else {
+        parentGroup.isOpen = false;
+      }
+    },
+    leaveGroup(group, parentGroup) {
+      const targetGroup = group;
+      targetGroup.isBeingRemoved = true;
+      this.service.leaveGroup(targetGroup.leavePath)
+        .then(res => res.json())
+        .then((res) => {
+          $.scrollTo(0);
+          this.store.removeGroup(targetGroup, parentGroup);
+          Flash(res.notice, 'notice');
+        })
+        .catch((err) => {
+          let message = COMMON_STR.FAILURE;
+          if (err.status === 403) {
+            message = COMMON_STR.LEAVE_FORBIDDEN;
+          }
+          Flash(message);
+          targetGroup.isBeingRemoved = false;
+        });
+    },
+    updatePagination(headers) {
+      this.store.setPaginationInfo(headers);
+    },
+    updateGroups(groups, fromSearch) {
+      this.isSearchEmpty = groups ? groups.length === 0 : false;
+      if (fromSearch) {
+        this.store.setSearchedGroups(groups);
+      } else {
+        this.store.setGroups(groups);
+      }
+    },
+  },
+  created() {
+    this.searchEmptyMessage = this.hideProjects ?
+      COMMON_STR.GROUP_SEARCH_EMPTY : COMMON_STR.GROUP_PROJECT_SEARCH_EMPTY;
+
+    eventHub.$on('fetchPage', this.fetchPage);
+    eventHub.$on('toggleChildren', this.toggleChildren);
+    eventHub.$on('leaveGroup', this.leaveGroup);
+    eventHub.$on('updatePagination', this.updatePagination);
+    eventHub.$on('updateGroups', this.updateGroups);
+  },
+  mounted() {
+    this.fetchAllGroups();
+  },
+  beforeDestroy() {
+    eventHub.$off('fetchPage', this.fetchPage);
+    eventHub.$off('toggleChildren', this.toggleChildren);
+    eventHub.$off('leaveGroup', this.leaveGroup);
+    eventHub.$off('updatePagination', this.updatePagination);
+    eventHub.$off('updateGroups', this.updateGroups);
+  },
+};
+</script>
+
+<template>
+  <div>
+    <loading-icon
+      class="loading-animation prepend-top-20"
+      size="2"
+      v-if="isLoading"
+      :label="s__('GroupsTree|Loading groups')"
+    />
+    <groups-component
+      v-if="!isLoading"
+      :groups="groups"
+      :search-empty="isSearchEmpty"
+      :search-empty-message="searchEmptyMessage"
+      :page-info="pageInfo"
+    />
+  </div>
+</template>
diff --git a/app/assets/javascripts/groups/components/group_folder.vue b/app/assets/javascripts/groups/components/group_folder.vue
index 7cc6c4b0359..e60221fa08d 100644
--- a/app/assets/javascripts/groups/components/group_folder.vue
+++ b/app/assets/javascripts/groups/components/group_folder.vue
@@ -1,15 +1,27 @@
 <script>
+import { n__ } from '../../locale';
+import { MAX_CHILDREN_COUNT } from '../constants';
+
 export default {
   props: {
-    groups: {
-      type: Object,
-      required: true,
-    },
-    baseGroup: {
+    parentGroup: {
       type: Object,
       required: false,
       default: () => ({}),
     },
+    groups: {
+      type: Array,
+      required: false,
+      default: () => ([]),
+    },
+  },
+  computed: {
+    hasMoreChildren() {
+      return this.parentGroup.childrenCount > MAX_CHILDREN_COUNT;
+    },
+    moreChildrenStats() {
+      return n__('One more item', '%d more items', this.parentGroup.childrenCount - this.parentGroup.children.length);
+    },
   },
 };
 </script>
@@ -20,8 +32,20 @@ export default {
       v-for="(group, index) in groups"
       :key="index"
       :group="group"
-      :base-group="baseGroup"
-      :collection="groups"
+      :parent-group="parentGroup"
     />
+    <li
+      v-if="hasMoreChildren"
+      class="group-row">
+      <a
+        :href="parentGroup.relativePath"
+        class="group-row-contents has-more-items">
+        <i
+          class="fa fa-external-link"
+          aria-hidden="true"
+        />
+        {{moreChildrenStats}}
+      </a>
+    </li>
   </ul>
 </template>
diff --git a/app/assets/javascripts/groups/components/group_item.vue b/app/assets/javascripts/groups/components/group_item.vue
index 2060410e991..356a95c05ca 100644
--- a/app/assets/javascripts/groups/components/group_item.vue
+++ b/app/assets/javascripts/groups/components/group_item.vue
@@ -2,50 +2,29 @@
 import identicon from '../../vue_shared/components/identicon.vue';
 import eventHub from '../event_hub';
 
+import itemCaret from './item_caret.vue';
+import itemTypeIcon from './item_type_icon.vue';
+import itemStats from './item_stats.vue';
+import itemActions from './item_actions.vue';
+
 export default {
   components: {
     identicon,
+    itemCaret,
+    itemTypeIcon,
+    itemStats,
+    itemActions,
   },
   props: {
+    parentGroup: {
+      type: Object,
+      required: false,
+      default: () => ({}),
+    },
     group: {
       type: Object,
       required: true,
     },
-    baseGroup: {
-      type: Object,
-      required: false,
-      default: () => ({}),
-    },
-    collection: {
-      type: Object,
-      required: false,
-      default: () => ({}),
-    },
-  },
-  methods: {
-    onClickRowGroup(e) {
-      e.stopPropagation();
-
-      // Skip for buttons
-      if (!(e.target.tagName === 'A') && !(e.target.tagName === 'I' && e.target.parentElement.tagName === 'A')) {
-        if (this.group.hasSubgroups) {
-          eventHub.$emit('toggleSubGroups', this.group);
-        } else {
-          window.location.href = this.group.groupPath;
-        }
-      }
-    },
-    onLeaveGroup(e) {
-      e.preventDefault();
-
-      // eslint-disable-next-line no-alert
-      if (confirm(`Are you sure you want to leave the "${this.group.fullName}" group?`)) {
-        this.leaveGroup();
-      }
-    },
-    leaveGroup() {
-      eventHub.$emit('leaveGroup', this.group, this.collection);
-    },
   },
   computed: {
     groupDomId() {
@@ -53,51 +32,33 @@ export default {
     },
     rowClass() {
       return {
-        'group-row': true,
         'is-open': this.group.isOpen,
-        'has-subgroups': this.group.hasSubgroups,
-        'no-description': !this.group.description,
+        'has-children': this.hasChildren,
+        'has-description': this.group.description,
+        'being-removed': this.group.isBeingRemoved,
       };
     },
-    visibilityIcon() {
-      return {
-        fa: true,
-        'fa-globe': this.group.visibility === 'public',
-        'fa-shield': this.group.visibility === 'internal',
-        'fa-lock': this.group.visibility === 'private',
-      };
-    },
-    fullPath() {
-      let fullPath = '';
-
-      if (this.group.isOrphan) {
-        // check if current group is baseGroup
-        if (Object.keys(this.baseGroup).length > 0 && this.baseGroup !== this.group) {
-          // Remove baseGroup prefix from our current group.fullName. e.g:
-          // baseGroup.fullName: `level1`
-          // group.fullName: `level1 / level2 / level3`
-          // Result: `level2 / level3`
-          const gfn = this.group.fullName;
-          const bfn = this.baseGroup.fullName;
-          const length = bfn.length;
-          const start = gfn.indexOf(bfn);
-          const extraPrefixChars = 3;
-
-          fullPath = gfn.substr(start + length + extraPrefixChars);
-        } else {
-          fullPath = this.group.fullName;
-        }
-      } else {
-        fullPath = this.group.name;
-      }
-
-      return fullPath;
-    },
-    hasGroups() {
-      return Object.keys(this.group.subGroups).length > 0;
+    hasChildren() {
+      return this.group.childrenCount > 0;
     },
     hasAvatar() {
-      return this.group.avatarUrl && this.group.avatarUrl.indexOf('/assets/no_group_avatar') === -1;
+      return this.group.avatarUrl !== null;
+    },
+    isGroup() {
+      return this.group.type === 'group';
+    },
+  },
+  methods: {
+    onClickRowGroup(e) {
+      const NO_EXPAND_CLS = 'no-expand';
+      if (!(e.target.classList.contains(NO_EXPAND_CLS) ||
+            e.target.parentElement.classList.contains(NO_EXPAND_CLS))) {
+        if (this.hasChildren) {
+          eventHub.$emit('toggleChildren', this.group);
+        } else {
+          gl.utils.visitUrl(this.group.relativePath);
+        }
+      }
     },
   },
 };
@@ -108,98 +69,36 @@ export default {
     @click.stop="onClickRowGroup"
     :id="groupDomId"
     :class="rowClass"
+    class="group-row"
     >
     <div
       class="group-row-contents">
-      <div
-        class="controls">
-        <a
-          v-if="group.canEdit"
-          class="edit-group btn"
-          :href="group.editPath">
-          <i
-            class="fa fa-cogs"
-            aria-hidden="true"
-          >
-          </i>
-        </a>
-        <a
-          @click="onLeaveGroup"
-          :href="group.leavePath"
-          class="leave-group btn"
-          title="Leave this group">
-          <i
-            class="fa fa-sign-out"
-            aria-hidden="true"
-          >
-          </i>
-        </a>
-      </div>
-      <div
-        class="stats">
-        <span
-          class="number-projects">
-          <i
-            class="fa fa-bookmark"
-            aria-hidden="true"
-          >
-          </i>
-          {{group.numberProjects}}
-        </span>
-        <span
-          class="number-users">
-          <i
-            class="fa fa-users"
-            aria-hidden="true"
-          >
-          </i>
-          {{group.numberUsers}}
-        </span>
-        <span
-          class="group-visibility">
-          <i
-            :class="visibilityIcon"
-            aria-hidden="true"
-          >
-          </i>
-        </span>
-      </div>
+      <item-actions
+        v-if="isGroup"
+        :group="group"
+        :parent-group="parentGroup"
+      />
+      <item-stats
+        :item="group"
+      />
       <div
         class="folder-toggle-wrap">
-        <span
-          class="folder-caret"
-          v-if="group.hasSubgroups">
-          <i
-            v-if="group.isOpen"
-            class="fa fa-caret-down"
-            aria-hidden="true"
-          >
-          </i>
-          <i
-            v-if="!group.isOpen"
-            class="fa fa-caret-right"
-            aria-hidden="true"
-          >
-          </i>
-        </span>
-        <span class="folder-icon">
-          <i
-            v-if="group.isOpen"
-            class="fa fa-folder-open"
-            aria-hidden="true"
-          >
-          </i>
-          <i
-            v-if="!group.isOpen"
-            class="fa fa-folder"
-            aria-hidden="true">
-          </i>
-        </span>
+        <item-caret
+          :is-group-open="group.isOpen"
+        />
+        <item-type-icon
+          :item-type="group.type"
+          :is-group-open="group.isOpen"
+        />
       </div>
       <div
-        class="avatar-container s40 hidden-xs">
+        class="avatar-container s40 hidden-xs"
+        :class="{ 'content-loading': group.isChildrenLoading }"
+      >
         <a
-          :href="group.groupPath">
+          :href="group.relativePath"
+          class="no-expand"
+        >
           <img
             v-if="hasAvatar"
             class="avatar s40"
@@ -215,19 +114,22 @@ export default {
       <div
         class="title">
         <a
-          :href="group.groupPath">{{fullPath}}</a>
-        <template v-if="group.permissions.humanGroupAccess">
-        as
-        <span class="access-type">{{group.permissions.humanGroupAccess}}</span>
-        </template>
+          :href="group.relativePath"
+          class="no-expand">{{group.fullName}}</a>
+        <span
+          v-if="group.permission"
+          class="access-type"
+        >
+          {{s__('GroupsTreeRole|as')}} {{group.permission}}
+        </span>
       </div>
       <div
         class="description">{{group.description}}</div>
     </div>
     <group-folder
-      v-if="group.isOpen && hasGroups"
-      :groups="group.subGroups"
-      :baseGroup="group"
+      v-if="group.isOpen && hasChildren"
+      :parent-group="group"
+      :groups="group.children"
     />
   </li>
 </template>
diff --git a/app/assets/javascripts/groups/components/groups.vue b/app/assets/javascripts/groups/components/groups.vue
index d17a43b048a..d3482818183 100644
--- a/app/assets/javascripts/groups/components/groups.vue
+++ b/app/assets/javascripts/groups/components/groups.vue
@@ -4,18 +4,26 @@ import eventHub from '../event_hub';
 import { getParameterByName } from '../../lib/utils/common_utils';
 
 export default {
+  components: {
+    tablePagination,
+  },
   props: {
     groups: {
-      type: Object,
+      type: Array,
       required: true,
     },
     pageInfo: {
       type: Object,
       required: true,
     },
-  },
-  components: {
-    tablePagination,
+    searchEmpty: {
+      type: Boolean,
+      required: true,
+    },
+    searchEmptyMessage: {
+      type: String,
+      required: true,
+    },
   },
   methods: {
     change(page) {
@@ -29,10 +37,17 @@ export default {
 
 <template>
   <div class="groups-list-tree-container">
+    <div
+      v-if="searchEmpty"
+      class="has-no-search-results">
+      {{searchEmptyMessage}}
+    </div>
     <group-folder
+      v-if="!searchEmpty"
       :groups="groups"
     />
     <table-pagination
+      v-if="!searchEmpty"
       :change="change"
       :pageInfo="pageInfo"
     />
diff --git a/app/assets/javascripts/groups/components/item_actions.vue b/app/assets/javascripts/groups/components/item_actions.vue
new file mode 100644
index 00000000000..ddb4febc3bd
--- /dev/null
+++ b/app/assets/javascripts/groups/components/item_actions.vue
@@ -0,0 +1,92 @@
+<script>
+import { s__ } from '../../locale';
+import tooltip from '../../vue_shared/directives/tooltip';
+import PopupDialog from '../../vue_shared/components/popup_dialog.vue';
+import eventHub from '../event_hub';
+import { COMMON_STR } from '../constants';
+
+export default {
+  components: {
+    PopupDialog,
+  },
+  directives: {
+    tooltip,
+  },
+  props: {
+    parentGroup: {
+      type: Object,
+      required: false,
+      default: () => ({}),
+    },
+    group: {
+      type: Object,
+      required: true,
+    },
+  },
+  data() {
+    return {
+      dialogStatus: false,
+    };
+  },
+  computed: {
+    leaveBtnTitle() {
+      return COMMON_STR.LEAVE_BTN_TITLE;
+    },
+    editBtnTitle() {
+      return COMMON_STR.EDIT_BTN_TITLE;
+    },
+    leaveConfirmationMessage() {
+      return s__(`GroupsTree|Are you sure you want to leave the "${this.group.fullName}" group?`);
+    },
+  },
+  methods: {
+    onLeaveGroup() {
+      this.dialogStatus = true;
+    },
+    leaveGroup(leaveConfirmed) {
+      this.dialogStatus = false;
+      if (leaveConfirmed) {
+        eventHub.$emit('leaveGroup', this.group, this.parentGroup);
+      }
+    },
+  },
+};
+</script>
+
+<template>
+  <div class="controls">
+    <a
+      v-tooltip
+      v-if="group.canEdit"
+      :href="group.editPath"
+      :title="editBtnTitle"
+      :aria-label="editBtnTitle"
+      data-container="body"
+      class="edit-group btn no-expand">
+      <i
+        class="fa fa-cogs"
+        aria-hidden="true"/>
+    </a>
+    <a
+      v-tooltip
+      v-if="group.canLeave"
+      @click.prevent="onLeaveGroup"
+      :href="group.leavePath"
+      :title="leaveBtnTitle"
+      :aria-label="leaveBtnTitle"
+      data-container="body"
+      class="leave-group btn no-expand">
+      <i
+        class="fa fa-sign-out"
+        aria-hidden="true"/>
+    </a>
+    <popup-dialog
+      v-show="dialogStatus"
+      :primary-button-label="__('Leave')"
+      kind="warning"
+      :title="__('Are you sure?')"
+      :body="leaveConfirmationMessage"
+      @submit="leaveGroup"
+    />
+  </div>
+</template>
diff --git a/app/assets/javascripts/groups/components/item_caret.vue b/app/assets/javascripts/groups/components/item_caret.vue
new file mode 100644
index 00000000000..959b984816f
--- /dev/null
+++ b/app/assets/javascripts/groups/components/item_caret.vue
@@ -0,0 +1,25 @@
+<script>
+export default {
+  props: {
+    isGroupOpen: {
+      type: Boolean,
+      required: true,
+      default: false,
+    },
+  },
+  computed: {
+    iconClass() {
+      return this.isGroupOpen ? 'fa-caret-down' : 'fa-caret-right';
+    },
+  },
+};
+</script>
+
+<template>
+  <span class="folder-caret">
+    <i
+      :class="iconClass"
+      class="fa"
+      aria-hidden="true"/>
+  </span>
+</template>
diff --git a/app/assets/javascripts/groups/components/item_stats.vue b/app/assets/javascripts/groups/components/item_stats.vue
new file mode 100644
index 00000000000..9f8ac138fc3
--- /dev/null
+++ b/app/assets/javascripts/groups/components/item_stats.vue
@@ -0,0 +1,98 @@
+<script>
+import tooltip from '../../vue_shared/directives/tooltip';
+import { ITEM_TYPE, VISIBILITY_TYPE_ICON, GROUP_VISIBILITY_TYPE, PROJECT_VISIBILITY_TYPE } from '../constants';
+
+export default {
+  directives: {
+    tooltip,
+  },
+  props: {
+    item: {
+      type: Object,
+      required: true,
+    },
+  },
+  computed: {
+    visibilityIcon() {
+      return VISIBILITY_TYPE_ICON[this.item.visibility];
+    },
+    visibilityTooltip() {
+      if (this.item.type === ITEM_TYPE.GROUP) {
+        return GROUP_VISIBILITY_TYPE[this.item.visibility];
+      }
+      return PROJECT_VISIBILITY_TYPE[this.item.visibility];
+    },
+    isProject() {
+      return this.item.type === ITEM_TYPE.PROJECT;
+    },
+    isGroup() {
+      return this.item.type === ITEM_TYPE.GROUP;
+    },
+  },
+};
+</script>
+
+<template>
+  <div class="stats">
+    <span
+      v-tooltip
+      v-if="isGroup"
+      :title="s__('Subgroups')"
+      class="number-subgroups"
+      data-placement="top"
+      data-container="body">
+      <i
+        class="fa fa-folder"
+        aria-hidden="true"
+      />
+      {{item.subgroupCount}}
+    </span>
+    <span
+      v-tooltip
+      v-if="isGroup"
+      :title="s__('Projects')"
+      class="number-projects"
+      data-placement="top"
+      data-container="body">
+      <i
+        class="fa fa-bookmark"
+        aria-hidden="true"
+      />
+      {{item.projectCount}}
+    </span>
+    <span
+      v-tooltip
+      v-if="isGroup"
+      :title="s__('Members')"
+      class="number-users"
+      data-placement="top"
+      data-container="body">
+      <i
+        class="fa fa-users"
+        aria-hidden="true"
+      />
+      {{item.memberCount}}
+    </span>
+    <span
+      v-if="isProject"
+      class="project-stars">
+      <i
+        class="fa fa-star"
+        aria-hidden="true"
+      />
+      {{item.starCount}}
+    </span>
+    <span
+      v-tooltip
+      :title="visibilityTooltip"
+      data-placement="left"
+      data-container="body"
+      class="item-visibility">
+      <i
+        :class="visibilityIcon"
+        class="fa"
+        aria-hidden="true"
+      />
+    </span>
+  </div>
+</template>
diff --git a/app/assets/javascripts/groups/components/item_type_icon.vue b/app/assets/javascripts/groups/components/item_type_icon.vue
new file mode 100644
index 00000000000..c02a8ad6d8c
--- /dev/null
+++ b/app/assets/javascripts/groups/components/item_type_icon.vue
@@ -0,0 +1,34 @@
+<script>
+import { ITEM_TYPE } from '../constants';
+
+export default {
+  props: {
+    itemType: {
+      type: String,
+      required: true,
+    },
+    isGroupOpen: {
+      type: Boolean,
+      required: true,
+      default: false,
+    },
+  },
+  computed: {
+    iconClass() {
+      if (this.itemType === ITEM_TYPE.GROUP) {
+        return this.isGroupOpen ? 'fa-folder-open' : 'fa-folder';
+      }
+      return 'fa-bookmark';
+    },
+  },
+};
+</script>
+
+<template>
+  <span class="item-type-icon">
+    <i
+      :class="iconClass"
+      class="fa"
+      aria-hidden="true"/>
+  </span>
+</template>
diff --git a/app/assets/javascripts/groups/constants.js b/app/assets/javascripts/groups/constants.js
new file mode 100644
index 00000000000..6fde41414b3
--- /dev/null
+++ b/app/assets/javascripts/groups/constants.js
@@ -0,0 +1,35 @@
+import { __, s__ } from '../locale';
+
+export const MAX_CHILDREN_COUNT = 20;
+
+export const COMMON_STR = {
+  FAILURE: __('An error occurred. Please try again.'),
+  LEAVE_FORBIDDEN: s__('GroupsTree|Failed to leave the group. Please make sure you are not the only owner.'),
+  LEAVE_BTN_TITLE: s__('GroupsTree|Leave this group'),
+  EDIT_BTN_TITLE: s__('GroupsTree|Edit group'),
+  GROUP_SEARCH_EMPTY: s__('GroupsTree|Sorry, no groups matched your search'),
+  GROUP_PROJECT_SEARCH_EMPTY: s__('GroupsTree|Sorry, no groups or projects matched your search'),
+};
+
+export const ITEM_TYPE = {
+  PROJECT: 'project',
+  GROUP: 'group',
+};
+
+export const GROUP_VISIBILITY_TYPE = {
+  public: __('Public - The group and any public projects can be viewed without any authentication.'),
+  internal: __('Internal - The group and any internal projects can be viewed by any logged in user.'),
+  private: __('Private - The group and its projects can only be viewed by members.'),
+};
+
+export const PROJECT_VISIBILITY_TYPE = {
+  public: __('Public - The project can be accessed without any authentication.'),
+  internal: __('Internal - The project can be accessed by any logged in user.'),
+  private: __('Private - Project access must be granted explicitly to each user.'),
+};
+
+export const VISIBILITY_TYPE_ICON = {
+  public: 'fa-globe',
+  internal: 'fa-shield',
+  private: 'fa-lock',
+};
diff --git a/app/assets/javascripts/groups/groups_filterable_list.js b/app/assets/javascripts/groups/groups_filterable_list.js
index 83b102764ba..6a61a1ca355 100644
--- a/app/assets/javascripts/groups/groups_filterable_list.js
+++ b/app/assets/javascripts/groups/groups_filterable_list.js
@@ -3,12 +3,13 @@ import eventHub from './event_hub';
 import { getParameterByName } from '../lib/utils/common_utils';
 
 export default class GroupFilterableList extends FilterableList {
-  constructor({ form, filter, holder, filterEndpoint, pagePath }) {
-    super(form, filter, holder);
+  constructor({ form, filter, holder, filterEndpoint, pagePath, dropdownSel, filterInputField }) {
+    super(form, filter, holder, filterInputField);
     this.form = form;
     this.filterEndpoint = filterEndpoint;
     this.pagePath = pagePath;
-    this.$dropdown = $('.js-group-filter-dropdown-wrap');
+    this.filterInputField = filterInputField;
+    this.$dropdown = $(dropdownSel);
   }
 
   getFilterEndpoint() {
@@ -35,11 +36,11 @@ export default class GroupFilterableList extends FilterableList {
     e.preventDefault();
 
     const $form = $(this.form);
-    const filterGroupsParam = $form.find('[name="filter_groups"]').val();
+    const filterGroupsParam = $form.find(`[name="${this.filterInputField}"]`).val();
     const queryData = {};
 
     if (filterGroupsParam) {
-      queryData.filter_groups = filterGroupsParam;
+      queryData[this.filterInputField] = filterGroupsParam;
     }
 
     this.filterResults(queryData);
@@ -47,7 +48,7 @@ export default class GroupFilterableList extends FilterableList {
   }
 
   setDefaultFilterOption() {
-    const defaultOption = $.trim(this.$dropdown.find('.dropdown-menu a:first-child').text());
+    const defaultOption = $.trim(this.$dropdown.find('.dropdown-menu a').first().text());
     this.$dropdown.find('.dropdown-label').text(defaultOption);
   }
 
@@ -65,13 +66,15 @@ export default class GroupFilterableList extends FilterableList {
 
     // Active selected option
     this.$dropdown.find('.dropdown-label').text($.trim(e.currentTarget.text));
+    this.$dropdown.find('.dropdown-menu li a').removeClass('is-active');
+    $(e.target).addClass('is-active');
 
     // Clear current value on search form
-    this.form.querySelector('[name="filter_groups"]').value = '';
+    this.form.querySelector(`[name="${this.filterInputField}"]`).value = '';
   }
 
   onFilterSuccess(data, xhr, queryData) {
-    super.onFilterSuccess(data, xhr, queryData);
+    const currentPath = this.getPagePath(queryData);
 
     const paginationData = {
       'X-Per-Page': xhr.getResponseHeader('X-Per-Page'),
@@ -82,7 +85,11 @@ export default class GroupFilterableList extends FilterableList {
       'X-Prev-Page': xhr.getResponseHeader('X-Prev-Page'),
     };
 
-    eventHub.$emit('updateGroups', data);
+    window.history.replaceState({
+      page: currentPath,
+    }, document.title, currentPath);
+
+    eventHub.$emit('updateGroups', data, Object.prototype.hasOwnProperty.call(queryData, this.filterInputField));
     eventHub.$emit('updatePagination', paginationData);
   }
 }
diff --git a/app/assets/javascripts/groups/index.js b/app/assets/javascripts/groups/index.js
index 9ad8e5c6052..2b625ef013a 100644
--- a/app/assets/javascripts/groups/index.js
+++ b/app/assets/javascripts/groups/index.js
@@ -1,17 +1,22 @@
 /* global Flash */
 
 import Vue from 'vue';
+
+import Translate from '../vue_shared/translate';
 import GroupFilterableList from './groups_filterable_list';
-import GroupsComponent from './components/groups.vue';
-import GroupFolder from './components/group_folder.vue';
-import GroupItem from './components/group_item.vue';
-import GroupsStore from './stores/groups_store';
-import GroupsService from './services/groups_service';
-import eventHub from './event_hub';
-import { getParameterByName } from '../lib/utils/common_utils';
+import NewGroupChild from './new_group_child';
+import GroupsStore from './store/groups_store';
+import GroupsService from './service/groups_service';
+
+import groupsApp from './components/app.vue';
+import groupFolderComponent from './components/group_folder.vue';
+import groupItemComponent from './components/group_item.vue';
+
+Vue.use(Translate);
 
 document.addEventListener('DOMContentLoaded', () => {
-  const el = document.getElementById('dashboard-group-app');
+  const el = document.getElementById('js-groups-tree');
+  const newGroupChildWrapper = document.querySelector('.js-new-project-subgroup');
 
   // Don't do anything if element doesn't exist (No groups)
   // This is for when the user enters directly to the page via URL
@@ -19,176 +24,61 @@ document.addEventListener('DOMContentLoaded', () => {
     return;
   }
 
-  Vue.component('groups-component', GroupsComponent);
-  Vue.component('group-folder', GroupFolder);
-  Vue.component('group-item', GroupItem);
+  Vue.component('group-folder', groupFolderComponent);
+  Vue.component('group-item', groupItemComponent);
+
+  if (newGroupChildWrapper) {
+    // eslint-disable-next-line no-new
+    new NewGroupChild(newGroupChildWrapper);
+  }
 
   // eslint-disable-next-line no-new
   new Vue({
     el,
+    components: {
+      groupsApp,
+    },
     data() {
-      this.store = new GroupsStore();
-      this.service = new GroupsService(el.dataset.endpoint);
+      const dataset = this.$options.el.dataset;
+      const hideProjects = dataset.hideProjects === 'true';
+      const store = new GroupsStore(hideProjects);
+      const service = new GroupsService(dataset.endpoint);
 
       return {
-        store: this.store,
-        isLoading: true,
-        state: this.store.state,
+        store,
+        service,
+        hideProjects,
         loading: true,
       };
     },
-    computed: {
-      isEmpty() {
-        return Object.keys(this.state.groups).length === 0;
-      },
-    },
-    methods: {
-      fetchGroups(parentGroup) {
-        let parentId = null;
-        let getGroups = null;
-        let page = null;
-        let sort = null;
-        let pageParam = null;
-        let sortParam = null;
-        let filterGroups = null;
-        let filterGroupsParam = null;
-
-        if (parentGroup) {
-          parentId = parentGroup.id;
-        } else {
-          this.isLoading = true;
-        }
-
-        pageParam = getParameterByName('page');
-        if (pageParam) {
-          page = pageParam;
-        }
-
-        filterGroupsParam = getParameterByName('filter_groups');
-        if (filterGroupsParam) {
-          filterGroups = filterGroupsParam;
-        }
-
-        sortParam = getParameterByName('sort');
-        if (sortParam) {
-          sort = sortParam;
-        }
-
-        getGroups = this.service.getGroups(parentId, page, filterGroups, sort);
-        getGroups
-          .then(response => response.json())
-          .then((response) => {
-            this.isLoading = false;
-
-            this.updateGroups(response, parentGroup);
-          })
-          .catch(this.handleErrorResponse);
-
-        return getGroups;
-      },
-      fetchPage(page, filterGroups, sort) {
-        this.isLoading = true;
-
-        return this.service
-          .getGroups(null, page, filterGroups, sort)
-          .then((response) => {
-            this.isLoading = false;
-            $.scrollTo(0);
-
-            const currentPath = gl.utils.mergeUrlParams({ page }, window.location.href);
-            window.history.replaceState({
-              page: currentPath,
-            }, document.title, currentPath);
-
-            return response.json().then((data) => {
-              this.updateGroups(data);
-              this.updatePagination(response.headers);
-            });
-          })
-          .catch(this.handleErrorResponse);
-      },
-      toggleSubGroups(parentGroup = null) {
-        if (!parentGroup.isOpen) {
-          this.store.resetGroups(parentGroup);
-          this.fetchGroups(parentGroup);
-        }
-
-        this.store.toggleSubGroups(parentGroup);
-      },
-      leaveGroup(group, collection) {
-        this.service.leaveGroup(group.leavePath)
-          .then(resp => resp.json())
-          .then((response) => {
-            $.scrollTo(0);
-
-            this.store.removeGroup(group, collection);
-
-            // eslint-disable-next-line no-new
-            new Flash(response.notice, 'notice');
-          })
-          .catch((error) => {
-            let message = 'An error occurred. Please try again.';
-
-            if (error.status === 403) {
-              message = 'Failed to leave the group. Please make sure you are not the only owner';
-            }
-
-            // eslint-disable-next-line no-new
-            new Flash(message);
-          });
-      },
-      updateGroups(groups, parentGroup) {
-        this.store.setGroups(groups, parentGroup);
-      },
-      updatePagination(headers) {
-        this.store.storePagination(headers);
-      },
-      handleErrorResponse() {
-        this.isLoading = false;
-        $.scrollTo(0);
-
-        // eslint-disable-next-line no-new
-        new Flash('An error occurred. Please try again.');
-      },
-    },
-    created() {
-      eventHub.$on('fetchPage', this.fetchPage);
-      eventHub.$on('toggleSubGroups', this.toggleSubGroups);
-      eventHub.$on('leaveGroup', this.leaveGroup);
-      eventHub.$on('updateGroups', this.updateGroups);
-      eventHub.$on('updatePagination', this.updatePagination);
-    },
     beforeMount() {
+      const dataset = this.$options.el.dataset;
       let groupFilterList = null;
-      const form = document.querySelector('form#group-filter-form');
-      const filter = document.querySelector('.js-groups-list-filter');
-      const holder = document.querySelector('.js-groups-list-holder');
+      const form = document.querySelector(dataset.formSel);
+      const filter = document.querySelector(dataset.filterSel);
+      const holder = document.querySelector(dataset.holderSel);
 
       const opts = {
         form,
         filter,
         holder,
-        filterEndpoint: el.dataset.endpoint,
-        pagePath: el.dataset.path,
+        filterEndpoint: dataset.endpoint,
+        pagePath: dataset.path,
+        dropdownSel: dataset.dropdownSel,
+        filterInputField: 'filter',
       };
 
       groupFilterList = new GroupFilterableList(opts);
       groupFilterList.initSearch();
     },
-    mounted() {
-      this.fetchGroups()
-        .then((response) => {
-          this.updatePagination(response.headers);
-          this.isLoading = false;
-        })
-        .catch(this.handleErrorResponse);
-    },
-    beforeDestroy() {
-      eventHub.$off('fetchPage', this.fetchPage);
-      eventHub.$off('toggleSubGroups', this.toggleSubGroups);
-      eventHub.$off('leaveGroup', this.leaveGroup);
-      eventHub.$off('updateGroups', this.updateGroups);
-      eventHub.$off('updatePagination', this.updatePagination);
+    render(createElement) {
+      return createElement('groups-app', {
+        props: {
+          store: this.store,
+          service: this.service,
+          hideProjects: this.hideProjects,
+        },
+      });
     },
   });
 });
diff --git a/app/assets/javascripts/groups/new_group_child.js b/app/assets/javascripts/groups/new_group_child.js
new file mode 100644
index 00000000000..8e273579aae
--- /dev/null
+++ b/app/assets/javascripts/groups/new_group_child.js
@@ -0,0 +1,62 @@
+import DropLab from '../droplab/drop_lab';
+import ISetter from '../droplab/plugins/input_setter';
+
+const InputSetter = Object.assign({}, ISetter);
+
+const NEW_PROJECT = 'new-project';
+const NEW_SUBGROUP = 'new-subgroup';
+
+export default class NewGroupChild {
+  constructor(buttonWrapper) {
+    this.buttonWrapper = buttonWrapper;
+    this.newGroupChildButton = this.buttonWrapper.querySelector('.js-new-group-child');
+    this.dropdownToggle = this.buttonWrapper.querySelector('.js-dropdown-toggle');
+    this.dropdownList = this.buttonWrapper.querySelector('.dropdown-menu');
+
+    this.newGroupPath = this.buttonWrapper.dataset.projectPath;
+    this.subgroupPath = this.buttonWrapper.dataset.subgroupPath;
+
+    this.init();
+  }
+
+  init() {
+    this.initDroplab();
+    this.bindEvents();
+  }
+
+  initDroplab() {
+    this.droplab = new DropLab();
+    this.droplab.init(
+      this.dropdownToggle,
+      this.dropdownList,
+      [InputSetter],
+      this.getDroplabConfig(),
+    );
+  }
+
+  getDroplabConfig() {
+    return {
+      InputSetter: [{
+        input: this.newGroupChildButton,
+        valueAttribute: 'data-value',
+        inputAttribute: 'data-action',
+      }, {
+        input: this.newGroupChildButton,
+        valueAttribute: 'data-text',
+      }],
+    };
+  }
+
+  bindEvents() {
+    this.newGroupChildButton
+      .addEventListener('click', this.onClickNewGroupChildButton.bind(this));
+  }
+
+  onClickNewGroupChildButton(e) {
+    if (e.target.dataset.action === NEW_PROJECT) {
+      gl.utils.visitUrl(this.newGroupPath);
+    } else if (e.target.dataset.action === NEW_SUBGROUP) {
+      gl.utils.visitUrl(this.subgroupPath);
+    }
+  }
+}
diff --git a/app/assets/javascripts/groups/services/groups_service.js b/app/assets/javascripts/groups/service/groups_service.js
similarity index 94%
rename from app/assets/javascripts/groups/services/groups_service.js
rename to app/assets/javascripts/groups/service/groups_service.js
index 97e02fcb76d..1393c96aed6 100644
--- a/app/assets/javascripts/groups/services/groups_service.js
+++ b/app/assets/javascripts/groups/service/groups_service.js
@@ -20,7 +20,7 @@ export default class GroupsService {
       }
 
       if (filterGroups) {
-        data.filter_groups = filterGroups;
+        data.filter = filterGroups;
       }
 
       if (sort) {
diff --git a/app/assets/javascripts/groups/store/groups_store.js b/app/assets/javascripts/groups/store/groups_store.js
new file mode 100644
index 00000000000..a1689f4c5cc
--- /dev/null
+++ b/app/assets/javascripts/groups/store/groups_store.js
@@ -0,0 +1,105 @@
+import { normalizeHeaders, parseIntPagination } from '../../lib/utils/common_utils';
+
+export default class GroupsStore {
+  constructor(hideProjects) {
+    this.state = {};
+    this.state.groups = [];
+    this.state.pageInfo = {};
+    this.hideProjects = hideProjects;
+  }
+
+  setGroups(rawGroups) {
+    if (rawGroups && rawGroups.length) {
+      this.state.groups = rawGroups.map(rawGroup => this.formatGroupItem(rawGroup));
+    } else {
+      this.state.groups = [];
+    }
+  }
+
+  setSearchedGroups(rawGroups) {
+    const formatGroups = groups => groups.map((group) => {
+      const formattedGroup = this.formatGroupItem(group);
+      if (formattedGroup.children && formattedGroup.children.length) {
+        formattedGroup.children = formatGroups(formattedGroup.children);
+      }
+      return formattedGroup;
+    });
+
+    if (rawGroups && rawGroups.length) {
+      this.state.groups = formatGroups(rawGroups);
+    } else {
+      this.state.groups = [];
+    }
+  }
+
+  setGroupChildren(parentGroup, children) {
+    const updatedParentGroup = parentGroup;
+    updatedParentGroup.children = children.map(rawChild => this.formatGroupItem(rawChild));
+    updatedParentGroup.isOpen = true;
+    updatedParentGroup.isChildrenLoading = false;
+  }
+
+  getGroups() {
+    return this.state.groups;
+  }
+
+  setPaginationInfo(pagination = {}) {
+    let paginationInfo;
+
+    if (Object.keys(pagination).length) {
+      const normalizedHeaders = normalizeHeaders(pagination);
+      paginationInfo = parseIntPagination(normalizedHeaders);
+    } else {
+      paginationInfo = pagination;
+    }
+
+    this.state.pageInfo = paginationInfo;
+  }
+
+  getPaginationInfo() {
+    return this.state.pageInfo;
+  }
+
+  formatGroupItem(rawGroupItem) {
+    const groupChildren = rawGroupItem.children || [];
+    const groupIsOpen = (groupChildren.length > 0) || false;
+    const childrenCount = this.hideProjects ?
+      rawGroupItem.subgroup_count :
+      rawGroupItem.children_count;
+
+    return {
+      id: rawGroupItem.id,
+      name: rawGroupItem.name,
+      fullName: rawGroupItem.full_name,
+      description: rawGroupItem.description,
+      visibility: rawGroupItem.visibility,
+      avatarUrl: rawGroupItem.avatar_url,
+      relativePath: rawGroupItem.relative_path,
+      editPath: rawGroupItem.edit_path,
+      leavePath: rawGroupItem.leave_path,
+      canEdit: rawGroupItem.can_edit,
+      canLeave: rawGroupItem.can_leave,
+      type: rawGroupItem.type,
+      permission: rawGroupItem.permission,
+      children: groupChildren,
+      isOpen: groupIsOpen,
+      isChildrenLoading: false,
+      isBeingRemoved: false,
+      parentId: rawGroupItem.parent_id,
+      childrenCount,
+      projectCount: rawGroupItem.project_count,
+      subgroupCount: rawGroupItem.subgroup_count,
+      memberCount: rawGroupItem.number_users_with_delimiter,
+      starCount: rawGroupItem.star_count,
+    };
+  }
+
+  removeGroup(group, parentGroup) {
+    const updatedParentGroup = parentGroup;
+    if (updatedParentGroup.children && updatedParentGroup.children.length) {
+      updatedParentGroup.children = parentGroup.children.filter(child => group.id !== child.id);
+    } else {
+      this.state.groups = this.state.groups.filter(child => group.id !== child.id);
+    }
+  }
+}
diff --git a/app/assets/javascripts/groups/stores/groups_store.js b/app/assets/javascripts/groups/stores/groups_store.js
deleted file mode 100644
index f59ec677603..00000000000
--- a/app/assets/javascripts/groups/stores/groups_store.js
+++ /dev/null
@@ -1,167 +0,0 @@
-import Vue from 'vue';
-import { parseIntPagination, normalizeHeaders } from '../../lib/utils/common_utils';
-
-export default class GroupsStore {
-  constructor() {
-    this.state = {};
-    this.state.groups = {};
-    this.state.pageInfo = {};
-  }
-
-  setGroups(rawGroups, parent) {
-    const parentGroup = parent;
-    const tree = this.buildTree(rawGroups, parentGroup);
-
-    if (parentGroup) {
-      parentGroup.subGroups = tree;
-    } else {
-      this.state.groups = tree;
-    }
-
-    return tree;
-  }
-
-  // eslint-disable-next-line class-methods-use-this
-  resetGroups(parent) {
-    const parentGroup = parent;
-    parentGroup.subGroups = {};
-  }
-
-  storePagination(pagination = {}) {
-    let paginationInfo;
-
-    if (Object.keys(pagination).length) {
-      const normalizedHeaders = normalizeHeaders(pagination);
-      paginationInfo = parseIntPagination(normalizedHeaders);
-    } else {
-      paginationInfo = pagination;
-    }
-
-    this.state.pageInfo = paginationInfo;
-  }
-
-  buildTree(rawGroups, parentGroup) {
-    const groups = this.decorateGroups(rawGroups);
-    const tree = {};
-    const mappedGroups = {};
-    const orphans = [];
-
-    // Map groups to an object
-    groups.map((group) => {
-      mappedGroups[`id${group.id}`] = group;
-      mappedGroups[`id${group.id}`].subGroups = {};
-      return group;
-    });
-
-    Object.keys(mappedGroups).map((key) => {
-      const currentGroup = mappedGroups[key];
-      if (currentGroup.parentId) {
-        // If the group is not at the root level, add it to its parent array of subGroups.
-        const findParentGroup = mappedGroups[`id${currentGroup.parentId}`];
-        if (findParentGroup) {
-          mappedGroups[`id${currentGroup.parentId}`].subGroups[`id${currentGroup.id}`] = currentGroup;
-          mappedGroups[`id${currentGroup.parentId}`].isOpen = true; // Expand group if it has subgroups
-        } else if (parentGroup && parentGroup.id === currentGroup.parentId) {
-          tree[`id${currentGroup.id}`] = currentGroup;
-        } else {
-          // No parent found. We save it for later processing
-          orphans.push(currentGroup);
-
-          // Add to tree to preserve original order
-          tree[`id${currentGroup.id}`] = currentGroup;
-        }
-      } else {
-        // If the group is at the top level, add it to first level elements array.
-        tree[`id${currentGroup.id}`] = currentGroup;
-      }
-
-      return key;
-    });
-
-    if (orphans.length) {
-      orphans.map((orphan) => {
-        let found = false;
-        const currentOrphan = orphan;
-
-        Object.keys(tree).map((key) => {
-          const group = tree[key];
-
-          if (
-           group &&
-           currentOrphan.fullPath.lastIndexOf(group.fullPath) === 0 &&
-           // Make sure the currently selected orphan is not the same as the group
-           // we are checking here otherwise it will end up in an infinite loop
-           currentOrphan.id !== group.id
-           ) {
-            group.subGroups[currentOrphan.id] = currentOrphan;
-            group.isOpen = true;
-            currentOrphan.isOrphan = true;
-            found = true;
-
-            // Delete if group was put at the top level. If not the group will be displayed twice.
-            if (tree[`id${currentOrphan.id}`]) {
-              delete tree[`id${currentOrphan.id}`];
-            }
-          }
-
-          return key;
-        });
-
-        if (!found) {
-          currentOrphan.isOrphan = true;
-
-          tree[`id${currentOrphan.id}`] = currentOrphan;
-        }
-
-        return orphan;
-      });
-    }
-
-    return tree;
-  }
-
-  decorateGroups(rawGroups) {
-    this.groups = rawGroups.map(this.decorateGroup);
-    return this.groups;
-  }
-
-  // eslint-disable-next-line class-methods-use-this
-  decorateGroup(rawGroup) {
-    return {
-      id: rawGroup.id,
-      fullName: rawGroup.full_name,
-      fullPath: rawGroup.full_path,
-      avatarUrl: rawGroup.avatar_url,
-      name: rawGroup.name,
-      hasSubgroups: rawGroup.has_subgroups,
-      canEdit: rawGroup.can_edit,
-      description: rawGroup.description,
-      webUrl: rawGroup.web_url,
-      groupPath: rawGroup.group_path,
-      parentId: rawGroup.parent_id,
-      visibility: rawGroup.visibility,
-      leavePath: rawGroup.leave_path,
-      editPath: rawGroup.edit_path,
-      isOpen: false,
-      isOrphan: false,
-      numberProjects: rawGroup.number_projects_with_delimiter,
-      numberUsers: rawGroup.number_users_with_delimiter,
-      permissions: {
-        humanGroupAccess: rawGroup.permissions.human_group_access,
-      },
-      subGroups: {},
-    };
-  }
-
-  // eslint-disable-next-line class-methods-use-this
-  removeGroup(group, collection) {
-    Vue.delete(collection, `id${group.id}`);
-  }
-
-  // eslint-disable-next-line class-methods-use-this
-  toggleSubGroups(toggleGroup) {
-    const group = toggleGroup;
-    group.isOpen = !group.isOpen;
-    return group;
-  }
-}
diff --git a/app/assets/stylesheets/framework/lists.scss b/app/assets/stylesheets/framework/lists.scss
index badc7b0eba3..d43f998cb82 100644
--- a/app/assets/stylesheets/framework/lists.scss
+++ b/app/assets/stylesheets/framework/lists.scss
@@ -281,6 +281,57 @@ ul.indent-list {
 
 
 // Specific styles for tree list
+@keyframes spin-avatar {
+  from { transform: rotate(0deg); }
+  to { transform: rotate(360deg); }
+}
+
+.groups-list-tree-container {
+  .has-no-search-results {
+    text-align: center;
+    padding: $gl-padding;
+    font-style: italic;
+    color: $well-light-text-color;
+  }
+
+  > .group-list-tree > .group-row.has-children:first-child {
+    border-top: none;
+  }
+}
+
+.group-list-tree .avatar-container.content-loading {
+  position: relative;
+
+  > a,
+  > a .avatar {
+    height: 100%;
+    border-radius: 50%;
+  }
+
+  > a {
+    padding: 2px;
+  }
+
+  > a .avatar {
+    border: 2px solid $white-normal;
+
+    &.identicon {
+      line-height: 30px;
+    }
+  }
+
+  &::after {
+    content: "";
+    position: absolute;
+    height: 100%;
+    width: 100%;
+    background-color: transparent;
+    border: 2px outset $kdb-border;
+    border-radius: 50%;
+    animation: spin-avatar 3s infinite linear;
+  }
+}
+
 .group-list-tree {
   .folder-toggle-wrap {
     float: left;
@@ -293,7 +344,7 @@ ul.indent-list {
   }
 
   .folder-caret,
-  .folder-icon {
+  .item-type-icon {
     display: inline-block;
   }
 
@@ -301,11 +352,11 @@ ul.indent-list {
     width: 15px;
   }
 
-  .folder-icon {
+  .item-type-icon {
     width: 20px;
   }
 
-  > .group-row:not(.has-subgroups) {
+  > .group-row:not(.has-children) {
     .folder-caret .fa {
       opacity: 0;
     }
@@ -351,12 +402,23 @@ ul.indent-list {
         top: 30px;
         bottom: 0;
       }
+
+      &.being-removed {
+        opacity: 0.5;
+      }
     }
   }
 
   .group-row {
     padding: 0;
-    border: none;
+
+    &.has-children {
+      border-top: none;
+    }
+
+    &:first-child {
+      border-top: 1px solid $white-normal;
+    }
 
     &:last-of-type {
       .group-row-contents:not(:hover) {
@@ -379,6 +441,25 @@ ul.indent-list {
     .avatar-container > a {
       width: 100%;
     }
+
+    &.has-more-items {
+      display: block;
+      padding: 20px 10px;
+    }
+  }
+}
+
+ul.group-list-tree {
+  li.group-row {
+    &.has-description {
+      .title {
+        line-height: inherit;
+      }
+    }
+
+    .title {
+      line-height: $list-text-height;
+    }
   }
 }
 
diff --git a/app/assets/stylesheets/pages/groups.scss b/app/assets/stylesheets/pages/groups.scss
index 6f6c6839975..9b7dda9b648 100644
--- a/app/assets/stylesheets/pages/groups.scss
+++ b/app/assets/stylesheets/pages/groups.scss
@@ -26,14 +26,117 @@
   }
 }
 
-.groups-header {
-  @media (min-width: $screen-sm-min) {
-    .nav-links {
-      width: 35%;
+.group-nav-container .nav-controls {
+  display: flex;
+  align-items: flex-start;
+  padding: $gl-padding-top 0;
+  border-bottom: 1px solid $border-color;
+
+  .group-filter-form {
+    flex: 1;
+  }
+
+  .dropdown-menu-align-right {
+    margin-top: 0;
+  }
+
+  .new-project-subgroup {
+    .dropdown-primary {
+      min-width: 115px;
     }
 
-    .nav-controls {
-      width: 65%;
+    .dropdown-toggle {
+      .dropdown-btn-icon {
+        pointer-events: none;
+        color: inherit;
+        margin-left: 0;
+      }
+    }
+
+    .dropdown-menu {
+      min-width: 280px;
+      margin-top: 2px;
+    }
+
+    li:not(.divider) {
+      padding: 0;
+
+      &.droplab-item-selected {
+        .icon-container {
+          .list-item-checkmark {
+            visibility: visible;
+          }
+        }
+      }
+
+      .menu-item {
+        padding: 8px 4px;
+
+        &:hover {
+          background-color: $gray-darker;
+          color: $theme-gray-900;
+        }
+      }
+
+      .icon-container {
+        float: left;
+        padding-left: 6px;
+
+        .list-item-checkmark {
+          visibility: hidden;
+        }
+      }
+
+      .description {
+        font-size: 14px;
+
+        strong {
+          display: block;
+          font-weight: $gl-font-weight-bold;
+        }
+      }
+    }
+  }
+
+  @media (max-width: $screen-sm-max) {
+    &,
+    .dropdown,
+    .dropdown .dropdown-toggle,
+    .btn-new {
+      display: block;
+    }
+
+    .group-filter-form,
+    .dropdown {
+      margin-bottom: 10px;
+      margin-right: 0;
+    }
+
+    .group-filter-form,
+    .dropdown .dropdown-toggle,
+    .btn-new {
+      width: 100%;
+    }
+
+    .dropdown .dropdown-toggle .fa-chevron-down {
+      position: absolute;
+      top: 11px;
+      right: 8px;
+    }
+
+    .new-project-subgroup {
+      display: flex;
+      align-items: flex-start;
+
+      .dropdown-primary {
+        flex: 1;
+      }
+
+      .dropdown-menu {
+        width: 100%;
+        max-width: inherit;
+        min-width: inherit;
+      }
     }
   }
 }
diff --git a/app/helpers/sorting_helper.rb b/app/helpers/sorting_helper.rb
index 1b542ed2a96..b05eb93b465 100644
--- a/app/helpers/sorting_helper.rb
+++ b/app/helpers/sorting_helper.rb
@@ -42,6 +42,17 @@ module SortingHelper
     options
   end
 
+  def groups_sort_options_hash
+    options = {
+      sort_value_recently_created => sort_title_recently_created,
+      sort_value_oldest_created => sort_title_oldest_created,
+      sort_value_recently_updated => sort_title_recently_updated,
+      sort_value_oldest_updated => sort_title_oldest_updated
+    }
+
+    options
+  end
+
   def member_sort_options_hash
     {
       sort_value_access_level_asc  => sort_title_access_level_asc,
diff --git a/app/views/dashboard/_groups_head.html.haml b/app/views/dashboard/_groups_head.html.haml
index 7981daa0705..cebdbab4e74 100644
--- a/app/views/dashboard/_groups_head.html.haml
+++ b/app/views/dashboard/_groups_head.html.haml
@@ -1,13 +1,13 @@
 .top-area
   %ul.nav-links
     = nav_link(page: dashboard_groups_path) do
-      = link_to dashboard_groups_path, title: 'Your groups' do
+      = link_to dashboard_groups_path, title: _("Your groups") do
         Your groups
     = nav_link(page: explore_groups_path) do
-      = link_to explore_groups_path, title: 'Explore public groups' do
+      = link_to explore_groups_path, title: _("Explore public groups") do
         Explore public groups
   .nav-controls
     = render 'shared/groups/search_form'
     = render 'shared/groups/dropdown'
     - if current_user.can_create_group?
-      = link_to "New group", new_group_path, class: "btn btn-new"
+      = link_to _("New group"), new_group_path, class: "btn btn-new"
diff --git a/app/views/dashboard/groups/_empty_state.html.haml b/app/views/dashboard/groups/_empty_state.html.haml
deleted file mode 100644
index f5222fe631e..00000000000
--- a/app/views/dashboard/groups/_empty_state.html.haml
+++ /dev/null
@@ -1,7 +0,0 @@
-.groups-empty-state
-  = custom_icon("icon_empty_groups")
-
-  .text-content
-    %h4 A group is a collection of several projects.
-    %p If you organize your projects under a group, it works like a folder.
-    %p You can manage your group member’s permissions and access to each project in the group.
diff --git a/app/views/dashboard/groups/_groups.html.haml b/app/views/dashboard/groups/_groups.html.haml
index 168e6272d8e..601b6a8b1a7 100644
--- a/app/views/dashboard/groups/_groups.html.haml
+++ b/app/views/dashboard/groups/_groups.html.haml
@@ -1,9 +1,2 @@
 .js-groups-list-holder
-  #dashboard-group-app{ data: { endpoint: dashboard_groups_path(format: :json), path: dashboard_groups_path } }
-    .groups-list-loading
-      = icon('spinner spin', 'v-show' => 'isLoading')
-    %template{ 'v-if' => '!isLoading && isEmpty' }
-      %div{ 'v-cloak' => true }
-        = render 'empty_state'
-    %template{ 'v-else-if' => '!isLoading && !isEmpty' }
-      %groups-component{ ':groups' => 'state.groups', ':page-info' => 'state.pageInfo' }
+  #js-groups-tree{ data: { hide_projects: 'true', endpoint: dashboard_groups_path(format: :json), path: dashboard_groups_path, form_sel: 'form#group-filter-form', filter_sel: '.js-groups-list-filter', holder_sel: '.js-groups-list-holder', dropdown_sel: '.js-group-filter-dropdown-wrap' } }
diff --git a/app/views/dashboard/groups/index.html.haml b/app/views/dashboard/groups/index.html.haml
index 1cea8182733..25bf08c6c12 100644
--- a/app/views/dashboard/groups/index.html.haml
+++ b/app/views/dashboard/groups/index.html.haml
@@ -6,7 +6,7 @@
 = webpack_bundle_tag 'common_vue'
 = webpack_bundle_tag 'groups'
 
-- if @groups.empty?
-  = render 'empty_state'
+- if params[:filter].blank? && @groups.empty?
+  = render 'shared/groups/empty_state'
 - else
   = render 'groups'
diff --git a/app/views/explore/groups/_groups.html.haml b/app/views/explore/groups/_groups.html.haml
index 794c6d1d170..91149498248 100644
--- a/app/views/explore/groups/_groups.html.haml
+++ b/app/views/explore/groups/_groups.html.haml
@@ -1,6 +1,2 @@
 .js-groups-list-holder
-  %ul.content-list
-    - @groups.each do |group|
-      = render 'shared/groups/group', group: group
-
-  = paginate @groups, theme: 'gitlab'
+  #js-groups-tree{ data: { hide_projects: 'true', endpoint: explore_groups_path(format: :json), path: explore_groups_path, form_sel: 'form#group-filter-form', filter_sel: '.js-groups-list-filter', holder_sel: '.js-groups-list-holder', dropdown_sel: '.js-group-filter-dropdown-wrap' } }
diff --git a/app/views/explore/groups/index.html.haml b/app/views/explore/groups/index.html.haml
index 2651ef37e67..86abdf547cc 100644
--- a/app/views/explore/groups/index.html.haml
+++ b/app/views/explore/groups/index.html.haml
@@ -2,6 +2,9 @@
 - page_title    "Groups"
 - header_title  "Groups", dashboard_groups_path
 
+= webpack_bundle_tag 'common_vue'
+= webpack_bundle_tag 'groups'
+
 - if current_user
   = render 'dashboard/groups_head'
 - else
@@ -17,7 +20,7 @@
       %p Below you will find all the groups that are public.
       %p You can easily contribute to them by requesting to join these groups.
 
-- if @groups.present?
-  = render 'groups'
-- else
+- if params[:filter].blank? && @groups.empty?
   .nothing-here-block No public groups
+- else
+  = render 'groups'
diff --git a/app/views/groups/_children.html.haml b/app/views/groups/_children.html.haml
index e22d9cc6013..3afb6b2f849 100644
--- a/app/views/groups/_children.html.haml
+++ b/app/views/groups/_children.html.haml
@@ -1,4 +1,5 @@
-- if children.any?
-  render children here
-- else
-  .nothing-here-block No children found
+= webpack_bundle_tag 'common_vue'
+= webpack_bundle_tag 'groups'
+
+.js-groups-list-holder
+  #js-groups-tree{ data: { hide_projects: 'false', group_id: group.id, endpoint: group_children_path(group, format: :json), path: group_path(group), form_sel: 'form#group-filter-form', filter_sel: '.js-groups-list-filter', holder_sel: '.js-groups-list-holder', dropdown_sel: '.js-group-filter-dropdown-wrap' } }
diff --git a/app/views/groups/show.html.haml b/app/views/groups/show.html.haml
index a8842596dbd..c6e5e16e239 100644
--- a/app/views/groups/show.html.haml
+++ b/app/views/groups/show.html.haml
@@ -7,12 +7,35 @@
 = render 'groups/home_panel'
 
 .groups-header{ class: container_class }
-  .top-area
-    .nav-controls
-      = render 'shared/projects/search_form'
-      = render 'shared/projects/dropdown'
+  .group-nav-container
+    .nav-controls.clearfix
+      = render "shared/groups/search_form"
+      = render "shared/groups/dropdown"
       - if can? current_user, :create_projects, @group
-        = link_to new_project_path(namespace_id: @group.id), class: 'btn btn-new pull-right' do
-          New Project
+        - new_project_label = _("New project")
+        - new_subgroup_label = _("New subgroup")
+        .btn-group.new-project-subgroup.droplab-dropdown.js-new-project-subgroup{ data: { project_path: new_project_path(namespace_id: @group.id), subgroup_path: new_group_path(parent_id: @group.id) } }
+          %input.btn.btn-success.dropdown-primary.js-new-group-child{ type: "button", value: new_project_label, data: { action: "new-project" } }
+          %button.btn.btn-success.dropdown-toggle.js-dropdown-toggle{ type: "button", data: { "dropdown-trigger" => "#new-project-or-subgroup-dropdown" } }
+            = icon("caret-down", class: "dropdown-btn-icon")
+          %ul#new-project-or-subgroup-dropdown.dropdown-menu.dropdown-menu-align-right{ data: { dropdown: true } }
+            %li.droplab-item-selected{ role: "button", data: { value: "new-project", text: new_project_label } }
+              .menu-item
+                .icon-container
+                  = icon("check", class: "list-item-checkmark")
+                .description
+                  %strong= new_project_label
+                  %span= s_("GroupsTree|Create project under this group.")
+            %li.divider.droplap-item-ignore
+            %li{ role: "button", data: { value: "new-subgroup", text: new_subgroup_label } }
+              .menu-item
+                .icon-container
+                  = icon("check", class: "list-item-checkmark")
+                .description
+                  %strong= new_subgroup_label
+                  %span= s_("GroupsTree|Create a subgroup under this group.")
 
-  = render "children", children: @children
+  - if params[:filter].blank? && @children.empty?
+    = render "shared/groups/empty_state"
+  - else
+    = render "children", children: @children, group: @group
diff --git a/app/views/shared/groups/_dropdown.html.haml b/app/views/shared/groups/_dropdown.html.haml
index 760370a6984..355b03e4d9e 100644
--- a/app/views/shared/groups/_dropdown.html.haml
+++ b/app/views/shared/groups/_dropdown.html.haml
@@ -1,18 +1,21 @@
-.dropdown.inline.js-group-filter-dropdown-wrap
+- if @sort.present?
+  - default_sort_by = @sort
+- else
+  - if params[:sort]
+    - default_sort_by = params[:sort]
+  - else
+    - default_sort_by = sort_value_recently_created
+
+
+.dropdown.inline.js-group-filter-dropdown-wrap.append-right-10
   %button.dropdown-toggle{ type: 'button', 'data-toggle' => 'dropdown' }
     %span.dropdown-label
-      - if @sort.present?
-        = sort_options_hash[@sort]
-      - else
-        = sort_title_recently_created
+      = sort_options_hash[default_sort_by]
     = icon('chevron-down')
-  %ul.dropdown-menu.dropdown-menu-align-right
-    %li
-      = link_to filter_groups_path(sort: sort_value_recently_created) do
-        = sort_title_recently_created
-      = link_to filter_groups_path(sort: sort_value_oldest_created) do
-        = sort_title_oldest_created
-      = link_to filter_groups_path(sort: sort_value_recently_updated) do
-        = sort_title_recently_updated
-      = link_to filter_groups_path(sort: sort_value_oldest_updated) do
-        = sort_title_oldest_updated
+  %ul.dropdown-menu.dropdown-menu-align-right.dropdown-menu-selectable
+    %li.dropdown-header
+      = _("Sort by")
+    - groups_sort_options_hash.each do |value, title|
+      %li
+        = link_to filter_groups_path(sort: value), class: "#{ 'is-active' if default_sort_by == value }" do
+          = title
diff --git a/app/views/shared/groups/_empty_state.html.haml b/app/views/shared/groups/_empty_state.html.haml
new file mode 100644
index 00000000000..13bb4baee3f
--- /dev/null
+++ b/app/views/shared/groups/_empty_state.html.haml
@@ -0,0 +1,7 @@
+.groups-empty-state
+  = custom_icon("icon_empty_groups")
+
+  .text-content
+    %h4= s_("GroupsEmptyState|A group is a collection of several projects.")
+    %p= s_("GroupsEmptyState|If you organize your projects under a group, it works like a folder.")
+    %p= s_("GroupsEmptyState|You can manage your group member’s permissions and access to each project in the group.")
diff --git a/app/views/shared/groups/_group.html.haml b/app/views/shared/groups/_group.html.haml
index b361ec86ced..eb41daa0988 100644
--- a/app/views/shared/groups/_group.html.haml
+++ b/app/views/shared/groups/_group.html.haml
@@ -11,7 +11,7 @@
         = link_to edit_group_path(group), class: "btn" do
           = icon('cogs')
 
-      = link_to leave_group_group_members_path(group), data: { confirm: leave_confirmation_message(group) }, method: :delete, class: "btn", title: 'Leave this group' do
+      = link_to leave_group_group_members_path(group), data: { confirm: leave_confirmation_message(group) }, method: :delete, class: "btn", title: s_("GroupsTree|Leave this group") do
         = icon('sign-out')
 
   .stats
diff --git a/app/views/shared/groups/_list.html.haml b/app/views/shared/groups/_list.html.haml
index 427595c47a5..aec8ecd1714 100644
--- a/app/views/shared/groups/_list.html.haml
+++ b/app/views/shared/groups/_list.html.haml
@@ -3,4 +3,4 @@
     - groups.each_with_index do |group, i|
       = render "shared/groups/group", group: group
 - else
-  .nothing-here-block No groups found
+  .nothing-here-block= s_("GroupsEmptyState|No groups found")
diff --git a/app/views/shared/groups/_search_form.html.haml b/app/views/shared/groups/_search_form.html.haml
index ad7a7faedf1..3f91263089a 100644
--- a/app/views/shared/groups/_search_form.html.haml
+++ b/app/views/shared/groups/_search_form.html.haml
@@ -1,2 +1,2 @@
-= form_tag request.path, method: :get, class: 'group-filter-form', id: 'group-filter-form' do |f|
-  = search_field_tag :filter_groups, params[:filter_groups], placeholder: 'Filter by name...', class: 'group-filter-form-field form-control input-short js-groups-list-filter', spellcheck: false, id: 'group-filter-form-field', tabindex: "2"
+= form_tag request.path, method: :get, class: 'group-filter-form append-right-10', id: 'group-filter-form' do |f|
+  = search_field_tag :filter, params[:filter], placeholder: s_('GroupsTree|Filter by name...'), class: 'group-filter-form-field form-control input-short js-groups-list-filter', spellcheck: false, id: 'group-filter-form-field', tabindex: "2"
diff --git a/app/views/shared/projects/_dropdown.html.haml b/app/views/shared/projects/_dropdown.html.haml
index 80432a73e4e..3d917346f6b 100644
--- a/app/views/shared/projects/_dropdown.html.haml
+++ b/app/views/shared/projects/_dropdown.html.haml
@@ -1,5 +1,5 @@
 - @sort ||= sort_value_latest_activity
-.dropdown
+.dropdown.js-project-filter-dropdown-wrap
   - toggle_text = projects_sort_options_hash[@sort]
   = dropdown_toggle(toggle_text, { toggle: 'dropdown' }, { id: 'sort-projects-dropdown' })
   %ul.dropdown-menu.dropdown-menu-align-right.dropdown-menu-selectable
diff --git a/spec/features/dashboard/groups_list_spec.rb b/spec/features/dashboard/groups_list_spec.rb
index 227550e62be..9cfef46d346 100644
--- a/spec/features/dashboard/groups_list_spec.rb
+++ b/spec/features/dashboard/groups_list_spec.rb
@@ -16,6 +16,7 @@ feature 'Dashboard Groups page', :js do
 
     sign_in(user)
     visit dashboard_groups_path
+    wait_for_requests
 
     expect(page).to have_content(group.full_name)
     expect(page).to have_content(nested_group.full_name)
@@ -33,7 +34,7 @@ feature 'Dashboard Groups page', :js do
     end
 
     it 'filters groups' do
-      fill_in 'filter_groups', with: group.name
+      fill_in 'filter', with: group.name
       wait_for_requests
 
       expect(page).to have_content(group.full_name)
@@ -42,10 +43,10 @@ feature 'Dashboard Groups page', :js do
     end
 
     it 'resets search when user cleans the input' do
-      fill_in 'filter_groups', with: group.name
+      fill_in 'filter', with: group.name
       wait_for_requests
 
-      fill_in 'filter_groups', with: ''
+      fill_in 'filter', with: ''
       wait_for_requests
 
       expect(page).to have_content(group.full_name)
diff --git a/spec/features/explore/groups_list_spec.rb b/spec/features/explore/groups_list_spec.rb
index fa3d8f97a09..41778542e23 100644
--- a/spec/features/explore/groups_list_spec.rb
+++ b/spec/features/explore/groups_list_spec.rb
@@ -15,6 +15,7 @@ describe 'Explore Groups page', :js do
     sign_in(user)
 
     visit explore_groups_path
+    wait_for_requests
   end
 
   it 'shows groups user is member of' do
@@ -24,7 +25,7 @@ describe 'Explore Groups page', :js do
   end
 
   it 'filters groups' do
-    fill_in 'filter_groups', with: group.name
+    fill_in 'filter', with: group.name
     wait_for_requests
 
     expect(page).to have_content(group.full_name)
@@ -33,10 +34,10 @@ describe 'Explore Groups page', :js do
   end
 
   it 'resets search when user cleans the input' do
-    fill_in 'filter_groups', with: group.name
+    fill_in 'filter', with: group.name
     wait_for_requests
 
-    fill_in 'filter_groups', with: ""
+    fill_in 'filter', with: ""
     wait_for_requests
 
     expect(page).to have_content(group.full_name)
@@ -47,21 +48,21 @@ describe 'Explore Groups page', :js do
 
   it 'shows non-archived projects count' do
     # Initially project is not archived
-    expect(find('.js-groups-list-holder .content-list li:first-child .stats span:first-child')).to have_text("1")
+    expect(find('.js-groups-list-holder .content-list li:first-child .stats .number-projects')).to have_text("1")
 
     # Archive project
     empty_project.archive!
     visit explore_groups_path
 
     # Check project count
-    expect(find('.js-groups-list-holder .content-list li:first-child .stats span:first-child')).to have_text("0")
+    expect(find('.js-groups-list-holder .content-list li:first-child .stats .number-projects')).to have_text("0")
 
     # Unarchive project
     empty_project.unarchive!
     visit explore_groups_path
 
     # Check project count
-    expect(find('.js-groups-list-holder .content-list li:first-child .stats span:first-child')).to have_text("1")
+    expect(find('.js-groups-list-holder .content-list li:first-child .stats .number-projects')).to have_text("1")
   end
 
   describe 'landing component' do
diff --git a/spec/javascripts/groups/components/app_spec.js b/spec/javascripts/groups/components/app_spec.js
new file mode 100644
index 00000000000..8472c726b08
--- /dev/null
+++ b/spec/javascripts/groups/components/app_spec.js
@@ -0,0 +1,440 @@
+import Vue from 'vue';
+
+import appComponent from '~/groups/components/app.vue';
+import groupFolderComponent from '~/groups/components/group_folder.vue';
+import groupItemComponent from '~/groups/components/group_item.vue';
+
+import eventHub from '~/groups/event_hub';
+import GroupsStore from '~/groups/store/groups_store';
+import GroupsService from '~/groups/service/groups_service';
+
+import {
+  mockEndpoint, mockGroups, mockSearchedGroups,
+  mockRawPageInfo, mockParentGroupItem, mockRawChildren,
+  mockChildren, mockPageInfo,
+} from '../mock_data';
+
+const createComponent = (hideProjects = false) => {
+  const Component = Vue.extend(appComponent);
+  const store = new GroupsStore(false);
+  const service = new GroupsService(mockEndpoint);
+
+  return new Component({
+    propsData: {
+      store,
+      service,
+      hideProjects,
+    },
+  });
+};
+
+const returnServicePromise = (data, failed) => new Promise((resolve, reject) => {
+  if (failed) {
+    reject(data);
+  } else {
+    resolve({
+      json() {
+        return data;
+      },
+    });
+  }
+});
+
+describe('AppComponent', () => {
+  let vm;
+
+  beforeEach((done) => {
+    Vue.component('group-folder', groupFolderComponent);
+    Vue.component('group-item', groupItemComponent);
+
+    vm = createComponent();
+
+    Vue.nextTick(() => {
+      done();
+    });
+  });
+
+  describe('computed', () => {
+    beforeEach(() => {
+      vm.$mount();
+    });
+
+    afterEach(() => {
+      vm.$destroy();
+    });
+
+    describe('groups', () => {
+      it('should return list of groups from store', () => {
+        spyOn(vm.store, 'getGroups');
+
+        const groups = vm.groups;
+        expect(vm.store.getGroups).toHaveBeenCalled();
+        expect(groups).not.toBeDefined();
+      });
+    });
+
+    describe('pageInfo', () => {
+      it('should return pagination info from store', () => {
+        spyOn(vm.store, 'getPaginationInfo');
+
+        const pageInfo = vm.pageInfo;
+        expect(vm.store.getPaginationInfo).toHaveBeenCalled();
+        expect(pageInfo).not.toBeDefined();
+      });
+    });
+  });
+
+  describe('methods', () => {
+    beforeEach(() => {
+      vm.$mount();
+    });
+
+    afterEach(() => {
+      vm.$destroy();
+    });
+
+    describe('fetchGroups', () => {
+      it('should call `getGroups` with all the params provided', (done) => {
+        spyOn(vm.service, 'getGroups').and.returnValue(returnServicePromise(mockGroups));
+
+        vm.fetchGroups({
+          parentId: 1,
+          page: 2,
+          filterGroupsBy: 'git',
+          sortBy: 'created_desc',
+        });
+        setTimeout(() => {
+          expect(vm.service.getGroups).toHaveBeenCalledWith(1, 2, 'git', 'created_desc');
+          done();
+        }, 0);
+      });
+
+      it('should set headers to store for building pagination info when called with `updatePagination`', (done) => {
+        spyOn(vm.service, 'getGroups').and.returnValue(returnServicePromise({ headers: mockRawPageInfo }));
+        spyOn(vm, 'updatePagination');
+
+        vm.fetchGroups({ updatePagination: true });
+        setTimeout(() => {
+          expect(vm.service.getGroups).toHaveBeenCalled();
+          expect(vm.updatePagination).toHaveBeenCalled();
+          done();
+        }, 0);
+      });
+
+      it('should show flash error when request fails', (done) => {
+        spyOn(vm.service, 'getGroups').and.returnValue(returnServicePromise(null, true));
+        spyOn($, 'scrollTo');
+        spyOn(window, 'Flash');
+
+        vm.fetchGroups({});
+        setTimeout(() => {
+          expect(vm.isLoading).toBeFalsy();
+          expect($.scrollTo).toHaveBeenCalledWith(0);
+          expect(window.Flash).toHaveBeenCalledWith('An error occurred. Please try again.');
+          done();
+        }, 0);
+      });
+    });
+
+    describe('fetchAllGroups', () => {
+      it('should fetch default set of groups', (done) => {
+        spyOn(vm, 'fetchGroups').and.returnValue(returnServicePromise(mockGroups));
+        spyOn(vm, 'updatePagination').and.callThrough();
+        spyOn(vm, 'updateGroups').and.callThrough();
+
+        vm.fetchAllGroups();
+        expect(vm.isLoading).toBeTruthy();
+        expect(vm.fetchGroups).toHaveBeenCalled();
+        setTimeout(() => {
+          expect(vm.isLoading).toBeFalsy();
+          expect(vm.updateGroups).toHaveBeenCalled();
+          done();
+        }, 0);
+      });
+
+      it('should fetch matching set of groups when app is loaded with search query', (done) => {
+        spyOn(vm, 'fetchGroups').and.returnValue(returnServicePromise(mockSearchedGroups));
+        spyOn(vm, 'updateGroups').and.callThrough();
+
+        vm.fetchAllGroups();
+        expect(vm.fetchGroups).toHaveBeenCalledWith({
+          page: null,
+          filterGroupsBy: null,
+          sortBy: null,
+          updatePagination: true,
+        });
+        setTimeout(() => {
+          expect(vm.updateGroups).toHaveBeenCalled();
+          done();
+        }, 0);
+      });
+    });
+
+    describe('fetchPage', () => {
+      it('should fetch groups for provided page details and update window state', (done) => {
+        spyOn(vm, 'fetchGroups').and.returnValue(returnServicePromise(mockGroups));
+        spyOn(vm, 'updateGroups').and.callThrough();
+        spyOn(gl.utils, 'mergeUrlParams').and.callThrough();
+        spyOn(window.history, 'replaceState');
+        spyOn($, 'scrollTo');
+
+        vm.fetchPage(2, null, null);
+        expect(vm.isLoading).toBeTruthy();
+        expect(vm.fetchGroups).toHaveBeenCalledWith({
+          page: 2,
+          filterGroupsBy: null,
+          sortBy: null,
+          updatePagination: true,
+        });
+        setTimeout(() => {
+          expect(vm.isLoading).toBeFalsy();
+          expect($.scrollTo).toHaveBeenCalledWith(0);
+          expect(gl.utils.mergeUrlParams).toHaveBeenCalledWith({ page: 2 }, jasmine.any(String));
+          expect(window.history.replaceState).toHaveBeenCalledWith({
+            page: jasmine.any(String),
+          }, jasmine.any(String), jasmine.any(String));
+          expect(vm.updateGroups).toHaveBeenCalled();
+          done();
+        }, 0);
+      });
+    });
+
+    describe('toggleChildren', () => {
+      let groupItem;
+
+      beforeEach(() => {
+        groupItem = Object.assign({}, mockParentGroupItem);
+        groupItem.isOpen = false;
+        groupItem.isChildrenLoading = false;
+      });
+
+      it('should fetch children of given group and expand it if group is collapsed and children are not loaded', (done) => {
+        spyOn(vm, 'fetchGroups').and.returnValue(returnServicePromise(mockRawChildren));
+        spyOn(vm.store, 'setGroupChildren');
+
+        vm.toggleChildren(groupItem);
+        expect(groupItem.isChildrenLoading).toBeTruthy();
+        expect(vm.fetchGroups).toHaveBeenCalledWith({
+          parentId: groupItem.id,
+        });
+        setTimeout(() => {
+          expect(vm.store.setGroupChildren).toHaveBeenCalled();
+          done();
+        }, 0);
+      });
+
+      it('should skip network request while expanding group if children are already loaded', () => {
+        spyOn(vm, 'fetchGroups');
+        groupItem.children = mockRawChildren;
+
+        vm.toggleChildren(groupItem);
+        expect(vm.fetchGroups).not.toHaveBeenCalled();
+        expect(groupItem.isOpen).toBeTruthy();
+      });
+
+      it('should collapse group if it is already expanded', () => {
+        spyOn(vm, 'fetchGroups');
+        groupItem.isOpen = true;
+
+        vm.toggleChildren(groupItem);
+        expect(vm.fetchGroups).not.toHaveBeenCalled();
+        expect(groupItem.isOpen).toBeFalsy();
+      });
+
+      it('should set `isChildrenLoading` back to `false` if load request fails', (done) => {
+        spyOn(vm, 'fetchGroups').and.returnValue(returnServicePromise({}, true));
+
+        vm.toggleChildren(groupItem);
+        expect(groupItem.isChildrenLoading).toBeTruthy();
+        setTimeout(() => {
+          expect(groupItem.isChildrenLoading).toBeFalsy();
+          done();
+        }, 0);
+      });
+    });
+
+    describe('leaveGroup', () => {
+      let groupItem;
+      let childGroupItem;
+
+      beforeEach(() => {
+        groupItem = Object.assign({}, mockParentGroupItem);
+        groupItem.children = mockChildren;
+        childGroupItem = groupItem.children[0];
+        groupItem.isChildrenLoading = false;
+      });
+
+      it('should leave group and remove group item from tree', (done) => {
+        const notice = `You left the "${childGroupItem.fullName}" group.`;
+        spyOn(vm.service, 'leaveGroup').and.returnValue(returnServicePromise({ notice }));
+        spyOn(vm.store, 'removeGroup').and.callThrough();
+        spyOn(window, 'Flash');
+        spyOn($, 'scrollTo');
+
+        vm.leaveGroup(childGroupItem, groupItem);
+        expect(childGroupItem.isBeingRemoved).toBeTruthy();
+        expect(vm.service.leaveGroup).toHaveBeenCalledWith(childGroupItem.leavePath);
+        setTimeout(() => {
+          expect($.scrollTo).toHaveBeenCalledWith(0);
+          expect(vm.store.removeGroup).toHaveBeenCalledWith(childGroupItem, groupItem);
+          expect(window.Flash).toHaveBeenCalledWith(notice, 'notice');
+          done();
+        }, 0);
+      });
+
+      it('should show error flash message if request failed to leave group', (done) => {
+        const message = 'An error occurred. Please try again.';
+        spyOn(vm.service, 'leaveGroup').and.returnValue(returnServicePromise({ status: 500 }, true));
+        spyOn(vm.store, 'removeGroup').and.callThrough();
+        spyOn(window, 'Flash');
+
+        vm.leaveGroup(childGroupItem, groupItem);
+        expect(childGroupItem.isBeingRemoved).toBeTruthy();
+        expect(vm.service.leaveGroup).toHaveBeenCalledWith(childGroupItem.leavePath);
+        setTimeout(() => {
+          expect(vm.store.removeGroup).not.toHaveBeenCalled();
+          expect(window.Flash).toHaveBeenCalledWith(message);
+          expect(childGroupItem.isBeingRemoved).toBeFalsy();
+          done();
+        }, 0);
+      });
+
+      it('should show appropriate error flash message if request forbids to leave group', (done) => {
+        const message = 'Failed to leave the group. Please make sure you are not the only owner.';
+        spyOn(vm.service, 'leaveGroup').and.returnValue(returnServicePromise({ status: 403 }, true));
+        spyOn(vm.store, 'removeGroup').and.callThrough();
+        spyOn(window, 'Flash');
+
+        vm.leaveGroup(childGroupItem, groupItem);
+        expect(childGroupItem.isBeingRemoved).toBeTruthy();
+        expect(vm.service.leaveGroup).toHaveBeenCalledWith(childGroupItem.leavePath);
+        setTimeout(() => {
+          expect(vm.store.removeGroup).not.toHaveBeenCalled();
+          expect(window.Flash).toHaveBeenCalledWith(message);
+          expect(childGroupItem.isBeingRemoved).toBeFalsy();
+          done();
+        }, 0);
+      });
+    });
+
+    describe('updatePagination', () => {
+      it('should set pagination info to store from provided headers', () => {
+        spyOn(vm.store, 'setPaginationInfo');
+
+        vm.updatePagination(mockRawPageInfo);
+        expect(vm.store.setPaginationInfo).toHaveBeenCalledWith(mockRawPageInfo);
+      });
+    });
+
+    describe('updateGroups', () => {
+      it('should call setGroups on store if method was called directly', () => {
+        spyOn(vm.store, 'setGroups');
+
+        vm.updateGroups(mockGroups);
+        expect(vm.store.setGroups).toHaveBeenCalledWith(mockGroups);
+      });
+
+      it('should call setSearchedGroups on store if method was called with fromSearch param', () => {
+        spyOn(vm.store, 'setSearchedGroups');
+
+        vm.updateGroups(mockGroups, true);
+        expect(vm.store.setSearchedGroups).toHaveBeenCalledWith(mockGroups);
+      });
+
+      it('should set `isSearchEmpty` prop based on groups count', () => {
+        vm.updateGroups(mockGroups);
+        expect(vm.isSearchEmpty).toBeFalsy();
+
+        vm.updateGroups([]);
+        expect(vm.isSearchEmpty).toBeTruthy();
+      });
+    });
+  });
+
+  describe('created', () => {
+    it('should bind event listeners on eventHub', (done) => {
+      spyOn(eventHub, '$on');
+
+      const newVm = createComponent();
+      newVm.$mount();
+
+      Vue.nextTick(() => {
+        expect(eventHub.$on).toHaveBeenCalledWith('fetchPage', jasmine.any(Function));
+        expect(eventHub.$on).toHaveBeenCalledWith('toggleChildren', jasmine.any(Function));
+        expect(eventHub.$on).toHaveBeenCalledWith('leaveGroup', jasmine.any(Function));
+        expect(eventHub.$on).toHaveBeenCalledWith('updatePagination', jasmine.any(Function));
+        expect(eventHub.$on).toHaveBeenCalledWith('updateGroups', jasmine.any(Function));
+        newVm.$destroy();
+        done();
+      });
+    });
+
+    it('should initialize `searchEmptyMessage` prop with correct string when `hideProjects` is `false`', (done) => {
+      const newVm = createComponent();
+      newVm.$mount();
+      Vue.nextTick(() => {
+        expect(newVm.searchEmptyMessage).toBe('Sorry, no groups or projects matched your search');
+        newVm.$destroy();
+        done();
+      });
+    });
+
+    it('should initialize `searchEmptyMessage` prop with correct string when `hideProjects` is `true`', (done) => {
+      const newVm = createComponent(true);
+      newVm.$mount();
+      Vue.nextTick(() => {
+        expect(newVm.searchEmptyMessage).toBe('Sorry, no groups matched your search');
+        newVm.$destroy();
+        done();
+      });
+    });
+  });
+
+  describe('beforeDestroy', () => {
+    it('should unbind event listeners on eventHub', (done) => {
+      spyOn(eventHub, '$off');
+
+      const newVm = createComponent();
+      newVm.$mount();
+      newVm.$destroy();
+
+      Vue.nextTick(() => {
+        expect(eventHub.$off).toHaveBeenCalledWith('fetchPage', jasmine.any(Function));
+        expect(eventHub.$off).toHaveBeenCalledWith('toggleChildren', jasmine.any(Function));
+        expect(eventHub.$off).toHaveBeenCalledWith('leaveGroup', jasmine.any(Function));
+        expect(eventHub.$off).toHaveBeenCalledWith('updatePagination', jasmine.any(Function));
+        expect(eventHub.$off).toHaveBeenCalledWith('updateGroups', jasmine.any(Function));
+        done();
+      });
+    });
+  });
+
+  describe('template', () => {
+    beforeEach(() => {
+      vm.$mount();
+    });
+
+    afterEach(() => {
+      vm.$destroy();
+    });
+
+    it('should render loading icon', (done) => {
+      vm.isLoading = true;
+      Vue.nextTick(() => {
+        expect(vm.$el.querySelector('.loading-animation')).toBeDefined();
+        expect(vm.$el.querySelector('i.fa').getAttribute('aria-label')).toBe('Loading groups');
+        done();
+      });
+    });
+
+    it('should render groups tree', (done) => {
+      vm.groups = [mockParentGroupItem];
+      vm.isLoading = false;
+      vm.pageInfo = mockPageInfo;
+      Vue.nextTick(() => {
+        expect(vm.$el.querySelector('.groups-list-tree-container')).toBeDefined();
+        done();
+      });
+    });
+  });
+});
diff --git a/spec/javascripts/groups/components/group_folder_spec.js b/spec/javascripts/groups/components/group_folder_spec.js
new file mode 100644
index 00000000000..4eb198595fb
--- /dev/null
+++ b/spec/javascripts/groups/components/group_folder_spec.js
@@ -0,0 +1,66 @@
+import Vue from 'vue';
+
+import groupFolderComponent from '~/groups/components/group_folder.vue';
+import groupItemComponent from '~/groups/components/group_item.vue';
+import { mockGroups, mockParentGroupItem } from '../mock_data';
+
+const createComponent = (groups = mockGroups, parentGroup = mockParentGroupItem) => {
+  const Component = Vue.extend(groupFolderComponent);
+
+  return new Component({
+    propsData: {
+      groups,
+      parentGroup,
+    },
+  });
+};
+
+describe('GroupFolderComponent', () => {
+  let vm;
+
+  beforeEach((done) => {
+    Vue.component('group-item', groupItemComponent);
+
+    vm = createComponent();
+    vm.$mount();
+
+    Vue.nextTick(() => {
+      done();
+    });
+  });
+
+  afterEach(() => {
+    vm.$destroy();
+  });
+
+  describe('computed', () => {
+    describe('hasMoreChildren', () => {
+      it('should return false when childrenCount of group is less than MAX_CHILDREN_COUNT', () => {
+        expect(vm.hasMoreChildren).toBeFalsy();
+      });
+    });
+
+    describe('moreChildrenStats', () => {
+      it('should return message with count of excess children over MAX_CHILDREN_COUNT limit', () => {
+        expect(vm.moreChildrenStats).toBe('3 more items');
+      });
+    });
+  });
+
+  describe('template', () => {
+    it('should render component template correctly', () => {
+      expect(vm.$el.classList.contains('group-list-tree')).toBeTruthy();
+      expect(vm.$el.querySelectorAll('li.group-row').length).toBe(7);
+    });
+
+    it('should render more children link when groups list has children over MAX_CHILDREN_COUNT limit', () => {
+      const parentGroup = Object.assign({}, mockParentGroupItem);
+      parentGroup.childrenCount = 21;
+
+      const newVm = createComponent(mockGroups, parentGroup);
+      newVm.$mount();
+      expect(newVm.$el.querySelector('li.group-row a.has-more-items')).toBeDefined();
+      newVm.$destroy();
+    });
+  });
+});
diff --git a/spec/javascripts/groups/components/group_item_spec.js b/spec/javascripts/groups/components/group_item_spec.js
new file mode 100644
index 00000000000..0f4fbdae445
--- /dev/null
+++ b/spec/javascripts/groups/components/group_item_spec.js
@@ -0,0 +1,177 @@
+import Vue from 'vue';
+
+import groupItemComponent from '~/groups/components/group_item.vue';
+import groupFolderComponent from '~/groups/components/group_folder.vue';
+import eventHub from '~/groups/event_hub';
+import { mockParentGroupItem, mockChildren } from '../mock_data';
+
+import mountComponent from '../../helpers/vue_mount_component_helper';
+
+const createComponent = (group = mockParentGroupItem, parentGroup = mockChildren[0]) => {
+  const Component = Vue.extend(groupItemComponent);
+
+  return mountComponent(Component, {
+    group,
+    parentGroup,
+  });
+};
+
+describe('GroupItemComponent', () => {
+  let vm;
+
+  beforeEach((done) => {
+    Vue.component('group-folder', groupFolderComponent);
+
+    vm = createComponent();
+
+    Vue.nextTick(() => {
+      done();
+    });
+  });
+
+  afterEach(() => {
+    vm.$destroy();
+  });
+
+  describe('computed', () => {
+    describe('groupDomId', () => {
+      it('should return ID string suffixed with group ID', () => {
+        expect(vm.groupDomId).toBe('group-55');
+      });
+    });
+
+    describe('rowClass', () => {
+      it('should return map of classes based on group details', () => {
+        const classes = ['is-open', 'has-children', 'has-description', 'being-removed'];
+        const rowClass = vm.rowClass;
+
+        expect(Object.keys(rowClass).length).toBe(classes.length);
+        Object.keys(rowClass).forEach((className) => {
+          expect(classes.indexOf(className) > -1).toBeTruthy();
+        });
+      });
+    });
+
+    describe('hasChildren', () => {
+      it('should return boolean value representing if group has any children present', () => {
+        let newVm;
+        const group = Object.assign({}, mockParentGroupItem);
+
+        group.childrenCount = 5;
+        newVm = createComponent(group);
+        expect(newVm.hasChildren).toBeTruthy();
+        newVm.$destroy();
+
+        group.childrenCount = 0;
+        newVm = createComponent(group);
+        expect(newVm.hasChildren).toBeFalsy();
+        newVm.$destroy();
+      });
+    });
+
+    describe('hasAvatar', () => {
+      it('should return boolean value representing if group has any avatar present', () => {
+        let newVm;
+        const group = Object.assign({}, mockParentGroupItem);
+
+        group.avatarUrl = null;
+        newVm = createComponent(group);
+        expect(newVm.hasAvatar).toBeFalsy();
+        newVm.$destroy();
+
+        group.avatarUrl = '/uploads/group_avatar.png';
+        newVm = createComponent(group);
+        expect(newVm.hasAvatar).toBeTruthy();
+        newVm.$destroy();
+      });
+    });
+
+    describe('isGroup', () => {
+      it('should return boolean value representing if group item is of type `group` or not', () => {
+        let newVm;
+        const group = Object.assign({}, mockParentGroupItem);
+
+        group.type = 'group';
+        newVm = createComponent(group);
+        expect(newVm.isGroup).toBeTruthy();
+        newVm.$destroy();
+
+        group.type = 'project';
+        newVm = createComponent(group);
+        expect(newVm.isGroup).toBeFalsy();
+        newVm.$destroy();
+      });
+    });
+  });
+
+  describe('methods', () => {
+    describe('onClickRowGroup', () => {
+      let event;
+
+      beforeEach(() => {
+        const classList = {
+          contains() {
+            return false;
+          },
+        };
+
+        event = {
+          target: {
+            classList,
+            parentElement: {
+              classList,
+            },
+          },
+        };
+      });
+
+      it('should emit `toggleChildren` event when expand is clicked on a group and it has children present', () => {
+        spyOn(eventHub, '$emit');
+
+        vm.onClickRowGroup(event);
+        expect(eventHub.$emit).toHaveBeenCalledWith('toggleChildren', vm.group);
+      });
+
+      it('should navigate page to group homepage if group does not have any children present', (done) => {
+        const group = Object.assign({}, mockParentGroupItem);
+        group.childrenCount = 0;
+        const newVm = createComponent(group);
+        spyOn(gl.utils, 'visitUrl').and.stub();
+        spyOn(eventHub, '$emit');
+
+        newVm.onClickRowGroup(event);
+        setTimeout(() => {
+          expect(eventHub.$emit).not.toHaveBeenCalled();
+          expect(gl.utils.visitUrl).toHaveBeenCalledWith(newVm.group.relativePath);
+          done();
+        }, 0);
+      });
+    });
+  });
+
+  describe('template', () => {
+    it('should render component template correctly', () => {
+      expect(vm.$el.getAttribute('id')).toBe('group-55');
+      expect(vm.$el.classList.contains('group-row')).toBeTruthy();
+
+      expect(vm.$el.querySelector('.group-row-contents')).toBeDefined();
+      expect(vm.$el.querySelector('.group-row-contents .controls')).toBeDefined();
+      expect(vm.$el.querySelector('.group-row-contents .stats')).toBeDefined();
+
+      expect(vm.$el.querySelector('.folder-toggle-wrap')).toBeDefined();
+      expect(vm.$el.querySelector('.folder-toggle-wrap .folder-caret')).toBeDefined();
+      expect(vm.$el.querySelector('.folder-toggle-wrap .item-type-icon')).toBeDefined();
+
+      expect(vm.$el.querySelector('.avatar-container')).toBeDefined();
+      expect(vm.$el.querySelector('.avatar-container a.no-expand')).toBeDefined();
+      expect(vm.$el.querySelector('.avatar-container .avatar')).toBeDefined();
+
+      expect(vm.$el.querySelector('.title')).toBeDefined();
+      expect(vm.$el.querySelector('.title a.no-expand')).toBeDefined();
+      expect(vm.$el.querySelector('.access-type')).toBeDefined();
+      expect(vm.$el.querySelector('.description')).toBeDefined();
+
+      expect(vm.$el.querySelector('.group-list-tree')).toBeDefined();
+    });
+  });
+});
diff --git a/spec/javascripts/groups/components/groups_spec.js b/spec/javascripts/groups/components/groups_spec.js
new file mode 100644
index 00000000000..280376d4903
--- /dev/null
+++ b/spec/javascripts/groups/components/groups_spec.js
@@ -0,0 +1,70 @@
+import Vue from 'vue';
+
+import groupsComponent from '~/groups/components/groups.vue';
+import groupFolderComponent from '~/groups/components/group_folder.vue';
+import groupItemComponent from '~/groups/components/group_item.vue';
+import eventHub from '~/groups/event_hub';
+import { mockGroups, mockPageInfo } from '../mock_data';
+
+import mountComponent from '../../helpers/vue_mount_component_helper';
+
+const createComponent = (searchEmpty = false) => {
+  const Component = Vue.extend(groupsComponent);
+
+  return mountComponent(Component, {
+    groups: mockGroups,
+    pageInfo: mockPageInfo,
+    searchEmptyMessage: 'No matching results',
+    searchEmpty,
+  });
+};
+
+describe('GroupsComponent', () => {
+  let vm;
+
+  beforeEach((done) => {
+    Vue.component('group-folder', groupFolderComponent);
+    Vue.component('group-item', groupItemComponent);
+
+    vm = createComponent();
+
+    Vue.nextTick(() => {
+      done();
+    });
+  });
+
+  afterEach(() => {
+    vm.$destroy();
+  });
+
+  describe('methods', () => {
+    describe('change', () => {
+      it('should emit `fetchPage` event when page is changed via pagination', () => {
+        spyOn(eventHub, '$emit').and.stub();
+
+        vm.change(2);
+        expect(eventHub.$emit).toHaveBeenCalledWith('fetchPage', 2, jasmine.any(Object), jasmine.any(Object));
+      });
+    });
+  });
+
+  describe('template', () => {
+    it('should render component template correctly', (done) => {
+      Vue.nextTick(() => {
+        expect(vm.$el.querySelector('.groups-list-tree-container')).toBeDefined();
+        expect(vm.$el.querySelector('.group-list-tree')).toBeDefined();
+        expect(vm.$el.querySelector('.gl-pagination')).toBeDefined();
+        expect(vm.$el.querySelectorAll('.has-no-search-results').length === 0).toBeTruthy();
+        done();
+      });
+    });
+
+    it('should render empty search message when `searchEmpty` is `true`', (done) => {
+      vm.searchEmpty = true;
+      Vue.nextTick(() => {
+        expect(vm.$el.querySelector('.has-no-search-results')).toBeDefined();
+        done();
+      });
+    });
+  });
+});
diff --git a/spec/javascripts/groups/components/item_actions_spec.js b/spec/javascripts/groups/components/item_actions_spec.js
new file mode 100644
index 00000000000..2ce1a749a96
--- /dev/null
+++ b/spec/javascripts/groups/components/item_actions_spec.js
@@ -0,0 +1,110 @@
+import Vue from 'vue';
+
+import itemActionsComponent from '~/groups/components/item_actions.vue';
+import eventHub from '~/groups/event_hub';
+import { mockParentGroupItem, mockChildren } from '../mock_data';
+
+import mountComponent from '../../helpers/vue_mount_component_helper';
+
+const createComponent = (group = mockParentGroupItem, parentGroup = mockChildren[0]) => {
+  const Component = Vue.extend(itemActionsComponent);
+
+  return mountComponent(Component, {
+    group,
+    parentGroup,
+  });
+};
+
+describe('ItemActionsComponent', () => {
+  let vm;
+
+  beforeEach(() => {
+    vm = createComponent();
+  });
+
+  afterEach(() => {
+    vm.$destroy();
+  });
+
+  describe('computed', () => {
+    describe('leaveConfirmationMessage', () => {
+      it('should return appropriate string for leave group confirmation', () => {
+        expect(vm.leaveConfirmationMessage).toBe('Are you sure you want to leave the "platform / hardware" group?');
+      });
+    });
+  });
+
+  describe('methods', () => {
+    describe('onLeaveGroup', () => {
+      it('should change `dialogStatus` prop to `true` which shows confirmation dialog', () => {
+        expect(vm.dialogStatus).toBeFalsy();
+        vm.onLeaveGroup();
+        expect(vm.dialogStatus).toBeTruthy();
+      });
+    });
+
+    describe('leaveGroup', () => {
+      it('should change `dialogStatus` prop to `false` and emit `leaveGroup` event with required params when called with `leaveConfirmed` as `true`', () => {
+        spyOn(eventHub, '$emit');
+        vm.dialogStatus = true;
+        vm.leaveGroup(true);
+        expect(vm.dialogStatus).toBeFalsy();
+        expect(eventHub.$emit).toHaveBeenCalledWith('leaveGroup', vm.group, vm.parentGroup);
+      });
+
+      it('should change `dialogStatus` prop to `false` and should NOT emit `leaveGroup` event when called with `leaveConfirmed` as `false`', () => {
+        spyOn(eventHub, '$emit');
+        vm.dialogStatus = true;
+        vm.leaveGroup(false);
+        expect(vm.dialogStatus).toBeFalsy();
+        expect(eventHub.$emit).not.toHaveBeenCalled();
+      });
+    });
+  });
+
+  describe('template', () => {
+    it('should render component template correctly', () => {
+      expect(vm.$el.classList.contains('controls')).toBeTruthy();
+    });
+
+    it('should render Edit Group button with correct attribute values', () => {
+      const group = Object.assign({}, mockParentGroupItem);
+      group.canEdit = true;
+      const newVm = createComponent(group);
+
+      const editBtn = newVm.$el.querySelector('a.edit-group');
+      expect(editBtn).toBeDefined();
+      expect(editBtn.classList.contains('no-expand')).toBeTruthy();
+      expect(editBtn.getAttribute('href')).toBe(group.editPath);
+      expect(editBtn.getAttribute('aria-label')).toBe('Edit group');
+      expect(editBtn.dataset.originalTitle).toBe('Edit group');
+      expect(editBtn.querySelector('i.fa.fa-cogs')).toBeDefined();
+
+      newVm.$destroy();
+    });
+
+    it('should render Leave Group button with correct attribute values', () => {
+      const group = Object.assign({}, mockParentGroupItem);
+      group.canLeave = true;
+      const newVm = createComponent(group);
+
+      const leaveBtn = newVm.$el.querySelector('a.leave-group');
+      expect(leaveBtn).toBeDefined();
+      expect(leaveBtn.classList.contains('no-expand')).toBeTruthy();
+      expect(leaveBtn.getAttribute('href')).toBe(group.leavePath);
+      expect(leaveBtn.getAttribute('aria-label')).toBe('Leave this group');
+      expect(leaveBtn.dataset.originalTitle).toBe('Leave this group');
+      expect(leaveBtn.querySelector('i.fa.fa-sign-out')).toBeDefined();
+
+      newVm.$destroy();
+    });
+
+    it('should show modal dialog when `dialogStatus` is set to `true`', () => {
+      vm.dialogStatus = true;
+      const modalDialogEl = vm.$el.querySelector('.modal.popup-dialog');
+      expect(modalDialogEl).toBeDefined();
+      expect(modalDialogEl.querySelector('.modal-title').innerText.trim()).toBe('Are you sure?');
+      expect(modalDialogEl.querySelector('.btn.btn-warning').innerText.trim()).toBe('Leave');
+    });
+  });
+});
diff --git a/spec/javascripts/groups/components/item_caret_spec.js b/spec/javascripts/groups/components/item_caret_spec.js
new file mode 100644
index 00000000000..4310a07e6e6
--- /dev/null
+++ b/spec/javascripts/groups/components/item_caret_spec.js
@@ -0,0 +1,40 @@
+import Vue from 'vue';
+
+import itemCaretComponent from '~/groups/components/item_caret.vue';
+
+import mountComponent from '../../helpers/vue_mount_component_helper';
+
+const createComponent = (isGroupOpen = false) => {
+  const Component = Vue.extend(itemCaretComponent);
+
+  return mountComponent(Component, {
+    isGroupOpen,
+  });
+};
+
+describe('ItemCaretComponent', () => {
+  describe('template', () => {
+    it('should render component template correctly', () => {
+      const vm = createComponent();
+      vm.$mount();
+      expect(vm.$el.classList.contains('folder-caret')).toBeTruthy();
+      vm.$destroy();
+    });
+
+    it('should render caret down icon if `isGroupOpen` prop is `true`', () => {
+      const vm = createComponent(true);
+      vm.$mount();
+      expect(vm.$el.querySelectorAll('i.fa.fa-caret-down').length).toBe(1);
+      expect(vm.$el.querySelectorAll('i.fa.fa-caret-right').length).toBe(0);
+      vm.$destroy();
+    });
+
+    it('should render caret right icon if `isGroupOpen` prop is `false`', () => {
+      const vm = createComponent();
+      vm.$mount();
+      expect(vm.$el.querySelectorAll('i.fa.fa-caret-down').length).toBe(0);
+      expect(vm.$el.querySelectorAll('i.fa.fa-caret-right').length).toBe(1);
+      vm.$destroy();
+    });
+  });
+});
diff --git a/spec/javascripts/groups/components/item_stats_spec.js b/spec/javascripts/groups/components/item_stats_spec.js
new file mode 100644
index 00000000000..e200f9f08bd
--- /dev/null
+++ b/spec/javascripts/groups/components/item_stats_spec.js
@@ -0,0 +1,159 @@
+import Vue from 'vue';
+
+import itemStatsComponent from '~/groups/components/item_stats.vue';
+import {
+  mockParentGroupItem,
+  ITEM_TYPE,
+  VISIBILITY_TYPE_ICON,
+  GROUP_VISIBILITY_TYPE,
+  PROJECT_VISIBILITY_TYPE,
+} from '../mock_data';
+
+import mountComponent from '../../helpers/vue_mount_component_helper';
+
+const createComponent = (item = mockParentGroupItem) => {
+  const Component = Vue.extend(itemStatsComponent);
+
+  return mountComponent(Component, {
+    item,
+  });
+};
+
+describe('ItemStatsComponent', () => {
+  describe('computed', () => {
+    describe('visibilityIcon', () => {
+      it('should return icon class based on `item.visibility` value', () => {
+        Object.keys(VISIBILITY_TYPE_ICON).forEach((visibility) => {
+          const item = Object.assign({}, mockParentGroupItem, { visibility });
+          const vm = createComponent(item);
+          vm.$mount();
+          expect(vm.visibilityIcon).toBe(VISIBILITY_TYPE_ICON[visibility]);
+          vm.$destroy();
+        });
+      });
+    });
+
+    describe('visibilityTooltip', () => {
+      it('should return tooltip string for Group based on `item.visibility` value', () => {
+        Object.keys(GROUP_VISIBILITY_TYPE).forEach((visibility) => {
+          const item = Object.assign({}, mockParentGroupItem, {
+            visibility,
+            type: ITEM_TYPE.GROUP,
+          });
+          const vm = createComponent(item);
+          vm.$mount();
+          expect(vm.visibilityTooltip).toBe(GROUP_VISIBILITY_TYPE[visibility]);
+          vm.$destroy();
+        });
+      });
+
+      it('should return tooltip string for Project based on `item.visibility` value', () => {
+        Object.keys(PROJECT_VISIBILITY_TYPE).forEach((visibility) => {
+          const item = Object.assign({}, mockParentGroupItem, {
+            visibility,
+            type: ITEM_TYPE.PROJECT,
+          });
+          const vm = createComponent(item);
+          vm.$mount();
+          expect(vm.visibilityTooltip).toBe(PROJECT_VISIBILITY_TYPE[visibility]);
+          vm.$destroy();
+        });
+      });
+    });
+
+    describe('isProject', () => {
+      it('should return boolean value representing whether `item.type` is Project or not', () => {
+        let item;
+        let vm;
+
+        item = Object.assign({}, mockParentGroupItem, { type: ITEM_TYPE.PROJECT });
+        vm = createComponent(item);
+        vm.$mount();
+        expect(vm.isProject).toBeTruthy();
+        vm.$destroy();
+
+        item = Object.assign({}, mockParentGroupItem, { type: ITEM_TYPE.GROUP });
+        vm = createComponent(item);
+        vm.$mount();
+        expect(vm.isProject).toBeFalsy();
+        vm.$destroy();
+      });
+    });
+
+    describe('isGroup', () => {
+      it('should return boolean value representing whether `item.type` is Group or not', () => {
+        let item;
+        let vm;
+
+        item = Object.assign({}, mockParentGroupItem, { type: ITEM_TYPE.GROUP });
+        vm = createComponent(item);
+        vm.$mount();
+        expect(vm.isGroup).toBeTruthy();
+        vm.$destroy();
+
+        item = Object.assign({}, mockParentGroupItem, { type: ITEM_TYPE.PROJECT });
+        vm = createComponent(item);
+        vm.$mount();
+        expect(vm.isGroup).toBeFalsy();
+        vm.$destroy();
+      });
+    });
+  });
+
+  describe('template', () => {
+    it('should render component template correctly', () => {
+      const vm = createComponent();
+      vm.$mount();
+
+      const visibilityIconEl = vm.$el.querySelector('.item-visibility');
+      expect(vm.$el.classList.contains('.stats')).toBeDefined();
+      expect(visibilityIconEl).toBeDefined();
+      expect(visibilityIconEl.dataset.originalTitle).toBe(vm.visibilityTooltip);
+      expect(visibilityIconEl.querySelector('i.fa')).toBeDefined();
+
+      vm.$destroy();
+    });
+
+    it('should render stat icons if `item.type` is Group', () => {
+      const item = Object.assign({}, mockParentGroupItem, { type: ITEM_TYPE.GROUP });
+      const vm = createComponent(item);
+      vm.$mount();
+
+      const subgroupIconEl = vm.$el.querySelector('span.number-subgroups');
+      expect(subgroupIconEl).toBeDefined();
+      expect(subgroupIconEl.dataset.originalTitle).toBe('Subgroups');
+      expect(subgroupIconEl.querySelector('i.fa.fa-folder')).toBeDefined();
+      expect(subgroupIconEl.innerText.trim()).toBe(`${vm.item.subgroupCount}`);
+
+      const projectsIconEl = vm.$el.querySelector('span.number-projects');
+      expect(projectsIconEl).toBeDefined();
+      expect(projectsIconEl.dataset.originalTitle).toBe('Projects');
+      expect(projectsIconEl.querySelector('i.fa.fa-bookmark')).toBeDefined();
+      expect(projectsIconEl.innerText.trim()).toBe(`${vm.item.projectCount}`);
+
+      const membersIconEl = vm.$el.querySelector('span.number-users');
+      expect(membersIconEl).toBeDefined();
+      expect(membersIconEl.dataset.originalTitle).toBe('Members');
+      expect(membersIconEl.querySelector('i.fa.fa-users')).toBeDefined();
+      expect(membersIconEl.innerText.trim()).toBe(`${vm.item.memberCount}`);
+
+      vm.$destroy();
+    });
+
+    it('should render stat icons if `item.type` is Project', () => {
+      const item = Object.assign({}, mockParentGroupItem, {
+        type: ITEM_TYPE.PROJECT,
+        starCount: 4,
+      });
+      const vm = createComponent(item);
+      vm.$mount();
+
+      const projectStarIconEl = vm.$el.querySelector('.project-stars');
+      expect(projectStarIconEl).toBeDefined();
+      expect(projectStarIconEl.querySelector('i.fa.fa-star')).toBeDefined();
+      expect(projectStarIconEl.innerText.trim()).toBe(`${vm.item.starCount}`);
+
+      vm.$destroy();
+    });
+  });
+});
diff --git a/spec/javascripts/groups/components/item_type_icon_spec.js b/spec/javascripts/groups/components/item_type_icon_spec.js
new file mode 100644
index 00000000000..528e6ed1b4c
--- /dev/null
+++ b/spec/javascripts/groups/components/item_type_icon_spec.js
@@ -0,0 +1,54 @@
+import Vue from 'vue';
+
+import itemTypeIconComponent from '~/groups/components/item_type_icon.vue';
+import { ITEM_TYPE } from '../mock_data';
+
+import mountComponent from '../../helpers/vue_mount_component_helper';
+
+const createComponent = (itemType = ITEM_TYPE.GROUP, isGroupOpen = false) => {
+  const Component = Vue.extend(itemTypeIconComponent);
+
+  return mountComponent(Component, {
+    itemType,
+    isGroupOpen,
+  });
+};
+
+describe('ItemTypeIconComponent', () => {
+  describe('template', () => {
+    it('should render component template correctly', () => {
+      const vm = createComponent();
+      vm.$mount();
+      expect(vm.$el.classList.contains('item-type-icon')).toBeTruthy();
+      vm.$destroy();
+    });
+
+    it('should render folder open or close icon based `isGroupOpen` prop value', () => {
+      let vm;
+
+      vm = createComponent(ITEM_TYPE.GROUP, true);
+      vm.$mount();
+      expect(vm.$el.querySelector('i.fa.fa-folder-open')).toBeDefined();
+      vm.$destroy();
+
+      vm = createComponent(ITEM_TYPE.GROUP);
+      vm.$mount();
+      expect(vm.$el.querySelector('i.fa.fa-folder')).toBeDefined();
+      vm.$destroy();
+    });
+
+    it('should render bookmark icon based on `isProject` prop value', () => {
+      let vm;
+
+      vm = createComponent(ITEM_TYPE.PROJECT);
+      vm.$mount();
+      expect(vm.$el.querySelectorAll('i.fa.fa-bookmark').length).toBe(1);
+      vm.$destroy();
+
+      vm = createComponent(ITEM_TYPE.GROUP);
+      vm.$mount();
+      expect(vm.$el.querySelectorAll('i.fa.fa-bookmark').length).toBe(0);
+      vm.$destroy();
+    });
+  });
+});
diff --git a/spec/javascripts/groups/group_item_spec.js b/spec/javascripts/groups/group_item_spec.js
deleted file mode 100644
index 25e10552d95..00000000000
--- a/spec/javascripts/groups/group_item_spec.js
+++ /dev/null
@@ -1,102 +0,0 @@
-import Vue from 'vue';
-import groupItemComponent from '~/groups/components/group_item.vue';
-import GroupsStore from '~/groups/stores/groups_store';
-import { group1 } from './mock_data';
-
-describe('Groups Component', () => {
-  let GroupItemComponent;
-  let component;
-  let store;
-  let group;
-
-  describe('group with default data', () => {
-    beforeEach((done) => {
-      GroupItemComponent = Vue.extend(groupItemComponent);
-      store = new GroupsStore();
-      group = store.decorateGroup(group1);
-
-      component = new GroupItemComponent({
-        propsData: {
-          group,
-        },
-      }).$mount();
-
-      Vue.nextTick(() => {
-        done();
-      });
-    });
-
-    afterEach(() => {
-      component.$destroy();
-    });
-
-    it('should render the group item correctly', () => {
-      expect(component.$el.classList.contains('group-row')).toBe(true);
-      expect(component.$el.classList.contains('.no-description')).toBe(false);
-      expect(component.$el.querySelector('.number-projects').textContent).toContain(group.numberProjects);
-      expect(component.$el.querySelector('.number-users').textContent).toContain(group.numberUsers);
-      expect(component.$el.querySelector('.group-visibility')).toBeDefined();
-      expect(component.$el.querySelector('.avatar-container')).toBeDefined();
-      expect(component.$el.querySelector('.title').textContent).toContain(group.name);
-      expect(component.$el.querySelector('.access-type').textContent).toContain(group.permissions.humanGroupAccess);
-      expect(component.$el.querySelector('.description').textContent).toContain(group.description);
-      expect(component.$el.querySelector('.edit-group')).toBeDefined();
-      expect(component.$el.querySelector('.leave-group')).toBeDefined();
-    });
-  });
-
-  describe('group without description', () => {
-    beforeEach((done) => {
-      GroupItemComponent = Vue.extend(groupItemComponent);
-      store = new GroupsStore();
-      group1.description = '';
-      group = store.decorateGroup(group1);
-
-      component = new GroupItemComponent({
-        propsData: {
-          group,
-        },
-      }).$mount();
-
-      Vue.nextTick(() => {
-        done();
-      });
-    });
-
-    afterEach(() => {
-      component.$destroy();
-    });
-
-    it('should render group item correctly', () => {
-      expect(component.$el.querySelector('.description').textContent).toBe('');
-      expect(component.$el.classList.contains('.no-description')).toBe(false);
-    });
-  });
-
-  describe('user has not access to group', () => {
-    beforeEach((done) => {
-      GroupItemComponent = Vue.extend(groupItemComponent);
-      store = new GroupsStore();
-      group1.permissions.human_group_access = null;
-      group = store.decorateGroup(group1);
-
-      component = new GroupItemComponent({
-        propsData: {
-          group,
-        },
-      }).$mount();
-
-      Vue.nextTick(() => {
-        done();
-      });
-    });
-
-    afterEach(() => {
-      component.$destroy();
-    });
-
-    it('should not display access type', () => {
-      expect(component.$el.querySelector('.access-type')).toBeNull();
-    });
-  });
-});
diff --git a/spec/javascripts/groups/groups_spec.js b/spec/javascripts/groups/groups_spec.js
deleted file mode 100644
index b14153dbbfa..00000000000
--- a/spec/javascripts/groups/groups_spec.js
+++ /dev/null
@@ -1,99 +0,0 @@
-import Vue from 'vue';
-import eventHub from '~/groups/event_hub';
-import groupFolderComponent from '~/groups/components/group_folder.vue';
-import groupItemComponent from '~/groups/components/group_item.vue';
-import groupsComponent from '~/groups/components/groups.vue';
-import GroupsStore from '~/groups/stores/groups_store';
-import { groupsData } from './mock_data';
-
-describe('Groups Component', () => {
-  let GroupsComponent;
-  let store;
-  let component;
-  let groups;
-
-  beforeEach((done) => {
-    Vue.component('group-folder', groupFolderComponent);
-    Vue.component('group-item', groupItemComponent);
-
-    store = new GroupsStore();
-    groups = store.setGroups(groupsData.groups);
-
-    store.storePagination(groupsData.pagination);
-
-    GroupsComponent = Vue.extend(groupsComponent);
-
-    component = new GroupsComponent({
-      propsData: {
-        groups: store.state.groups,
-        pageInfo: store.state.pageInfo,
-      },
-    }).$mount();
-
-    Vue.nextTick(() => {
-      done();
-    });
-  });
-
-  afterEach(() => {
-    component.$destroy();
-  });
-
-  describe('with data', () => {
-    it('should render a list of groups', () => {
-      expect(component.$el.classList.contains('groups-list-tree-container')).toBe(true);
-      expect(component.$el.querySelector('#group-12')).toBeDefined();
-      expect(component.$el.querySelector('#group-1119')).toBeDefined();
-      expect(component.$el.querySelector('#group-1120')).toBeDefined();
-    });
-
-    it('should respect the order of groups', () => {
-      const wrap = component.$el.querySelector('.groups-list-tree-container > .group-list-tree');
-      expect(wrap.querySelector('.group-row:nth-child(1)').id).toBe('group-12');
-      expect(wrap.querySelector('.group-row:nth-child(2)').id).toBe('group-1119');
-    });
-
-    it('should render group and its subgroup', () => {
-      const lists = component.$el.querySelectorAll('.group-list-tree');
-
-      expect(lists.length).toBe(3); // one parent and two subgroups
-
-      expect(lists[0].querySelector('#group-1119').classList.contains('is-open')).toBe(true);
-      expect(lists[0].querySelector('#group-1119').classList.contains('has-subgroups')).toBe(true);
-
-      expect(lists[2].querySelector('#group-1120').textContent).toContain(groups.id1119.subGroups.id1120.name);
-    });
-
-    it('should render group identicon when group avatar is not present', () => {
-      const avatar = component.$el.querySelector('#group-12 .avatar-container .avatar');
-      expect(avatar.nodeName).toBe('DIV');
-      expect(avatar.classList.contains('identicon')).toBeTruthy();
-      expect(avatar.getAttribute('style').indexOf('background-color') > -1).toBeTruthy();
-    });
-
-    it('should render group avatar when group avatar is present', () => {
-      const avatar = component.$el.querySelector('#group-1120 .avatar-container .avatar');
-      expect(avatar.nodeName).toBe('IMG');
-      expect(avatar.classList.contains('identicon')).toBeFalsy();
-    });
-
-    it('should remove prefix of parent group', () => {
-      expect(component.$el.querySelector('#group-12 #group-1128 .title').textContent).toContain('level2 / level3 / level4');
-    });
-
-    it('should remove the group after leaving the group', (done) => {
-      spyOn(window, 'confirm').and.returnValue(true);
-
-      eventHub.$on('leaveGroup', (group, collection) => {
-        store.removeGroup(group, collection);
-      });
-
-      component.$el.querySelector('#group-12 .leave-group').click();
-
-      Vue.nextTick(() => {
-        expect(component.$el.querySelector('#group-12')).toBeNull();
-        done();
-      });
-    });
-  });
-});
diff --git a/spec/javascripts/groups/mock_data.js b/spec/javascripts/groups/mock_data.js
index 5bb84b591f4..6184d671790 100644
--- a/spec/javascripts/groups/mock_data.js
+++ b/spec/javascripts/groups/mock_data.js
@@ -1,114 +1,380 @@
-const group1 = {
-  id: 12,
-  name: 'level1',
-  path: 'level1',
-  description: 'foo',
+export const mockEndpoint = '/dashboard/groups.json';
+
+export const ITEM_TYPE = {
+  PROJECT: 'project',
+  GROUP: 'group',
+};
+
+export const GROUP_VISIBILITY_TYPE = {
+  public: 'Public - The group and any public projects can be viewed without any authentication.',
+  internal: 'Internal - The group and any internal projects can be viewed by any logged in user.',
+  private: 'Private - The group and its projects can only be viewed by members.',
+};
+
+export const PROJECT_VISIBILITY_TYPE = {
+  public: 'Public - The project can be accessed without any authentication.',
+  internal: 'Internal - The project can be accessed by any logged in user.',
+  private: 'Private - Project access must be granted explicitly to each user.',
+};
+
+export const VISIBILITY_TYPE_ICON = {
+  public: 'fa-globe',
+  internal: 'fa-shield',
+  private: 'fa-lock',
+};
+
+export const mockParentGroupItem = {
+  id: 55,
+  name: 'hardware',
+  description: '',
   visibility: 'public',
-  avatar_url: null,
-  web_url: 'http://localhost:3000/groups/level1',
-  group_path: '/level1',
-  full_name: 'level1',
-  full_path: 'level1',
-  parent_id: null,
-  created_at: '2017-05-15T19:01:23.670Z',
-  updated_at: '2017-05-15T19:01:23.670Z',
-  number_projects_with_delimiter: '1',
-  number_users_with_delimiter: '1',
-  has_subgroups: true,
-  permissions: {
-    human_group_access: 'Master',
-  },
+  fullName: 'platform / hardware',
+  relativePath: '/platform/hardware',
+  canEdit: true,
+  type: 'group',
+  avatarUrl: null,
+  permission: 'Owner',
+  editPath: '/groups/platform/hardware/edit',
+  childrenCount: 3,
+  leavePath: '/groups/platform/hardware/group_members/leave',
+  parentId: 54,
+  memberCount: '1',
+  projectCount: 1,
+  subgroupCount: 2,
+  canLeave: false,
+  children: [],
+  isOpen: true,
+  isChildrenLoading: false,
+  isBeingRemoved: false,
 };
 
-// This group has no direct parent, should be placed as subgroup of group1
-const group14 = {
-  id: 1128,
-  name: 'level4',
-  path: 'level4',
-  description: 'foo',
-  visibility: 'public',
-  avatar_url: null,
-  web_url: 'http://localhost:3000/groups/level1/level2/level3/level4',
-  group_path: '/level1/level2/level3/level4',
-  full_name: 'level1 / level2 / level3 / level4',
-  full_path: 'level1/level2/level3/level4',
-  parent_id: 1127,
-  created_at: '2017-05-15T19:02:01.645Z',
-  updated_at: '2017-05-15T19:02:01.645Z',
-  number_projects_with_delimiter: '1',
-  number_users_with_delimiter: '1',
-  has_subgroups: true,
-  permissions: {
-    human_group_access: 'Master',
+export const mockRawChildren = [
+  {
+    id: 57,
+    name: 'bsp',
+    description: '',
+    visibility: 'public',
+    full_name: 'platform / hardware / bsp',
+    relative_path: '/platform/hardware/bsp',
+    can_edit: true,
+    type: 'group',
+    avatar_url: null,
+    permission: 'Owner',
+    edit_path: '/groups/platform/hardware/bsp/edit',
+    children_count: 6,
+    leave_path: '/groups/platform/hardware/bsp/group_members/leave',
+    parent_id: 55,
+    number_users_with_delimiter: '1',
+    project_count: 4,
+    subgroup_count: 2,
+    can_leave: false,
+    children: [],
   },
+];
+
+export const mockChildren = [
+  {
+    id: 57,
+    name: 'bsp',
+    description: '',
+    visibility: 'public',
+    fullName: 'platform / hardware / bsp',
+    relativePath: '/platform/hardware/bsp',
+    canEdit: true,
+    type: 'group',
+    avatarUrl: null,
+    permission: 'Owner',
+    editPath: '/groups/platform/hardware/bsp/edit',
+    childrenCount: 6,
+    leavePath: '/groups/platform/hardware/bsp/group_members/leave',
+    parentId: 55,
+    memberCount: '1',
+    projectCount: 4,
+    subgroupCount: 2,
+    canLeave: false,
+    children: [],
+    isOpen: true,
+    isChildrenLoading: false,
+    isBeingRemoved: false,
+  },
+];
+
+export const mockGroups = [
+  {
+    id: 75,
+    name: 'test-group',
+    description: '',
+    visibility: 'public',
+    full_name: 'test-group',
+    relative_path: '/test-group',
+    can_edit: true,
+    type: 'group',
+    avatar_url: null,
+    permission: 'Owner',
+    edit_path: '/groups/test-group/edit',
+    children_count: 2,
+    leave_path: '/groups/test-group/group_members/leave',
+    parent_id: null,
+    number_users_with_delimiter: '1',
+    project_count: 2,
+    subgroup_count: 0,
+    can_leave: false,
+  },
+  {
+    id: 67,
+    name: 'open-source',
+    description: '',
+    visibility: 'private',
+    full_name: 'open-source',
+    relative_path: '/open-source',
+    can_edit: true,
+    type: 'group',
+    avatar_url: null,
+    permission: 'Owner',
+    edit_path: '/groups/open-source/edit',
+    children_count: 0,
+    leave_path: '/groups/open-source/group_members/leave',
+    parent_id: null,
+    number_users_with_delimiter: '1',
+    project_count: 0,
+    subgroup_count: 0,
+    can_leave: false,
+  },
+  {
+    id: 54,
+    name: 'platform',
+    description: '',
+    visibility: 'public',
+    full_name: 'platform',
+    relative_path: '/platform',
+    can_edit: true,
+    type: 'group',
+    avatar_url: null,
+    permission: 'Owner',
+    edit_path: '/groups/platform/edit',
+    children_count: 1,
+    leave_path: '/groups/platform/group_members/leave',
+    parent_id: null,
+    number_users_with_delimiter: '1',
+    project_count: 0,
+    subgroup_count: 1,
+    can_leave: false,
+  },
+  {
+    id: 5,
+    name: 'H5bp',
+    description: 'Minus dolor consequuntur qui nam recusandae quam incidunt.',
+    visibility: 'public',
+    full_name: 'H5bp',
+    relative_path: '/h5bp',
+    can_edit: true,
+    type: 'group',
+    avatar_url: null,
+    permission: 'Owner',
+    edit_path: '/groups/h5bp/edit',
+    children_count: 1,
+    leave_path: '/groups/h5bp/group_members/leave',
+    parent_id: null,
+    number_users_with_delimiter: '5',
+    project_count: 1,
+    subgroup_count: 0,
+    can_leave: false,
+  },
+  {
+    id: 4,
+    name: 'Twitter',
+    description: 'Deserunt hic nostrum placeat veniam.',
+    visibility: 'public',
+    full_name: 'Twitter',
+    relative_path: '/twitter',
+    can_edit: true,
+    type: 'group',
+    avatar_url: null,
+    permission: 'Owner',
+    edit_path: '/groups/twitter/edit',
+    children_count: 2,
+    leave_path: '/groups/twitter/group_members/leave',
+    parent_id: null,
+    number_users_with_delimiter: '5',
+    project_count: 2,
+    subgroup_count: 0,
+    can_leave: false,
+  },
+  {
+    id: 3,
+    name: 'Documentcloud',
+    description: 'Consequatur saepe totam ea pariatur maxime.',
+    visibility: 'public',
+    full_name: 'Documentcloud',
+    relative_path: '/documentcloud',
+    can_edit: true,
+    type: 'group',
+    avatar_url: null,
+    permission: 'Owner',
+    edit_path: '/groups/documentcloud/edit',
+    children_count: 1,
+    leave_path: '/groups/documentcloud/group_members/leave',
+    parent_id: null,
+    number_users_with_delimiter: '5',
+    project_count: 1,
+    subgroup_count: 0,
+    can_leave: false,
+  },
+  {
+    id: 2,
+    name: 'Gitlab Org',
+    description: 'Debitis ea quas aperiam velit doloremque ab.',
+    visibility: 'public',
+    full_name: 'Gitlab Org',
+    relative_path: '/gitlab-org',
+    can_edit: true,
+    type: 'group',
+    avatar_url: '/uploads/-/system/group/avatar/2/GitLab.png',
+    permission: 'Owner',
+    edit_path: '/groups/gitlab-org/edit',
+    children_count: 4,
+    leave_path: '/groups/gitlab-org/group_members/leave',
+    parent_id: null,
+    number_users_with_delimiter: '5',
+    project_count: 4,
+    subgroup_count: 0,
+    can_leave: false,
+  },
+];
+
+export const mockSearchedGroups = [
+  {
+    id: 55,
+    name: 'hardware',
+    description: '',
+    visibility: 'public',
+    full_name: 'platform / hardware',
+    relative_path: '/platform/hardware',
+    can_edit: true,
+    type: 'group',
+    avatar_url: null,
+    permission: 'Owner',
+    edit_path: '/groups/platform/hardware/edit',
+    children_count: 3,
+    leave_path: '/groups/platform/hardware/group_members/leave',
+    parent_id: 54,
+    number_users_with_delimiter: '1',
+    project_count: 1,
+    subgroup_count: 2,
+    can_leave: false,
+    children: [
+      {
+        id: 57,
+        name: 'bsp',
+        description: '',
+        visibility: 'public',
+        full_name: 'platform / hardware / bsp',
+        relative_path: '/platform/hardware/bsp',
+        can_edit: true,
+        type: 'group',
+        avatar_url: null,
+        permission: 'Owner',
+        edit_path: '/groups/platform/hardware/bsp/edit',
+        children_count: 6,
+        leave_path: '/groups/platform/hardware/bsp/group_members/leave',
+        parent_id: 55,
+        number_users_with_delimiter: '1',
+        project_count: 4,
+        subgroup_count: 2,
+        can_leave: false,
+        children: [
+          {
+            id: 60,
+            name: 'kernel',
+            description: '',
+            visibility: 'public',
+            full_name: 'platform / hardware / bsp / kernel',
+            relative_path: '/platform/hardware/bsp/kernel',
+            can_edit: true,
+            type: 'group',
+            avatar_url: null,
+            permission: 'Owner',
+            edit_path: '/groups/platform/hardware/bsp/kernel/edit',
+            children_count: 1,
+            leave_path: '/groups/platform/hardware/bsp/kernel/group_members/leave',
+            parent_id: 57,
+            number_users_with_delimiter: '1',
+            project_count: 0,
+            subgroup_count: 1,
+            can_leave: false,
+            children: [
+              {
+                id: 61,
+                name: 'common',
+                description: '',
+                visibility: 'public',
+                full_name: 'platform / hardware / bsp / kernel / common',
+                relative_path: '/platform/hardware/bsp/kernel/common',
+                can_edit: true,
+                type: 'group',
+                avatar_url: null,
+                permission: 'Owner',
+                edit_path: '/groups/platform/hardware/bsp/kernel/common/edit',
+                children_count: 2,
+                leave_path: '/groups/platform/hardware/bsp/kernel/common/group_members/leave',
+                parent_id: 60,
+                number_users_with_delimiter: '1',
+                project_count: 2,
+                subgroup_count: 0,
+                can_leave: false,
+                children: [
+                  {
+                    id: 17,
+                    name: 'v4.4',
+                    description: 'Voluptatem qui ea error aperiam veritatis doloremque consequatur temporibus.',
+                    visibility: 'public',
+                    full_name: 'platform / hardware / bsp / kernel / common / v4.4',
+                    relative_path: '/platform/hardware/bsp/kernel/common/v4.4',
+                    can_edit: true,
+                    type: 'project',
+                    avatar_url: null,
+                    permission: null,
+                    edit_path: '/platform/hardware/bsp/kernel/common/v4.4/edit',
+                    star_count: 0,
+                  },
+                  {
+                    id: 16,
+                    name: 'v4.1',
+                    description: 'Rerum expedita voluptatem doloribus neque ducimus ut hic.',
+                    visibility: 'public',
+                    full_name: 'platform / hardware / bsp / kernel / common / v4.1',
+                    relative_path: '/platform/hardware/bsp/kernel/common/v4.1',
+                    can_edit: true,
+                    type: 'project',
+                    avatar_url: null,
+                    permission: null,
+                    edit_path: '/platform/hardware/bsp/kernel/common/v4.1/edit',
+                    star_count: 0,
+                  },
+                ],
+              },
+            ],
+          },
+        ],
+      },
+    ],
+  },
+];
+
+export const mockRawPageInfo = {
+  'x-per-page': 10,
+  'x-page': 10,
+  'x-total': 10,
+  'x-total-pages': 10,
+  'x-next-page': 10,
+  'x-prev-page': 10,
 };
 
-const group2 = {
-  id: 1119,
-  name: 'devops',
-  path: 'devops',
-  description: 'foo',
-  visibility: 'public',
-  avatar_url: null,
-  web_url: 'http://localhost:3000/groups/devops',
-  group_path: '/devops',
-  full_name: 'devops',
-  full_path: 'devops',
-  parent_id: null,
-  created_at: '2017-05-11T19:35:09.635Z',
-  updated_at: '2017-05-11T19:35:09.635Z',
-  number_projects_with_delimiter: '1',
-  number_users_with_delimiter: '1',
-  has_subgroups: true,
-  permissions: {
-    human_group_access: 'Master',
-  },
+export const mockPageInfo = {
+  perPage: 10,
+  page: 10,
+  total: 10,
+  totalPages: 10,
+  nextPage: 10,
+  prevPage: 10,
 };
-
-const group21 = {
-  id: 1120,
-  name: 'chef',
-  path: 'chef',
-  description: 'foo',
-  visibility: 'public',
-  avatar_url: '/uploads/-/system/group/avatar/2/GitLab.png',
-  web_url: 'http://localhost:3000/groups/devops/chef',
-  group_path: '/devops/chef',
-  full_name: 'devops / chef',
-  full_path: 'devops/chef',
-  parent_id: 1119,
-  created_at: '2017-05-11T19:51:04.060Z',
-  updated_at: '2017-05-11T19:51:04.060Z',
-  number_projects_with_delimiter: '1',
-  number_users_with_delimiter: '1',
-  has_subgroups: true,
-  permissions: {
-    human_group_access: 'Master',
-  },
-};
-
-const groupsData = {
-  groups: [group1, group14, group2, group21],
-  pagination: {
-    Date: 'Mon, 22 May 2017 22:31:52 GMT',
-    'X-Prev-Page': '1',
-    'X-Content-Type-Options': 'nosniff',
-    'X-Total': '31',
-    'Transfer-Encoding': 'chunked',
-    'X-Runtime': '0.611144',
-    'X-Xss-Protection': '1; mode=block',
-    'X-Request-Id': 'f5db8368-3ce5-4aa4-89d2-a125d9dead09',
-    'X-Ua-Compatible': 'IE=edge',
-    'X-Per-Page': '20',
-    Link: '<http://localhost:3000/dashboard/groups.json?page=1&per_page=20>; rel="prev", <http://localhost:3000/dashboard/groups.json?page=1&per_page=20>; rel="first", <http://localhost:3000/dashboard/groups.json?page=2&per_page=20>; rel="last"',
-    'X-Next-Page': '',
-    Etag: 'W/"a82f846947136271cdb7d55d19ef33d2"',
-    'X-Frame-Options': 'DENY',
-    'Content-Type': 'application/json; charset=utf-8',
-    'Cache-Control': 'max-age=0, private, must-revalidate',
-    'X-Total-Pages': '2',
-    'X-Page': '2',
-  },
-};
-
-export { groupsData, group1 };
diff --git a/spec/javascripts/groups/service/groups_service_spec.js b/spec/javascripts/groups/service/groups_service_spec.js
new file mode 100644
index 00000000000..222e75d24a4
--- /dev/null
+++ b/spec/javascripts/groups/service/groups_service_spec.js
@@ -0,0 +1,41 @@
+import Vue from 'vue';
+import VueResource from 'vue-resource';
+
+import GroupsService from '~/groups/service/groups_service';
+import { mockEndpoint, mockParentGroupItem } from '../mock_data';
+
+Vue.use(VueResource);
+
+describe('GroupsService', () => {
+  let service;
+
+  beforeEach(() => {
+    service = new GroupsService(mockEndpoint);
+  });
+
+  describe('getGroups', () => {
+    it('should return promise for `GET` request on provided endpoint', () => {
+      spyOn(service.groups, 'get').and.stub();
+      const queryParams = {
+        page: 2,
+        filter: 'git',
+        sort: 'created_asc',
+      };
+
+      service.getGroups(55, 2, 'git', 'created_asc');
+      expect(service.groups.get).toHaveBeenCalledWith({ parent_id: 55 });
+
+      service.getGroups(null, 2, 'git', 'created_asc');
+      expect(service.groups.get).toHaveBeenCalledWith(queryParams);
+    });
+  });
+
+  describe('leaveGroup', () => {
+    it('should return promise for `DELETE` request on provided endpoint', () => {
+      spyOn(Vue.http, 'delete').and.stub();
+
+      service.leaveGroup(mockParentGroupItem.leavePath);
+      expect(Vue.http.delete).toHaveBeenCalledWith(mockParentGroupItem.leavePath);
+    });
+  });
+});
diff --git a/spec/javascripts/groups/store/groups_store_spec.js b/spec/javascripts/groups/store/groups_store_spec.js
new file mode 100644
index 00000000000..d74f38f476e
--- /dev/null
+++ b/spec/javascripts/groups/store/groups_store_spec.js
@@ -0,0 +1,110 @@
+import GroupsStore from '~/groups/store/groups_store';
+import {
+  mockGroups, mockSearchedGroups,
+  mockParentGroupItem, mockRawChildren,
+  mockRawPageInfo,
+} from '../mock_data';
+
+describe('ProjectsStore', () => {
+  describe('constructor', () => {
+    it('should initialize default state', () => {
+      let store;
+
+      store = new GroupsStore();
+      expect(Object.keys(store.state).length).toBe(2);
+      expect(Array.isArray(store.state.groups)).toBeTruthy();
+      expect(Object.keys(store.state.pageInfo).length).toBe(0);
+      expect(store.hideProjects).not.toBeDefined();
+
+      store = new GroupsStore(true);
+      expect(store.hideProjects).toBeTruthy();
+    });
+  });
+
+  describe('setGroups', () => {
+    it('should set groups to state', () => {
+      const store = new GroupsStore();
+      spyOn(store, 'formatGroupItem').and.callThrough();
+
+      store.setGroups(mockGroups);
+      expect(store.state.groups.length).toBe(mockGroups.length);
+      expect(store.formatGroupItem).toHaveBeenCalledWith(jasmine.any(Object));
+      expect(Object.keys(store.state.groups[0]).indexOf('fullName') > -1).toBeTruthy();
+    });
+  });
+
+  describe('setSearchedGroups', () => {
+    it('should set searched groups to state', () => {
+      const store = new GroupsStore();
+      spyOn(store, 'formatGroupItem').and.callThrough();
+
+      store.setSearchedGroups(mockSearchedGroups);
+      expect(store.state.groups.length).toBe(mockSearchedGroups.length);
+      expect(store.formatGroupItem).toHaveBeenCalledWith(jasmine.any(Object));
+      expect(Object.keys(store.state.groups[0]).indexOf('fullName') > -1).toBeTruthy();
+      expect(Object.keys(store.state.groups[0].children[0]).indexOf('fullName') > -1).toBeTruthy();
+    });
+  });
+
+  describe('setGroupChildren', () => {
+    it('should set children to group item in state', () => {
+      const store = new GroupsStore();
+      spyOn(store, 'formatGroupItem').and.callThrough();
+
+      store.setGroupChildren(mockParentGroupItem, mockRawChildren);
+      expect(store.formatGroupItem).toHaveBeenCalledWith(jasmine.any(Object));
+      expect(mockParentGroupItem.children.length).toBe(1);
+      expect(Object.keys(mockParentGroupItem.children[0]).indexOf('fullName') > -1).toBeTruthy();
+      expect(mockParentGroupItem.isOpen).toBeTruthy();
+      expect(mockParentGroupItem.isChildrenLoading).toBeFalsy();
+    });
+  });
+
+  describe('setPaginationInfo', () => {
+    it('should parse and set pagination info in state', () => {
+      const store = new GroupsStore();
+
+      store.setPaginationInfo(mockRawPageInfo);
+      expect(store.state.pageInfo.perPage).toBe(10);
+      expect(store.state.pageInfo.page).toBe(10);
+      expect(store.state.pageInfo.total).toBe(10);
+      expect(store.state.pageInfo.totalPages).toBe(10);
+      expect(store.state.pageInfo.nextPage).toBe(10);
+      expect(store.state.pageInfo.previousPage).toBe(10);
+    });
+  });
+
+  describe('formatGroupItem', () => {
+    it('should parse group item object and return updated object', () => {
+      let store;
+      let updatedGroupItem;
+
+      store = new GroupsStore();
+      updatedGroupItem = store.formatGroupItem(mockRawChildren[0]);
+      expect(Object.keys(updatedGroupItem).indexOf('fullName') > -1).toBeTruthy();
+      expect(updatedGroupItem.childrenCount).toBe(mockRawChildren[0].children_count);
+      expect(updatedGroupItem.isChildrenLoading).toBe(false);
+      expect(updatedGroupItem.isBeingRemoved).toBe(false);
+
+      store = new GroupsStore(true);
+      updatedGroupItem = store.formatGroupItem(mockRawChildren[0]);
+      expect(Object.keys(updatedGroupItem).indexOf('fullName') > -1).toBeTruthy();
+      expect(updatedGroupItem.childrenCount).toBe(mockRawChildren[0].subgroup_count);
+    });
+  });
+
+  describe('removeGroup', () => {
+    it('should remove children from group item in state', () => {
+      const store = new GroupsStore();
+      const rawParentGroup = Object.assign({}, mockGroups[0]);
+      const rawChildGroup = Object.assign({}, mockGroups[1]);
+
+      store.setGroups([rawParentGroup]);
+      store.setGroupChildren(store.state.groups[0], [rawChildGroup]);
+      const childItem = store.state.groups[0].children[0];
+
+      store.removeGroup(childItem, store.state.groups[0]);
+      expect(store.state.groups[0].children.length).toBe(0);
+    });
+  });
+});