diff --git a/src/backend/distributed/commands/citus_add_local_table_to_metadata.c b/src/backend/distributed/commands/citus_add_local_table_to_metadata.c
index d95cdd353..af90b21c5 100644
--- a/src/backend/distributed/commands/citus_add_local_table_to_metadata.c
+++ b/src/backend/distributed/commands/citus_add_local_table_to_metadata.c
@@ -1459,7 +1459,7 @@ InsertMetadataForCitusLocalTable(Oid citusLocalTableId, uint64 shardId,
 	text *shardMinValue = NULL;
 	text *shardMaxValue = NULL;
 	InsertShardRow(citusLocalTableId, shardId, shardStorageType,
-				   shardMinValue, shardMaxValue);
+				   shardMinValue, shardMaxValue, InvalidShardgroupID);
 
 	List *nodeList = list_make1(CoordinatorNodeIfAddedAsWorkerOrError());
 
diff --git a/src/backend/distributed/commands/create_distributed_table.c b/src/backend/distributed/commands/create_distributed_table.c
index 9f3975a1e..a3d5dcce2 100644
--- a/src/backend/distributed/commands/create_distributed_table.c
+++ b/src/backend/distributed/commands/create_distributed_table.c
@@ -146,7 +146,8 @@ static void ConvertCitusLocalTableToTableType(Oid relationId,
 											  DistributedTableParams *
 											  distributedTableParams);
 static void CreateHashDistributedTableShards(Oid relationId, int shardCount,
-											 Oid colocatedTableId, bool localTableEmpty);
+											 uint32 colocationId, Oid colocatedTableId,
+											 bool localTableEmpty);
 static void CreateSingleShardTableShard(Oid relationId, Oid colocatedTableId,
 										uint32 colocationId);
 static uint32 ColocationIdForNewTable(Oid relationId, CitusTableType tableType,
@@ -1289,7 +1290,7 @@ CreateCitusTable(Oid relationId, CitusTableType tableType,
 	{
 		/* create shards for hash distributed table */
 		CreateHashDistributedTableShards(relationId, distributedTableParams->shardCount,
-										 colocatedTableId,
+										 colocationId, colocatedTableId,
 										 localTableEmpty);
 	}
 	else if (tableType == REFERENCE_TABLE)
@@ -1880,7 +1881,7 @@ DecideDistTableReplicationModel(char distributionMethod, char *colocateWithTable
  * CreateHashDistributedTableShards creates shards of given hash distributed table.
  */
 static void
-CreateHashDistributedTableShards(Oid relationId, int shardCount,
+CreateHashDistributedTableShards(Oid relationId, int shardCount, uint32 colocationId,
 								 Oid colocatedTableId, bool localTableEmpty)
 {
 	bool useExclusiveConnection = false;
@@ -1919,7 +1920,10 @@ CreateHashDistributedTableShards(Oid relationId, int shardCount,
 		 * tables which will not be part of an existing colocation group. Therefore,
 		 * we can directly use ShardReplicationFactor global variable here.
 		 */
-		CreateShardsWithRoundRobinPolicy(relationId, shardCount, ShardReplicationFactor,
+		CreateShardsWithRoundRobinPolicy(relationId,
+										 colocationId,
+										 shardCount, 
+										 ShardReplicationFactor,
 										 useExclusiveConnection);
 	}
 }
diff --git a/src/backend/distributed/metadata/metadata_cache.c b/src/backend/distributed/metadata/metadata_cache.c
index 1b2fa229f..3a90bed97 100644
--- a/src/backend/distributed/metadata/metadata_cache.c
+++ b/src/backend/distributed/metadata/metadata_cache.c
@@ -155,6 +155,7 @@ typedef struct MetadataCacheData
 {
 	ExtensionCreatedState extensionCreatedState;
 	Oid distShardRelationId;
+	Oid distShardgroupRelationId;
 	Oid distPlacementRelationId;
 	Oid distBackgroundJobRelationId;
 	Oid distBackgroundJobPKeyIndexId;
@@ -2594,6 +2595,16 @@ DistShardRelationId(void)
 }
 
 
+Oid
+DistShardgroupRelationId(void)
+{
+	CachedRelationLookup("pg_dist_shardgroup",
+						 &MetadataCache.distShardgroupRelationId);
+
+	return MetadataCache.distShardgroupRelationId;
+}
+
+
 /* return oid of pg_dist_placement relation */
 Oid
 DistPlacementRelationId(void)
@@ -5378,6 +5389,7 @@ DeformedDistShardTupleToShardInterval(Datum *datumArray, bool *isNullArray,
 	char storageType = DatumGetChar(datumArray[Anum_pg_dist_shard_shardstorage - 1]);
 	Datum minValueTextDatum = datumArray[Anum_pg_dist_shard_shardminvalue - 1];
 	Datum maxValueTextDatum = datumArray[Anum_pg_dist_shard_shardmaxvalue - 1];
+	ShardgroupID shardgoupdId = DatumGetShardgroupID(datumArray[Anum_pg_dist_shard_shardgroupid - 1]);
 
 	bool minValueNull = isNullArray[Anum_pg_dist_shard_shardminvalue - 1];
 	bool maxValueNull = isNullArray[Anum_pg_dist_shard_shardmaxvalue - 1];
@@ -5414,6 +5426,7 @@ DeformedDistShardTupleToShardInterval(Datum *datumArray, bool *isNullArray,
 	shardInterval->minValue = minValue;
 	shardInterval->maxValue = maxValue;
 	shardInterval->shardId = shardId;
+	shardInterval->shardgroupId = shardgoupdId;
 
 	return shardInterval;
 }
diff --git a/src/backend/distributed/metadata/metadata_sync.c b/src/backend/distributed/metadata/metadata_sync.c
index f0be1995b..32be9b8af 100644
--- a/src/backend/distributed/metadata/metadata_sync.c
+++ b/src/backend/distributed/metadata/metadata_sync.c
@@ -84,6 +84,7 @@
 #include "distributed/relation_access_tracking.h"
 #include "distributed/remote_commands.h"
 #include "distributed/resource_lock.h"
+#include "distributed/shardgroup.h"
 #include "distributed/tenant_schema_metadata.h"
 #include "distributed/utils/array_type.h"
 #include "distributed/utils/function.h"
@@ -149,6 +150,8 @@ static char * ColocationGroupCreateCommand(uint32 colocationId, int shardCount,
 										   int replicationFactor,
 										   Oid distributionColumnType,
 										   Oid distributionColumnCollation);
+static char * ShardgroupsCreateCommand(ShardgroupID *shardgroupIDs, int shardCount,
+									   uint32 colocationId);
 static char * ColocationGroupDeleteCommand(uint32 colocationId);
 static char * RemoteSchemaIdExpressionById(Oid schemaId);
 static char * RemoteSchemaIdExpressionByName(char *schemaName);
@@ -171,6 +174,7 @@ PG_FUNCTION_INFO_V1(worker_record_sequence_dependency);
 PG_FUNCTION_INFO_V1(citus_internal_add_partition_metadata);
 PG_FUNCTION_INFO_V1(citus_internal_delete_partition_metadata);
 PG_FUNCTION_INFO_V1(citus_internal_add_shard_metadata);
+PG_FUNCTION_INFO_V1(citus_internal_add_shardgroup_metadata);
 PG_FUNCTION_INFO_V1(citus_internal_add_placement_metadata);
 PG_FUNCTION_INFO_V1(citus_internal_delete_placement_metadata);
 PG_FUNCTION_INFO_V1(citus_internal_add_placement_metadata_legacy);
@@ -1249,7 +1253,7 @@ ShardListInsertCommand(List *shardIntervalList)
 	StringInfo insertShardCommand = makeStringInfo();
 	appendStringInfo(insertShardCommand,
 					 "WITH shard_data(relationname, shardid, storagetype, "
-					 "shardminvalue, shardmaxvalue)  AS (VALUES ");
+					 "shardminvalue, shardmaxvalue, shardgroupid)  AS (VALUES ");
 
 	foreach_ptr(shardInterval, shardIntervalList)
 	{
@@ -1281,12 +1285,13 @@ ShardListInsertCommand(List *shardIntervalList)
 		}
 
 		appendStringInfo(insertShardCommand,
-						 "(%s::regclass, %ld, '%c'::\"char\", %s, %s)",
+						 "(%s::regclass, %ld, '%c'::\"char\", %s, %s, %ld::bigint)",
 						 quote_literal_cstr(qualifiedRelationName),
 						 shardId,
 						 shardInterval->storageType,
 						 minHashToken->data,
-						 maxHashToken->data);
+						 maxHashToken->data,
+						 shardInterval->shardgroupId);
 
 		if (llast(shardIntervalList) != shardInterval)
 		{
@@ -1298,7 +1303,7 @@ ShardListInsertCommand(List *shardIntervalList)
 
 	appendStringInfo(insertShardCommand,
 					 "SELECT citus_internal_add_shard_metadata(relationname, shardid, "
-					 "storagetype, shardminvalue, shardmaxvalue) "
+					 "storagetype, shardminvalue, shardmaxvalue, shardgroupid) "
 					 "FROM shard_data;");
 
 	/*
@@ -3341,6 +3346,9 @@ citus_internal_add_shard_metadata(PG_FUNCTION_ARGS)
 		shardMaxValue = PG_GETARG_TEXT_P(4);
 	}
 
+	PG_ENSURE_ARGNOTNULL(5, "shardgroup id");
+	ShardgroupID shardgroupID = PG_GETARG_SHARDGROUPID(5);
+
 	/* only owner of the table (or superuser) is allowed to add the Citus metadata */
 	EnsureTableOwner(relationId);
 
@@ -3361,7 +3369,31 @@ citus_internal_add_shard_metadata(PG_FUNCTION_ARGS)
 								  shardMaxValue);
 	}
 
-	InsertShardRow(relationId, shardId, storageType, shardMinValue, shardMaxValue);
+	InsertShardRow(relationId, shardId, storageType, shardMinValue, shardMaxValue, shardgroupID);
+
+	PG_RETURN_VOID();
+}
+
+
+Datum
+citus_internal_add_shardgroup_metadata(PG_FUNCTION_ARGS)
+{
+	CheckCitusVersion(ERROR);
+	EnsureSuperUser();
+
+	PG_ENSURE_ARGNOTNULL(0, "shardgroupid");
+	ShardgroupID shardgroupID = PG_GETARG_SHARDGROUPID(0);
+
+	PG_ENSURE_ARGNOTNULL(1, "colocationid");
+	uint32 colocationId = PG_GETARG_UINT32(1);
+
+	if (!ShouldSkipMetadataChecks())
+	{
+		/* this UDF is not allowed allowed for executing as a separate command */
+		EnsureCoordinatorInitiatedOperation();
+	}
+
+	InsertShardgroupRow(shardgroupID, colocationId);
 
 	PG_RETURN_VOID();
 }
@@ -4091,6 +4123,50 @@ ColocationGroupCreateCommand(uint32 colocationId, int shardCount, int replicatio
 }
 
 
+void
+SyncNewShardgoupsToNodes(ShardgroupID *shardgroupIDs, int shardCount, uint32 colocationId)
+{
+	char *command = ShardgroupsCreateCommand(shardgroupIDs, shardCount, colocationId);
+
+	/*
+	 * We require superuser for all pg_dist_shardgroups operations because we have
+	 * no reasonable way of restricting access.
+	 */
+	SendCommandToWorkersWithMetadataViaSuperUser(command);
+}
+
+
+static char *
+ShardgroupsCreateCommand(ShardgroupID *shardgroupIDs, int shardCount, uint32 colocationId)
+{
+	StringInfoData buf = {0};
+	initStringInfo(&buf);
+	/* now add shards to insertShardCommand */
+	appendStringInfo(&buf, 
+					 "WITH shardgroup_data(shardgroupid, colocationid)  AS (VALUES ");
+	for (int i=0; i<shardCount; i++)
+	{
+		if (i > 0)
+		{
+			appendStringInfo(&buf, ", ");
+		}
+
+		ShardgroupID shardgroupId = shardgroupIDs[i];
+		appendStringInfo(&buf, "(%ld::bigint, %u)",
+						 shardgroupId,
+						 colocationId);
+	}
+
+	appendStringInfo(&buf, ") ");
+
+	appendStringInfo(&buf,
+					 "SELECT pg_catalog.citus_internal_add_shardgroup_metadata(shardgroupid, "
+					 "colocationid) FROM shardgroup_data;");
+
+	return buf.data;
+}
+
+
 /*
  * RemoteTypeIdExpression returns an expression in text form that can
  * be used to obtain the OID of a type on a different node when included
diff --git a/src/backend/distributed/metadata/metadata_utility.c b/src/backend/distributed/metadata/metadata_utility.c
index 15e167008..b486423a2 100644
--- a/src/backend/distributed/metadata/metadata_utility.c
+++ b/src/backend/distributed/metadata/metadata_utility.c
@@ -70,11 +70,13 @@
 #include "distributed/pg_dist_partition.h"
 #include "distributed/pg_dist_placement.h"
 #include "distributed/pg_dist_shard.h"
+#include "distributed/pg_dist_shardgroup.h"
 #include "distributed/reference_table_utils.h"
 #include "distributed/relay_utility.h"
 #include "distributed/remote_commands.h"
 #include "distributed/resource_lock.h"
 #include "distributed/shard_rebalancer.h"
+#include "distributed/shardgroup.h"
 #include "distributed/tuplestore.h"
 #include "distributed/utils/array_type.h"
 #include "distributed/version_compat.h"
@@ -1350,6 +1352,7 @@ CopyShardInterval(ShardInterval *srcInterval)
 	destInterval->maxValueExists = srcInterval->maxValueExists;
 	destInterval->shardId = srcInterval->shardId;
 	destInterval->shardIndex = srcInterval->shardIndex;
+	destInterval->shardgroupId = srcInterval->shardgroupId;
 
 	destInterval->minValue = 0;
 	if (destInterval->minValueExists)
@@ -1796,6 +1799,32 @@ IsDummyPlacement(ShardPlacement *taskPlacement)
 }
 
 
+void
+InsertShardgroupRow(ShardgroupID shardgroupId, uint32 colocationId)
+{
+	Datum values[Natts_pg_dist_shardgroup];
+	bool isNulls[Natts_pg_dist_shardgroup];
+
+	/* form new shard tuple */
+	memset(values, 0, sizeof(values));
+	memset(isNulls, false, sizeof(isNulls));
+
+	values[Anum_pg_dist_shardgroup_shardgroupid - 1] = ShardgroupIDGetDatum(shardgroupId);
+	values[Anum_pg_dist_shardgroup_colocationid - 1] = Int32GetDatum(colocationId);
+
+	/* open shard relation and insert new tuple */
+	Relation pgDistShardgroup = table_open(DistShardgroupRelationId(), RowExclusiveLock);
+
+	TupleDesc tupleDescriptor = RelationGetDescr(pgDistShardgroup);
+	HeapTuple heapTuple = heap_form_tuple(tupleDescriptor, values, isNulls);
+
+	CatalogTupleInsert(pgDistShardgroup, heapTuple);
+
+	CommandCounterIncrement();
+	table_close(pgDistShardgroup, NoLock);
+}
+
+
 /*
  * InsertShardRow opens the shard system catalog, and inserts a new row with the
  * given values into that system catalog. Note that we allow the user to pass in
@@ -1803,7 +1832,7 @@ IsDummyPlacement(ShardPlacement *taskPlacement)
  */
 void
 InsertShardRow(Oid relationId, uint64 shardId, char storageType,
-			   text *shardMinValue, text *shardMaxValue)
+			   text *shardMinValue, text *shardMaxValue, ShardgroupID shardgroupId)
 {
 	Datum values[Natts_pg_dist_shard];
 	bool isNulls[Natts_pg_dist_shard];
@@ -1831,6 +1860,8 @@ InsertShardRow(Oid relationId, uint64 shardId, char storageType,
 		isNulls[Anum_pg_dist_shard_shardmaxvalue - 1] = true;
 	}
 
+	values[Anum_pg_dist_shard_shardgroupid - 1] = ShardgroupIDGetDatum(shardgroupId);
+
 	/* open shard relation and insert new tuple */
 	Relation pgDistShard = table_open(DistShardRelationId(), RowExclusiveLock);
 
diff --git a/src/backend/distributed/operations/create_shards.c b/src/backend/distributed/operations/create_shards.c
index 962547051..98f0d3399 100644
--- a/src/backend/distributed/operations/create_shards.c
+++ b/src/backend/distributed/operations/create_shards.c
@@ -50,6 +50,7 @@
 #include "distributed/pg_dist_shard.h"
 #include "distributed/reference_table_utils.h"
 #include "distributed/resource_lock.h"
+#include "distributed/shardgroup.h"
 #include "distributed/shardinterval_utils.h"
 #include "distributed/transaction_management.h"
 #include "distributed/worker_manager.h"
@@ -80,8 +81,9 @@ master_create_worker_shards(PG_FUNCTION_ARGS)
  * worker nodes.
  */
 void
-CreateShardsWithRoundRobinPolicy(Oid distributedTableId, int32 shardCount,
-								 int32 replicationFactor, bool useExclusiveConnections)
+CreateShardsWithRoundRobinPolicy(Oid distributedTableId, uint32 colocationId,
+								 int32 shardCount, int32 replicationFactor,
+								 bool useExclusiveConnections)
 {
 	CitusTableCacheEntry *cacheEntry = GetCitusTableCacheEntry(distributedTableId);
 	List *insertedShardPlacements = NIL;
@@ -163,6 +165,7 @@ CreateShardsWithRoundRobinPolicy(Oid distributedTableId, int32 shardCount,
 	/* set shard storage type according to relation type */
 	char shardStorageType = ShardStorageType(distributedTableId);
 
+	ShardgroupID *shardgroupIDs = palloc0(sizeof(ShardgroupID) * shardCount);
 	for (int64 shardIndex = 0; shardIndex < shardCount; shardIndex++)
 	{
 		uint32 roundRobinNodeIndex = shardIndex % workerNodeCount;
@@ -184,8 +187,12 @@ CreateShardsWithRoundRobinPolicy(Oid distributedTableId, int32 shardCount,
 		text *minHashTokenText = IntegerToText(shardMinHashToken);
 		text *maxHashTokenText = IntegerToText(shardMaxHashToken);
 
+		ShardgroupID shardgroupId = GetNextShardgroupId();
+		InsertShardgroupRow(shardgroupId, colocationId);
+		shardgroupIDs[shardIndex] = shardgroupId;
+
 		InsertShardRow(distributedTableId, *shardIdPtr, shardStorageType,
-					   minHashTokenText, maxHashTokenText);
+					   minHashTokenText, maxHashTokenText, shardgroupId);
 
 		InsertShardPlacementRows(distributedTableId,
 								 *shardIdPtr,
@@ -194,6 +201,9 @@ CreateShardsWithRoundRobinPolicy(Oid distributedTableId, int32 shardCount,
 								 replicationFactor);
 	}
 
+	// TODO guess we should check if metadatasync is on
+	SyncNewShardgoupsToNodes(shardgroupIDs, shardCount, colocationId);
+
 	/*
 	 * load shard placements for the shard at once after all placement insertions
 	 * finished. This prevents MetadataCache from rebuilding unnecessarily after
@@ -283,7 +293,8 @@ CreateColocatedShards(Oid targetRelationId, Oid sourceRelationId, bool
 			sourceShardId);
 
 		InsertShardRow(targetRelationId, *newShardIdPtr, targetShardStorageType,
-					   shardMinValueText, shardMaxValueText);
+					   shardMinValueText, shardMaxValueText,
+					   sourceShardInterval->shardgroupId);
 
 		ShardPlacement *sourcePlacement = NULL;
 		foreach_ptr(sourcePlacement, sourceShardPlacementList)
@@ -366,7 +377,7 @@ CreateReferenceTableShard(Oid distributedTableId)
 	uint64 shardId = GetNextShardId();
 
 	InsertShardRow(distributedTableId, shardId, shardStorageType, shardMinValue,
-				   shardMaxValue);
+				   shardMaxValue, InvalidShardgroupID);
 
 	InsertShardPlacementRows(distributedTableId,
 							 shardId,
@@ -421,8 +432,11 @@ CreateSingleShardTableShardWithRoundRobinPolicy(Oid relationId, uint32 colocatio
 	text *minHashTokenText = NULL;
 	text *maxHashTokenText = NULL;
 	uint64 shardId = GetNextShardId();
+
+	ShardgroupID shardgroupId = GetNextShardgroupId();
+	InsertShardgroupRow(shardgroupId, colocationId);
 	InsertShardRow(relationId, shardId, shardStorageType,
-				   minHashTokenText, maxHashTokenText);
+				   minHashTokenText, maxHashTokenText, shardgroupId);
 
 	int replicationFactor = 1;
 	InsertShardPlacementRows(relationId,
diff --git a/src/backend/distributed/operations/node_protocol.c b/src/backend/distributed/operations/node_protocol.c
index 52e44bea0..00e690b6f 100644
--- a/src/backend/distributed/operations/node_protocol.c
+++ b/src/backend/distributed/operations/node_protocol.c
@@ -253,6 +253,28 @@ GetNextShardId()
 }
 
 
+ShardgroupID
+GetNextShardgroupId()
+{
+	text *sequenceName = cstring_to_text(SHARDGROUPID_SEQUENCE_NAME);
+	Oid sequenceId = ResolveRelationId(sequenceName, false);
+	Datum sequenceIdDatum = ObjectIdGetDatum(sequenceId);
+
+	Oid savedUserId = InvalidOid;
+	int savedSecurityContext = 0;
+	GetUserIdAndSecContext(&savedUserId, &savedSecurityContext);
+	SetUserIdAndSecContext(CitusExtensionOwner(), SECURITY_LOCAL_USERID_CHANGE);
+
+	/* generate new and unique shardId from sequence */
+	Datum shardgroupIdDatum = DirectFunctionCall1(nextval_oid, sequenceIdDatum);
+
+	SetUserIdAndSecContext(savedUserId, savedSecurityContext);
+
+	ShardgroupID shardgroupId = DatumGetShardgroupID(shardgroupIdDatum);
+	return shardgroupId;
+}
+
+
 /*
  * master_get_new_placementid is a user facing wrapper function around
  * GetNextPlacementId() which allocates and returns a unique placement id for the
diff --git a/src/backend/distributed/operations/shard_split.c b/src/backend/distributed/operations/shard_split.c
index cf9f301b7..417640293 100644
--- a/src/backend/distributed/operations/shard_split.c
+++ b/src/backend/distributed/operations/shard_split.c
@@ -1177,7 +1177,8 @@ InsertSplitChildrenShardMetadata(List *shardGroupSplitIntervalListList,
 				shardInterval->shardId,
 				shardInterval->storageType,
 				IntegerToText(DatumGetInt32(shardInterval->minValue)),
-				IntegerToText(DatumGetInt32(shardInterval->maxValue)));
+				IntegerToText(DatumGetInt32(shardInterval->maxValue)),
+				InvalidShardgroupID);
 
 			InsertShardPlacementRow(
 				shardInterval->shardId,
diff --git a/src/backend/distributed/operations/stage_protocol.c b/src/backend/distributed/operations/stage_protocol.c
index 5770d648e..8222fd290 100644
--- a/src/backend/distributed/operations/stage_protocol.c
+++ b/src/backend/distributed/operations/stage_protocol.c
@@ -193,7 +193,7 @@ master_create_empty_shard(PG_FUNCTION_ARGS)
 		candidateNodeIndex++;
 	}
 
-	InsertShardRow(relationId, shardId, storageType, nullMinValue, nullMaxValue);
+	InsertShardRow(relationId, shardId, storageType, nullMinValue, nullMaxValue, InvalidShardgroupID);
 
 	CreateAppendDistributedShardPlacements(relationId, shardId, candidateNodeList,
 										   ShardReplicationFactor);
diff --git a/src/backend/distributed/sql/citus--12.1-1--12.2-1.sql b/src/backend/distributed/sql/citus--12.1-1--12.2-1.sql
index 63c4a527f..806440efc 100644
--- a/src/backend/distributed/sql/citus--12.1-1--12.2-1.sql
+++ b/src/backend/distributed/sql/citus--12.1-1--12.2-1.sql
@@ -3,3 +3,4 @@
 
 #include "udfs/citus_internal_database_command/12.2-1.sql"
 #include "udfs/citus_add_rebalance_strategy/12.2-1.sql"
+#include "feature/shardgroup/upgrade.sql"
diff --git a/src/backend/distributed/sql/downgrades/citus--12.2-1--12.1-1.sql b/src/backend/distributed/sql/downgrades/citus--12.2-1--12.1-1.sql
index d18f7257b..c6c153eb6 100644
--- a/src/backend/distributed/sql/downgrades/citus--12.2-1--12.1-1.sql
+++ b/src/backend/distributed/sql/downgrades/citus--12.2-1--12.1-1.sql
@@ -3,3 +3,4 @@
 DROP FUNCTION pg_catalog.citus_internal_database_command(text);
 
 #include "../udfs/citus_add_rebalance_strategy/10.1-1.sql"
+#include "../feature/shardgroup/downgrade.sql"
diff --git a/src/backend/distributed/sql/feature/shardgroup/downgrade.sql b/src/backend/distributed/sql/feature/shardgroup/downgrade.sql
new file mode 100644
index 000000000..94782b12c
--- /dev/null
+++ b/src/backend/distributed/sql/feature/shardgroup/downgrade.sql
@@ -0,0 +1,9 @@
+DROP TABLE pg_dist_shardgroup;
+
+-- TODO probably needs to drop table and recreate original one to make sure we can upgrade
+-- again later and _not_ have troubled with the internal ordering of the columns.
+ALTER TABLE pg_catalog.pg_dist_shard DROP COLUMN shardgroupid;
+
+DROP FUNCTION pg_catalog.citus_internal_add_shardgroup_metadata(bigint, integer);
+DROP FUNCTION pg_catalog.citus_internal_add_shard_metadata(regclass, bigint, "char", text, text, bigint);
+#include "../../udfs/citus_internal_add_shard_metadata/10.2-1.sql"
\ No newline at end of file
diff --git a/src/backend/distributed/sql/feature/shardgroup/upgrade.sql b/src/backend/distributed/sql/feature/shardgroup/upgrade.sql
new file mode 100644
index 000000000..1dff2e886
--- /dev/null
+++ b/src/backend/distributed/sql/feature/shardgroup/upgrade.sql
@@ -0,0 +1,15 @@
+CREATE TABLE citus.pg_dist_shardgroup (
+    shardgroupid bigint PRIMARY KEY,
+    colocationid integer NOT NULL
+);
+
+ALTER TABLE citus.pg_dist_shardgroup SET SCHEMA pg_catalog;
+ALTER TABLE pg_catalog.pg_dist_shard ADD COLUMN shardgroupid bigint NOT NULL;
+
+CREATE SEQUENCE citus.pg_dist_shardgroupid_seq NO CYCLE;
+ALTER SEQUENCE  citus.pg_dist_shardgroupid_seq SET SCHEMA pg_catalog;
+
+DROP FUNCTION pg_catalog.citus_internal_add_shard_metadata(regclass, bigint, "char", text, text);
+#include "../../udfs/citus_internal_add_shard_metadata/12.2-1.sql"
+#include "../../udfs/citus_internal_add_shardgroup_metadata/12.2-1.sql"
+
diff --git a/src/backend/distributed/sql/udfs/citus_internal_add_shard_metadata/12.2-1.sql b/src/backend/distributed/sql/udfs/citus_internal_add_shard_metadata/12.2-1.sql
new file mode 100644
index 000000000..7c90607d7
--- /dev/null
+++ b/src/backend/distributed/sql/udfs/citus_internal_add_shard_metadata/12.2-1.sql
@@ -0,0 +1,10 @@
+CREATE OR REPLACE FUNCTION pg_catalog.citus_internal_add_shard_metadata(
+							relation_id regclass, shard_id bigint,
+							storage_type "char", shard_min_value text,
+							shard_max_value text, shardgoupdid bigint
+							)
+    RETURNS void
+    LANGUAGE C
+    AS 'MODULE_PATHNAME';
+COMMENT ON FUNCTION pg_catalog.citus_internal_add_shard_metadata(regclass, bigint, "char", text, text, bigint) IS
+    'Inserts into pg_dist_shard with user checks';
diff --git a/src/backend/distributed/sql/udfs/citus_internal_add_shard_metadata/latest.sql b/src/backend/distributed/sql/udfs/citus_internal_add_shard_metadata/latest.sql
index 7411d9179..7c90607d7 100644
--- a/src/backend/distributed/sql/udfs/citus_internal_add_shard_metadata/latest.sql
+++ b/src/backend/distributed/sql/udfs/citus_internal_add_shard_metadata/latest.sql
@@ -1,10 +1,10 @@
 CREATE OR REPLACE FUNCTION pg_catalog.citus_internal_add_shard_metadata(
 							relation_id regclass, shard_id bigint,
 							storage_type "char", shard_min_value text,
-							shard_max_value text
+							shard_max_value text, shardgoupdid bigint
 							)
     RETURNS void
     LANGUAGE C
     AS 'MODULE_PATHNAME';
-COMMENT ON FUNCTION pg_catalog.citus_internal_add_shard_metadata(regclass, bigint, "char", text, text) IS
+COMMENT ON FUNCTION pg_catalog.citus_internal_add_shard_metadata(regclass, bigint, "char", text, text, bigint) IS
     'Inserts into pg_dist_shard with user checks';
diff --git a/src/backend/distributed/sql/udfs/citus_internal_add_shardgroup_metadata/12.2-1.sql b/src/backend/distributed/sql/udfs/citus_internal_add_shardgroup_metadata/12.2-1.sql
new file mode 100644
index 000000000..968aa8c8e
--- /dev/null
+++ b/src/backend/distributed/sql/udfs/citus_internal_add_shardgroup_metadata/12.2-1.sql
@@ -0,0 +1,7 @@
+CREATE OR REPLACE FUNCTION pg_catalog.citus_internal_add_shardgroup_metadata(
+							shardgroupid bigint, colocationid integer)
+    RETURNS void
+    LANGUAGE C
+    AS 'MODULE_PATHNAME';
+COMMENT ON FUNCTION pg_catalog.citus_internal_add_shardgroup_metadata(bigint, integer) IS
+    'Inserts into pg_dist_shardgroup with user checks';
diff --git a/src/backend/distributed/sql/udfs/citus_internal_add_shardgroup_metadata/latest.sql b/src/backend/distributed/sql/udfs/citus_internal_add_shardgroup_metadata/latest.sql
new file mode 100644
index 000000000..968aa8c8e
--- /dev/null
+++ b/src/backend/distributed/sql/udfs/citus_internal_add_shardgroup_metadata/latest.sql
@@ -0,0 +1,7 @@
+CREATE OR REPLACE FUNCTION pg_catalog.citus_internal_add_shardgroup_metadata(
+							shardgroupid bigint, colocationid integer)
+    RETURNS void
+    LANGUAGE C
+    AS 'MODULE_PATHNAME';
+COMMENT ON FUNCTION pg_catalog.citus_internal_add_shardgroup_metadata(bigint, integer) IS
+    'Inserts into pg_dist_shardgroup with user checks';
diff --git a/src/backend/distributed/test/distribution_metadata.c b/src/backend/distributed/test/distribution_metadata.c
index 01117922e..9bf8864c4 100644
--- a/src/backend/distributed/test/distribution_metadata.c
+++ b/src/backend/distributed/test/distribution_metadata.c
@@ -231,7 +231,7 @@ create_monolithic_shard_row(PG_FUNCTION_ARGS)
 	text *maxInfoText = cstring_to_text(maxInfo->data);
 
 	InsertShardRow(distributedTableId, newShardId, SHARD_STORAGE_TABLE, minInfoText,
-				   maxInfoText);
+				   maxInfoText, InvalidShardgroupID);
 
 	PG_RETURN_INT64(newShardId);
 }
diff --git a/src/include/distributed/coordinator_protocol.h b/src/include/distributed/coordinator_protocol.h
index b2170fd2e..9f9650e74 100644
--- a/src/include/distributed/coordinator_protocol.h
+++ b/src/include/distributed/coordinator_protocol.h
@@ -23,6 +23,7 @@
 
 #include "distributed/connection_management.h"
 #include "distributed/metadata_utility.h"
+#include "distributed/shardgroup.h"
 #include "distributed/shardinterval_utils.h"
 
 /*
@@ -55,6 +56,7 @@
 #define TRANSFER_MODE_BLOCK_WRITES 'b'
 
 #define SHARDID_SEQUENCE_NAME "pg_dist_shardid_seq"
+#define SHARDGROUPID_SEQUENCE_NAME "pg_dist_shardgroupid_seq"
 #define PLACEMENTID_SEQUENCE_NAME "pg_dist_placement_placementid_seq"
 
 /* Remote call definitions to help with data staging and deletion */
@@ -222,6 +224,7 @@ extern bool IsCoordinator(void);
 
 /* Function declarations local to the distributed module */
 extern uint64 GetNextShardId(void);
+extern ShardgroupID GetNextShardgroupId(void);
 extern uint64 GetNextPlacementId(void);
 extern Oid ResolveRelationId(text *relationName, bool missingOk);
 extern List * GetFullTableCreationCommands(Oid relationId,
@@ -257,7 +260,9 @@ extern void InsertShardPlacementRows(Oid relationId, int64 shardId,
 									 List *workerNodeList, int workerStartIndex,
 									 int replicationFactor);
 extern uint64 UpdateShardStatistics(int64 shardId);
-extern void CreateShardsWithRoundRobinPolicy(Oid distributedTableId, int32 shardCount,
+extern void CreateShardsWithRoundRobinPolicy(Oid distributedTableId,
+											 uint32 colocationId,
+											 int32 shardCount,
 											 int32 replicationFactor,
 											 bool useExclusiveConnections);
 extern void CreateColocatedShards(Oid targetRelationId, Oid sourceRelationId,
diff --git a/src/include/distributed/metadata_cache.h b/src/include/distributed/metadata_cache.h
index f1120497b..6d4c32cdb 100644
--- a/src/include/distributed/metadata_cache.h
+++ b/src/include/distributed/metadata_cache.h
@@ -240,6 +240,7 @@ extern Oid DistColocationRelationId(void);
 extern Oid DistColocationConfigurationIndexId(void);
 extern Oid DistPartitionRelationId(void);
 extern Oid DistShardRelationId(void);
+extern Oid DistShardgroupRelationId(void);
 extern Oid DistPlacementRelationId(void);
 extern Oid DistNodeRelationId(void);
 extern Oid DistBackgroundJobRelationId(void);
diff --git a/src/include/distributed/metadata_sync.h b/src/include/distributed/metadata_sync.h
index e20c44535..7d3861715 100644
--- a/src/include/distributed/metadata_sync.h
+++ b/src/include/distributed/metadata_sync.h
@@ -138,6 +138,8 @@ extern void SyncNewColocationGroupToNodes(uint32 colocationId, int shardCount,
 										  int replicationFactor,
 										  Oid distributionColumType,
 										  Oid distributionColumnCollation);
+extern void SyncNewShardgoupsToNodes(ShardgroupID *shardgroupIDs, int shardCount,
+									 uint32 colocationId);
 extern void SyncDeleteColocationGroupToNodes(uint32 colocationId);
 extern char * TenantSchemaInsertCommand(Oid schemaId, uint32 colocationId);
 extern char * TenantSchemaDeleteCommand(char *schemaName);
diff --git a/src/include/distributed/metadata_utility.h b/src/include/distributed/metadata_utility.h
index 04a4b500b..c20dbd6cd 100644
--- a/src/include/distributed/metadata_utility.h
+++ b/src/include/distributed/metadata_utility.h
@@ -28,6 +28,7 @@
 #include "distributed/connection_management.h"
 #include "distributed/errormessage.h"
 #include "distributed/relay_utility.h"
+#include "distributed/shardgroup.h"
 #include "distributed/worker_manager.h"
 
 
@@ -68,6 +69,7 @@ typedef struct ShardInterval
 	Datum maxValue;     /* a shard's typed max value datum */
 	uint64 shardId;
 	int shardIndex;
+	ShardgroupID shardgroupId;
 } ShardInterval;
 
 
@@ -350,7 +352,9 @@ extern List * RemoveCoordinatorPlacementIfNotSingleNode(List *placementList);
 
 /* Function declarations to modify shard and shard placement data */
 extern void InsertShardRow(Oid relationId, uint64 shardId, char storageType,
-						   text *shardMinValue, text *shardMaxValue);
+						   text *shardMinValue, text *shardMaxValue,
+						   ShardgroupID shardgroupId);
+extern void InsertShardgroupRow(ShardgroupID shardgroupId, uint32 colocationId);
 extern void DeleteShardRow(uint64 shardId);
 extern ShardPlacement * InsertShardPlacementRowGlobally(uint64 shardId,
 														uint64 placementId,
diff --git a/src/include/distributed/pg_dist_shard.h b/src/include/distributed/pg_dist_shard.h
index 5c98b755f..e6ed5124b 100644
--- a/src/include/distributed/pg_dist_shard.h
+++ b/src/include/distributed/pg_dist_shard.h
@@ -16,6 +16,8 @@
 #ifndef PG_DIST_SHARD_H
 #define PG_DIST_SHARD_H
 
+#include "distributed/shardgroup.h"
+
 /* ----------------
  *		pg_dist_shard definition.
  * ----------------
@@ -30,6 +32,7 @@ typedef struct FormData_pg_dist_shard
 	text shardminvalue;        /* partition key's minimum value in shard */
 	text shardmaxvalue;        /* partition key's maximum value in shard */
 #endif
+	ShardgroupID shardgroupid;
 } FormData_pg_dist_shard;
 
 /* ----------------
@@ -43,13 +46,14 @@ typedef FormData_pg_dist_shard *Form_pg_dist_shard;
  *      compiler constants for pg_dist_shards
  * ----------------
  */
-#define Natts_pg_dist_shard 6
+#define Natts_pg_dist_shard 7
 #define Anum_pg_dist_shard_logicalrelid 1
 #define Anum_pg_dist_shard_shardid 2
 #define Anum_pg_dist_shard_shardstorage 3
 #define Anum_pg_dist_shard_shardalias_DROPPED 4
 #define Anum_pg_dist_shard_shardminvalue 5
 #define Anum_pg_dist_shard_shardmaxvalue 6
+#define Anum_pg_dist_shard_shardgroupid 7
 
 /*
  * Valid values for shard storage types include foreign table, (standard) table
diff --git a/src/include/distributed/pg_dist_shardgroup.h b/src/include/distributed/pg_dist_shardgroup.h
new file mode 100644
index 000000000..d966ef2c8
--- /dev/null
+++ b/src/include/distributed/pg_dist_shardgroup.h
@@ -0,0 +1,41 @@
+/*-------------------------------------------------------------------------
+ *
+ * pg_dist_shardgroup.h
+ *	  definition of the "shardgroup" relation (pg_dist_shardgroup).
+ *
+ * Copyright (c) Citus Data, Inc.
+ *
+ *-------------------------------------------------------------------------
+ */
+
+#ifndef PG_DIST_SHARDGROUP_H
+#define PG_DIST_SHARDGROUP_H
+
+#include "distributed/shardgroup.h"
+
+/* ----------------
+ *		pg_dist_shardgroup definition.
+ * ----------------
+ */
+typedef struct FormData_pg_dist_shardgroup
+{
+	ShardgroupID shardgroupid;
+	uint32 colocationid;
+} FormData_pg_dist_shardgroup;
+
+/* ----------------
+ *      Form_pg_dist_shardgroup corresponds to a pointer to a tuple with
+ *      the format of pg_dist_shardgroup relation.
+ * ----------------
+ */
+typedef FormData_pg_dist_shardgroup *Form_pg_dist_shardgroup;
+
+/* ----------------
+ *      compiler constants for pg_dist_shardgroup
+ * ----------------
+ */
+#define Natts_pg_dist_shardgroup 2
+#define Anum_pg_dist_shardgroup_shardgroupid 1
+#define Anum_pg_dist_shardgroup_colocationid 2
+
+#endif   /* PG_DIST_SHARDGROUP_H */
diff --git a/src/include/distributed/shardgroup.h b/src/include/distributed/shardgroup.h
new file mode 100644
index 000000000..652389479
--- /dev/null
+++ b/src/include/distributed/shardgroup.h
@@ -0,0 +1,34 @@
+/*-------------------------------------------------------------------------
+ *
+ * shardgroup.h
+ *   Shardgroups are a logical unit of colocated shards from different
+ *   tables belonging to the same colocation group. When shards belong
+ *   to the same shardgroup they move as one logical unit during
+ *   shardmoves, which are better described as shardgroupmoves.
+ * 
+ *   This header defines functions operating on shardgroups as well as
+ *   helpers to work with ShardgroupID's that identify shardgroups.
+ *
+ * Copyright (c) Citus Data, Inc.
+ *
+ *-------------------------------------------------------------------------
+ */
+
+#ifndef SHARDGROUP_H
+#define SHARDGROUP_H
+
+#include "postgres.h"
+
+#include "fmgr.h"
+
+typedef int64 ShardgroupID;
+#define InvalidShardgroupID ((ShardgroupID) 0)
+#define IsShardgroupIDValid(shardgroupID) ((shardgroupID) != InvalidShardgroupID)
+
+// helper functions to get a typed ShardgroupID to and from a Datum
+#define DatumGetShardgroupID(datum) ((ShardgroupID) DatumGetInt64((datum)))
+#define ShardgroupIDGetDatum(shardgroupID) Int64GetDatum(((int64)(shardgroupID)))
+
+#define PG_GETARG_SHARDGROUPID(n) DatumGetShardgroupID(PG_GETARG_DATUM(n))
+
+#endif   /* SHARDGROUP_H */