Microsoft 365 Groups vs Security Groups in Microsoft Entra

Microsoft Entra provides different types of groups to manage users and access. Two of the most commonly used group types are:

• Security Groups
• Microsoft 365 Groups

While both can contain users, they serve different purposes in identity and access management.

Understanding the difference helps administrators choose the right group type for access control or collaboration scenarios.

Microsoft 365 Groups vs Security Groups – Quick Comparison

Feature	Security Groups	Microsoft 365 Groups
Purpose	Access management	Collaboration
Email & Mailbox	❌	✔
Teams Integration	❌	✔
SharePoint Site	❌	✔
Planner Integration	❌	✔
Permissions Assignment	✔	✔

What are Security Groups?

Security groups are used to assign permissions to resources.

Administrators use security groups to:

1. Grant access to applications
2. Assign permissions to SharePoint sites
3. Control access to Azure resources
4. Manage access to internal systems

Users added to a security group automatically inherit the assigned permissions.

What are Microsoft 365 Groups?

Microsoft 365 Groups are designed for team collaboration.

When a Microsoft 365 group is created, it automatically provides:

• Shared mailbox
• SharePoint site
• Microsoft Teams workspace
• Planner board

These groups help teams collaborate using shared resources across Microsoft 365 services.

Key Differences Between Microsoft 365 Groups and Security Groups

Purpose

• Security Groups → Access control
• Microsoft 365 Groups → Collaboration

Resource Provisioning

• Security Groups → No resources created
• Microsoft 365 Groups → Automatically create collaboration tools

Integration

• Security Groups → Used across apps and Azure
• Microsoft 365 Groups → Integrated with Teams, Outlook, SharePoint

Management Approach

• Security Groups → Ideal for permission assignment
• Microsoft 365 Groups → Ideal for team-based collaboration

When to Use Security Groups

Use security groups when:

• You need to assign access to applications or systems
• You want centralized permission management
• You need dynamic membership rules
• You are managing access at scale

When to Use Microsoft 365 Groups

Use Microsoft 365 groups when:

• Teams need to collaborate
• You require shared mailboxes and files
• You are using Microsoft Teams
• You want integrated collaboration tools

Real-World Example

• Use a Security Group for:
  → Granting access to a finance application
• Use a Microsoft 365 Group for:
  → Managing a marketing team collaborating in Teams

Conclusion

Microsoft Entra offers both Security Groups and Microsoft 365 Groups, each designed for a specific purpose.

• Use Security Groups for managing permissions and access
• Use Microsoft 365 Groups for collaboration and shared resources

Choosing the right group type ensures efficient identity management and team productivity.