diff --git a/dissect/target/plugins/filesystem/ntfs/mft.py b/dissect/target/plugins/filesystem/ntfs/mft.py
index e61a9c3ef..417d7d911 100644
--- a/dissect/target/plugins/filesystem/ntfs/mft.py
+++ b/dissect/target/plugins/filesystem/ntfs/mft.py
@@ -138,12 +138,18 @@ def check_compatible(self) -> None:
             FilesystemFilenameCompactRecord,
         ]
     )
-    @arg("--compact", action="store_true", help="compacts the MFT entry timestamps into a single record")
+    @arg(
+        "--compact",
+        group="fmt",
+        action="store_true",
+        help="compacts the MFT entry timestamps into a single record",
+    )
     @arg("--fs", type=int, default=None, help="optional filesystem index, zero indexed")
     @arg("--start", type=int, default=0, help="the first MFT segment number")
     @arg("--end", type=int, default=-1, help="the last MFT segment number")
     @arg(
         "--macb",
+        group="fmt",
         action="store_true",
         help="compacts the MFT entry timestamps into aggregated records with MACB bitfield",
     )
@@ -171,9 +177,7 @@ def noaggr(records: list[Record]) -> Iterator[Record]:
 
         aggr = noaggr
 
-        if compact and macb:
-            raise ValueError("--macb and --compact are mutually exclusive")
-        elif compact:
+        if compact:
             record_formatter = compacted_formatter
         elif macb:
             aggr = macb_aggr
diff --git a/dissect/target/tools/utils.py b/dissect/target/tools/utils.py
index d69317cca..a27ee8676 100644
--- a/dissect/target/tools/utils.py
+++ b/dissect/target/tools/utils.py
@@ -95,12 +95,24 @@ def generate_argparse_for_unbound_method(
     parser = argparse.ArgumentParser(description=desc, formatter_class=help_formatter, conflict_handler="resolve")
 
     fargs = getattr(method, "__args__", [])
+    groups = {}
+    default_group_options = {"required": False}
     for args, kwargs in fargs:
-        parser.add_argument(*args, **kwargs)
+        if "group" in kwargs:
+            group_name = kwargs.pop("group")
+            options = kwargs.pop("group_options") if "group_options" in kwargs else default_group_options
+            if group_name not in groups:
+                group = parser.add_mutually_exclusive_group(**options)
+                groups[group_name] = group
+            else:
+                group = groups[group_name]
+
+            group.add_argument(*args, **kwargs)
+        else:
+            parser.add_argument(*args, **kwargs)
 
     usage = parser.format_usage()
     offset = usage.find(parser.prog) + len(parser.prog)
-
     func_name = method.__name__
     usage_tmpl = usage_tmpl or "{prog} {usage}"
     parser.usage = usage_tmpl.format(prog=parser.prog, name=func_name, usage=usage[offset:])
diff --git a/tests/tools/test_utils.py b/tests/tools/test_utils.py
index d7066dbc0..db5975014 100644
--- a/tests/tools/test_utils.py
+++ b/tests/tools/test_utils.py
@@ -8,6 +8,7 @@
 from dissect.target.plugin import arg, find_plugin_functions
 from dissect.target.tools.utils import (
     args_to_uri,
+    generate_argparse_for_unbound_method,
     get_target_attribute,
     persist_execution_report,
 )
@@ -77,3 +78,17 @@ def test_plugin_name_confusion_regression(target_unix_users, pattern, expected_f
         get_target_attribute(target_unix_users, plugins[0])
 
     assert expected_function in str(exc_info.value)
+
+
+def test_plugin_mutual_exclusive_arguments():
+    fargs = [
+        (("--aa",), {"group": "aa"}),
+        (("--bb",), {"group": "aa"}),
+        (("--cc",), {"group": "bb"}),
+        (("--dd",), {"group": "bb"}),
+    ]
+    method = test_plugin_mutual_exclusive_arguments
+    setattr(method, "__args__", fargs)
+    with patch("inspect.isfunction", return_value=True):
+        parser = generate_argparse_for_unbound_method(method)
+    assert len(parser._mutually_exclusive_groups) == 2