diff --git a/app/models/ldap_setting.rb b/app/models/ldap_setting.rb
index 7dd1b7f..61fa0d8 100644
--- a/app/models/ldap_setting.rb
+++ b/app/models/ldap_setting.rb
@@ -28,9 +28,9 @@ class LdapSetting
   # LDAP_DESCRIPTORS
   LDAP_ATTRIBUTES = %w( groupname member user_memberid user_groups groupid parent_group primary_group group_parentid member_group group_memberid account_flags )
   CLASS_NAMES = %w( class_user class_group )
-  FLAGS = %w( create_groups create_users active )
+  FLAGS = %w( create_groups create_users active create_nested_groups )
   COMBOS = %w( group_membership nested_groups sync_on_login dyngroups users_search_scope )
-  OTHERS = %w( account_locked_test user_fields_to_sync group_fields_to_sync user_ldap_attrs group_ldap_attrs fixed_group admin_group required_group group_search_filter groupname_pattern groups_base_dn dyngroups_cache_ttl )
+  OTHERS = %w( account_locked_test user_fields_to_sync group_fields_to_sync user_ldap_attrs group_ldap_attrs fixed_group admin_group required_group group_search_filter groupname_pattern groups_base_dn dyngroups_cache_ttl nested_groups_base_dn )
 
   validates_presence_of :auth_source_ldap_id
   validates_presence_of :class_user, :class_group, :groupname
diff --git a/app/views/ldap_settings/_ldap_settings.html.erb b/app/views/ldap_settings/_ldap_settings.html.erb
index 8b33d31..5e9f00e 100644
--- a/app/views/ldap_settings/_ldap_settings.html.erb
+++ b/app/views/ldap_settings/_ldap_settings.html.erb
@@ -13,6 +13,7 @@
   <p><%= f.text_field :account_locked_test, :size => 50 %></p>
   <p><%= f.select :group_membership, options_for_group_membeship %></p>
   <p><%= f.select :nested_groups, options_for_nested_groups %></p>
+  <p><%= f.text_field :nested_groups_base_dn, :size => 50 %></p>
 
   <fieldset class="box" id="ldap_attributes">
     <legend><%=l(:label_attribute_plural)%></legend>
diff --git a/app/views/ldap_settings/_synchronization_actions.html.erb b/app/views/ldap_settings/_synchronization_actions.html.erb
index 2ca022d..8830bfb 100644
--- a/app/views/ldap_settings/_synchronization_actions.html.erb
+++ b/app/views/ldap_settings/_synchronization_actions.html.erb
@@ -7,6 +7,7 @@
   <p><%= f.text_field :fixed_group, :size => 15  %></p>
   <p><%= f.check_box :create_users %></p>
   <p><%= f.check_box :create_groups %></p>
+  <p><%= f.check_box :create_nested_groups %></p>
   <p><%= f.select :dyngroups, options_for_dyngroups %>
     <span id="dyngroups-cache-ttl"><%= f.text_field :dyngroups_cache_ttl, :required => true, :size => 5 %> <%= l(:label_minutes) %></span>
   </p>
diff --git a/config/locales/en.yml b/config/locales/en.yml
index 8d07d04..3617b43 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -35,12 +35,14 @@ en:
 
   field_nested_groups: "Nested groups"
   field_create_groups: "Create groups"
+  field_create_nested_groups: "Create nested groups"
   field_create_users: "Create users"
   field_sync_on_login: "Synchronize on login"
   field_dyngroups: "Dynamic groups"
   field_dyngroups_cache_ttl: "Cache TTL"
 
   field_groups_base_dn: "Groups base DN"
+  field_nested_groups_base_dn: "Nested groups base DN"
   field_group_membership: "Group membership"
   field_class_user: "Users objectclass"
   field_users_search_scope: "Users search scope"
diff --git a/lib/ldap_sync/entity_manager.rb b/lib/ldap_sync/entity_manager.rb
index 040dfc5..881b54c 100644
--- a/lib/ldap_sync/entity_manager.rb
+++ b/lib/ldap_sync/entity_manager.rb
@@ -165,7 +165,8 @@ def groups_changes(user)
             user_dn = entry[:dn].first
 
             names_filter = groups.map{|g| Net::LDAP::Filter.eq( setting.groupid, g )}.reduce(:|)
-            find_all_groups(ldap, names_filter, n(:groupname)) do |group|
+            options = setting.has_nested_groups_base_dn? ? {:base => setting.nested_groups_base_dn} : {}
+            find_all_groups(ldap, names_filter, n(:groupname), options) do |group|
               changes[:added] << group.first
             end if names_filter
           end
@@ -214,10 +215,11 @@ def reload_dyngroups!
 
     def get_group_closure(ldap, group, closure=Set.new)
       groupname = group.is_a?(String) ? group : group[n(:groupname)].first
+      options = setting.has_nested_groups_base_dn? ? {:base => setting.nested_groups_base_dn} : {}
       parent_groups = parents_cache.fetch(groupname) do
         case setting.nested_groups
         when 'on_members'
-          group = find_group(ldap, groupname, ns(:groupname, :group_memberid, :parent_group)) if group.is_a? String
+          group = find_group(ldap, groupname, ns(:groupname, :group_memberid, :parent_group), options) if group.is_a? String
 
           if group[n(:parent_group)].present?
             groups_filter = group[n(:parent_group)].map{|g| Net::LDAP::Filter.eq( setting.group_parentid, g )}.reduce(:|)
@@ -226,7 +228,7 @@ def get_group_closure(ldap, group, closure=Set.new)
             Array.new
           end
         else # 'on_parents'
-          group = find_group(ldap, groupname, ns(:groupname, :group_memberid)) if group.is_a? String
+          group = find_group(ldap, groupname, ns(:groupname, :group_memberid), options) if group.is_a? String
 
           member_filter = Net::LDAP::Filter.eq( setting.member_group, group[n(:group_memberid)].first )
           cacheable_ber find_all_groups(ldap, member_filter, ns(:groupname, :group_memberid)).map
@@ -239,15 +241,15 @@ def get_group_closure(ldap, group, closure=Set.new)
       end
     end
 
-    def find_group(ldap, group_name, attrs, &block)
+    def find_group(ldap, group_name, attrs, options = {}, &block)
       extra_filter = Net::LDAP::Filter.eq( setting.groupname, group_name )
-      result = find_all_groups(ldap, extra_filter, attrs, &block)
+      result = find_all_groups(ldap, extra_filter, attrs, options, &block)
       result.first if !block_given? && result.present?
     end
 
     def find_all_groups(ldap, extra_filter, attrs, options = {}, &block)
       object_class = options[:class] || setting.class_group
-      groups_base_dn = setting.has_groups_base_dn? ? setting.groups_base_dn : nil
+      groups_base_dn = options[:base] || (setting.has_groups_base_dn? ? setting.groups_base_dn : nil)
       group_filter = Net::LDAP::Filter.eq( :objectclass, object_class )
       group_filter &= Net::LDAP::Filter.construct( setting.group_search_filter ) if setting.group_search_filter.present?
       group_filter &= extra_filter if extra_filter
diff --git a/lib/ldap_sync/infectors/auth_source_ldap.rb b/lib/ldap_sync/infectors/auth_source_ldap.rb
index a4d1103..78595d6 100644
--- a/lib/ldap_sync/infectors/auth_source_ldap.rb
+++ b/lib/ldap_sync/infectors/auth_source_ldap.rb
@@ -164,7 +164,13 @@ def sync_user_groups(user)
         end
 
         changes = groups_changes(user)
-        added = changes[:added].map {|g| find_or_create_group(g).first }.compact
+        added = changes[:added].map {|g|
+          if setting.create_nested_groups?
+            find_or_create_group(g).first
+          else
+            ::Group.where("LOWER(lastname) = ?", g.mb_chars.downcase).first
+          end
+        }.compact
         user.groups << added unless added.empty?
 
         deleted_groups = changes[:deleted].map {|g| g.mb_chars.downcase }