diff --git a/lib/Controller/PageController.php b/lib/Controller/PageController.php
index 6680d0000..efef1d7c1 100644
--- a/lib/Controller/PageController.php
+++ b/lib/Controller/PageController.php
@@ -25,6 +25,7 @@
 namespace OCA\Contacts\Controller;
 
 use OC\App\CompareVersion;
+use OCA\Contacts\Service\GroupSharingService;
 use OCP\App\IAppManager;
 use OCP\AppFramework\Controller;
 use OCP\AppFramework\Http\TemplateResponse;
@@ -60,6 +61,8 @@ class PageController extends Controller {
 	/** @var CompareVersion */
 	private $compareVersion;
 
+	private GroupSharingService $groupSharingService;
+
 	public function __construct(IRequest $request,
 								IConfig $config,
 								IInitialStateService $initialStateService,
@@ -67,7 +70,8 @@ public function __construct(IRequest $request,
 								IUserSession $userSession,
 								SocialApiService $socialApiService,
 								IAppManager $appManager,
-								CompareVersion $compareVersion) {
+								CompareVersion $compareVersion,
+								GroupSharingService $groupSharingService) {
 		parent::__construct(Application::APP_ID, $request);
 
 		$this->config = $config;
@@ -77,6 +81,7 @@ public function __construct(IRequest $request,
 		$this->socialApiService = $socialApiService;
 		$this->appManager = $appManager;
 		$this->compareVersion = $compareVersion;
+		$this->groupSharingService = $groupSharingService;
 	}
 
 	/**
@@ -87,10 +92,7 @@ public function __construct(IRequest $request,
 	 */
 	public function index(): TemplateResponse {
 		$user = $this->userSession->getUser();
-		$userId = '';
-		if (!is_null($user)) {
-			$userId = $user->getUid();
-		}
+		$userId = $user->getUid();
 
 		$locales = $this->languageFactory->findAvailableLocales();
 		$defaultProfile = $this->config->getAppValue(Application::APP_ID, 'defaultProfile', 'HOME');
@@ -107,7 +109,7 @@ public function index(): TemplateResponse {
 		// if circles is not installed, we use 0.0.0
 		$isCircleVersionCompatible = $this->compareVersion->isCompatible($circleVersion ? $circleVersion : '0.0.0', 22);
 		// Check whether group sharing is enabled or not
-		$isGroupSharingEnabled = $this->config->getAppValue('core', 'shareapi_allow_group_sharing', 'yes') === 'yes';
+		$isGroupSharingEnabled = $this->groupSharingService->isGroupSharingAllowed($user);
 		$talkVersion = $this->appManager->getAppVersion('spreed');
 		$isTalkEnabled = $this->appManager->isEnabledForUser('spreed') === true;
 
diff --git a/lib/Service/GroupSharingService.php b/lib/Service/GroupSharingService.php
new file mode 100644
index 000000000..9322f43a4
--- /dev/null
+++ b/lib/Service/GroupSharingService.php
@@ -0,0 +1,46 @@
+<?php
+
+declare(strict_types=1);
+
+/**
+ * SPDX-FileCopyrightText: 2024 Nextcloud GmbH and Nextcloud contributors
+ * SPDX-License-Identifier: AGPL-3.0-or-later
+ */
+
+namespace OCA\Contacts\Service;
+
+use OCP\IConfig;
+use OCP\IGroup;
+use OCP\IGroupManager;
+use OCP\IUser;
+use OCP\Share\IManager as IShareManager;
+
+class GroupSharingService {
+	public function __construct(
+		private IConfig $config,
+		private IGroupManager $groupManager,
+		private IShareManager $shareManager,
+	) {
+	}
+
+	public function isGroupSharingAllowed(IUser $user): bool {
+		if (!$this->shareManager->allowGroupSharing()) {
+			return false;
+		}
+
+		$userGroups = $this->groupManager->getUserGroups($user);
+		$userGroupNames = array_map(static fn (IGroup $group) => $group->getGID(), $userGroups);
+
+		$excludeGroupList = json_decode($this->config->getAppValue('core', 'shareapi_exclude_groups_list', '[]'));
+		$excludeGroups = $this->config->getAppValue('core', 'shareapi_exclude_groups');
+
+		// "no"    => Allow sharing for everyone
+		// "yes"   => Exclude listed groups from sharing
+		// "allow" => Limit sharing to listed groups
+		return match ($excludeGroups) {
+			'yes' => count(array_intersect($userGroupNames, $excludeGroupList)) === 0,
+			'allow' => count(array_intersect($userGroupNames, $excludeGroupList)) > 0,
+			default => true,
+		};
+	}
+}
diff --git a/src/components/AppNavigation/Settings/SettingsAddressbookShare.vue b/src/components/AppNavigation/Settings/SettingsAddressbookShare.vue
index 05b248936..e3e9bd1ae 100644
--- a/src/components/AppNavigation/Settings/SettingsAddressbookShare.vue
+++ b/src/components/AppNavigation/Settings/SettingsAddressbookShare.vue
@@ -118,20 +118,25 @@ export default {
 			this.usersOrGroups = []
 			if (query.length > 0) {
 				const results = await client.principalPropertySearchByDisplayname(query)
-				this.usersOrGroups = results.reduce((list, result) => {
-					if (['GROUP', 'INDIVIDUAL'].indexOf(result.calendarUserType) > -1
-					&& !this.addressbook.shares.some((share) => share.uri === result.principalScheme)) {
+				this.usersOrGroups = results
+					.filter((result) => {
+						const allowedCalendarUserTypes = ['INDIVIDUAL']
+						if (this.isGroupSharingEnabled) {
+							allowedCalendarUserTypes.push('GROUP')
+						}
+						return allowedCalendarUserTypes.includes(result.calendarUserType)
+							&& !this.addressbook.shares.some((share) => share.uri === result.principalScheme)
+					})
+					.map((result) => {
 						const isGroup = result.calendarUserType === 'GROUP'
-						list.push({
+						return {
 							user: urldecode(result[isGroup ? 'groupId' : 'userId']),
 							displayName: result.displayname,
 							icon: isGroup ? 'icon-group' : 'icon-user',
 							uri: urldecode(result.principalScheme),
 							isGroup,
-						})
-					}
-					return list
-				}, [])
+						}
+					})
 				this.isLoading = false
 				this.inputGiven = true
 			} else {
diff --git a/tests/unit/Controller/PageControllerTest.php b/tests/unit/Controller/PageControllerTest.php
index a60bfcc08..7cc75280b 100644
--- a/tests/unit/Controller/PageControllerTest.php
+++ b/tests/unit/Controller/PageControllerTest.php
@@ -26,6 +26,7 @@
 
 use ChristophWurst\Nextcloud\Testing\TestCase;
 use OC\App\CompareVersion;
+use OCA\Contacts\Service\GroupSharingService;
 use OCA\Contacts\Service\SocialApiService;
 use OCP\App\IAppManager;
 use OCP\AppFramework\Http\TemplateResponse;
@@ -64,6 +65,8 @@ class PageControllerTest extends TestCase {
 	/** @var CompareVersion|MockObject*/
 	private $compareVersion;
 
+	private GroupSharingService|MockObject $groupSharingService;
+
 	protected function setUp(): void {
 		parent::setUp();
 
@@ -75,6 +78,7 @@ protected function setUp(): void {
 		$this->socialApi = $this->createMock(SocialApiService::class);
 		$this->appManager = $this->createMock(IAppManager::class);
 		$this->compareVersion = $this->createMock(CompareVersion::class);
+		$this->groupSharingService = $this->createMock(GroupSharingService::class);
 
 		$this->controller = new PageController(
 			$this->request,
@@ -84,7 +88,8 @@ protected function setUp(): void {
 			$this->userSession,
 			$this->socialApi,
 			$this->appManager,
-			$this->compareVersion
+			$this->compareVersion,
+			$this->groupSharingService,
 		);
 	}
 
diff --git a/tests/unit/Service/GroupSharingServiceTest.php b/tests/unit/Service/GroupSharingServiceTest.php
new file mode 100644
index 000000000..42b89fda7
--- /dev/null
+++ b/tests/unit/Service/GroupSharingServiceTest.php
@@ -0,0 +1,112 @@
+<?php
+
+declare(strict_types=1);
+
+/**
+ * SPDX-FileCopyrightText: 2024 Nextcloud GmbH and Nextcloud contributors
+ * SPDX-License-Identifier: AGPL-3.0-or-later
+ */
+
+namespace unit\Service;
+
+use ChristophWurst\Nextcloud\Testing\TestCase;
+use OCA\Contacts\Service\GroupSharingService;
+use OCP\IConfig;
+use OCP\IGroup;
+use OCP\IGroupManager;
+use OCP\IUser;
+use OCP\Share\IManager as IShareManager;
+use PHPUnit\Framework\MockObject\MockObject;
+
+class GroupSharingServiceTest extends TestCase {
+	private GroupSharingService $service;
+	private IConfig|MockObject $config;
+	private IGroupManager|MockObject $groupManager;
+	private IShareManager|MockObject $shareManager;
+
+	protected function setUp(): void {
+		parent::setUp();
+
+		$this->config = $this->createMock(IConfig::class);
+		$this->groupManager = $this->createMock(IGroupManager::class);
+		$this->shareManager = $this->createMock(IShareManager::class);
+
+		$this->service = new GroupSharingService(
+			$this->config,
+			$this->groupManager,
+			$this->shareManager,
+		);
+	}
+
+	public function provideTestIsGroupSharingAllowed(): array {
+		return [
+			// Basic group sharing is forbidden (-> short circuit)
+			[false, false, '["group1"]', 'no'],
+			[false, false, '["group1"]', 'yes'],
+			[false, false, '["group1"]', 'allow'],
+
+			// Basic sharing is allowed and allow sharing with every group
+			[true, true, '["group1"]', 'no'],
+			[true, true, '[]', 'no'],
+			[true, true, '["group99"]', 'no'],
+
+			// Basic sharing is allowed and user's group is excluded
+			[false, true, '["group1"]', 'yes'],
+			[false, true, '["group2"]', 'yes'],
+			[false, true, '["group2", "group3"]', 'yes'],
+
+			// Basic sharing is allowed and user's group is not excluded
+			[true, true, '["group3"]', 'yes'],
+			[true, true, '[]', 'yes'],
+
+			// Basic sharing is allowed and user's group is included
+			[true, true, '["group1"]', 'allow'],
+			[true, true, '["group2"]', 'allow'],
+			[true, true, '["group2", "group3"]', 'allow'],
+
+			// Basic sharing is allowed and user's group is not included
+			[false, true, '["group3"]', 'allow'],
+			[false, true, '[]', 'allow'],
+		];
+	}
+
+	/** @dataProvider provideTestIsGroupSharingAllowed */
+	public function testIsGroupSharingAllowed(
+		bool $expected,
+		bool $allowGroupSharing,
+		string $excludeGroupList,
+		string $excludeGroups,
+	): void {
+		$user = $this->createMock(IUser::class);
+		$group1 = $this->createMock(IGroup::class);
+		$group1->method('getGID')
+			->willReturn('group1');
+		$group2 = $this->createMock(IGroup::class);
+		$group2->method('getGID')
+			->willReturn('group2');
+
+		$this->shareManager->expects(self::once())
+			->method('allowGroupSharing')
+			->willReturn($allowGroupSharing);
+		if ($allowGroupSharing) {
+			$this->groupManager->expects(self::once())
+				->method('getUserGroups')
+				->with($user)
+				->willReturn([$group1, $group2]);
+			$this->config->expects(self::exactly(2))
+				->method('getAppValue')
+				->willReturnMap([
+					['core', 'shareapi_exclude_groups_list', '[]', $excludeGroupList],
+					['core', 'shareapi_exclude_groups', '', $excludeGroups],
+				]);
+		} else {
+			$this->groupManager->expects(self::never())
+				->method('getUserGroups');
+			$this->config->expects(self::never())
+				->method('getAppValue');
+		}
+
+		$actual = $this->service->isGroupSharingAllowed($user);
+		$this->assertEquals($expected, $actual);
+	}
+}