diff --git a/management/server/account.go b/management/server/account.go
index d5e8c8cf8b..da32038527 100644
--- a/management/server/account.go
+++ b/management/server/account.go
@@ -76,7 +76,7 @@ type AccountManager interface {
 	SaveOrAddUsers(ctx context.Context, accountID, initiatorUserID string, updates []*User, addIfNotExists bool) ([]*UserInfo, error)
 	GetSetupKey(ctx context.Context, accountID, userID, keyID string) (*SetupKey, error)
 	GetAccountByID(ctx context.Context, accountID string, userID string) (*Account, error)
-	GetAccountIDByUserOrAccountID(ctx context.Context, userID, accountID, domain string) (string, error)
+	GetAccountIDByUserID(ctx context.Context, userID, domain string) (string, error)
 	GetAccountIDFromToken(ctx context.Context, claims jwtclaims.AuthorizationClaims) (string, string, error)
 	CheckUserAccessByJWTGroups(ctx context.Context, claims jwtclaims.AuthorizationClaims) error
 	GetAccountFromPAT(ctx context.Context, pat string) (*Account, *User, *PersonalAccessToken, error)
@@ -478,12 +478,12 @@ func (a *Account) GetPeerNetworkMap(
 	}
 
 	nm := &NetworkMap{
-		Peers:         peersToConnect,
-		Network:       a.Network.Copy(),
-		Routes:        routesUpdate,
-		DNSConfig:     dnsUpdate,
-		OfflinePeers:  expiredPeers,
-		FirewallRules: firewallRules,
+		Peers:               peersToConnect,
+		Network:             a.Network.Copy(),
+		Routes:              routesUpdate,
+		DNSConfig:           dnsUpdate,
+		OfflinePeers:        expiredPeers,
+		FirewallRules:       firewallRules,
 		RoutesFirewallRules: routesFirewallRules,
 	}
 
@@ -843,55 +843,54 @@ func (a *Account) GetPeer(peerID string) *nbpeer.Peer {
 	return a.Peers[peerID]
 }
 
-// SetJWTGroups updates the user's auto groups by synchronizing JWT groups.
-// Returns true if there are changes in the JWT group membership.
-func (a *Account) SetJWTGroups(userID string, groupsNames []string) bool {
-	user, ok := a.Users[userID]
-	if !ok {
-		return false
-	}
-
+// getJWTGroupsChanges calculates the changes needed to sync a user's JWT groups.
+// Returns a bool indicating if there are changes in the JWT group membership, the updated user AutoGroups,
+// newly groups to create and an error if any occurred.
+func (am *DefaultAccountManager) getJWTGroupsChanges(user *User, groups []*nbgroup.Group, groupNames []string) (bool, []string, []*nbgroup.Group, error) {
 	existedGroupsByName := make(map[string]*nbgroup.Group)
-	for _, group := range a.Groups {
+	for _, group := range groups {
 		existedGroupsByName[group.Name] = group
 	}
 
-	newAutoGroups, jwtGroupsMap := separateGroups(user.AutoGroups, a.Groups)
-	groupsToAdd := difference(groupsNames, maps.Keys(jwtGroupsMap))
-	groupsToRemove := difference(maps.Keys(jwtGroupsMap), groupsNames)
+	newUserAutoGroups, jwtGroupsMap := separateGroups(user.AutoGroups, groups)
+
+	groupsToAdd := difference(groupNames, maps.Keys(jwtGroupsMap))
+	groupsToRemove := difference(maps.Keys(jwtGroupsMap), groupNames)
 
 	// If no groups are added or removed, we should not sync account
 	if len(groupsToAdd) == 0 && len(groupsToRemove) == 0 {
-		return false
+		return false, nil, nil, nil
 	}
 
+	newGroupsToCreate := make([]*nbgroup.Group, 0)
+
 	var modified bool
 	for _, name := range groupsToAdd {
 		group, exists := existedGroupsByName[name]
 		if !exists {
 			group = &nbgroup.Group{
-				ID:     xid.New().String(),
-				Name:   name,
-				Issued: nbgroup.GroupIssuedJWT,
+				ID:        xid.New().String(),
+				AccountID: user.AccountID,
+				Name:      name,
+				Issued:    nbgroup.GroupIssuedJWT,
 			}
-			a.Groups[group.ID] = group
+			newGroupsToCreate = append(newGroupsToCreate, group)
 		}
 		if group.Issued == nbgroup.GroupIssuedJWT {
-			newAutoGroups = append(newAutoGroups, group.ID)
+			newUserAutoGroups = append(newUserAutoGroups, group.ID)
 			modified = true
 		}
 	}
 
 	for name, id := range jwtGroupsMap {
 		if !slices.Contains(groupsToRemove, name) {
-			newAutoGroups = append(newAutoGroups, id)
+			newUserAutoGroups = append(newUserAutoGroups, id)
 			continue
 		}
 		modified = true
 	}
-	user.AutoGroups = newAutoGroups
 
-	return modified
+	return modified, newUserAutoGroups, newGroupsToCreate, nil
 }
 
 // UserGroupsAddToPeers adds groups to all peers of user
@@ -1262,37 +1261,31 @@ func (am *DefaultAccountManager) DeleteAccount(ctx context.Context, accountID, u
 	return nil
 }
 
-// GetAccountIDByUserOrAccountID retrieves the account ID based on either the userID or accountID provided.
-// If an accountID is provided, it checks if the account exists and returns it.
-// If no accountID is provided, but a userID is given, it tries to retrieve the account by userID.
+// GetAccountIDByUserID retrieves the account ID based on the userID provided.
+// If user does have an account, it returns the user's account ID.
 // If the user doesn't have an account, it creates one using the provided domain.
 // Returns the account ID or an error if none is found or created.
-func (am *DefaultAccountManager) GetAccountIDByUserOrAccountID(ctx context.Context, userID, accountID, domain string) (string, error) {
-	if accountID != "" {
-		exists, err := am.Store.AccountExists(ctx, LockingStrengthShare, accountID)
-		if err != nil {
-			return "", err
-		}
-		if !exists {
-			return "", status.Errorf(status.NotFound, "account %s does not exist", accountID)
-		}
-		return accountID, nil
+func (am *DefaultAccountManager) GetAccountIDByUserID(ctx context.Context, userID, domain string) (string, error) {
+	if userID == "" {
+		return "", status.Errorf(status.NotFound, "no valid userID provided")
 	}
 
-	if userID != "" {
-		account, err := am.GetOrCreateAccountByUser(ctx, userID, domain)
-		if err != nil {
-			return "", status.Errorf(status.NotFound, "account not found or created for user id: %s", userID)
-		}
+	accountID, err := am.Store.GetAccountIDByUserID(userID)
+	if err != nil {
+		if s, ok := status.FromError(err); ok && s.Type() == status.NotFound {
+			account, err := am.GetOrCreateAccountByUser(ctx, userID, domain)
+			if err != nil {
+				return "", status.Errorf(status.NotFound, "account not found or created for user id: %s", userID)
+			}
 
-		if err = am.addAccountIDToIDPAppMeta(ctx, userID, account); err != nil {
-			return "", err
+			if err = am.addAccountIDToIDPAppMeta(ctx, userID, account); err != nil {
+				return "", err
+			}
+			return account.Id, nil
 		}
-
-		return account.Id, nil
+		return "", err
 	}
-
-	return "", status.Errorf(status.NotFound, "no valid userID or accountID provided")
+	return accountID, nil
 }
 
 func isNil(i idp.Manager) bool {
@@ -1796,6 +1789,10 @@ func (am *DefaultAccountManager) GetAccountIDFromToken(ctx context.Context, clai
 		return "", "", status.Errorf(status.NotFound, "user %s not found", claims.UserId)
 	}
 
+	if user.AccountID != accountID {
+		return "", "", status.Errorf(status.PermissionDenied, "user %s is not part of the account %s", claims.UserId, accountID)
+	}
+
 	if !user.IsServiceUser && claims.Invited {
 		err = am.redeemInvite(ctx, accountID, user.Id)
 		if err != nil {
@@ -1803,7 +1800,7 @@ func (am *DefaultAccountManager) GetAccountIDFromToken(ctx context.Context, clai
 		}
 	}
 
-	if err = am.syncJWTGroups(ctx, accountID, user, claims); err != nil {
+	if err = am.syncJWTGroups(ctx, accountID, claims); err != nil {
 		return "", "", err
 	}
 
@@ -1812,7 +1809,7 @@ func (am *DefaultAccountManager) GetAccountIDFromToken(ctx context.Context, clai
 
 // syncJWTGroups processes the JWT groups for a user, updates the account based on the groups,
 // and propagates changes to peers if group propagation is enabled.
-func (am *DefaultAccountManager) syncJWTGroups(ctx context.Context, accountID string, user *User, claims jwtclaims.AuthorizationClaims) error {
+func (am *DefaultAccountManager) syncJWTGroups(ctx context.Context, accountID string, claims jwtclaims.AuthorizationClaims) error {
 	settings, err := am.Store.GetAccountSettings(ctx, LockingStrengthShare, accountID)
 	if err != nil {
 		return err
@@ -1823,69 +1820,136 @@ func (am *DefaultAccountManager) syncJWTGroups(ctx context.Context, accountID st
 	}
 
 	if settings.JWTGroupsClaimName == "" {
-		log.WithContext(ctx).Errorf("JWT groups are enabled but no claim name is set")
+		log.WithContext(ctx).Debugf("JWT groups are enabled but no claim name is set")
 		return nil
 	}
 
-	// TODO: Remove GetAccount after refactoring account peer's update
-	unlock := am.Store.AcquireWriteLockByUID(ctx, accountID)
-	defer unlock()
-
-	account, err := am.Store.GetAccount(ctx, accountID)
-	if err != nil {
-		return err
-	}
-
 	jwtGroupsNames := extractJWTGroups(ctx, settings.JWTGroupsClaimName, claims)
 
-	oldGroups := make([]string, len(user.AutoGroups))
-	copy(oldGroups, user.AutoGroups)
+	unlockPeer := am.Store.AcquireWriteLockByUID(ctx, accountID)
+	defer func() {
+		if unlockPeer != nil {
+			unlockPeer()
+		}
+	}()
 
-	// Update the account if group membership changes
-	if account.SetJWTGroups(claims.UserId, jwtGroupsNames) {
-		addNewGroups := difference(user.AutoGroups, oldGroups)
-		removeOldGroups := difference(oldGroups, user.AutoGroups)
+	var addNewGroups []string
+	var removeOldGroups []string
+	var hasChanges bool
+	var user *User
+	err = am.Store.ExecuteInTransaction(ctx, func(transaction Store) error {
+		user, err = am.Store.GetUserByUserID(ctx, LockingStrengthShare, claims.UserId)
+		if err != nil {
+			return fmt.Errorf("error getting user: %w", err)
+		}
 
-		if settings.GroupsPropagationEnabled {
-			account.UserGroupsAddToPeers(claims.UserId, addNewGroups...)
-			account.UserGroupsRemoveFromPeers(claims.UserId, removeOldGroups...)
-			account.Network.IncSerial()
+		groups, err := am.Store.GetAccountGroups(ctx, accountID)
+		if err != nil {
+			return fmt.Errorf("error getting account groups: %w", err)
 		}
 
-		if err := am.Store.SaveAccount(ctx, account); err != nil {
-			log.WithContext(ctx).Errorf("failed to save account: %v", err)
+		changed, updatedAutoGroups, newGroupsToCreate, err := am.getJWTGroupsChanges(user, groups, jwtGroupsNames)
+		if err != nil {
+			return fmt.Errorf("error getting JWT groups changes: %w", err)
+		}
+
+		hasChanges = changed
+		// skip update if no changes
+		if !changed {
 			return nil
 		}
 
+		if err = transaction.SaveGroups(ctx, LockingStrengthUpdate, newGroupsToCreate); err != nil {
+			return fmt.Errorf("error saving groups: %w", err)
+		}
+
+		addNewGroups = difference(updatedAutoGroups, user.AutoGroups)
+		removeOldGroups = difference(user.AutoGroups, updatedAutoGroups)
+
+		user.AutoGroups = updatedAutoGroups
+		if err = transaction.SaveUser(ctx, LockingStrengthUpdate, user); err != nil {
+			return fmt.Errorf("error saving user: %w", err)
+		}
+
 		// Propagate changes to peers if group propagation is enabled
 		if settings.GroupsPropagationEnabled {
-			log.WithContext(ctx).Tracef("user %s: JWT group membership changed, updating account peers", claims.UserId)
-			am.updateAccountPeers(ctx, account)
-		}
-
-		for _, g := range addNewGroups {
-			if group := account.GetGroup(g); group != nil {
-				am.StoreEvent(ctx, user.Id, user.Id, account.Id, activity.GroupAddedToUser,
-					map[string]any{
-						"group":           group.Name,
-						"group_id":        group.ID,
-						"is_service_user": user.IsServiceUser,
-						"user_name":       user.ServiceUserName})
+			groups, err = transaction.GetAccountGroups(ctx, accountID)
+			if err != nil {
+				return fmt.Errorf("error getting account groups: %w", err)
+			}
+
+			groupsMap := make(map[string]*nbgroup.Group, len(groups))
+			for _, group := range groups {
+				groupsMap[group.ID] = group
+			}
+
+			peers, err := transaction.GetUserPeers(ctx, LockingStrengthShare, accountID, claims.UserId)
+			if err != nil {
+				return fmt.Errorf("error getting user peers: %w", err)
+			}
+
+			updatedGroups, err := am.updateUserPeersInGroups(groupsMap, peers, addNewGroups, removeOldGroups)
+			if err != nil {
+				return fmt.Errorf("error modifying user peers in groups: %w", err)
+			}
+
+			if err = transaction.SaveGroups(ctx, LockingStrengthUpdate, updatedGroups); err != nil {
+				return fmt.Errorf("error saving groups: %w", err)
+			}
+
+			if err = transaction.IncrementNetworkSerial(ctx, accountID); err != nil {
+				return fmt.Errorf("error incrementing network serial: %w", err)
 			}
 		}
+		unlockPeer()
+		unlockPeer = nil
+
+		return nil
+	})
+	if err != nil {
+		return err
+	}
+
+	if !hasChanges {
+		return nil
+	}
 
-		for _, g := range removeOldGroups {
-			if group := account.GetGroup(g); group != nil {
-				am.StoreEvent(ctx, user.Id, user.Id, account.Id, activity.GroupRemovedFromUser,
-					map[string]any{
-						"group":           group.Name,
-						"group_id":        group.ID,
-						"is_service_user": user.IsServiceUser,
-						"user_name":       user.ServiceUserName})
+	for _, g := range addNewGroups {
+		group, err := am.Store.GetGroupByID(ctx, LockingStrengthShare, g, accountID)
+		if err != nil {
+			log.WithContext(ctx).Debugf("group %s not found while saving user activity event of account %s", g, accountID)
+		} else {
+			meta := map[string]any{
+				"group": group.Name, "group_id": group.ID,
+				"is_service_user": user.IsServiceUser, "user_name": user.ServiceUserName,
+			}
+			am.StoreEvent(ctx, user.Id, user.Id, accountID, activity.GroupAddedToUser, meta)
+		}
+	}
+
+	for _, g := range removeOldGroups {
+		group, err := am.Store.GetGroupByID(ctx, LockingStrengthShare, g, accountID)
+		if err != nil {
+			log.WithContext(ctx).Debugf("group %s not found while saving user activity event of account %s", g, accountID)
+		} else {
+			meta := map[string]any{
+				"group": group.Name, "group_id": group.ID,
+				"is_service_user": user.IsServiceUser, "user_name": user.ServiceUserName,
 			}
+			am.StoreEvent(ctx, user.Id, user.Id, accountID, activity.GroupRemovedFromUser, meta)
 		}
 	}
 
+	if settings.GroupsPropagationEnabled {
+		account, err := am.requestBuffer.GetAccountWithBackpressure(ctx, accountID)
+		if err != nil {
+			return fmt.Errorf("error getting account: %w", err)
+		}
+
+		log.WithContext(ctx).Tracef("user %s: JWT group membership changed, updating account peers", claims.UserId)
+		am.updateAccountPeers(ctx, account)
+	}
+
 	return nil
 }
 
@@ -1916,7 +1980,17 @@ func (am *DefaultAccountManager) getAccountIDWithAuthorizationClaims(ctx context
 	// if Account ID is part of the claims
 	// it means that we've already classified the domain and user has an account
 	if claims.DomainCategory != PrivateCategory || !isDomainValid(claims.Domain) {
-		return am.GetAccountIDByUserOrAccountID(ctx, claims.UserId, claims.AccountId, claims.Domain)
+		if claims.AccountId != "" {
+			exists, err := am.Store.AccountExists(ctx, LockingStrengthShare, claims.AccountId)
+			if err != nil {
+				return "", err
+			}
+			if !exists {
+				return "", status.Errorf(status.NotFound, "account %s does not exist", claims.AccountId)
+			}
+			return claims.AccountId, nil
+		}
+		return am.GetAccountIDByUserID(ctx, claims.UserId, claims.Domain)
 	} else if claims.AccountId != "" {
 		userAccountID, err := am.Store.GetAccountIDByUserID(claims.UserId)
 		if err != nil {
@@ -2229,7 +2303,11 @@ func newAccountWithId(ctx context.Context, accountID, userID, domain string) *Ac
 	routes := make(map[route.ID]*route.Route)
 	setupKeys := map[string]*SetupKey{}
 	nameServersGroups := make(map[string]*nbdns.NameServerGroup)
-	users[userID] = NewOwnerUser(userID)
+
+	owner := NewOwnerUser(userID)
+	owner.AccountID = accountID
+	users[userID] = owner
+
 	dnsSettings := DNSSettings{
 		DisabledManagementGroups: make([]string, 0),
 	}
@@ -2297,12 +2375,17 @@ func userHasAllowedGroup(allowedGroups []string, userGroups []string) bool {
 // separateGroups separates user's auto groups into non-JWT and JWT groups.
 // Returns the list of standard auto groups and a map of JWT auto groups,
 // where the keys are the group names and the values are the group IDs.
-func separateGroups(autoGroups []string, allGroups map[string]*nbgroup.Group) ([]string, map[string]string) {
+func separateGroups(autoGroups []string, allGroups []*nbgroup.Group) ([]string, map[string]string) {
 	newAutoGroups := make([]string, 0)
 	jwtAutoGroups := make(map[string]string) // map of group name to group ID
 
+	allGroupsMap := make(map[string]*nbgroup.Group, len(allGroups))
+	for _, group := range allGroups {
+		allGroupsMap[group.ID] = group
+	}
+
 	for _, id := range autoGroups {
-		if group, ok := allGroups[id]; ok {
+		if group, ok := allGroupsMap[id]; ok {
 			if group.Issued == nbgroup.GroupIssuedJWT {
 				jwtAutoGroups[group.Name] = id
 			} else {
@@ -2310,5 +2393,6 @@ func separateGroups(autoGroups []string, allGroups map[string]*nbgroup.Group) ([
 			}
 		}
 	}
+
 	return newAutoGroups, jwtAutoGroups
 }
diff --git a/management/server/account_test.go b/management/server/account_test.go
index 198775bc33..c417e4bc89 100644
--- a/management/server/account_test.go
+++ b/management/server/account_test.go
@@ -633,7 +633,7 @@ func TestDefaultAccountManager_GetAccountIDFromToken(t *testing.T) {
 			manager, err := createManager(t)
 			require.NoError(t, err, "unable to create account manager")
 
-			accountID, err := manager.GetAccountIDByUserOrAccountID(context.Background(), testCase.inputInitUserParams.UserId, testCase.inputInitUserParams.AccountId, testCase.inputInitUserParams.Domain)
+			accountID, err := manager.GetAccountIDByUserID(context.Background(), testCase.inputInitUserParams.UserId, testCase.inputInitUserParams.Domain)
 			require.NoError(t, err, "create init user failed")
 
 			initAccount, err := manager.Store.GetAccount(context.Background(), accountID)
@@ -671,17 +671,16 @@ func TestDefaultAccountManager_GetGroupsFromTheToken(t *testing.T) {
 	userId := "user-id"
 	domain := "test.domain"
 
-	initAccount := newAccountWithId(context.Background(), "", userId, domain)
+	_ = newAccountWithId(context.Background(), "", userId, domain)
 	manager, err := createManager(t)
 	require.NoError(t, err, "unable to create account manager")
 
-	accountID := initAccount.Id
-	accountID, err = manager.GetAccountIDByUserOrAccountID(context.Background(), userId, accountID, domain)
+	accountID, err := manager.GetAccountIDByUserID(context.Background(), userId, domain)
 	require.NoError(t, err, "create init user failed")
 	// as initAccount was created without account id we have to take the id after account initialization
-	// that happens inside the GetAccountIDByUserOrAccountID where the id is getting generated
+	// that happens inside the GetAccountIDByUserID where the id is getting generated
 	// it is important to set the id as it help to avoid creating additional account with empty Id and re-pointing indices to it
-	initAccount, err = manager.Store.GetAccount(context.Background(), accountID)
+	initAccount, err := manager.Store.GetAccount(context.Background(), accountID)
 	require.NoError(t, err, "get init account failed")
 
 	claims := jwtclaims.AuthorizationClaims{
@@ -885,7 +884,7 @@ func TestAccountManager_SetOrUpdateDomain(t *testing.T) {
 	}
 }
 
-func TestAccountManager_GetAccountByUserOrAccountId(t *testing.T) {
+func TestAccountManager_GetAccountByUserID(t *testing.T) {
 	manager, err := createManager(t)
 	if err != nil {
 		t.Fatal(err)
@@ -894,7 +893,7 @@ func TestAccountManager_GetAccountByUserOrAccountId(t *testing.T) {
 
 	userId := "test_user"
 
-	accountID, err := manager.GetAccountIDByUserOrAccountID(context.Background(), userId, "", "")
+	accountID, err := manager.GetAccountIDByUserID(context.Background(), userId, "")
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -903,14 +902,13 @@ func TestAccountManager_GetAccountByUserOrAccountId(t *testing.T) {
 		return
 	}
 
-	_, err = manager.GetAccountIDByUserOrAccountID(context.Background(), "", accountID, "")
-	if err != nil {
-		t.Errorf("expected to get existing account after creation using userid, no account was found for a account %s", accountID)
-	}
+	exists, err := manager.Store.AccountExists(context.Background(), LockingStrengthShare, accountID)
+	assert.NoError(t, err)
+	assert.True(t, exists, "expected to get existing account after creation using userid")
 
-	_, err = manager.GetAccountIDByUserOrAccountID(context.Background(), "", "", "")
+	_, err = manager.GetAccountIDByUserID(context.Background(), "", "")
 	if err == nil {
-		t.Errorf("expected an error when user and account IDs are empty")
+		t.Errorf("expected an error when user ID is empty")
 	}
 }
 
@@ -1669,7 +1667,7 @@ func TestDefaultAccountManager_DefaultAccountSettings(t *testing.T) {
 	manager, err := createManager(t)
 	require.NoError(t, err, "unable to create account manager")
 
-	accountID, err := manager.GetAccountIDByUserOrAccountID(context.Background(), userID, "", "")
+	accountID, err := manager.GetAccountIDByUserID(context.Background(), userID, "")
 	require.NoError(t, err, "unable to create an account")
 
 	settings, err := manager.Store.GetAccountSettings(context.Background(), LockingStrengthShare, accountID)
@@ -1684,7 +1682,7 @@ func TestDefaultAccountManager_UpdatePeer_PeerLoginExpiration(t *testing.T) {
 	manager, err := createManager(t)
 	require.NoError(t, err, "unable to create account manager")
 
-	_, err = manager.GetAccountIDByUserOrAccountID(context.Background(), userID, "", "")
+	_, err = manager.GetAccountIDByUserID(context.Background(), userID, "")
 	require.NoError(t, err, "unable to create an account")
 
 	key, err := wgtypes.GenerateKey()
@@ -1696,7 +1694,7 @@ func TestDefaultAccountManager_UpdatePeer_PeerLoginExpiration(t *testing.T) {
 	})
 	require.NoError(t, err, "unable to add peer")
 
-	accountID, err := manager.GetAccountIDByUserOrAccountID(context.Background(), userID, "", "")
+	accountID, err := manager.GetAccountIDByUserID(context.Background(), userID, "")
 	require.NoError(t, err, "unable to get the account")
 
 	account, err := manager.Store.GetAccount(context.Background(), accountID)
@@ -1742,7 +1740,7 @@ func TestDefaultAccountManager_MarkPeerConnected_PeerLoginExpiration(t *testing.
 	manager, err := createManager(t)
 	require.NoError(t, err, "unable to create account manager")
 
-	accountID, err := manager.GetAccountIDByUserOrAccountID(context.Background(), userID, "", "")
+	accountID, err := manager.GetAccountIDByUserID(context.Background(), userID, "")
 	require.NoError(t, err, "unable to create an account")
 
 	key, err := wgtypes.GenerateKey()
@@ -1770,7 +1768,7 @@ func TestDefaultAccountManager_MarkPeerConnected_PeerLoginExpiration(t *testing.
 		},
 	}
 
-	accountID, err = manager.GetAccountIDByUserOrAccountID(context.Background(), userID, "", "")
+	accountID, err = manager.GetAccountIDByUserID(context.Background(), userID, "")
 	require.NoError(t, err, "unable to get the account")
 
 	account, err := manager.Store.GetAccount(context.Background(), accountID)
@@ -1790,7 +1788,7 @@ func TestDefaultAccountManager_UpdateAccountSettings_PeerLoginExpiration(t *test
 	manager, err := createManager(t)
 	require.NoError(t, err, "unable to create account manager")
 
-	_, err = manager.GetAccountIDByUserOrAccountID(context.Background(), userID, "", "")
+	_, err = manager.GetAccountIDByUserID(context.Background(), userID, "")
 	require.NoError(t, err, "unable to create an account")
 
 	key, err := wgtypes.GenerateKey()
@@ -1802,7 +1800,7 @@ func TestDefaultAccountManager_UpdateAccountSettings_PeerLoginExpiration(t *test
 	})
 	require.NoError(t, err, "unable to add peer")
 
-	accountID, err := manager.GetAccountIDByUserOrAccountID(context.Background(), userID, "", "")
+	accountID, err := manager.GetAccountIDByUserID(context.Background(), userID, "")
 	require.NoError(t, err, "unable to get the account")
 
 	account, err := manager.Store.GetAccount(context.Background(), accountID)
@@ -1850,7 +1848,7 @@ func TestDefaultAccountManager_UpdateAccountSettings(t *testing.T) {
 	manager, err := createManager(t)
 	require.NoError(t, err, "unable to create account manager")
 
-	accountID, err := manager.GetAccountIDByUserOrAccountID(context.Background(), userID, "", "")
+	accountID, err := manager.GetAccountIDByUserID(context.Background(), userID, "")
 	require.NoError(t, err, "unable to create an account")
 
 	updated, err := manager.UpdateAccountSettings(context.Background(), accountID, userID, &Settings{
@@ -1861,9 +1859,6 @@ func TestDefaultAccountManager_UpdateAccountSettings(t *testing.T) {
 	assert.False(t, updated.Settings.PeerLoginExpirationEnabled)
 	assert.Equal(t, updated.Settings.PeerLoginExpiration, time.Hour)
 
-	accountID, err = manager.GetAccountIDByUserOrAccountID(context.Background(), "", accountID, "")
-	require.NoError(t, err, "unable to get account by ID")
-
 	settings, err := manager.Store.GetAccountSettings(context.Background(), LockingStrengthShare, accountID)
 	require.NoError(t, err, "unable to get account settings")
 
@@ -2199,8 +2194,12 @@ func TestAccount_GetNextPeerExpiration(t *testing.T) {
 }
 
 func TestAccount_SetJWTGroups(t *testing.T) {
+	manager, err := createManager(t)
+	require.NoError(t, err, "unable to create account manager")
+
 	// create a new account
 	account := &Account{
+		Id: "accountID",
 		Peers: map[string]*nbpeer.Peer{
 			"peer1": {ID: "peer1", Key: "key1", UserID: "user1"},
 			"peer2": {ID: "peer2", Key: "key2", UserID: "user1"},
@@ -2211,62 +2210,120 @@ func TestAccount_SetJWTGroups(t *testing.T) {
 		Groups: map[string]*group.Group{
 			"group1": {ID: "group1", Name: "group1", Issued: group.GroupIssuedAPI, Peers: []string{}},
 		},
-		Settings: &Settings{GroupsPropagationEnabled: true},
+		Settings: &Settings{GroupsPropagationEnabled: true, JWTGroupsEnabled: true, JWTGroupsClaimName: "groups"},
 		Users: map[string]*User{
-			"user1": {Id: "user1"},
-			"user2": {Id: "user2"},
+			"user1": {Id: "user1", AccountID: "accountID"},
+			"user2": {Id: "user2", AccountID: "accountID"},
 		},
 	}
 
+	assert.NoError(t, manager.Store.SaveAccount(context.Background(), account), "unable to save account")
+
 	t.Run("empty jwt groups", func(t *testing.T) {
-		updated := account.SetJWTGroups("user1", []string{})
-		assert.False(t, updated, "account should not be updated")
-		assert.Empty(t, account.Users["user1"].AutoGroups, "auto groups must be empty")
+		claims := jwtclaims.AuthorizationClaims{
+			UserId: "user1",
+			Raw:    jwt.MapClaims{"groups": []interface{}{}},
+		}
+		err := manager.syncJWTGroups(context.Background(), "accountID", claims)
+		assert.NoError(t, err, "unable to sync jwt groups")
+
+		user, err := manager.Store.GetUserByUserID(context.Background(), LockingStrengthShare, "user1")
+		assert.NoError(t, err, "unable to get user")
+		assert.Empty(t, user.AutoGroups, "auto groups must be empty")
 	})
 
 	t.Run("jwt match existing api group", func(t *testing.T) {
-		updated := account.SetJWTGroups("user1", []string{"group1"})
-		assert.False(t, updated, "account should not be updated")
-		assert.Equal(t, 0, len(account.Users["user1"].AutoGroups))
-		assert.Equal(t, account.Groups["group1"].Issued, group.GroupIssuedAPI, "group should be api issued")
+		claims := jwtclaims.AuthorizationClaims{
+			UserId: "user1",
+			Raw:    jwt.MapClaims{"groups": []interface{}{"group1"}},
+		}
+		err := manager.syncJWTGroups(context.Background(), "accountID", claims)
+		assert.NoError(t, err, "unable to sync jwt groups")
+
+		user, err := manager.Store.GetUserByUserID(context.Background(), LockingStrengthShare, "user1")
+		assert.NoError(t, err, "unable to get user")
+		assert.Len(t, user.AutoGroups, 0)
+
+		group1, err := manager.Store.GetGroupByID(context.Background(), LockingStrengthShare, "group1", "accountID")
+		assert.NoError(t, err, "unable to get group")
+		assert.Equal(t, group1.Issued, group.GroupIssuedAPI, "group should be api issued")
 	})
 
 	t.Run("jwt match existing api group in user auto groups", func(t *testing.T) {
 		account.Users["user1"].AutoGroups = []string{"group1"}
+		assert.NoError(t, manager.Store.SaveUser(context.Background(), LockingStrengthUpdate, account.Users["user1"]))
 
-		updated := account.SetJWTGroups("user1", []string{"group1"})
-		assert.False(t, updated, "account should not be updated")
-		assert.Equal(t, 1, len(account.Users["user1"].AutoGroups))
-		assert.Equal(t, account.Groups["group1"].Issued, group.GroupIssuedAPI, "group should be api issued")
+		claims := jwtclaims.AuthorizationClaims{
+			UserId: "user1",
+			Raw:    jwt.MapClaims{"groups": []interface{}{"group1"}},
+		}
+		err = manager.syncJWTGroups(context.Background(), "accountID", claims)
+		assert.NoError(t, err, "unable to sync jwt groups")
+
+		user, err := manager.Store.GetUserByUserID(context.Background(), LockingStrengthShare, "user1")
+		assert.NoError(t, err, "unable to get user")
+		assert.Len(t, user.AutoGroups, 1)
+
+		group1, err := manager.Store.GetGroupByID(context.Background(), LockingStrengthShare, "group1", "accountID")
+		assert.NoError(t, err, "unable to get group")
+		assert.Equal(t, group1.Issued, group.GroupIssuedAPI, "group should be api issued")
 	})
 
 	t.Run("add jwt group", func(t *testing.T) {
-		updated := account.SetJWTGroups("user1", []string{"group1", "group2"})
-		assert.True(t, updated, "account should be updated")
-		assert.Len(t, account.Groups, 2, "new group should be added")
-		assert.Len(t, account.Users["user1"].AutoGroups, 2, "new group should be added")
-		assert.Contains(t, account.Groups, account.Users["user1"].AutoGroups[0], "groups must contain group2 from user groups")
+		claims := jwtclaims.AuthorizationClaims{
+			UserId: "user1",
+			Raw:    jwt.MapClaims{"groups": []interface{}{"group1", "group2"}},
+		}
+		err = manager.syncJWTGroups(context.Background(), "accountID", claims)
+		assert.NoError(t, err, "unable to sync jwt groups")
+
+		user, err := manager.Store.GetUserByUserID(context.Background(), LockingStrengthShare, "user1")
+		assert.NoError(t, err, "unable to get user")
+		assert.Len(t, user.AutoGroups, 2, "groups count should not be change")
 	})
 
 	t.Run("existed group not update", func(t *testing.T) {
-		updated := account.SetJWTGroups("user1", []string{"group2"})
-		assert.False(t, updated, "account should not be updated")
-		assert.Len(t, account.Groups, 2, "groups count should not be changed")
+		claims := jwtclaims.AuthorizationClaims{
+			UserId: "user1",
+			Raw:    jwt.MapClaims{"groups": []interface{}{"group2"}},
+		}
+		err = manager.syncJWTGroups(context.Background(), "accountID", claims)
+		assert.NoError(t, err, "unable to sync jwt groups")
+
+		user, err := manager.Store.GetUserByUserID(context.Background(), LockingStrengthShare, "user1")
+		assert.NoError(t, err, "unable to get user")
+		assert.Len(t, user.AutoGroups, 2, "groups count should not be change")
 	})
 
 	t.Run("add new group", func(t *testing.T) {
-		updated := account.SetJWTGroups("user2", []string{"group1", "group3"})
-		assert.True(t, updated, "account should be updated")
-		assert.Len(t, account.Groups, 3, "new group should be added")
-		assert.Len(t, account.Users["user2"].AutoGroups, 1, "new group should be added")
-		assert.Contains(t, account.Groups, account.Users["user2"].AutoGroups[0], "groups must contain group3 from user groups")
+		claims := jwtclaims.AuthorizationClaims{
+			UserId: "user2",
+			Raw:    jwt.MapClaims{"groups": []interface{}{"group1", "group3"}},
+		}
+		err = manager.syncJWTGroups(context.Background(), "accountID", claims)
+		assert.NoError(t, err, "unable to sync jwt groups")
+
+		groups, err := manager.Store.GetAccountGroups(context.Background(), "accountID")
+		assert.NoError(t, err)
+		assert.Len(t, groups, 3, "new group3 should be added")
+
+		user, err := manager.Store.GetUserByUserID(context.Background(), LockingStrengthShare, "user2")
+		assert.NoError(t, err, "unable to get user")
+		assert.Len(t, user.AutoGroups, 1, "new group should be added")
 	})
 
 	t.Run("remove all JWT groups", func(t *testing.T) {
-		updated := account.SetJWTGroups("user1", []string{})
-		assert.True(t, updated, "account should be updated")
-		assert.Len(t, account.Users["user1"].AutoGroups, 1, "only non-JWT groups should remain")
-		assert.Contains(t, account.Users["user1"].AutoGroups, "group1", " group1 should still be present")
+		claims := jwtclaims.AuthorizationClaims{
+			UserId: "user1",
+			Raw:    jwt.MapClaims{"groups": []interface{}{}},
+		}
+		err = manager.syncJWTGroups(context.Background(), "accountID", claims)
+		assert.NoError(t, err, "unable to sync jwt groups")
+
+		user, err := manager.Store.GetUserByUserID(context.Background(), LockingStrengthShare, "user1")
+		assert.NoError(t, err, "unable to get user")
+		assert.Len(t, user.AutoGroups, 1, "only non-JWT groups should remain")
+		assert.Contains(t, user.AutoGroups, "group1", " group1 should still be present")
 	})
 }
 
diff --git a/management/server/mock_server/account_mock.go b/management/server/mock_server/account_mock.go
index b399be8228..b6283a7e69 100644
--- a/management/server/mock_server/account_mock.go
+++ b/management/server/mock_server/account_mock.go
@@ -27,7 +27,7 @@ type MockAccountManager struct {
 	CreateSetupKeyFunc           func(ctx context.Context, accountId string, keyName string, keyType server.SetupKeyType,
 		expiresIn time.Duration, autoGroups []string, usageLimit int, userID string, ephemeral bool) (*server.SetupKey, error)
 	GetSetupKeyFunc                     func(ctx context.Context, accountID, userID, keyID string) (*server.SetupKey, error)
-	GetAccountIDByUserOrAccountIdFunc   func(ctx context.Context, userId, accountId, domain string) (string, error)
+	GetAccountIDByUserIdFunc            func(ctx context.Context, userId, domain string) (string, error)
 	GetUserFunc                         func(ctx context.Context, claims jwtclaims.AuthorizationClaims) (*server.User, error)
 	ListUsersFunc                       func(ctx context.Context, accountID string) ([]*server.User, error)
 	GetPeersFunc                        func(ctx context.Context, accountID, userID string) ([]*nbpeer.Peer, error)
@@ -194,14 +194,14 @@ func (am *MockAccountManager) CreateSetupKey(
 	return nil, status.Errorf(codes.Unimplemented, "method CreateSetupKey is not implemented")
 }
 
-// GetAccountIDByUserOrAccountID mock implementation of GetAccountIDByUserOrAccountID from server.AccountManager interface
-func (am *MockAccountManager) GetAccountIDByUserOrAccountID(ctx context.Context, userId, accountId, domain string) (string, error) {
-	if am.GetAccountIDByUserOrAccountIdFunc != nil {
-		return am.GetAccountIDByUserOrAccountIdFunc(ctx, userId, accountId, domain)
+// GetAccountIDByUserID mock implementation of GetAccountIDByUserID from server.AccountManager interface
+func (am *MockAccountManager) GetAccountIDByUserID(ctx context.Context, userId, domain string) (string, error) {
+	if am.GetAccountIDByUserIdFunc != nil {
+		return am.GetAccountIDByUserIdFunc(ctx, userId, domain)
 	}
 	return "", status.Errorf(
 		codes.Unimplemented,
-		"method GetAccountIDByUserOrAccountID is not implemented",
+		"method GetAccountIDByUserID is not implemented",
 	)
 }
 
diff --git a/management/server/sql_store.go b/management/server/sql_store.go
index cce748a0f8..9e1ab27dcc 100644
--- a/management/server/sql_store.go
+++ b/management/server/sql_store.go
@@ -10,6 +10,7 @@ import (
 	"path/filepath"
 	"runtime"
 	"runtime/debug"
+	"slices"
 	"strings"
 	"sync"
 	"time"
@@ -378,15 +379,26 @@ func (s *SqlStore) SaveUsers(accountID string, users map[string]*User) error {
 		Create(&usersToSave).Error
 }
 
+// SaveUser saves the given user to the database.
+func (s *SqlStore) SaveUser(ctx context.Context, lockStrength LockingStrength, user *User) error {
+	result := s.db.WithContext(ctx).Clauses(clause.Locking{Strength: string(lockStrength)}).Save(user)
+	if result.Error != nil {
+		return status.Errorf(status.Internal, "failed to save user to store: %v", result.Error)
+	}
+	return nil
+}
+
 // SaveGroups saves the given list of groups to the database.
-// It updates existing groups if a conflict occurs.
-func (s *SqlStore) SaveGroups(accountID string, groups map[string]*nbgroup.Group) error {
-	groupsToSave := make([]nbgroup.Group, 0, len(groups))
-	for _, group := range groups {
-		group.AccountID = accountID
-		groupsToSave = append(groupsToSave, *group)
+func (s *SqlStore) SaveGroups(ctx context.Context, lockStrength LockingStrength, groups []*nbgroup.Group) error {
+	if len(groups) == 0 {
+		return nil
+	}
+
+	result := s.db.WithContext(ctx).Clauses(clause.Locking{Strength: string(lockStrength)}).Save(&groups)
+	if result.Error != nil {
+		return status.Errorf(status.Internal, "failed to save groups to store: %v", result.Error)
 	}
-	return s.db.Clauses(clause.OnConflict{UpdateAll: true}).Create(&groupsToSave).Error
+	return nil
 }
 
 // DeleteHashedPAT2TokenIDIndex is noop in SqlStore
@@ -1021,6 +1033,89 @@ func (s *SqlStore) AddPeerToGroup(ctx context.Context, accountId string, peerId
 	return nil
 }
 
+// AddUserPeersToGroups adds the user's peers to specified groups in database.
+func (s *SqlStore) AddUserPeersToGroups(ctx context.Context, accountID string, userID string, groupIDs []string) error {
+	if len(groupIDs) == 0 {
+		return nil
+	}
+
+	var userPeerIDs []string
+	result := s.db.WithContext(ctx).Clauses(clause.Locking{Strength: string(LockingStrengthShare)}).Select("id").
+		Where("account_id = ? AND user_id = ?", accountID, userID).Model(&nbpeer.Peer{}).Find(&userPeerIDs)
+	if result.Error != nil {
+		return status.Errorf(status.Internal, "issue finding user peers")
+	}
+
+	groupsToUpdate := make([]*nbgroup.Group, 0, len(groupIDs))
+	for _, gid := range groupIDs {
+		group, err := s.GetGroupByID(ctx, LockingStrengthShare, gid, accountID)
+		if err != nil {
+			return err
+		}
+
+		groupPeers := make(map[string]struct{})
+		for _, pid := range group.Peers {
+			groupPeers[pid] = struct{}{}
+		}
+
+		for _, pid := range userPeerIDs {
+			groupPeers[pid] = struct{}{}
+		}
+
+		group.Peers = group.Peers[:0]
+		for pid := range groupPeers {
+			group.Peers = append(group.Peers, pid)
+		}
+
+		groupsToUpdate = append(groupsToUpdate, group)
+	}
+
+	return s.SaveGroups(ctx, LockingStrengthUpdate, groupsToUpdate)
+}
+
+// RemoveUserPeersFromGroups removes the user's peers from specified groups in database.
+func (s *SqlStore) RemoveUserPeersFromGroups(ctx context.Context, accountID string, userID string, groupIDs []string) error {
+	if len(groupIDs) == 0 {
+		return nil
+	}
+
+	var userPeerIDs []string
+	result := s.db.WithContext(ctx).Clauses(clause.Locking{Strength: string(LockingStrengthShare)}).Select("id").
+		Where("account_id = ? AND user_id = ?", accountID, userID).Model(&nbpeer.Peer{}).Find(&userPeerIDs)
+	if result.Error != nil {
+		return status.Errorf(status.Internal, "issue finding user peers")
+	}
+
+	groupsToUpdate := make([]*nbgroup.Group, 0, len(groupIDs))
+	for _, gid := range groupIDs {
+		group, err := s.GetGroupByID(ctx, LockingStrengthShare, gid, accountID)
+		if err != nil {
+			return err
+		}
+
+		if group.Name == "All" {
+			continue
+		}
+
+		update := make([]string, 0, len(group.Peers))
+		for _, pid := range group.Peers {
+			if !slices.Contains(userPeerIDs, pid) {
+				update = append(update, pid)
+			}
+		}
+
+		group.Peers = update
+		groupsToUpdate = append(groupsToUpdate, group)
+	}
+
+	return s.SaveGroups(ctx, LockingStrengthUpdate, groupsToUpdate)
+}
+
+// GetUserPeers retrieves peers for a user.
+func (s *SqlStore) GetUserPeers(ctx context.Context, lockStrength LockingStrength, accountID, userID string) ([]*nbpeer.Peer, error) {
+	return getRecords[*nbpeer.Peer](s.db.WithContext(ctx).Where("user_id = ?", userID), lockStrength, accountID)
+}
+
 func (s *SqlStore) AddPeerToAccount(ctx context.Context, peer *nbpeer.Peer) error {
 	if err := s.db.WithContext(ctx).Create(peer).Error; err != nil {
 		return status.Errorf(status.Internal, "issue adding peer to account")
@@ -1127,6 +1222,15 @@ func (s *SqlStore) GetGroupByName(ctx context.Context, lockStrength LockingStren
 	return &group, nil
 }
 
+// SaveGroup saves a group to the store.
+func (s *SqlStore) SaveGroup(ctx context.Context, lockStrength LockingStrength, group *nbgroup.Group) error {
+	result := s.db.WithContext(ctx).Clauses(clause.Locking{Strength: string(lockStrength)}).Save(group)
+	if result.Error != nil {
+		return status.Errorf(status.Internal, "failed to save group to store: %v", result.Error)
+	}
+	return nil
+}
+
 // GetAccountPolicies retrieves policies for an account.
 func (s *SqlStore) GetAccountPolicies(ctx context.Context, lockStrength LockingStrength, accountID string) ([]*Policy, error) {
 	return getRecords[*Policy](s.db.WithContext(ctx).Preload(clause.Associations), lockStrength, accountID)
diff --git a/management/server/sql_store_test.go b/management/server/sql_store_test.go
index dc07849d9b..4eed09c69b 100644
--- a/management/server/sql_store_test.go
+++ b/management/server/sql_store_test.go
@@ -1185,3 +1185,33 @@ func TestSqlite_incrementSetupKeyUsage(t *testing.T) {
 	require.NoError(t, err)
 	assert.Equal(t, 2, setupKey.UsedTimes)
 }
+
+func TestSqlite_CreateAndGetObjectInTransaction(t *testing.T) {
+	store, cleanup, err := NewSqliteTestStore(context.Background(), t.TempDir(), "testdata/extended-store.sqlite")
+	t.Cleanup(cleanup)
+	if err != nil {
+		t.Fatal(err)
+	}
+	group := &nbgroup.Group{
+		ID:        "group-id",
+		AccountID: "account-id",
+		Name:      "group-name",
+		Issued:    "api",
+		Peers:     nil,
+	}
+	err = store.ExecuteInTransaction(context.Background(), func(transaction Store) error {
+		err := transaction.SaveGroup(context.Background(), LockingStrengthUpdate, group)
+		if err != nil {
+			t.Fatal("failed to save group")
+			return err
+		}
+		group, err = transaction.GetGroupByID(context.Background(), LockingStrengthUpdate, group.ID, group.AccountID)
+		if err != nil {
+			t.Fatal("failed to get group")
+			return err
+		}
+		t.Logf("group: %v", group)
+		return nil
+	})
+	assert.NoError(t, err)
+}
diff --git a/management/server/store.go b/management/server/store.go
index 041c936ae5..50bc6afdfd 100644
--- a/management/server/store.go
+++ b/management/server/store.go
@@ -60,6 +60,7 @@ type Store interface {
 	GetUserByTokenID(ctx context.Context, tokenID string) (*User, error)
 	GetUserByUserID(ctx context.Context, lockStrength LockingStrength, userID string) (*User, error)
 	SaveUsers(accountID string, users map[string]*User) error
+	SaveUser(ctx context.Context, lockStrength LockingStrength, user *User) error
 	SaveUserLastLogin(ctx context.Context, accountID, userID string, lastLogin time.Time) error
 	GetTokenIDByHashedToken(ctx context.Context, secret string) (string, error)
 	DeleteHashedPAT2TokenIDIndex(hashedToken string) error
@@ -68,7 +69,8 @@ type Store interface {
 	GetAccountGroups(ctx context.Context, accountID string) ([]*nbgroup.Group, error)
 	GetGroupByID(ctx context.Context, lockStrength LockingStrength, groupID, accountID string) (*nbgroup.Group, error)
 	GetGroupByName(ctx context.Context, lockStrength LockingStrength, groupName, accountID string) (*nbgroup.Group, error)
-	SaveGroups(accountID string, groups map[string]*nbgroup.Group) error
+	SaveGroups(ctx context.Context, lockStrength LockingStrength, groups []*nbgroup.Group) error
+	SaveGroup(ctx context.Context, lockStrength LockingStrength, group *nbgroup.Group) error
 
 	GetAccountPolicies(ctx context.Context, lockStrength LockingStrength, accountID string) ([]*Policy, error)
 	GetPolicyByID(ctx context.Context, lockStrength LockingStrength, policyID string, accountID string) (*Policy, error)
@@ -82,6 +84,7 @@ type Store interface {
 	AddPeerToGroup(ctx context.Context, accountId string, peerId string, groupID string) error
 	AddPeerToAccount(ctx context.Context, peer *nbpeer.Peer) error
 	GetPeerByPeerPubKey(ctx context.Context, lockStrength LockingStrength, peerKey string) (*nbpeer.Peer, error)
+	GetUserPeers(ctx context.Context, lockStrength LockingStrength, accountID, userID string) ([]*nbpeer.Peer, error)
 	SavePeer(ctx context.Context, accountID string, peer *nbpeer.Peer) error
 	SavePeerStatus(accountID, peerID string, status nbpeer.PeerStatus) error
 	SavePeerLocation(accountID string, peer *nbpeer.Peer) error
diff --git a/management/server/user.go b/management/server/user.go
index 6d01561c6c..38a8ac0c40 100644
--- a/management/server/user.go
+++ b/management/server/user.go
@@ -8,14 +8,14 @@ import (
 	"time"
 
 	"github.com/google/uuid"
-	log "github.com/sirupsen/logrus"
-
 	"github.com/netbirdio/netbird/management/server/activity"
+	nbgroup "github.com/netbirdio/netbird/management/server/group"
 	"github.com/netbirdio/netbird/management/server/idp"
 	"github.com/netbirdio/netbird/management/server/integration_reference"
 	"github.com/netbirdio/netbird/management/server/jwtclaims"
 	nbpeer "github.com/netbirdio/netbird/management/server/peer"
 	"github.com/netbirdio/netbird/management/server/status"
+	log "github.com/sirupsen/logrus"
 )
 
 const (
@@ -1254,6 +1254,74 @@ func (am *DefaultAccountManager) prepareUserDeletion(ctx context.Context, accoun
 	return map[string]any{"name": tuName, "email": tuEmail, "created_at": tuCreatedAt}, nil
 }
 
+// updateUserPeersInGroups updates the user's peers in the specified groups by adding or removing them.
+func (am *DefaultAccountManager) updateUserPeersInGroups(accountGroups map[string]*nbgroup.Group, peers []*nbpeer.Peer, groupsToAdd,
+	groupsToRemove []string) (groupsToUpdate []*nbgroup.Group, err error) {
+
+	if len(groupsToAdd) == 0 && len(groupsToRemove) == 0 {
+		return
+	}
+
+	userPeerIDMap := make(map[string]struct{}, len(peers))
+	for _, peer := range peers {
+		userPeerIDMap[peer.ID] = struct{}{}
+	}
+
+	for _, gid := range groupsToAdd {
+		group, ok := accountGroups[gid]
+		if !ok {
+			return nil, errors.New("group not found")
+		}
+		addUserPeersToGroup(userPeerIDMap, group)
+		groupsToUpdate = append(groupsToUpdate, group)
+	}
+
+	for _, gid := range groupsToRemove {
+		group, ok := accountGroups[gid]
+		if !ok {
+			return nil, errors.New("group not found")
+		}
+		removeUserPeersFromGroup(userPeerIDMap, group)
+		groupsToUpdate = append(groupsToUpdate, group)
+	}
+
+	return groupsToUpdate, nil
+}
+
+// addUserPeersToGroup adds the user's peers to the group.
+func addUserPeersToGroup(userPeerIDs map[string]struct{}, group *nbgroup.Group) {
+	groupPeers := make(map[string]struct{}, len(group.Peers))
+	for _, pid := range group.Peers {
+		groupPeers[pid] = struct{}{}
+	}
+
+	for pid := range userPeerIDs {
+		groupPeers[pid] = struct{}{}
+	}
+
+	group.Peers = make([]string, 0, len(groupPeers))
+	for pid := range groupPeers {
+		group.Peers = append(group.Peers, pid)
+	}
+}
+
+// removeUserPeersFromGroup removes user's peers from the group.
+func removeUserPeersFromGroup(userPeerIDs map[string]struct{}, group *nbgroup.Group) {
+	// skip removing peers from group All
+	if group.Name == "All" {
+		return
+	}
+
+	updatedPeers := make([]string, 0, len(group.Peers))
+	for _, pid := range group.Peers {
+		if _, found := userPeerIDs[pid]; !found {
+			updatedPeers = append(updatedPeers, pid)
+		}
+	}
+
+	group.Peers = updatedPeers
+}
+
 func findUserInIDPUserdata(userID string, userData []*idp.UserData) (*idp.UserData, bool) {
 	for _, user := range userData {
 		if user.ID == userID {
diff --git a/management/server/user_test.go b/management/server/user_test.go
index ec0a106957..1a5704551b 100644
--- a/management/server/user_test.go
+++ b/management/server/user_test.go
@@ -813,10 +813,7 @@ func TestUser_DeleteUser_RegularUsers(t *testing.T) {
 				assert.NoError(t, err)
 			}
 
-			accID, err := am.GetAccountIDByUserOrAccountID(context.Background(), "", account.Id, "")
-			assert.NoError(t, err)
-
-			acc, err := am.Store.GetAccount(context.Background(), accID)
+			acc, err := am.Store.GetAccount(context.Background(), account.Id)
 			assert.NoError(t, err)
 
 			for _, id := range tc.expectedDeleted {