diff --git a/docs/getting-started/faq.md b/docs/getting-started/faq.md
index 95ddf3b0c616ee..e0847ba9b29aec 100644
--- a/docs/getting-started/faq.md
+++ b/docs/getting-started/faq.md
@@ -224,6 +224,11 @@ This is the canonical list of keyboard shortcuts:
 			<td><kbd>/</kbd></td>
 			<td><kbd>/</kbd></td>
 		</tr>
+		<tr>
+			<td>Create a group block from the selected block(s).</td>
+			<td><kbd>Ctrl</kbd>+<kbd>Alt</kbd>+<kbd>G</kbd></td>
+			<td><kbd>⌥</kbd><kbd>⌘</kbd><kbd>⇧</kbd><kbd>G</kbd></td>
+		</tr>
 		<tr>
 			<td>Remove multiple selected blocks.</td>
 			<td><kbd>del</kbd><kbd>backspace</kbd></td>
diff --git a/packages/block-editor/src/components/block-tools/index.js b/packages/block-editor/src/components/block-tools/index.js
index 3959257ecf4e86..b17a8ba2b02de5 100644
--- a/packages/block-editor/src/components/block-tools/index.js
+++ b/packages/block-editor/src/components/block-tools/index.js
@@ -5,6 +5,7 @@ import { useSelect, useDispatch } from '@wordpress/data';
 import { Popover } from '@wordpress/components';
 import { __unstableUseShortcutEventMatch as useShortcutEventMatch } from '@wordpress/keyboard-shortcuts';
 import { useRef } from '@wordpress/element';
+import { switchToBlockType, store as blocksStore } from '@wordpress/blocks';
 
 /**
  * Internal dependencies
@@ -62,9 +63,13 @@ export default function BlockTools( {
 		[]
 	);
 	const isMatch = useShortcutEventMatch();
-	const { getSelectedBlockClientIds, getBlockRootClientId } =
-		useSelect( blockEditorStore );
-
+	const {
+		getBlocksByClientId,
+		getSelectedBlockClientIds,
+		getBlockRootClientId,
+		isGroupable,
+	} = useSelect( blockEditorStore );
+	const { getGroupingBlockName } = useSelect( blocksStore );
 	const {
 		showEmptyBlockSideInserter,
 		showBreadcrumb,
@@ -74,6 +79,7 @@ export default function BlockTools( {
 	const {
 		duplicateBlocks,
 		removeBlocks,
+		replaceBlocks,
 		insertAfterBlock,
 		insertBeforeBlock,
 		selectBlock,
@@ -140,6 +146,18 @@ export default function BlockTools( {
 				// In effect, to the user this feels like deselecting the multi-selection.
 				selectBlock( clientIds[ 0 ] );
 			}
+		} else if ( isMatch( 'core/block-editor/group', event ) ) {
+			const clientIds = getSelectedBlockClientIds();
+			if ( clientIds.length > 1 && isGroupable( clientIds ) ) {
+				event.preventDefault();
+				const blocks = getBlocksByClientId( clientIds );
+				const groupingBlockName = getGroupingBlockName();
+				const newBlocks = switchToBlockType(
+					blocks,
+					groupingBlockName
+				);
+				replaceBlocks( clientIds, newBlocks );
+			}
 		}
 	}
 
diff --git a/packages/block-editor/src/components/keyboard-shortcuts/index.js b/packages/block-editor/src/components/keyboard-shortcuts/index.js
index 0e0a57257becca..162ee97c56ebc4 100644
--- a/packages/block-editor/src/components/keyboard-shortcuts/index.js
+++ b/packages/block-editor/src/components/keyboard-shortcuts/index.js
@@ -132,6 +132,18 @@ function KeyboardShortcutsRegister() {
 				character: 'y',
 			},
 		} );
+
+		registerShortcut( {
+			name: 'core/block-editor/group',
+			category: 'block',
+			description: __(
+				'Create a group block from the selected block(s).'
+			),
+			keyCombination: {
+				modifier: 'primaryAlt',
+				character: 'g',
+			},
+		} );
 	}, [ registerShortcut ] );
 
 	return null;
diff --git a/test/e2e/specs/editor/various/block-editor-keyboard-shortcuts.spec.js b/test/e2e/specs/editor/various/block-editor-keyboard-shortcuts.spec.js
index 0e8c5c8e7bf537..df6d1e793c2fb7 100644
--- a/test/e2e/specs/editor/various/block-editor-keyboard-shortcuts.spec.js
+++ b/test/e2e/specs/editor/various/block-editor-keyboard-shortcuts.spec.js
@@ -217,4 +217,68 @@ test.describe( 'Block editor keyboard shortcuts', () => {
 			] );
 		} );
 	} );
+
+	test.describe( 'create a group block from the selected blocks', () => {
+		test( 'should propagate properly if multiple blocks are selected.', async ( {
+			editor,
+			page,
+			pageUtils,
+		} ) => {
+			await addTestParagraphBlocks( { editor, page } );
+
+			// Multiselect via keyboard.
+			await pageUtils.pressKeys( 'primary+a', { times: 2 } );
+
+			await pageUtils.pressKeys( 'primaryAlt+g' ); // Keyboard shortcut for Insert before.
+			await expect.poll( editor.getBlocks ).toMatchObject( [
+				{
+					name: 'core/group',
+					innerBlocks: [
+						{
+							name: 'core/paragraph',
+							attributes: { content: '1st' },
+						},
+						{
+							name: 'core/paragraph',
+							attributes: { content: '2nd' },
+						},
+						{
+							name: 'core/paragraph',
+							attributes: { content: '3rd' },
+						},
+					],
+				},
+			] );
+		} );
+
+		test( 'should prevent if a single block is selected.', async ( {
+			editor,
+			page,
+			pageUtils,
+		} ) => {
+			await addTestParagraphBlocks( { editor, page } );
+			const firstParagraphBlock = editor.canvas
+				.getByRole( 'document', {
+					name: 'Block: Paragraph',
+				} )
+				.first();
+			await editor.selectBlocks( firstParagraphBlock );
+			await pageUtils.pressKeys( 'primaryAlt+g' );
+
+			await expect.poll( editor.getBlocks ).toMatchObject( [
+				{
+					name: 'core/paragraph',
+					attributes: { content: '1st' },
+				},
+				{
+					name: 'core/paragraph',
+					attributes: { content: '2nd' },
+				},
+				{
+					name: 'core/paragraph',
+					attributes: { content: '3rd' },
+				},
+			] );
+		} );
+	} );
 } );