diff --git a/packages/frontend-app-api/src/extensions/CoreNav.tsx b/packages/frontend-app-api/src/extensions/CoreNav.tsx
index 50aa8fd408..9c829a348f 100644
--- a/packages/frontend-app-api/src/extensions/CoreNav.tsx
+++ b/packages/frontend-app-api/src/extensions/CoreNav.tsx
@@ -30,6 +30,7 @@ import {
   sidebarConfig,
   SidebarDivider,
   SidebarItem,
+  SidebarGroup,
 } from '@backstage/core-components';
 // eslint-disable-next-line @backstage/no-relative-monorepo-imports
 import LogoIcon from '../../../app/src/components/Root/LogoIcon';
@@ -64,6 +65,18 @@ const SidebarLogo = () => {
   );
 };
 
+const SidebarNavItem = (props: NavTarget) => {
+  const { icon: Icon, title, group, routeRef } = props;
+  const to = useRouteRef(routeRef)();
+  return group ? (
+    <SidebarGroup to={to} icon={<Icon />} label={title}>
+      {group}
+    </SidebarGroup>
+  ) : (
+    <SidebarItem to={to} icon={Icon} text={title} />
+  );
+};
+
 export const CoreNav = createExtension({
   id: 'core.nav',
   at: 'core.layout/nav',
@@ -76,11 +89,6 @@ export const CoreNav = createExtension({
     element: coreExtensionData.reactElement,
   },
   factory({ bind, inputs }) {
-    const SidebarNavItem = (props: NavTarget) => {
-      const { icon, title, routeRef } = props;
-      const to = useRouteRef(routeRef)();
-      return <SidebarItem icon={icon} to={to} text={title} />;
-    };
     bind({
       element: (
         <Sidebar>
diff --git a/packages/frontend-plugin-api/src/extensions/createNavItemExtension.tsx b/packages/frontend-plugin-api/src/extensions/createNavItemExtension.tsx
index 8c55531866..723c9e9956 100644
--- a/packages/frontend-plugin-api/src/extensions/createNavItemExtension.tsx
+++ b/packages/frontend-plugin-api/src/extensions/createNavItemExtension.tsx
@@ -16,19 +16,33 @@
 
 import { IconComponent, RouteRef } from '@backstage/core-plugin-api';
 import { createSchemaFromZod } from '../schema/createSchemaFromZod';
-import { coreExtensionData, createExtension } from '../wiring';
+import {
+  AnyExtensionInputMap,
+  ExtensionInputValues,
+  coreExtensionData,
+  createExtension,
+} from '../wiring';
+import { Expand } from '../wiring/createExtension';
+import { Suspense, lazy } from 'react';
+import React from 'react';
 
 /**
  * Helper for creating extensions for a nav item.
  * @public
  */
-export function createNavItemExtension(options: {
+export function createNavItemExtension<
+  TInputs extends AnyExtensionInputMap,
+>(options: {
   id: string;
   routeRef: RouteRef;
   title: string;
   icon: IconComponent;
+  inputs?: TInputs;
+  group?: (options: {
+    inputs: Expand<ExtensionInputValues<TInputs>>;
+  }) => Promise<JSX.Element>;
 }) {
-  const { id, routeRef, title, icon } = options;
+  const { id, routeRef, title, icon, group } = options;
   return createExtension({
     id,
     at: 'core.nav/items',
@@ -37,15 +51,28 @@ export function createNavItemExtension(options: {
         title: z.string().default(title),
       }),
     ),
+    inputs: options.inputs,
     output: {
       navTarget: coreExtensionData.navTarget,
     },
-    factory: ({ bind, config }) => {
+    factory: ({ bind, config, inputs }) => {
+      const Group = group
+        ? (lazy(() =>
+            group({ inputs }).then(element => ({
+              default: () => element,
+            })),
+          ) as unknown as () => JSX.Element)
+        : undefined;
       bind({
         navTarget: {
           title: config.title,
           icon,
           routeRef,
+          group: Group ? (
+            <Suspense fallback="...">
+              <Group />
+            </Suspense>
+          ) : undefined,
         },
       });
     },
diff --git a/packages/frontend-plugin-api/src/wiring/coreExtensionData.ts b/packages/frontend-plugin-api/src/wiring/coreExtensionData.ts
index 079d5bcb18..d03513677d 100644
--- a/packages/frontend-plugin-api/src/wiring/coreExtensionData.ts
+++ b/packages/frontend-plugin-api/src/wiring/coreExtensionData.ts
@@ -27,6 +27,7 @@ export type NavTarget = {
   title: string;
   icon: IconComponent;
   routeRef: RouteRef<{}>;
+  group?: JSX.Element;
 };
 
 /** @public */