diff --git a/.changeset/better-eggs-slide.md b/.changeset/better-eggs-slide.md
new file mode 100644
index 0000000000..cf3856bb86
--- /dev/null
+++ b/.changeset/better-eggs-slide.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend-module-gitlab': patch
+---
+
+Allow setting optional description on group creation
diff --git a/plugins/scaffolder-backend-module-gitlab/report.api.md b/plugins/scaffolder-backend-module-gitlab/report.api.md
index 2ff099d469..311c871429 100644
--- a/plugins/scaffolder-backend-module-gitlab/report.api.md
+++ b/plugins/scaffolder-backend-module-gitlab/report.api.md
@@ -22,6 +22,7 @@ export const createGitlabGroupEnsureExistsAction: (options: {
         }
     )[];
     token?: string | undefined;
+    description?: string | undefined;
   },
   {
     groupId?: number | undefined;
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
index 449c5980a4..766348841a 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
@@ -75,7 +75,7 @@ describe('gitlab:group:ensureExists', () => {
     expect(mockGitlabClient.Groups.create).toHaveBeenCalledWith(
       'group1',
       'group1',
-      {},
+      { description: 'This is a top-level group' },
     );
 
     expect(mockContext.output).toHaveBeenCalledWith('groupId', 3);
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.ts
index f379bd38ec..967c0c55e7 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.ts
@@ -18,7 +18,7 @@ import yaml from 'yaml';
 
 export const examples: TemplateExample[] = [
   {
-    description: 'Creating a group at the top level',
+    description: 'Creating a group at the top level, with a description',
     example: yaml.stringify({
       steps: [
         {
@@ -28,6 +28,7 @@ export const examples: TemplateExample[] = [
           input: {
             repoUrl: 'gitlab.com',
             path: ['group1'],
+            description: 'This is a top-level group',
           },
         },
       ],
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
index 8e52ee999e..2e1373b075 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
@@ -86,16 +86,73 @@ describe('gitlab:group:ensureExists', () => {
       input: {
         repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foo', 'bar'],
+        description: 'my cool group',
       },
     });
 
     expect(mockGitlabClient.Groups.create).toHaveBeenCalledWith('bar', 'bar', {
+      description: 'my cool group',
       parentId: 2,
     });
 
     expect(mockContext.output).toHaveBeenCalledWith('groupId', 3);
   });
 
+  it('should only apply description to the last created group', async () => {
+    mockGitlabClient.Groups.search.mockResolvedValue([]);
+
+    mockGitlabClient.Groups.create
+      .mockResolvedValueOnce({
+        id: 1,
+        full_path: 'foo',
+      })
+      .mockResolvedValueOnce({
+        id: 2,
+        full_path: 'foo/bar',
+      })
+      .mockResolvedValueOnce({
+        id: 3,
+        full_path: 'foo/bar/baz',
+      });
+
+    await action.handler({
+      ...mockContext,
+      input: {
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
+        path: ['foo', 'bar', 'baz'],
+        description: 'only for innermost group',
+      },
+    });
+
+    expect(mockGitlabClient.Groups.create).toHaveBeenCalledTimes(3);
+
+    // First group: no description
+    expect(mockGitlabClient.Groups.create).toHaveBeenNthCalledWith(
+      1,
+      'foo',
+      'foo',
+      {},
+    );
+
+    // Second group: no description
+    expect(mockGitlabClient.Groups.create).toHaveBeenNthCalledWith(
+      2,
+      'bar',
+      'bar',
+      { parentId: 1 },
+    );
+
+    // Third (last) group: has description
+    expect(mockGitlabClient.Groups.create).toHaveBeenNthCalledWith(
+      3,
+      'baz',
+      'baz',
+      { parentId: 2, description: 'only for innermost group' },
+    );
+
+    expect(mockContext.output).toHaveBeenCalledWith('groupId', 3);
+  });
+
   it('should create a new group from pathstring if it does not exists', async () => {
     mockGitlabClient.Groups.search.mockResolvedValue([
       {
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
index c3d4fd74bf..3c56f94446 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
@@ -16,7 +16,7 @@
 
 import { ScmIntegrationRegistry } from '@backstage/integration';
 import { createTemplateAction } from '@backstage/plugin-scaffolder-node';
-import { GroupSchema } from '@gitbeaker/rest';
+import { GroupSchema, CreateGroupOptions } from '@gitbeaker/rest';
 import { getClient, parseRepoUrl } from '../util';
 import { examples } from './gitlabGroupEnsureExists.examples';
 
@@ -47,6 +47,12 @@ export const createGitlabGroupEnsureExistsAction = (options: {
               description: 'The token to use for authorization to GitLab',
             })
             .optional(),
+        description: z =>
+          z
+            .string({
+              description: 'The group’s description',
+            })
+            .optional(),
         path: z =>
           z
             .array(
@@ -77,8 +83,7 @@ export const createGitlabGroupEnsureExistsAction = (options: {
         ctx.output('groupId', 42);
         return;
       }
-
-      const { token, repoUrl, path } = ctx.input;
+      const { token, repoUrl, path, description } = ctx.input;
 
       const { host } = parseRepoUrl(repoUrl, integrations);
 
@@ -86,7 +91,10 @@ export const createGitlabGroupEnsureExistsAction = (options: {
 
       let currentPath: string | null = null;
       let parentId: number | null = null;
-      for (const { name, slug } of pathIterator(path)) {
+      const pathParts = [...pathIterator(path)];
+      const lastIndex = pathParts.length - 1;
+      for (let i = 0; i < pathParts.length; i++) {
+        const { name, slug } = pathParts[i];
         const fullPath: string = currentPath ? `${currentPath}/${slug}` : slug;
         const result = (await api.Groups.search(
           fullPath,
@@ -101,17 +109,11 @@ export const createGitlabGroupEnsureExistsAction = (options: {
             key: `ensure.${name}.${slug}.${parentId}`,
             // eslint-disable-next-line no-loop-func
             fn: async () => {
-              return (
-                await api.Groups.create(
-                  name,
-                  slug,
-                  parentId
-                    ? {
-                        parentId: parentId,
-                      }
-                    : {},
-                )
-              )?.id;
+              const groupOptions: CreateGroupOptions = {
+                ...(parentId ? { parentId } : {}),
+                ...(description && i === lastIndex ? { description } : {}),
+              };
+              return (await api.Groups.create(name, slug, groupOptions))?.id;
             },
           });
         } else {