diff --git a/.changeset/young-forks-grab.md b/.changeset/young-forks-grab.md
new file mode 100644
index 0000000000..d48a4f1f7d
--- /dev/null
+++ b/.changeset/young-forks-grab.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend-module-gitlab': minor
+---
+
+Updated the path field in the gitlab:group:ensureExists action to accept an array of either strings or objects with name and slug fields.
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 202b397d19..eaeb65ae9c 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
@@ -196,4 +196,51 @@ describe('gitlab:group:ensureExists', () => {
 
     expect(mockContext.output).toHaveBeenCalledWith('groupId', 42);
   });
+
+  it(`Should ${examples[4].description}`, async () => {
+    mockGitlabClient.Groups.search.mockResolvedValue([
+      {
+        id: 1,
+        full_path: 'group1',
+      },
+      {
+        id: 2,
+        full_path: 'group1/group2',
+      },
+    ]);
+    mockGitlabClient.Groups.create.mockResolvedValue({
+      id: 3,
+      full_path: 'group1/group2/group3',
+    });
+
+    const config = new ConfigReader({
+      integrations: {
+        gitlab: [
+          {
+            host: 'gitlab.com',
+            token: 'tokenlols',
+            apiBaseUrl: 'https://api.gitlab.com',
+          },
+        ],
+      },
+    });
+    const integrations = ScmIntegrations.fromConfig(config);
+
+    const action = createGitlabGroupEnsureExistsAction({ integrations });
+
+    await action.handler({
+      ...mockContext,
+      input: yaml.parse(examples[4].example).steps[0].input,
+    });
+
+    expect(mockGitlabClient.Groups.create).toHaveBeenCalledWith(
+      'Group 3',
+      'group3',
+      {
+        parentId: 2,
+      },
+    );
+
+    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 41dd822e82..bbe7ad4722 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.ts
@@ -82,4 +82,24 @@ export const examples: TemplateExample[] = [
       ],
     }),
   },
+  {
+    description: 'Create a group nested within another group using objects',
+    example: yaml.stringify({
+      steps: [
+        {
+          id: 'gitlabGroup',
+          name: 'Group',
+          action: 'gitlab:group:ensureExists',
+          input: {
+            repoUrl: 'gitlab.com',
+            path: [
+              { name: 'Group 1', slug: 'group1' },
+              { name: 'Group 2', slug: 'group2' },
+              { name: 'Group 3', slug: 'group3' },
+            ],
+          },
+        },
+      ],
+    }),
+  },
 ];
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 1192052e6d..f9dc12eb54 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
@@ -62,7 +62,7 @@ describe('gitlab:group:ensureExists', () => {
 
   const mockContext = createMockActionContext();
 
-  it('should create a new group if it does not exists', async () => {
+  it('should create a new group from string if it does not exists', async () => {
     mockGitlabClient.Groups.search.mockResolvedValue([
       {
         id: 1,
@@ -94,6 +94,45 @@ describe('gitlab:group:ensureExists', () => {
     expect(mockContext.output).toHaveBeenCalledWith('groupId', 3);
   });
 
+  it('should create a new group from object if it does not exists', async () => {
+    mockGitlabClient.Groups.search.mockResolvedValue([
+      {
+        id: 1,
+        full_path: 'bar',
+      },
+      {
+        id: 2,
+        full_path: 'foo',
+      },
+    ]);
+
+    mockGitlabClient.Groups.create.mockResolvedValue({
+      id: 3,
+      full_path: 'foo/bar',
+    });
+
+    await action.handler({
+      ...mockContext,
+      input: {
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
+        path: [
+          { name: 'Foo', slug: 'foo' },
+          { name: 'Bar is a nice name', slug: 'bar' },
+        ],
+      },
+    });
+
+    expect(mockGitlabClient.Groups.create).toHaveBeenCalledWith(
+      'Bar is a nice name',
+      'bar',
+      {
+        parentId: 2,
+      },
+    );
+
+    expect(mockContext.output).toHaveBeenCalledWith('groupId', 3);
+  });
+
   it('should return existing group if it does 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 7134726e6f..50ce7a761b 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
@@ -41,9 +41,18 @@ export const createGitlabGroupEnsureExistsAction = (options: {
       input: commonGitlabConfig.merge(
         z.object({
           path: z
-            .array(z.string(), {
-              description: 'A path of group names that is ensured to exist',
-            })
+            .array(
+              z.string().or(
+                z.object({
+                  name: z.string(),
+                  slug: z.string(),
+                }),
+              ),
+              {
+                description:
+                  'A path of group names or objects (name and slug) that is ensured to exist',
+              },
+            )
             .min(1),
         }),
       ),
@@ -68,9 +77,11 @@ export const createGitlabGroupEnsureExistsAction = (options: {
       let currentPath: string | null = null;
       let parentId: number | null = null;
       for (const pathElement of path) {
-        const fullPath: string = currentPath
-          ? `${currentPath}/${pathElement}`
-          : pathElement;
+        const slug =
+          typeof pathElement === 'string' ? pathElement : pathElement.slug;
+        const name =
+          typeof pathElement === 'string' ? pathElement : pathElement.name;
+        const fullPath: string = currentPath ? `${currentPath}/${slug}` : slug;
         const result = (await api.Groups.search(
           fullPath,
         )) as unknown as Array<GroupSchema>; // recast since the return type for search is wrong in the gitbeaker typings
@@ -81,8 +92,8 @@ export const createGitlabGroupEnsureExistsAction = (options: {
           ctx.logger.info(`creating missing group ${fullPath}`);
           parentId = (
             await api.Groups.create(
-              pathElement,
-              pathElement,
+              name,
+              slug,
               parentId
                 ? {
                     parentId: parentId,