diff --git a/dashboard/src/js/client.js b/dashboard/src/js/client.js
index a1b269ad1..22f5641b7 100644
--- a/dashboard/src/js/client.js
+++ b/dashboard/src/js/client.js
@@ -1734,8 +1734,8 @@ angular.module('Application').service('Client', ['$http', '$interval', '$timeout
         });
     };
 
-    Client.prototype.setGroups = function (userId, groupIds, callback) {
-        put('/api/v1/users/' + userId + '/groups', { groupIds: groupIds }, null, function (error, data, status) {
+    Client.prototype.setLocalGroups = function (userId, localGroupIds, callback) {
+        put('/api/v1/users/' + userId + '/groups', { groupIds: localGroupIds }, null, function (error, data, status) {
             if (error) return callback(error);
             if (status !== 204) return callback(new ClientError(status, data));
 
diff --git a/dashboard/src/views/users.html b/dashboard/src/views/users.html
index 1b7c1f382..7f6086a08 100644
--- a/dashboard/src/views/users.html
+++ b/dashboard/src/views/users.html
@@ -56,7 +56,7 @@
             <label class="control-label">{{ 'users.user.groups' | tr }}</label>
             <div class="control-label">
               <div ng-show="groups.length === 0">{{ 'users.user.noGroups' | tr }}</div>
-              <multiselect ng-show="groups.length !== 0" ng-model="userAdd.selectedGroups" options="group.name for group in groups" data-compare-by="name" data-multiple="true" filter-after-rows="5" scroll-after-rows="10"></multiselect>
+              <multiselect ng-show="groups.length !== 0" ng-model="userAdd.selectedLocalGroups" options="group.name for group in groups | filter:{ source: '' }" data-compare-by="name" data-multiple="true" filter-after-rows="5" scroll-after-rows="10"></multiselect>
             </div>
           </div>
 
@@ -158,8 +158,10 @@
               <div ng-switch on="groups.length">
                 <div ng-switch-when="0">{{ 'users.user.noGroups' | tr }}</div>
                 <div ng-switch-default>
-                  <multiselect ng-show="!userEdit.source || !config.ldapGroupsSynced" ng-model="userEdit.selectedGroups" options="group.name for group in groups" data-compare-by="id" data-multiple="true" filter-after-rows="5" scroll-after-rows="10"></multiselect>
-                  <div ng-show="userEdit.source && config.ldapGroupsSynced"><span ng-repeat="group in groups">{{ group.name }}</span></div>
+                  <!-- local groups. they can have local and external users-->
+                  <multiselect ng-show="hasLocalGroups" ng-model="userEdit.selectedLocalGroups" options="group.name for group in groups | filter: { source: '' }" data-compare-by="id" data-multiple="true" filter-after-rows="5" scroll-after-rows="10"></multiselect>
+                  <!-- remote groups. cannot be edited -->
+                  <div ng-show="userEdit.externalGroups.length"><br/>LDAP: <span ng-repeat="group in externalGroups">{{ group.name }}</span></div>
                 </div>
               </div>
             </div>
diff --git a/dashboard/src/views/users.js b/dashboard/src/views/users.js
index 7ccfb7999..65fa72285 100644
--- a/dashboard/src/views/users.js
+++ b/dashboard/src/views/users.js
@@ -13,6 +13,7 @@ angular.module('Application').controller('UsersController', ['$scope', '$locatio
     $scope.users = []; // users of current page
     $scope.allUsersById = [];
     $scope.groups = [];
+    $scope.hasLocalGroups = false;
     $scope.groupsById = { };
     $scope.config = Client.getConfig();
     $scope.userInfo = Client.getUserInfo();
@@ -270,7 +271,7 @@ angular.module('Application').controller('UsersController', ['$scope', '$locatio
         fallbackEmail: '',
         username: '',
         displayName: '',
-        selectedGroups: [],
+        selectedLocalGroups: [],
         role: 'user',
         sendInvite: false,
 
@@ -280,7 +281,7 @@ angular.module('Application').controller('UsersController', ['$scope', '$locatio
             $scope.userAdd.fallbackEmail = '';
             $scope.userAdd.username = '';
             $scope.userAdd.displayName = '';
-            $scope.userAdd.selectedGroups = [];
+            $scope.userAdd.selectedLocalGroups = [];
             $scope.userAdd.role = 'user';
             $scope.userAdd.sendInvite = false;
 
@@ -344,9 +345,9 @@ angular.module('Application').controller('UsersController', ['$scope', '$locatio
                     }
                 }
 
-                var groupIds = $scope.userAdd.selectedGroups.map(function (g) { return g.id; });
+                var localGroupIds = $scope.userAdd.selectedLocalGroups.map(function (g) { return g.id; });
 
-                Client.setGroups(userId, groupIds, function (error) {
+                Client.setLocalGroups(userId, localGroupIds, function (error) {
                     $scope.userAdd.busy = false;
 
                     if (error) return console.error(error);
@@ -376,7 +377,8 @@ angular.module('Application').controller('UsersController', ['$scope', '$locatio
         displayName: '',
         active: false,
         source: '',
-        selectedGroups: [],
+        selectedLocalGroups: [],
+        externalGroups: [],
         role: '',
 
         show: function (userInfo) {
@@ -386,7 +388,8 @@ angular.module('Application').controller('UsersController', ['$scope', '$locatio
             $scope.userEdit.displayName = userInfo.displayName;
             $scope.userEdit.fallbackEmail = userInfo.fallbackEmail;
             $scope.userEdit.userInfo = userInfo;
-            $scope.userEdit.selectedGroups = userInfo.groupIds.map(function (gid) { return $scope.groupsById[gid]; });
+            $scope.userEdit.selectedLocalGroups = userInfo.groupIds.map(function (gid) { return $scope.groupsById[gid]; }).filter(function (g) { return g.source === ''; });
+            $scope.userEdit.externalGroups = userInfo.groupIds.map(function (gid) { return $scope.groupsById[gid]; }).filter(function (g) { return g.source !== ''; });
             $scope.userEdit.active = userInfo.active;
             $scope.userEdit.source = userInfo.source;
             $scope.userEdit.role = userInfo.role;
@@ -422,11 +425,9 @@ angular.module('Application').controller('UsersController', ['$scope', '$locatio
                     data.fallbackEmail = $scope.userEdit.fallbackEmail;
                     Client.updateUserProfile(userId, data, next);
                 },
-                function setGroups(next) {
-                    if ($scope.config.ldapGroupsSynced) return next(); // cannot update user groups when syncing ldap groups
-
-                    var groupIds = $scope.userEdit.selectedGroups.map(function (g) { return g.id; });
-                    Client.setGroups(userId, groupIds, next);
+                function setLocalGroups(next) {
+                    var localGroupIds = $scope.userEdit.selectedLocalGroups.map(function (g) { return g.id; });
+                    Client.setLocalGroups(userId, localGroupIds, next);
                 }
             ], function (error) {
                 $scope.userEdit.busy = false;
@@ -846,8 +847,10 @@ angular.module('Application').controller('UsersController', ['$scope', '$locatio
 
             angular.copy(result, $scope.groups);
             $scope.groupsById = { };
+            $scope.hasLocalGroups = false;
             for (var i = 0; i < result.length; i++) {
                 $scope.groupsById[result[i].id] = result[i];
+                if (result[i].source === '') $scope.hasLocalGroups = true;
             }
 
             if (callback) callback();