We are thrilled to announce that the ability to create dynamic groups based on the memberOf attribute is available in Public Preview!
This feature will help you better manage group memberships by allowing you to build dynamic Azure AD Security Groups and M365 groups based on other groups – create hierarchical groups with ease! For example, you can now create Dynamic-Group-A with members of Group-X and Group-Y.
The groups that define the membership of the dynamic group can be any group type represented in Azure Active Directory, such as user or device security groups, Microsoft 365 groups, and groups synced from on-premises, or a mix of all three! And, unlike existing nested security groups today, memberOf dynamic groups return a flat list of members, so can be used for licensing assignment and application assignment.
To learn more about memberOf and how you can start taking advantage of this new functionality, please read our documentation.