Last Updated on July 27, 2023
Are you confused between a Microsoft 365 Group and SharePoint team site?
Some of my clients have the same question as well, especially those who aren’t that familiar or well-versed with the Microsoft 365 ecosystem.
In this article, I’ll share my two cents on Microsoft 365 Group vs SharePoint team site and which one to create in certain situations.
Let’s get started.
Table of Contents:
Team sites are one type of site that you can create in SharePoint Online.
They are named as such since it’s a place where teams can collaborate with each other and even use different apps together.

As such, there are two types of team sites:
- Team sites with Microsoft 365 Group
- Team sites without Microsoft 365 Group
From the name itself, the type depends on whether or not the site comes with an associated Microsoft 365 Group.
Note: For more information on team sites and other sites, check out my article on the different types of sites in SharePoint.
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What is an Microsoft 365 Group?
A Microsoft 365 Group is basically an email-enabled security group with access to various apps for collaboration.
When you create a Microsoft 365 Group, it usually comes with most of the following:
- SharePoint site collection
- Outlook Group calendar
- Outlook email distribution list
- Planner
- Teams
- Yammer conversation
The different combination of the tools and apps you get when you create a Microsoft 365 Group depends on how the group was created.
Below is a good representation (source) of what I mean:

Note: For more information on creating a group, check out my article on the different ways to create a Microsoft 365 Group.
In a nutshell, a team site is simply a piece of what you get when you create a Microsoft 365 Group.
That’s the case — unless the team site you create is one that doesn’t come with its own associated Microsoft 365 Group.
Note: When you create a SharePoint team site with a Microsoft 365 Group, you automatically gain a group as well.
If you think about it, the final showdown is actually between Microsoft 365 Group vs SharePoint team site without a Microsoft 365 Group.
Here are situations where creating a Microsoft 365 Group makes more sense:
- Collaboration purposes
- Short projects with more than one person
- Access to apps and team spaces
On the other hand, there are times when creating a team site without a Microsoft 365 group makes more sense:
- No need for collaboration with others
- You only need a place for your documents, images, and files
Related: SharePoint vs Office 365: Is SharePoint Part of Office 365?
Here are answers to some of the common questions you may be having regarding this topic:
Well, technically, a Microsoft 365 Group and a SharePoint Group are the same.
It’s easier to explain when you see this in the admin center:

All the teams and groups are:
- Microsoft 365
- Distribution list
- Mail-enabled security
- Security
Yes, a Microsoft 365 Group always comes with a SharePoint site collection.
In fact, all the methods to create a Microsoft 365 Group always come with a SharePoint site collection and a few other things.
Related: How to Create a SharePoint Site From Template: Full Tutorial
Not exactly.
While all the methods of creating a Microsoft 365 Group yield a site collection, it doesn’t always provide a team.
On the other hand, you can always create a team from a SharePoint team site that comes with an associated Microsoft 365 Group.
On the team site, the “Conversations” button creates a team:

Similarly, you can create a team from the Microsoft Teams app from an existing group:

Do you have more questions regarding Microsoft 365 Group vs SharePoint team site? Please share those in the comment section.
For inquiries and other concerns, please use the site’s contact form and I’ll get back to you as soon as possible.