diff --git a/res/layout/create_group_dialog.xml b/res/layout/create_group_dialog.xml
new file mode 100644
index 0000000..3fefd3d
--- /dev/null
+++ b/res/layout/create_group_dialog.xml
@@ -0,0 +1,35 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Copyright (C) 2016 The Android Open Source Project
+
+     Licensed under the Apache License, Version 2.0 (the "License");
+     you may not use this file except in compliance with the License.
+     You may obtain a copy of the License at
+
+          http://www.apache.org/licenses/LICENSE-2.0
+
+     Unless required by applicable law or agreed to in writing, software
+     distributed under the License is distributed on an "AS IS" BASIS,
+     WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+     See the License for the specific language governing permissions and
+     limitations under the License.
+-->
+
+<LinearLayout xmlns:android="http://schemas.android.com/apk/res/android"
+    android:layout_width="wrap_content"
+    android:layout_height="wrap_content"
+    android:orientation="vertical"
+    android:paddingBottom="24dp"
+    android:paddingStart="24dp"
+    android:paddingEnd="24dp">
+
+    <EditText android:id="@android:id/text1"
+        xmlns:android="http://schemas.android.com/apk/res/android"
+        android:layout_width="match_parent"
+        android:layout_height="wrap_content"
+        android:layout_marginBottom="4dp"
+        android:layout_marginLeft="4dp"
+        android:layout_marginRight="4dp"
+        android:layout_marginTop="16dp"
+        android:inputType="textCapWords"
+        android:maxLength="40"/>
+</LinearLayout>
\ No newline at end of file
diff --git a/res/values/strings.xml b/res/values/strings.xml
index 390dd69..1f6c80a 100644
--- a/res/values/strings.xml
+++ b/res/values/strings.xml
@@ -399,7 +399,13 @@
     <string name="share_via">Share contact via</string>
 
     <!-- Title for the disambiguation dialog that requests the user choose an account for the new label to be created under [CHAR LIMIT=NONE] -->
-    <string name="dialog_new_group_account">Create label under account</string>
+    <string name="dialog_new_group_account">Choose account</string>
+
+    <!-- Title for the create new label dialog. CHAR LIMIT=40] -->
+    <string name="create_group_dialog_title">Create label</string>
+
+    <!-- Button label to create a new label on the create new label dialog. [CHAR LIMIT=20] -->
+    <string name="create_group_dialog_button">Create</string>
 
     <!-- Generic action string for starting an audio chat. Used by AccessibilityService to announce the purpose of the view. [CHAR LIMIT=NONE] -->
     <string name="audio_chat">Voice chat</string>
diff --git a/src/com/android/contacts/group/CreateGroupDialogFragment.java b/src/com/android/contacts/group/CreateGroupDialogFragment.java
new file mode 100644
index 0000000..777fd44
--- /dev/null
+++ b/src/com/android/contacts/group/CreateGroupDialogFragment.java
@@ -0,0 +1,134 @@
+/*
+ * Copyright (C) 2016 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, softwareateCre
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License
+ */
+package com.android.contacts.group;
+
+import android.app.AlertDialog;
+import android.app.Dialog;
+import android.app.DialogFragment;
+import android.app.Fragment;
+import android.app.FragmentManager;
+import android.content.DialogInterface;
+import android.content.DialogInterface.OnClickListener;
+import android.os.Bundle;
+import android.text.Editable;
+import android.text.TextUtils;
+import android.text.TextWatcher;
+import android.widget.Button;
+import android.widget.EditText;
+
+import com.android.contacts.R;
+
+/**
+ * Prompts the user for the name of the new group.
+ */
+public final class CreateGroupDialogFragment extends DialogFragment {
+
+    private static final String TAG_CREATE_GROUP_DIALOG = "createGroup";
+
+    /** Callbacks for hosts of the {@link CreateGroupDialogFragment}. */
+    public interface Listener {
+        void onCreateGroup(String groupName);
+        void onCreateGroupCancelled();
+    }
+
+    private EditText mGroupNameEditText;
+
+    public static <F extends Fragment & Listener> void show(
+            FragmentManager fragmentManager, F targetFragment) {
+        final CreateGroupDialogFragment dialog = new CreateGroupDialogFragment();
+        dialog.setTargetFragment(targetFragment, /* requestCode */ 0);
+        dialog.show(fragmentManager, TAG_CREATE_GROUP_DIALOG);
+    }
+
+    @Override
+    public Dialog onCreateDialog(Bundle savedInstanceState) {
+        // Build a dialog with two buttons and a view of a single EditText input field
+        final AlertDialog.Builder builder = new AlertDialog.Builder(getActivity())
+                .setTitle(R.string.create_group_dialog_title)
+                .setView(R.layout.create_group_dialog)
+                .setNegativeButton(android.R.string.cancel, new OnClickListener() {
+                    @Override
+                    public void onClick(DialogInterface dialog, int which) {
+                        onCreateGroupCancelled();
+                        dismiss();
+                    }
+                })
+                .setPositiveButton(R.string.create_group_dialog_button, new OnClickListener() {
+                    @Override
+                    public void onClick(DialogInterface dialog, int which) {
+                        onCreateGroup();
+                    }
+                });
+
+        // Disable the create button when the name is empty
+        final AlertDialog alertDialog = builder.create();
+        alertDialog.setOnShowListener(new DialogInterface.OnShowListener() {
+            @Override
+            public void onShow(DialogInterface dialog) {
+                mGroupNameEditText = (EditText) alertDialog.findViewById(android.R.id.text1);
+
+                final Button createButton = alertDialog.getButton(AlertDialog.BUTTON_POSITIVE);
+                createButton.setEnabled(!TextUtils.isEmpty(getGroupName()));
+                mGroupNameEditText.addTextChangedListener(new TextWatcher() {
+                    @Override
+                    public void beforeTextChanged(CharSequence s, int start, int count, int after) {
+                    }
+
+                    @Override
+                    public void onTextChanged(CharSequence s, int start, int before, int count) {
+                    }
+
+                    @Override
+                    public void afterTextChanged(Editable s) {
+                        createButton.setEnabled(!TextUtils.isEmpty(s));
+                    }
+                });
+            }
+        });
+        return alertDialog;
+    }
+
+    @Override
+    public void onCancel(DialogInterface dialog) {
+        super.onCancel(dialog);
+        onCreateGroupCancelled();
+    }
+
+    @Override
+    public void onSaveInstanceState(Bundle b) {
+        setTargetFragment(null, /* requestCode */ -1);
+        super.onSaveInstanceState(b);
+    }
+
+    private void onCreateGroupCancelled() {
+        final Fragment targetFragment = getTargetFragment();
+        if (targetFragment != null && targetFragment instanceof Listener) {
+            ((Listener) targetFragment).onCreateGroupCancelled();
+        }
+    }
+
+    private void onCreateGroup() {
+        final Fragment targetFragment = getTargetFragment();
+        if (targetFragment != null && targetFragment instanceof Listener) {
+            ((Listener) targetFragment).onCreateGroup(getGroupName());
+        }
+    }
+
+    private String getGroupName() {
+        return mGroupNameEditText == null || mGroupNameEditText.getText() == null
+                ? null : mGroupNameEditText.getText().toString();
+    }
+}