Step 1:
Navigate to the Chat tab in MS Teams and click the downward pointing arrow next to the word “Chat” on the top left of the chat tab. From the small window that appears, click “Contacts.”
Step 2:
Within the Contacts space, click “Create a new contact group” at the bottom left side of the window.
Step 3:
The Create a new contact group window will show up. Here you can create your group name, then click Create.
Step 4:
The contact group name should now show on the contacts list with 3 dots across from it. Click those three dots for more options. To add contacts to your group, click “Add a contact to this group.” From there you can search people by name or email and add them to the group.