diff --git a/hardware_interface/doc/hardware_interface_types_userdoc.rst b/hardware_interface/doc/hardware_interface_types_userdoc.rst
index ecf852cb94..d8338bf7a6 100644
--- a/hardware_interface/doc/hardware_interface_types_userdoc.rst
+++ b/hardware_interface/doc/hardware_interface_types_userdoc.rst
@@ -41,6 +41,12 @@ The ``<gpio>`` tag can be used as a child of all three types of hardware compone
 Because ports implemented as ``<gpio>``-tag are typically very application-specific, there exists no generic publisher
 within the ros2_control framework. A custom gpio-controller has to be implemented for each application. As an example, see :ref:`the GPIO controller example <ros2_control_demos_example_10_userdoc>` as part of the demo repository.
 
+Hardware Groups
+*****************************
+Hardware Component Groups serve as a critical organizational mechanism within complex systems, facilitating error handling and fault tolerance. By grouping related hardware components together, such as actuators within a manipulator, users can establish a unified framework for error detection and response.
+
+Hardware Component Groups play a vital role in propagating errors across interconnected hardware components. For instance, in a manipulator system, grouping actuators together allows for error propagation. If one actuator fails within the group, the error can propagate to the other actuators, signaling a potential issue across the system. By default, the actuator errors are isolated to their own hardware component, allowing the rest to continue operation unaffected. In the provided ros2_control configuration, the ``<group>`` tag within each ``<ros2_control>`` block signifies the grouping of hardware components, enabling error propagation mechanisms within the system.
+
 Examples
 *****************************
 The following examples show how to use the different hardware interface types in a ``ros2_control`` URDF.
@@ -152,3 +158,66 @@ They can be combined together within the different hardware component types (sys
         <state_interface name="calibration_matrix_nr"/>
       </gpio>
     </ros2_control>
+
+4. Robot with multiple hardware components belonging to same group : ``Group1``
+
+   - RRBot System 1 and 2
+   - Digital: Total 4 inputs and 2 outputs
+   - Analog: Total 2 inputs and 1 output
+   - Vacuum valve at the flange (on/off)
+   - Group: Group1
+
+  .. code:: xml
+
+    <ros2_control name="RRBotSystem1" type="system">
+      <hardware>
+        <plugin>ros2_control_demo_hardware/RRBotSystemPositionOnlyHardware</plugin>
+        <group>Group1</group>
+        <param name="example_param_hw_start_duration_sec">2.0</param>
+        <param name="example_param_hw_stop_duration_sec">3.0</param>
+        <param name="example_param_hw_slowdown">2.0</param>
+      </hardware>
+      <joint name="joint1">
+        <command_interface name="position">
+          <param name="min">-1</param>
+          <param name="max">1</param>
+        </command_interface>
+        <state_interface name="position"/>
+      </joint>
+      <gpio name="flange_analog_IOs">
+        <command_interface name="analog_output1"/>
+        <state_interface name="analog_output1">    <!-- Needed to know current state of the output -->
+          <param name="initial_value">3.1</param>  <!-- Optional initial value for mock_hardware -->
+        </state_interface>
+        <state_interface name="analog_input1"/>
+        <state_interface name="analog_input2"/>
+      </gpio>
+      <gpio name="flange_vacuum">
+        <command_interface name="vacuum"/>
+        <state_interface name="vacuum"/>    <!-- Needed to know current state of the output -->
+      </gpio>
+    </ros2_control>
+    <ros2_control name="RRBotSystem2" type="system">
+      <hardware>
+        <plugin>ros2_control_demo_hardware/RRBotSystemPositionOnlyHardware</plugin>
+        <group>Group1</group>
+        <param name="example_param_hw_start_duration_sec">2.0</param>
+        <param name="example_param_hw_stop_duration_sec">3.0</param>
+        <param name="example_param_hw_slowdown">2.0</param>
+      </hardware>
+      <joint name="joint2">
+        <command_interface name="position">
+          <param name="min">-1</param>
+          <param name="max">1</param>
+        </command_interface>
+        <state_interface name="position"/>
+      </joint>
+      <gpio name="flange_digital_IOs">
+        <command_interface name="digital_output1"/>
+        <state_interface name="digital_output1"/>    <!-- Needed to know current state of the output -->
+        <command_interface name="digital_output2"/>
+        <state_interface name="digital_output2"/>
+        <state_interface name="digital_input1"/>
+        <state_interface name="digital_input2"/>
+      </gpio>
+    </ros2_control>
diff --git a/hardware_interface/include/hardware_interface/actuator.hpp b/hardware_interface/include/hardware_interface/actuator.hpp
index 4082863370..b23b913d75 100644
--- a/hardware_interface/include/hardware_interface/actuator.hpp
+++ b/hardware_interface/include/hardware_interface/actuator.hpp
@@ -83,6 +83,9 @@ class Actuator final
   HARDWARE_INTERFACE_PUBLIC
   std::string get_name() const;
 
+  HARDWARE_INTERFACE_PUBLIC
+  std::string get_group_name() const;
+
   HARDWARE_INTERFACE_PUBLIC
   const rclcpp_lifecycle::State & get_state() const;
 
diff --git a/hardware_interface/include/hardware_interface/actuator_interface.hpp b/hardware_interface/include/hardware_interface/actuator_interface.hpp
index abfd8eb45a..556d7a2047 100644
--- a/hardware_interface/include/hardware_interface/actuator_interface.hpp
+++ b/hardware_interface/include/hardware_interface/actuator_interface.hpp
@@ -190,6 +190,12 @@ class ActuatorInterface : public rclcpp_lifecycle::node_interfaces::LifecycleNod
    */
   virtual std::string get_name() const { return info_.name; }
 
+  /// Get name of the actuator hardware group to which it belongs to.
+  /**
+   * \return group name.
+   */
+  virtual std::string get_group_name() const { return info_.group; }
+
   /// Get life-cycle state of the actuator hardware.
   /**
    * \return state.
diff --git a/hardware_interface/include/hardware_interface/hardware_component_info.hpp b/hardware_interface/include/hardware_interface/hardware_component_info.hpp
index 45afebdb34..e7d47bcaa4 100644
--- a/hardware_interface/include/hardware_interface/hardware_component_info.hpp
+++ b/hardware_interface/include/hardware_interface/hardware_component_info.hpp
@@ -39,6 +39,9 @@ struct HardwareComponentInfo
   /// Component "classification": "actuator", "sensor" or "system"
   std::string type;
 
+  /// Component group
+  std::string group;
+
   /// Component pluginlib plugin name.
   std::string plugin_name;
 
diff --git a/hardware_interface/include/hardware_interface/hardware_info.hpp b/hardware_interface/include/hardware_interface/hardware_info.hpp
index d94573bf5e..2bd2099e69 100644
--- a/hardware_interface/include/hardware_interface/hardware_info.hpp
+++ b/hardware_interface/include/hardware_interface/hardware_info.hpp
@@ -133,6 +133,8 @@ struct HardwareInfo
   std::string name;
   /// Type of the hardware: actuator, sensor or system.
   std::string type;
+  ///  Hardware group to which the hardware belongs.
+  std::string group;
   /// Component is async
   bool is_async;
   /// Name of the pluginlib plugin of the hardware that will be loaded.
diff --git a/hardware_interface/include/hardware_interface/sensor.hpp b/hardware_interface/include/hardware_interface/sensor.hpp
index 5d0677c587..4c267bef77 100644
--- a/hardware_interface/include/hardware_interface/sensor.hpp
+++ b/hardware_interface/include/hardware_interface/sensor.hpp
@@ -71,6 +71,9 @@ class Sensor final
   HARDWARE_INTERFACE_PUBLIC
   std::string get_name() const;
 
+  HARDWARE_INTERFACE_PUBLIC
+  std::string get_group_name() const;
+
   HARDWARE_INTERFACE_PUBLIC
   const rclcpp_lifecycle::State & get_state() const;
 
diff --git a/hardware_interface/include/hardware_interface/sensor_interface.hpp b/hardware_interface/include/hardware_interface/sensor_interface.hpp
index 14a59e4588..5a3601afa8 100644
--- a/hardware_interface/include/hardware_interface/sensor_interface.hpp
+++ b/hardware_interface/include/hardware_interface/sensor_interface.hpp
@@ -129,6 +129,12 @@ class SensorInterface : public rclcpp_lifecycle::node_interfaces::LifecycleNodeI
    */
   virtual std::string get_name() const { return info_.name; }
 
+  /// Get name of the actuator hardware group to which it belongs to.
+  /**
+   * \return group name.
+   */
+  virtual std::string get_group_name() const { return info_.group; }
+
   /// Get life-cycle state of the actuator hardware.
   /**
    * \return state.
diff --git a/hardware_interface/include/hardware_interface/system.hpp b/hardware_interface/include/hardware_interface/system.hpp
index ece14f814d..fb28929948 100644
--- a/hardware_interface/include/hardware_interface/system.hpp
+++ b/hardware_interface/include/hardware_interface/system.hpp
@@ -84,6 +84,9 @@ class System final
   HARDWARE_INTERFACE_PUBLIC
   std::string get_name() const;
 
+  HARDWARE_INTERFACE_PUBLIC
+  std::string get_group_name() const;
+
   HARDWARE_INTERFACE_PUBLIC
   const rclcpp_lifecycle::State & get_state() const;
 
diff --git a/hardware_interface/include/hardware_interface/system_interface.hpp b/hardware_interface/include/hardware_interface/system_interface.hpp
index e5c6f2f542..0a7421531a 100644
--- a/hardware_interface/include/hardware_interface/system_interface.hpp
+++ b/hardware_interface/include/hardware_interface/system_interface.hpp
@@ -191,6 +191,12 @@ class SystemInterface : public rclcpp_lifecycle::node_interfaces::LifecycleNodeI
    */
   virtual std::string get_name() const { return info_.name; }
 
+  /// Get name of the actuator hardware group to which it belongs to.
+  /**
+   * \return group name.
+   */
+  virtual std::string get_group_name() const { return info_.group; }
+
   /// Get life-cycle state of the actuator hardware.
   /**
    * \return state.
diff --git a/hardware_interface/src/actuator.cpp b/hardware_interface/src/actuator.cpp
index 6b58e365dc..b80f76ebf5 100644
--- a/hardware_interface/src/actuator.cpp
+++ b/hardware_interface/src/actuator.cpp
@@ -214,6 +214,8 @@ return_type Actuator::perform_command_mode_switch(
 
 std::string Actuator::get_name() const { return impl_->get_name(); }
 
+std::string Actuator::get_group_name() const { return impl_->get_group_name(); }
+
 const rclcpp_lifecycle::State & Actuator::get_state() const { return impl_->get_state(); }
 
 return_type Actuator::read(const rclcpp::Time & time, const rclcpp::Duration & period)
diff --git a/hardware_interface/src/component_parser.cpp b/hardware_interface/src/component_parser.cpp
index 14e016df21..ef585c971b 100644
--- a/hardware_interface/src/component_parser.cpp
+++ b/hardware_interface/src/component_parser.cpp
@@ -36,6 +36,7 @@ constexpr const auto kROS2ControlTag = "ros2_control";
 constexpr const auto kHardwareTag = "hardware";
 constexpr const auto kPluginNameTag = "plugin";
 constexpr const auto kParamTag = "param";
+constexpr const auto kGroupTag = "group";
 constexpr const auto kActuatorTag = "actuator";
 constexpr const auto kJointTag = "joint";
 constexpr const auto kSensorTag = "sensor";
@@ -578,6 +579,11 @@ HardwareInfo parse_resource_from_xml(
       const auto * type_it = ros2_control_child_it->FirstChildElement(kPluginNameTag);
       hardware.hardware_plugin_name =
         get_text_for_element(type_it, std::string("hardware ") + kPluginNameTag);
+      const auto * group_it = ros2_control_child_it->FirstChildElement(kGroupTag);
+      if (group_it)
+      {
+        hardware.group = get_text_for_element(group_it, std::string("hardware.") + kGroupTag);
+      }
       const auto * params_it = ros2_control_child_it->FirstChildElement(kParamTag);
       if (params_it)
       {
diff --git a/hardware_interface/src/mock_components/generic_system.cpp b/hardware_interface/src/mock_components/generic_system.cpp
index 2d8a01a34f..162c3aa60d 100644
--- a/hardware_interface/src/mock_components/generic_system.cpp
+++ b/hardware_interface/src/mock_components/generic_system.cpp
@@ -459,7 +459,8 @@ return_type GenericSystem::read(const rclcpp::Time & /*time*/, const rclcpp::Dur
     return return_type::OK;
   }
 
-  auto mirror_command_to_state = [](auto & states_, auto commands_, size_t start_index = 0)
+  auto mirror_command_to_state =
+    [](auto & states_, auto commands_, size_t start_index = 0) -> return_type
   {
     for (size_t i = start_index; i < states_.size(); ++i)
     {
@@ -469,8 +470,13 @@ return_type GenericSystem::read(const rclcpp::Time & /*time*/, const rclcpp::Dur
         {
           states_[i][j] = commands_[i][j];
         }
+        if (std::isinf(commands_[i][j]))
+        {
+          return return_type::ERROR;
+        }
       }
     }
+    return return_type::OK;
   };
 
   for (size_t j = 0; j < joint_states_[POSITION_INTERFACE_INDEX].size(); ++j)
@@ -556,13 +562,11 @@ return_type GenericSystem::read(const rclcpp::Time & /*time*/, const rclcpp::Dur
 
   // do loopback on all other interfaces - starts from 1 or 3 because 0, 1, 3 are position,
   // velocity, and acceleration interface
-  if (calculate_dynamics_)
-  {
-    mirror_command_to_state(joint_states_, joint_commands_, 3);
-  }
-  else
+  if (
+    mirror_command_to_state(joint_states_, joint_commands_, calculate_dynamics_ ? 3 : 1) !=
+    return_type::OK)
   {
-    mirror_command_to_state(joint_states_, joint_commands_, 1);
+    return return_type::ERROR;
   }
 
   for (const auto & mimic_joint : info_.mimic_joints)
diff --git a/hardware_interface/src/resource_manager.cpp b/hardware_interface/src/resource_manager.cpp
index 92b6d01519..d77f915eee 100644
--- a/hardware_interface/src/resource_manager.cpp
+++ b/hardware_interface/src/resource_manager.cpp
@@ -133,10 +133,12 @@ class ResourceStorage
         HardwareComponentInfo component_info;
         component_info.name = hardware_info.name;
         component_info.type = hardware_info.type;
+        component_info.group = hardware_info.group;
         component_info.plugin_name = hardware_info.hardware_plugin_name;
         component_info.is_async = hardware_info.is_async;
 
         hardware_info_map_.insert(std::make_pair(component_info.name, component_info));
+        hw_group_state_.insert(std::make_pair(component_info.group, return_type::OK));
         hardware_used_by_controllers_.insert(
           std::make_pair(component_info.name, std::vector<std::string>()));
         is_loaded = true;
@@ -298,6 +300,10 @@ class ResourceStorage
         async_component_threads_.at(hardware.get_name()).register_component(&hardware);
       }
     }
+    if (!hardware.get_group_name().empty())
+    {
+      hw_group_state_[hardware.get_group_name()] = return_type::OK;
+    }
     return result;
   }
 
@@ -380,6 +386,10 @@ class ResourceStorage
     {
       remove_all_hardware_interfaces_from_available_list(hardware.get_name());
     }
+    if (!hardware.get_group_name().empty())
+    {
+      hw_group_state_[hardware.get_group_name()] = return_type::OK;
+    }
     return result;
   }
 
@@ -414,6 +424,10 @@ class ResourceStorage
       // deimport_non_movement_command_interfaces(hardware);
       // deimport_state_interfaces(hardware);
       // use remove_command_interfaces(hardware);
+      if (!hardware.get_group_name().empty())
+      {
+        hw_group_state_[hardware.get_group_name()] = return_type::OK;
+      }
     }
     return result;
   }
@@ -884,6 +898,27 @@ class ResourceStorage
     }
   }
 
+  /**
+   * Returns the return type of the hardware component group state, if the return type is other
+   * than OK, then updates the return type of the group to the respective one
+   */
+  return_type update_hardware_component_group_state(
+    const std::string & group_name, const return_type & value)
+  {
+    // This is for the components that has no configured group
+    if (group_name.empty())
+    {
+      return value;
+    }
+    // If it is anything other than OK, change the return type of the hardware group state
+    // to the respective return type
+    if (value != return_type::OK)
+    {
+      hw_group_state_.at(group_name) = value;
+    }
+    return hw_group_state_.at(group_name);
+  }
+
   // hardware plugins
   pluginlib::ClassLoader<ActuatorInterface> actuator_loader_;
   pluginlib::ClassLoader<SensorInterface> sensor_loader_;
@@ -898,6 +933,7 @@ class ResourceStorage
   std::vector<System> async_systems_;
 
   std::unordered_map<std::string, HardwareComponentInfo> hardware_info_map_;
+  std::unordered_map<std::string, hardware_interface::return_type> hw_group_state_;
 
   /// Mapping between hardware and controllers that are using it (accessing data from it)
   std::unordered_map<std::string, std::vector<std::string>> hardware_used_by_controllers_;
@@ -1575,6 +1611,9 @@ HardwareReadWriteStatus ResourceManager::read(
       try
       {
         ret_val = component.read(time, period);
+        const auto component_group = component.get_group_name();
+        ret_val =
+          resource_storage_->update_hardware_component_group_state(component_group, ret_val);
       }
       catch (const std::exception & e)
       {
@@ -1633,6 +1672,9 @@ HardwareReadWriteStatus ResourceManager::write(
       try
       {
         ret_val = component.write(time, period);
+        const auto component_group = component.get_group_name();
+        ret_val =
+          resource_storage_->update_hardware_component_group_state(component_group, ret_val);
       }
       catch (const std::exception & e)
       {
diff --git a/hardware_interface/src/sensor.cpp b/hardware_interface/src/sensor.cpp
index 2e53e447b9..2da627f892 100644
--- a/hardware_interface/src/sensor.cpp
+++ b/hardware_interface/src/sensor.cpp
@@ -191,6 +191,8 @@ std::vector<StateInterface> Sensor::export_state_interfaces()
 
 std::string Sensor::get_name() const { return impl_->get_name(); }
 
+std::string Sensor::get_group_name() const { return impl_->get_group_name(); }
+
 const rclcpp_lifecycle::State & Sensor::get_state() const { return impl_->get_state(); }
 
 return_type Sensor::read(const rclcpp::Time & time, const rclcpp::Duration & period)
diff --git a/hardware_interface/src/system.cpp b/hardware_interface/src/system.cpp
index ee942d6581..8e950faa89 100644
--- a/hardware_interface/src/system.cpp
+++ b/hardware_interface/src/system.cpp
@@ -210,6 +210,8 @@ return_type System::perform_command_mode_switch(
 
 std::string System::get_name() const { return impl_->get_name(); }
 
+std::string System::get_group_name() const { return impl_->get_group_name(); }
+
 const rclcpp_lifecycle::State & System::get_state() const { return impl_->get_state(); }
 
 return_type System::read(const rclcpp::Time & time, const rclcpp::Duration & period)
diff --git a/hardware_interface/test/mock_components/test_generic_system.cpp b/hardware_interface/test/mock_components/test_generic_system.cpp
index ac89dc1553..c7777b3e21 100644
--- a/hardware_interface/test/mock_components/test_generic_system.cpp
+++ b/hardware_interface/test/mock_components/test_generic_system.cpp
@@ -96,6 +96,7 @@ class TestGenericSystem : public ::testing::Test
   <ros2_control name="MockHardwareSystem" type="system">
     <hardware>
       <plugin>mock_components/GenericSystem</plugin>
+      <group>Hardware Group</group>
     </hardware>
     <joint name="joint1">
       <command_interface name="position"/>
@@ -121,6 +122,7 @@ class TestGenericSystem : public ::testing::Test
   <ros2_control name="MockHardwareSystem" type="system">
     <hardware>
       <plugin>mock_components/GenericSystem</plugin>
+      <group>Hardware Group</group>
     </hardware>
     <joint name="joint1">
       <command_interface name="position"/>
@@ -289,6 +291,7 @@ class TestGenericSystem : public ::testing::Test
   <ros2_control name="MockHardwareSystem" type="system">
     <hardware>
       <plugin>mock_components/GenericSystem</plugin>
+      <group>Hardware Group</group>
       <param name="position_state_following_offset">-3</param>
       <param name="custom_interface_with_following_offset">actual_position</param>
     </hardware>
@@ -351,6 +354,7 @@ class TestGenericSystem : public ::testing::Test
   <ros2_control name="MockHardwareSystem" type="system">
     <hardware>
       <plugin>mock_components/GenericSystem</plugin>
+      <group>Hardware Group</group>
       <param name="example_param_write_for_sec">2</param>
       <param name="example_param_read_for_sec">2</param>
     </hardware>
@@ -579,6 +583,70 @@ class TestGenericSystem : public ::testing::Test
     </joint>
   </ros2_control>
 )";
+
+    hardware_system_2dof_standard_interfaces_with_same_hardware_group_ =
+      R"(
+  <ros2_control name="MockHardwareSystem1" type="system">
+    <hardware>
+      <plugin>mock_components/GenericSystem</plugin>
+      <group>Hardware Group</group>
+    </hardware>
+    <joint name="joint1">
+      <command_interface name="position"/>
+      <command_interface name="velocity"/>
+      <state_interface name="position">
+        <param name="initial_value">3.45</param>
+      </state_interface>
+      <state_interface name="velocity"/>
+    </joint>
+  </ros2_control>
+  <ros2_control name="MockHardwareSystem2" type="system">
+    <hardware>
+      <plugin>mock_components/GenericSystem</plugin>
+      <group>Hardware Group</group>
+    </hardware>
+    <joint name="joint2">
+      <command_interface name="position"/>
+      <command_interface name="velocity"/>
+      <state_interface name="position">
+        <param name="initial_value">2.78</param>
+      </state_interface>
+      <state_interface name="velocity"/>
+    </joint>
+  </ros2_control>
+)";
+
+    hardware_system_2dof_standard_interfaces_with_two_diff_hw_groups_ =
+      R"(
+  <ros2_control name="MockHardwareSystem1" type="system">
+    <hardware>
+      <plugin>mock_components/GenericSystem</plugin>
+      <group>Hardware Group 1</group>
+    </hardware>
+    <joint name="joint1">
+      <command_interface name="position"/>
+      <command_interface name="velocity"/>
+      <state_interface name="position">
+        <param name="initial_value">3.45</param>
+      </state_interface>
+      <state_interface name="velocity"/>
+    </joint>
+  </ros2_control>
+  <ros2_control name="MockHardwareSystem2" type="system">
+    <hardware>
+      <plugin>mock_components/GenericSystem</plugin>
+      <group>Hardware Group 2</group>
+    </hardware>
+    <joint name="joint2">
+      <command_interface name="position"/>
+      <command_interface name="velocity"/>
+      <state_interface name="position">
+        <param name="initial_value">2.78</param>
+      </state_interface>
+      <state_interface name="velocity"/>
+    </joint>
+  </ros2_control>
+)";
   }
 
   std::string hardware_system_2dof_;
@@ -600,6 +668,8 @@ class TestGenericSystem : public ::testing::Test
   std::string hardware_system_2dof_standard_interfaces_with_different_control_modes_;
   std::string valid_hardware_system_2dof_standard_interfaces_with_different_control_modes_;
   std::string disabled_commands_;
+  std::string hardware_system_2dof_standard_interfaces_with_same_hardware_group_;
+  std::string hardware_system_2dof_standard_interfaces_with_two_diff_hw_groups_;
 };
 
 // Forward declaration
@@ -814,7 +884,7 @@ void generic_system_functional_test(
   ASSERT_EQ(0.44, j2v_c.get_value());
 
   // write() does not change values
-  rm.write(TIME, PERIOD);
+  ASSERT_TRUE(rm.write(TIME, PERIOD).ok);
   ASSERT_EQ(3.45, j1p_s.get_value());
   ASSERT_EQ(0.0, j1v_s.get_value());
   ASSERT_EQ(2.78, j2p_s.get_value());
@@ -825,7 +895,7 @@ void generic_system_functional_test(
   ASSERT_EQ(0.44, j2v_c.get_value());
 
   // read() mirrors commands + offset to states
-  rm.read(TIME, PERIOD);
+  ASSERT_TRUE(rm.read(TIME, PERIOD).ok);
   ASSERT_EQ(0.11 + offset, j1p_s.get_value());
   ASSERT_EQ(0.22, j1v_s.get_value());
   ASSERT_EQ(0.33 + offset, j2p_s.get_value());
@@ -857,6 +927,158 @@ void generic_system_functional_test(
     status_map[component_name].state.label(), hardware_interface::lifecycle_state_names::INACTIVE);
 }
 
+void generic_system_error_group_test(
+  const std::string & urdf, const std::string component_prefix, bool validate_same_group)
+{
+  TestableResourceManager rm(urdf);
+  const std::string component1 = component_prefix + "1";
+  const std::string component2 = component_prefix + "2";
+  // check is hardware is configured
+  auto status_map = rm.get_components_status();
+  for (auto component : {component1, component2})
+  {
+    EXPECT_EQ(
+      status_map[component].state.label(), hardware_interface::lifecycle_state_names::UNCONFIGURED);
+    configure_components(rm, {component});
+    status_map = rm.get_components_status();
+    EXPECT_EQ(
+      status_map[component].state.label(), hardware_interface::lifecycle_state_names::INACTIVE);
+    activate_components(rm, {component});
+    status_map = rm.get_components_status();
+    EXPECT_EQ(
+      status_map[component].state.label(), hardware_interface::lifecycle_state_names::ACTIVE);
+  }
+
+  // Check initial values
+  hardware_interface::LoanedStateInterface j1p_s = rm.claim_state_interface("joint1/position");
+  hardware_interface::LoanedStateInterface j1v_s = rm.claim_state_interface("joint1/velocity");
+  hardware_interface::LoanedStateInterface j2p_s = rm.claim_state_interface("joint2/position");
+  hardware_interface::LoanedStateInterface j2v_s = rm.claim_state_interface("joint2/velocity");
+  hardware_interface::LoanedCommandInterface j1p_c = rm.claim_command_interface("joint1/position");
+  hardware_interface::LoanedCommandInterface j1v_c = rm.claim_command_interface("joint1/velocity");
+  hardware_interface::LoanedCommandInterface j2p_c = rm.claim_command_interface("joint2/position");
+  hardware_interface::LoanedCommandInterface j2v_c = rm.claim_command_interface("joint2/velocity");
+
+  // State interfaces without initial value are set to 0
+  ASSERT_EQ(3.45, j1p_s.get_value());
+  ASSERT_EQ(0.0, j1v_s.get_value());
+  ASSERT_EQ(2.78, j2p_s.get_value());
+  ASSERT_EQ(0.0, j2v_s.get_value());
+  ASSERT_TRUE(std::isnan(j1p_c.get_value()));
+  ASSERT_TRUE(std::isnan(j1v_c.get_value()));
+  ASSERT_TRUE(std::isnan(j2p_c.get_value()));
+  ASSERT_TRUE(std::isnan(j2v_c.get_value()));
+
+  // set some new values in commands
+  j1p_c.set_value(0.11);
+  j1v_c.set_value(0.22);
+  j2p_c.set_value(0.33);
+  j2v_c.set_value(0.44);
+
+  // State values should not be changed
+  ASSERT_EQ(3.45, j1p_s.get_value());
+  ASSERT_EQ(0.0, j1v_s.get_value());
+  ASSERT_EQ(2.78, j2p_s.get_value());
+  ASSERT_EQ(0.0, j2v_s.get_value());
+  ASSERT_EQ(0.11, j1p_c.get_value());
+  ASSERT_EQ(0.22, j1v_c.get_value());
+  ASSERT_EQ(0.33, j2p_c.get_value());
+  ASSERT_EQ(0.44, j2v_c.get_value());
+
+  // write() does not change values
+  ASSERT_TRUE(rm.write(TIME, PERIOD).ok);
+  ASSERT_EQ(3.45, j1p_s.get_value());
+  ASSERT_EQ(0.0, j1v_s.get_value());
+  ASSERT_EQ(2.78, j2p_s.get_value());
+  ASSERT_EQ(0.0, j2v_s.get_value());
+  ASSERT_EQ(0.11, j1p_c.get_value());
+  ASSERT_EQ(0.22, j1v_c.get_value());
+  ASSERT_EQ(0.33, j2p_c.get_value());
+  ASSERT_EQ(0.44, j2v_c.get_value());
+
+  // read() mirrors commands to states
+  ASSERT_TRUE(rm.read(TIME, PERIOD).ok);
+  ASSERT_EQ(0.11, j1p_s.get_value());
+  ASSERT_EQ(0.22, j1v_s.get_value());
+  ASSERT_EQ(0.33, j2p_s.get_value());
+  ASSERT_EQ(0.44, j2v_s.get_value());
+  ASSERT_EQ(0.11, j1p_c.get_value());
+  ASSERT_EQ(0.22, j1v_c.get_value());
+  ASSERT_EQ(0.33, j2p_c.get_value());
+  ASSERT_EQ(0.44, j2v_c.get_value());
+
+  // set some new values in commands
+  j1p_c.set_value(0.55);
+  j1v_c.set_value(0.66);
+  j2p_c.set_value(0.77);
+  j2v_c.set_value(0.88);
+
+  // state values should not be changed
+  ASSERT_EQ(0.11, j1p_s.get_value());
+  ASSERT_EQ(0.22, j1v_s.get_value());
+  ASSERT_EQ(0.33, j2p_s.get_value());
+  ASSERT_EQ(0.44, j2v_s.get_value());
+  ASSERT_EQ(0.55, j1p_c.get_value());
+  ASSERT_EQ(0.66, j1v_c.get_value());
+  ASSERT_EQ(0.77, j2p_c.get_value());
+  ASSERT_EQ(0.88, j2v_c.get_value());
+
+  // Error testing
+  j1p_c.set_value(std::numeric_limits<double>::infinity());
+  j1v_c.set_value(std::numeric_limits<double>::infinity());
+  // read() should now bring error in the first component
+  auto read_result = rm.read(TIME, PERIOD);
+  ASSERT_FALSE(read_result.ok);
+  if (validate_same_group)
+  {
+    // If they belong to the same group, show the error in all hardware components of same group
+    EXPECT_THAT(read_result.failed_hardware_names, ::testing::ElementsAre(component1, component2));
+  }
+  else
+  {
+    // If they don't belong to the same group, show the error in only that hardware component
+    EXPECT_THAT(read_result.failed_hardware_names, ::testing::ElementsAre(component1));
+  }
+
+  // Check initial values
+  ASSERT_FALSE(rm.state_interface_is_available("joint1/position"));
+  ASSERT_FALSE(rm.state_interface_is_available("joint1/velocity"));
+  ASSERT_FALSE(rm.command_interface_is_available("joint1/position"));
+  ASSERT_FALSE(rm.command_interface_is_available("joint1/velocity"));
+
+  if (validate_same_group)
+  {
+    ASSERT_FALSE(rm.state_interface_is_available("joint2/position"));
+    ASSERT_FALSE(rm.state_interface_is_available("joint2/velocity"));
+    ASSERT_FALSE(rm.command_interface_is_available("joint2/position"));
+    ASSERT_FALSE(rm.command_interface_is_available("joint2/velocity"));
+  }
+  else
+  {
+    ASSERT_TRUE(rm.state_interface_is_available("joint2/position"));
+    ASSERT_TRUE(rm.state_interface_is_available("joint2/velocity"));
+    ASSERT_TRUE(rm.command_interface_is_available("joint2/position"));
+    ASSERT_TRUE(rm.command_interface_is_available("joint2/velocity"));
+  }
+
+  // Error should be recoverable only after reactivating the hardware component
+  j1p_c.set_value(0.0);
+  j1v_c.set_value(0.0);
+  ASSERT_FALSE(rm.read(TIME, PERIOD).ok);
+
+  // Now it should be recoverable
+  deactivate_components(rm, {component1});
+  activate_components(rm, {component1});
+  ASSERT_TRUE(rm.read(TIME, PERIOD).ok);
+
+  deactivate_components(rm, {component1, component2});
+  status_map = rm.get_components_status();
+  EXPECT_EQ(
+    status_map[component1].state.label(), hardware_interface::lifecycle_state_names::INACTIVE);
+  EXPECT_EQ(
+    status_map[component2].state.label(), hardware_interface::lifecycle_state_names::INACTIVE);
+}
+
 TEST_F(TestGenericSystem, generic_system_2dof_functionality)
 {
   auto urdf = ros2_control_test_assets::urdf_head + hardware_system_2dof_standard_interfaces_ +
@@ -865,6 +1087,24 @@ TEST_F(TestGenericSystem, generic_system_2dof_functionality)
   generic_system_functional_test(urdf, {"MockHardwareSystem"});
 }
 
+TEST_F(TestGenericSystem, generic_system_2dof_error_propagation_different_group)
+{
+  auto urdf = ros2_control_test_assets::urdf_head +
+              hardware_system_2dof_standard_interfaces_with_two_diff_hw_groups_ +
+              ros2_control_test_assets::urdf_tail;
+
+  generic_system_error_group_test(urdf, {"MockHardwareSystem"}, false);
+}
+
+TEST_F(TestGenericSystem, generic_system_2dof_error_propagation_same_group)
+{
+  auto urdf = ros2_control_test_assets::urdf_head +
+              hardware_system_2dof_standard_interfaces_with_same_hardware_group_ +
+              ros2_control_test_assets::urdf_tail;
+
+  generic_system_error_group_test(urdf, {"MockHardwareSystem"}, true);
+}
+
 TEST_F(TestGenericSystem, generic_system_2dof_other_interfaces)
 {
   auto urdf = ros2_control_test_assets::urdf_head + hardware_system_2dof_with_other_interface_ +
diff --git a/hardware_interface/test/test_component_parser.cpp b/hardware_interface/test/test_component_parser.cpp
index 6a0c11cf72..2e2cae9807 100644
--- a/hardware_interface/test/test_component_parser.cpp
+++ b/hardware_interface/test/test_component_parser.cpp
@@ -113,6 +113,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_system_one_interface)
 
   EXPECT_EQ(hardware_info.name, "RRBotSystemPositionOnly");
   EXPECT_EQ(hardware_info.type, "system");
+  ASSERT_THAT(hardware_info.group, IsEmpty());
   EXPECT_EQ(
     hardware_info.hardware_plugin_name,
     "ros2_control_demo_hardware/RRBotSystemPositionOnlyHardware");
@@ -176,6 +177,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_system_multi_interface
 
   EXPECT_EQ(hardware_info.name, "RRBotSystemMultiInterface");
   EXPECT_EQ(hardware_info.type, "system");
+  ASSERT_THAT(hardware_info.group, IsEmpty());
   EXPECT_EQ(
     hardware_info.hardware_plugin_name,
     "ros2_control_demo_hardware/RRBotSystemMultiInterfaceHardware");
@@ -238,6 +240,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_system_robot_with_sens
 
   EXPECT_EQ(hardware_info.name, "RRBotSystemWithSensor");
   EXPECT_EQ(hardware_info.type, "system");
+  ASSERT_THAT(hardware_info.group, IsEmpty());
   EXPECT_EQ(
     hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/RRBotSystemWithSensorHardware");
   ASSERT_THAT(hardware_info.hardware_parameters, SizeIs(2));
@@ -306,6 +309,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_system_robot_with_exte
 
   EXPECT_EQ(hardware_info.name, "RRBotSystemPositionOnlyWithExternalSensor");
   EXPECT_EQ(hardware_info.type, "system");
+  ASSERT_THAT(hardware_info.group, IsEmpty());
   EXPECT_EQ(
     hardware_info.hardware_plugin_name,
     "ros2_control_demo_hardware/RRBotSystemPositionOnlyHardware");
@@ -372,6 +376,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_actuator_modular_robot
   auto hardware_info = control_hardware.at(0);
 
   EXPECT_EQ(hardware_info.name, "RRBotModularJoint1");
+  EXPECT_EQ(hardware_info.group, "Hardware Group");
   EXPECT_EQ(hardware_info.type, "actuator");
   EXPECT_EQ(
     hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/PositionActuatorHardware");
@@ -400,6 +405,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_actuator_modular_robot
   hardware_info = control_hardware.at(1);
 
   EXPECT_EQ(hardware_info.name, "RRBotModularJoint2");
+  EXPECT_EQ(hardware_info.group, "Hardware Group");
   EXPECT_EQ(hardware_info.type, "actuator");
   EXPECT_EQ(
     hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/PositionActuatorHardware");
@@ -445,6 +451,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_actuator_modular_robot
   auto hardware_info = control_hardware.at(0);
 
   EXPECT_EQ(hardware_info.name, "RRBotModularJoint1");
+  EXPECT_EQ(hardware_info.group, "Hardware Group 1");
   EXPECT_EQ(hardware_info.type, "actuator");
   EXPECT_EQ(
     hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/VelocityActuatorHardware");
@@ -484,6 +491,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_actuator_modular_robot
   hardware_info = control_hardware.at(1);
 
   EXPECT_EQ(hardware_info.name, "RRBotModularJoint2");
+  EXPECT_EQ(hardware_info.group, "Hardware Group 2");
   EXPECT_EQ(hardware_info.type, "actuator");
   EXPECT_EQ(
     hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/VelocityActuatorHardware");
@@ -523,6 +531,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_actuator_modular_robot
   hardware_info = control_hardware.at(2);
 
   EXPECT_EQ(hardware_info.name, "RRBotModularPositionSensorJoint1");
+  EXPECT_EQ(hardware_info.group, "Hardware Group 1");
   EXPECT_EQ(hardware_info.type, "sensor");
   EXPECT_EQ(
     hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/PositionSensorHardware");
@@ -554,6 +563,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_actuator_modular_robot
   hardware_info = control_hardware.at(3);
 
   EXPECT_EQ(hardware_info.name, "RRBotModularPositionSensorJoint2");
+  EXPECT_EQ(hardware_info.group, "Hardware Group 2");
   EXPECT_EQ(hardware_info.type, "sensor");
   EXPECT_EQ(
     hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/PositionSensorHardware");
@@ -602,6 +612,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_system_multi_joints_tr
 
   EXPECT_EQ(hardware_info.name, "RRBotModularWrist");
   EXPECT_EQ(hardware_info.type, "system");
+  ASSERT_THAT(hardware_info.group, IsEmpty());
   EXPECT_EQ(
     hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/ActuatorHardwareMultiDOF");
   ASSERT_THAT(hardware_info.hardware_parameters, SizeIs(2));
@@ -644,6 +655,7 @@ TEST_F(TestComponentParser, successfully_parse_valid_urdf_sensor_only)
 
   EXPECT_EQ(hardware_info.name, "CameraWithIMU");
   EXPECT_EQ(hardware_info.type, "sensor");
+  ASSERT_THAT(hardware_info.group, IsEmpty());
   EXPECT_EQ(hardware_info.hardware_plugin_name, "ros2_control_demo_hardware/CameraWithIMUSensor");
   ASSERT_THAT(hardware_info.hardware_parameters, SizeIs(1));
   EXPECT_EQ(hardware_info.hardware_parameters.at("example_param_read_for_sec"), "2");
diff --git a/ros2_control_test_assets/include/ros2_control_test_assets/components_urdfs.hpp b/ros2_control_test_assets/include/ros2_control_test_assets/components_urdfs.hpp
index 7b46eda9c0..eba16c1e71 100644
--- a/ros2_control_test_assets/include/ros2_control_test_assets/components_urdfs.hpp
+++ b/ros2_control_test_assets/include/ros2_control_test_assets/components_urdfs.hpp
@@ -172,6 +172,7 @@ const auto valid_urdf_ros2_control_actuator_modular_robot =
   <ros2_control name="RRBotModularJoint1"  type="actuator">
     <hardware>
       <plugin>ros2_control_demo_hardware/PositionActuatorHardware</plugin>
+      <group>Hardware Group</group>
       <param name="example_param_write_for_sec">1.23</param>
       <param name="example_param_read_for_sec">3</param>
     </hardware>
@@ -186,6 +187,7 @@ const auto valid_urdf_ros2_control_actuator_modular_robot =
   <ros2_control name="RRBotModularJoint2"  type="actuator">
     <hardware>
       <plugin>ros2_control_demo_hardware/PositionActuatorHardware</plugin>
+      <group>Hardware Group</group>
       <param name="example_param_write_for_sec">1.23</param>
       <param name="example_param_read_for_sec">3</param>
     </hardware>
@@ -206,6 +208,7 @@ const auto valid_urdf_ros2_control_actuator_modular_robot_sensors =
   <ros2_control name="RRBotModularJoint1" type="actuator">
     <hardware>
       <plugin>ros2_control_demo_hardware/VelocityActuatorHardware</plugin>
+      <group>Hardware Group 1</group>
       <param name="example_param_write_for_sec">1.23</param>
       <param name="example_param_read_for_sec">3</param>
     </hardware>
@@ -226,6 +229,7 @@ const auto valid_urdf_ros2_control_actuator_modular_robot_sensors =
   <ros2_control name="RRBotModularJoint2" type="actuator">
     <hardware>
       <plugin>ros2_control_demo_hardware/VelocityActuatorHardware</plugin>
+      <group>Hardware Group 2</group>
       <param name="example_param_write_for_sec">1.23</param>
       <param name="example_param_read_for_sec">3</param>
     </hardware>
@@ -240,6 +244,7 @@ const auto valid_urdf_ros2_control_actuator_modular_robot_sensors =
   <ros2_control name="RRBotModularPositionSensorJoint1" type="sensor">
     <hardware>
       <plugin>ros2_control_demo_hardware/PositionSensorHardware</plugin>
+      <group>Hardware Group 1</group>
       <param name="example_param_read_for_sec">2</param>
     </hardware>
     <joint name="joint1">
@@ -249,6 +254,7 @@ const auto valid_urdf_ros2_control_actuator_modular_robot_sensors =
   <ros2_control name="RRBotModularPositionSensorJoint2" type="sensor">
     <hardware>
       <plugin>ros2_control_demo_hardware/PositionSensorHardware</plugin>
+      <group>Hardware Group 2</group>
       <param name="example_param_read_for_sec">2</param>
     </hardware>
     <joint name="joint2">