The ability of students to work in groups to solve a problem or complete a task is important. However, the existing approach of student group formation tend to result in ineffective and unproductive group work as the group members� skills does not fully complement each other and gives an imbalance impact. Although there are methods in coping this redundancy such as selective appointment method whereas students are grouped based on distinctive skill, personality, and others. However, this traditional method consumes time and energy as it requires manual effort. This paper presents the design of a system that facilitates student group formation by grouping the students based on criteria that fulfils the set of skills needed in a group work. The methodology of this study is two-fold. Firstly, group formation and existing group formation mechanism and tools were investigated. Based on the findings of the investigation, the group formation system was developed based on the agile development approach. The system generates student groups that balanced with diverse skills and personality. The group formation system can assist lecturers to form student groups based on student�s skills, knowledge, and personality. A small-scale user acceptance testing was conducted with one of the courses at the university. The results of the testing indicated that the lecturer of the course perceived that the system�s mechanism of grouping the student is effective and would like to use it in actual setting. The students perceived that the system is useful, and majority would like to use it in an actual setting. © 2021, The Author(s), under exclusive license to Springer Nature Switzerland AG.