Group assignments are widely used in higher education for a range of educational reasons. Although there is a large body of research on the merits of group work and factors that may contribute to successful group work, less is known about students' and teachers' perspectives, particularly when groups are composed of students from diverse linguistic backgrounds. The current qualitative study investigated students' and teachers' perspectives on group assignments in a Master of Applied Linguistics program offered by a leading research university in Australia. The program has predominantly English as an additional language (EAL) students. Teachers and students in four graduate subjects that involved group assignments were interviewed for their views and reflections. Analysis of the interview data revealed similarities and differences in perspectives in five main areas -- group work benefits and challenges, group formation and assessment, and the need for pre-implementation training. The findings highlight the need for teachers to promote open discussion about the purposes and merits of group work, both pedagogical and social.