diff --git a/README.rst b/README.rst
index cc4dc070c..0be7fe2ff 100644
--- a/README.rst
+++ b/README.rst
@@ -531,7 +531,24 @@ with templates, this feature is also known as *configuration context*, think of
 it like a dictionary which is passed to the function which renders the
 configuration, so that it can fill variables according to the passed context.
 
-The different ways in which variables are defined are described below.
+The different ways in which variables are defined are described below in
+the order (high to low) of their precedence:
+
+1. `User defined device variables <#user-defined-device-variables>`_
+2. `Predefined device variables <#predefined-device-variables>`_
+3. `Group variables <#group-variables>`_
+4. `Global variables <#global-variables>`_
+5. `Template default values <#template-default-values>`_
+
+User defined device variables
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+In the device configuration section you can find a section named
+"Configuration variables" where it is possible to define the configuration
+variables and their values, as shown in the example below:
+
+.. image:: https://raw.githubusercontent.com/openwisp/openwisp-controller/docs/docs/device-context.png
+   :alt: context
 
 Predefined device variables
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~
@@ -543,15 +560,19 @@ Each device gets the following attributes passed as configuration variables:
 * ``name``
 * ``mac_address``
 
-User defined device variables
-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+Group variables
+~~~~~~~~~~~~~~~
 
-In the device configuration section you can find a section named
-"Configuration variables" where it is possible to define the configuration
-variables and their values, as shown in the example below:
+Variables can also be defined in `Device groups <#device-groups>`__.
 
-.. image:: https://raw.githubusercontent.com/openwisp/openwisp-controller/docs/docs/device-context.png
-   :alt: context
+Refer the `Group configuration variables <group-configuration-variables>`_
+section for detailed information.
+
+Global variables
+~~~~~~~~~~~~~~~~
+
+Variables can also be defined globally using the
+`OPENWISP_CONTROLLER_CONTEXT <#openwisp-controller-context>`_ setting.
 
 Template default values
 ~~~~~~~~~~~~~~~~~~~~~~~
@@ -574,12 +595,6 @@ The default values of variables can be manipulated from the section
 .. image:: https://raw.githubusercontent.com/openwisp/openwisp-controller/docs/docs/template-default-values.png
   :alt: default values
 
-Global variables
-~~~~~~~~~~~~~~~~
-
-Variables can also be defined globally using the
-`OPENWISP_CONTROLLER_CONTEXT <#openwisp-controller-context>`_ setting.
-
 System defined variables
 ~~~~~~~~~~~~~~~~~~~~~~~~
 
@@ -591,6 +606,9 @@ in read-only mode.
 .. image:: https://raw.githubusercontent.com/openwisp/openwisp-controller/docs/docs/system-defined-variables.png
    :alt: system defined variables
 
+**Note:** `Group configuration variables <#group-configuration-variables>`__
+are also added to the **System Defined Variables** of the device.
+
 Example usage of variables
 ~~~~~~~~~~~~~~~~~~~~~~~~~~
 
@@ -935,12 +953,9 @@ Device Groups provide features aimed at adding specific management rules
 for the devices of an organization:
 
 - Group similar devices by having dedicated groups for access points, routers, etc.
-- Store additional information regarding a group in the structured metadata field
-  (which can be accessed via the REST API).
-- Customize structure and validation of metadata field of DeviceGroup to standardize
-  information across all groups using `"OPENWISP_CONTROLLER_DEVICE_GROUP_SCHEMA" <#openwisp-controller-device-group-schema>`_
-  setting.
+- Define `group metadata <#group-metadata>`_.
 - Define `group configuration templates <#group-templates>`_.
+- Define `group configuration variables <#group-configuration-variables>`__.
 
 .. image:: https://raw.githubusercontent.com/openwisp/openwisp-controller/docs/docs/1.1/device-groups.png
   :alt: Device Group example
@@ -983,6 +998,33 @@ to new devices.
 This feature works also when editing group templates or the group assigned
 to a device via the `REST API <#change-device-group-detail>`__.
 
+Group Configuration Variables
+#############################
+
+Groups allow to define configuration variables which are automatically
+added to the device's context in the **System Defined Variables**.
+Check the `"How to use configuration variables" section <#how-to-use-configuration-variables>`_
+to learn about precedence of different configuration variables.
+
+This feature works also when editing group templates or the group assigned
+to a device via the `REST API <#change-device-group-detail>`__.
+
+Group Metadata
+##############
+
+Groups allow to store additional information regarding a group in the
+structured metadata field (which can be accessed via the REST API).
+
+The metadata field allows custom structure and validation to standardize
+information across all groups using the
+`"OPENWISP_CONTROLLER_DEVICE_GROUP_SCHEMA" <#openwisp-controller-device-group-schema>`_
+setting.
+
+**Note:** *Group configuration variables* and *Group metadata* serves different purposes.
+The group configuration variables should be used when the device configuration is required
+to be changed for particular group of devices. Group metadata should be used to store
+additional data for the devices. Group metadata is not used for configuration generation.
+
 Export/Import Device data
 ~~~~~~~~~~~~~~~~~~~~~~~~~
 
@@ -3063,7 +3105,7 @@ while all the other organizations will have all command types enabled.
 | **default**: | ``{'type': 'object', 'properties': {}}`` |
 +--------------+------------------------------------------+
 
-Allows specifying JSONSchema used for validating meta-data of `Device Group <#device-groups>`_.
+Allows specifying JSONSchema used for validating meta-data of `Device Group <#device-groups>`__.
 
 ``OPENWISP_CONTROLLER_SHARED_MANAGEMENT_IP_ADDRESS_SPACE``
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
diff --git a/openwisp_controller/config/admin.py b/openwisp_controller/config/admin.py
index 791e1c843..df3f6e4af 100644
--- a/openwisp_controller/config/admin.py
+++ b/openwisp_controller/config/admin.py
@@ -26,10 +26,7 @@
 from openwisp_ipam.filters import SubnetFilter
 from swapper import load_model
 
-from openwisp_controller.config.views import (
-    get_relevant_templates,
-    get_template_default_values,
-)
+from openwisp_controller.config.views import get_default_values, get_relevant_templates
 from openwisp_users.admin import OrganizationAdmin
 from openwisp_users.multitenancy import MultitenantOrgFilter
 from openwisp_utils.admin import (
@@ -665,6 +662,7 @@ def _get_preview_instance(self, request):
         c.device.name = request.POST.get('name')
         c.device.mac_address = request.POST.get('mac_address')
         c.device.key = request.POST.get('key')
+        c.device.group_id = request.POST.get('group') or None
         if 'hardware_id' in request.POST:
             c.device.hardware_id = request.POST.get('hardware_id')
         return c
@@ -677,9 +675,9 @@ def get_urls(self):
                 name='get_relevant_templates',
             ),
             path(
-                'get-template-default-values/',
-                self.admin_site.admin_view(get_template_default_values),
-                name='get_template_default_values',
+                'get-default-values/',
+                self.admin_site.admin_view(get_default_values),
+                name='get_default_values',
             ),
         ] + super().get_urls()
         for inline in self.inlines + self.conditional_inlines:
@@ -1002,14 +1000,7 @@ def save(self, *args, **kwargs):
 
     class Meta(BaseForm.Meta):
         model = DeviceGroup
-        widgets = {'meta_data': DeviceGroupJsonSchemaWidget}
-        labels = {'meta_data': _('Metadata')}
-        help_texts = {
-            'meta_data': _(
-                'Group meta data, use this field to store data which is related'
-                'to this group and can be retrieved via the REST API.'
-            )
-        }
+        widgets = {'meta_data': DeviceGroupJsonSchemaWidget, 'context': FlatJsonWidget}
 
 
 class DeviceGroupAdmin(MultitenantAdminMixin, BaseAdmin):
@@ -1026,6 +1017,7 @@ class DeviceGroupAdmin(MultitenantAdminMixin, BaseAdmin):
         'organization',
         'description',
         'templates',
+        'context',
         'meta_data',
         'created',
         'modified',
diff --git a/openwisp_controller/config/api/serializers.py b/openwisp_controller/config/api/serializers.py
index 9822f9289..701dfb943 100644
--- a/openwisp_controller/config/api/serializers.py
+++ b/openwisp_controller/config/api/serializers.py
@@ -304,6 +304,7 @@ def get_queryset(self):
 
 
 class DeviceGroupSerializer(BaseSerializer):
+    context = serializers.JSONField(required=False, initial={})
     meta_data = serializers.JSONField(required=False, initial={})
     templates = FilterGroupTemplates(many=True)
     _templates = None
@@ -316,6 +317,7 @@ class Meta(BaseMeta):
             'organization',
             'description',
             'templates',
+            'context',
             'meta_data',
             'created',
             'modified',
diff --git a/openwisp_controller/config/base/config.py b/openwisp_controller/config/base/config.py
index 23ad7b3a5..d3f149915 100644
--- a/openwisp_controller/config/base/config.py
+++ b/openwisp_controller/config/base/config.py
@@ -558,7 +558,7 @@ def _has_device(self):
         return hasattr(self, 'device')
 
     def get_vpn_context(self):
-        context = super().get_context()
+        context = {}
         for vpnclient in self.vpnclient_set.all().select_related('vpn', 'cert'):
             vpn = vpnclient.vpn
             vpn_id = vpn.pk.hex
@@ -599,8 +599,11 @@ def get_context(self, system=False):
         additional context passed to netjsonconfig
         """
         c = collections.OrderedDict()
-        extra = {}
+        # Add global variables
+        context = super().get_context()
         if self._has_device():
+            # These pre-defined variables are needed at the start of OrderedDict.
+            # Hence, they are added separately.
             c.update(
                 [
                     ('name', self.name),
@@ -609,14 +612,20 @@ def get_context(self, system=False):
                     ('key', self.key),
                 ]
             )
-            if self.context and not system:
-                extra.update(self.context)
-        extra.update(self.get_vpn_context())
-        for func in self._config_context_functions:
-            extra.update(func(config=self))
-        if app_settings.HARDWARE_ID_ENABLED and self._has_device():
-            extra.update({'hardware_id': str(self.device.hardware_id)})
-        c.update(sorted(extra.items()))
+            if self.device._get_group():
+                # Add device group variables
+                context.update(self.device._get_group().get_context())
+            # Add predefined variables
+            context.update(self.get_vpn_context())
+            for func in self._config_context_functions:
+                context.update(func(config=self))
+            if app_settings.HARDWARE_ID_ENABLED:
+                context.update({'hardware_id': str(self.device.hardware_id)})
+
+        if self.context and not system:
+            context.update(self.context)
+
+        c.update(sorted(context.items()))
         return c
 
     def get_system_context(self):
diff --git a/openwisp_controller/config/base/device.py b/openwisp_controller/config/base/device.py
index 054b0ac53..cfe0ef7a1 100644
--- a/openwisp_controller/config/base/device.py
+++ b/openwisp_controller/config/base/device.py
@@ -127,6 +127,9 @@ def __str__(self):
     def _has_config(self):
         return hasattr(self, 'config')
 
+    def _has_group(self):
+        return hasattr(self, 'group')
+
     def _get_config_attr(self, attr):
         """
         gets property or calls method of related config object
@@ -143,6 +146,11 @@ def _get_config(self):
         else:
             return self.get_config_model()(device=self)
 
+    def _get_group(self):
+        if self._has_group():
+            return self.group
+        return self.get_group_model()(device=self)
+
     def get_context(self):
         config = self._get_config()
         return config.get_context()
diff --git a/openwisp_controller/config/base/device_group.py b/openwisp_controller/config/base/device_group.py
index 5378a8265..95e8d3042 100644
--- a/openwisp_controller/config/base/device_group.py
+++ b/openwisp_controller/config/base/device_group.py
@@ -1,4 +1,5 @@
 import collections
+from copy import deepcopy
 
 import jsonschema
 from django.core.exceptions import ValidationError
@@ -39,6 +40,22 @@ class AbstractDeviceGroup(OrgMixin, TimeStampedEditableModel):
         default=dict,
         load_kwargs={'object_pairs_hook': collections.OrderedDict},
         dump_kwargs={'indent': 4},
+        help_text=_(
+            'Group meta data, use this field to store data which is related'
+            ' to this group and can be retrieved via the REST API.'
+        ),
+        verbose_name=_('Metadata'),
+    )
+    context = JSONField(
+        blank=True,
+        default=dict,
+        load_kwargs={'object_pairs_hook': collections.OrderedDict},
+        dump_kwargs={'indent': 4},
+        help_text=_(
+            'This field can be used to add meta data for the group'
+            ' or to add "Configuration Variables" to the devices.'
+        ),
+        verbose_name=_('Configuration Variables'),
     )
 
     def __str__(self):
@@ -58,6 +75,9 @@ def clean(self):
         except SchemaError as e:
             raise ValidationError({'input': e.message})
 
+    def get_context(self):
+        return deepcopy(self.context)
+
     @classmethod
     def templates_changed(cls, instance, old_templates, templates, *args, **kwargs):
         group_templates_changed.send(
diff --git a/openwisp_controller/config/migrations/0036_device_group.py b/openwisp_controller/config/migrations/0036_device_group.py
index 10c12ea2c..1bb00482d 100644
--- a/openwisp_controller/config/migrations/0036_device_group.py
+++ b/openwisp_controller/config/migrations/0036_device_group.py
@@ -62,6 +62,12 @@ class Migration(migrations.Migration):
                         default=dict,
                         dump_kwargs={'ensure_ascii': False, 'indent': 4},
                         load_kwargs={'object_pairs_hook': collections.OrderedDict},
+                        help_text=(
+                            'Group meta data, use this field to store data which is'
+                            ' related to this group and can be retrieved via the'
+                            ' REST API.'
+                        ),
+                        verbose_name='Metadata',
                     ),
                 ),
                 (
diff --git a/openwisp_controller/config/migrations/0049_devicegroup_context.py b/openwisp_controller/config/migrations/0049_devicegroup_context.py
new file mode 100644
index 000000000..c54c41024
--- /dev/null
+++ b/openwisp_controller/config/migrations/0049_devicegroup_context.py
@@ -0,0 +1,31 @@
+# Generated by Django 3.2.19 on 2023-06-27 14:45
+
+import collections
+
+import jsonfield.fields
+from django.db import migrations
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ('config', '0048_wifi_radio_band_migration'),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name='devicegroup',
+            name='context',
+            field=jsonfield.fields.JSONField(
+                blank=True,
+                default=dict,
+                dump_kwargs={'ensure_ascii': False, 'indent': 4},
+                help_text=(
+                    'This field can be used to add meta data for the group'
+                    ' or to add "Configuration Variables" to the devices.'
+                ),
+                load_kwargs={'object_pairs_hook': collections.OrderedDict},
+                verbose_name='Configuration Variables',
+            ),
+        ),
+    ]
diff --git a/openwisp_controller/config/static/config/js/widget.js b/openwisp_controller/config/static/config/js/widget.js
index e8d647021..66fd155a2 100644
--- a/openwisp_controller/config/static/config/js/widget.js
+++ b/openwisp_controller/config/static/config/js/widget.js
@@ -4,7 +4,7 @@
     django._jsonEditors = new Map();
     var inFullScreenMode = false,
         prevDefaultValues = {},
-        defaultValuesUrl = window.location.origin + '/admin/config/device/get-template-default-values/',
+        defaultValuesUrl = window.location.origin + '/admin/config/device/get-default-values/',
     removeDefaultValues = function(contextValue, defaultValues) {
         // remove default values when template is removed.
         Object.keys(prevDefaultValues).forEach(function (key) {
@@ -32,7 +32,20 @@
                 systemContextValue = JSON.parse(systemContextField.text());
             // add default values to contextValue
             Object.keys(defaultValues).forEach(function (key) {
-                if (!contextValue.hasOwnProperty(key) && !systemContextValue.hasOwnProperty(key)) {
+                if (
+                    // Handles the case when different templates and group contains the keys.
+                    // If the contextValue was set by a template or group, then
+                    // override the value.
+                    (prevDefaultValues.hasOwnProperty(key) && prevDefaultValues[key] !== defaultValues[key]) ||
+                    // Gives precedence to device's context (saved in database)
+                    (!contextValue.hasOwnProperty(key) &&
+                        // Gives precedence to systemContextValue.
+                        // But if the default value is equal to the system context value,
+                        // then add the variable in the contextValue. This allows users
+                        // to override the value.
+                        (!systemContextValue.hasOwnProperty(key) || systemContextValue[key] === defaultValues[key])
+                    )
+                ) {
                     contextValue[key] = defaultValues[key];
                 }
             });
@@ -55,9 +68,14 @@
         }
     },
     getDefaultValues = function (isLoading=false) {
-        var pks = $('input[name="config-0-templates"]').attr('value');
-        if (pks) {
-            $.get(defaultValuesUrl, {pks: pks})
+        var templatePks = $('input[name="config-0-templates"]').attr('value'),
+            groupPk = $('#id_group').val();
+        if (templatePks) {
+            var payload = {pks: templatePks};
+            if (groupPk) {
+                payload.group = groupPk;
+            }
+            $.get(defaultValuesUrl, payload)
                 .done( function (data) {
                     updateContext(isLoading, data.default_values);
                 })
@@ -430,6 +448,12 @@
         $('.sortedm2m-items').on('change', function() {
             getDefaultValues();
         });
+        $('.sortedm2m-items').on('sortstop', function() {
+            getDefaultValues();
+        });
+        $('#id_group').on('change', function() {
+            getDefaultValues();
+        });
     });
 
     // deletes maxLength on ip address schema if address contains variable
diff --git a/openwisp_controller/config/tests/test_admin.py b/openwisp_controller/config/tests/test_admin.py
index be3e0aaaf..e50e143a3 100644
--- a/openwisp_controller/config/tests/test_admin.py
+++ b/openwisp_controller/config/tests/test_admin.py
@@ -2,6 +2,7 @@
 import json
 import os
 from unittest.mock import patch
+from uuid import uuid4
 
 from django.contrib.admin.models import LogEntry
 from django.contrib.auth import get_user_model
@@ -1426,9 +1427,12 @@ def test_clone_template(self):
         self.assertIn('test-template (Clone)', str(response.content))
         self.assertEqual(LogEntry.objects.all().count(), 3)
 
-    def test_get_template_default_values(self):
+    def test_get_default_values(self):
         t1 = self._create_template(name='t1', default_values={'name1': 'test1'})
-        path = reverse('admin:get_template_default_values')
+        group = self._create_device_group(
+            context={'name1': 'device group', 'name2': 'should not appear'}
+        )
+        path = reverse('admin:get_default_values')
 
         with self.subTest('get default values for one template'):
             with self.assertNumQueries(3):
@@ -1445,19 +1449,38 @@ def test_get_template_default_values(self):
                 expected = {'default_values': {'name1': 'test1', 'name2': 'test2'}}
                 self.assertEqual(r.json(), expected)
 
-    def test_get_template_default_values_invalid_pks(self):
-        path = reverse('admin:get_template_default_values')
-        expected = {'error': 'invalid template pks were received'}
+        with self.subTest('get default values conflicting with device group'):
+            with self.assertNumQueries(4):
+                response = self.client.get(
+                    path, {'pks': f'{t1.pk}', 'group': str(group.pk)}
+                )
+                self.assertEqual(response.status_code, 200)
+                expected = {'default_values': {'name1': 'device group'}}
+                response_data = response.json()
+                self.assertEqual(response_data, expected)
+                self.assertNotIn('name2', response_data)
+
+    def test_get_default_values_invalid_pks(self):
+        path = reverse('admin:get_default_values')
+        expected = {
+            'template': {'error': 'invalid template pks were received'},
+            'group': {'error': 'invalid group pk were received'},
+        }
 
-        with self.subTest('test with invalid pk'):
+        with self.subTest('test with invalid template pk'):
             r = self.client.get(path, {'pks': 'invalid'})
             self.assertEqual(r.status_code, 400)
-            self.assertEqual(r.json(), expected)
+            self.assertEqual(r.json(), expected['template'])
 
         with self.subTest('test with absent pk'):
             r = self.client.get(path)
             self.assertEqual(r.status_code, 400)
-            self.assertEqual(r.json(), expected)
+            self.assertEqual(r.json(), expected['template'])
+
+        with self.subTest('test with invalid group pk'):
+            r = self.client.get(path, {'group': 'invalid', 'pks': str(uuid4())})
+            self.assertEqual(r.status_code, 400)
+            self.assertEqual(r.json(), expected['group'])
 
     def _test_system_context_field_helper(self, path):
         r = self.client.get(path)
@@ -1496,16 +1519,15 @@ def test_system_context(self):
             path = reverse(f'admin:{self.app_label}_device_change', args=[d.pk])
             self._test_system_context_field_helper(path)
 
-    def test_no_system_context(self):
+    @patch.dict(app_settings.CONTEXT, {}, clear=True)
+    def test_no_system_context(self, *args):
         self._create_template()
-        old_context = app_settings.CONTEXT.copy()
-        app_settings.CONTEXT = {}
         path = reverse(f'admin:{self.app_label}_template_add')
         r = self.client.get(path)
+        print(app_settings.CONTEXT)
         self.assertContains(
             r, 'There are no system defined variables available right now'
         )
-        app_settings.CONTEXT = old_context
 
     def test_config_form_old_templates(self):
         config = self._create_config(organization=self._get_org())
diff --git a/openwisp_controller/config/tests/test_api.py b/openwisp_controller/config/tests/test_api.py
index 139a0b462..a246775ec 100644
--- a/openwisp_controller/config/tests/test_api.py
+++ b/openwisp_controller/config/tests/test_api.py
@@ -81,6 +81,7 @@ class ApiTestMixin:
         'description': 'Group for APs of default organization',
         'organization': 'None',
         'meta_data': {'captive_portal_url': 'https://example.com'},
+        'context': {'SSID': 'OpenWISP'},
         'templates': [],
     }
 
@@ -900,6 +901,7 @@ def test_devicegroup_create_api(self):
         self.assertEqual(response.data['name'], data['name'])
         self.assertEqual(response.data['description'], data['description'])
         self.assertEqual(response.data['meta_data'], data['meta_data'])
+        self.assertEqual(response.data['context'], data['context'])
         self.assertEqual(response.data['organization'], org.pk)
         self.assertEqual(response.data['templates'], [template.pk])
 
@@ -936,7 +938,7 @@ def _assert_devicegroup_list_filter(response=None, device_group=None):
             self.assertEqual(response.status_code, 200)
             data = response.data
             self.assertEqual(data['count'], 1)
-            self.assertEqual(len(data['results'][0]), 8)
+            self.assertEqual(len(data['results'][0]), 9)
             self.assertEqual(data['results'][0]['id'], str(device_group.pk))
             self.assertEqual(data['results'][0]['name'], str(device_group.name))
             self.assertEqual(
@@ -972,6 +974,7 @@ def test_devicegroup_detail_api(self):
             self.assertEqual(response.data['name'], device_group.name)
             self.assertEqual(response.data['description'], device_group.description)
             self.assertDictEqual(response.data['meta_data'], device_group.meta_data)
+            self.assertDictEqual(response.data['context'], device_group.context)
             self.assertEqual(
                 response.data['organization'], device_group.organization.pk
             )
@@ -1013,6 +1016,7 @@ def test_devicegroup_commonname(self):
             self.assertEqual(response.data['name'], device_group.name)
             self.assertEqual(response.data['description'], device_group.description)
             self.assertDictEqual(response.data['meta_data'], device_group.meta_data)
+            self.assertDictEqual(response.data['context'], device_group.context)
             self.assertEqual(
                 response.data['organization'], device_group.organization.pk
             )
@@ -1026,6 +1030,7 @@ def test_devicegroup_commonname(self):
             self.assertEqual(response.data['name'], device_group.name)
             self.assertEqual(response.data['description'], device_group.description)
             self.assertDictEqual(response.data['meta_data'], device_group.meta_data)
+            self.assertDictEqual(response.data['context'], device_group.context)
             self.assertEqual(
                 response.data['organization'], device_group.organization.pk
             )
diff --git a/openwisp_controller/config/tests/test_device.py b/openwisp_controller/config/tests/test_device.py
index d07cd931a..5b5222c5b 100644
--- a/openwisp_controller/config/tests/test_device.py
+++ b/openwisp_controller/config/tests/test_device.py
@@ -310,12 +310,51 @@ def test_change_org(self):
         self.assertEqual(config.device.organization_id, org2.pk)
 
     def test_device_get_system_context(self):
-        d = self._create_device(organization=self._get_org())
+        org = self._get_org()
+        device_group = self._create_device_group(
+            organization=org, context={'SSID': 'OpenWISP'}
+        )
+        d = self._create_device(organization=org, group=device_group)
         self._create_config(context={'test': 'name'}, device=d)
         d.refresh_from_db()
         system_context = d.get_system_context()
+        self.assertEqual(system_context['SSID'], 'OpenWISP')
         self.assertNotIn('test', system_context.keys())
 
+    @mock.patch.dict(app_settings.CONTEXT, {'variable_type': 'global-context-variable'})
+    def test_configuration_variable_priority(self, *args):
+        org = self._get_org()
+        device_group = self._create_device_group(
+            organization=org, context={'variable_type': 'device-group-variable'}
+        )
+        device = self._create_device(organization=org, group=device_group)
+        config = self._create_config(
+            device=device,
+            context={
+                'id': 'user-defined-variable',
+                'variable_type': 'user-defined-variable',
+            },
+        )
+
+        # User defined variable has highest precedence
+        self.assertEqual(config.get_context()['id'], 'user-defined-variable')
+        self.assertEqual(config.get_context()['variable_type'], 'user-defined-variable')
+        # Second precedence is given to predefined device variables
+        config.context = {}
+        self.assertEqual(
+            config.get_context()['id'],
+            str(device.pk),
+        )
+        # It is not possible to overwrite the pre-defined device variables.
+        # Therefore, for further tests, "tesT" variable is used.
+        # Third precedence is given to the device group variable'
+        self.assertEqual(config.get_context()['variable_type'], 'device-group-variable')
+        # Fourth precedence is given to global variables
+        device.group = None
+        self.assertEqual(
+            config.get_context()['variable_type'], 'global-context-variable'
+        )
+
     def test_management_ip_changed_not_emitted_on_creation(self):
         with catch_signal(management_ip_changed) as handler:
             self._create_device(organization=self._get_org())
diff --git a/openwisp_controller/config/tests/test_views.py b/openwisp_controller/config/tests/test_views.py
index 14b7d0915..e79271f39 100644
--- a/openwisp_controller/config/tests/test_views.py
+++ b/openwisp_controller/config/tests/test_views.py
@@ -6,14 +6,18 @@
 from openwisp_users.tests.utils import TestOrganizationMixin
 
 from ...tests.utils import TestAdminMixin
-from .utils import CreateConfigTemplateMixin
+from .utils import CreateConfigTemplateMixin, CreateDeviceGroupMixin
 
 Template = load_model('config', 'Template')
 User = get_user_model()
 
 
 class TestViews(
-    CreateConfigTemplateMixin, TestAdminMixin, TestOrganizationMixin, TestCase
+    CreateConfigTemplateMixin,
+    CreateDeviceGroupMixin,
+    TestAdminMixin,
+    TestOrganizationMixin,
+    TestCase,
 ):
     """
     tests for config.views
@@ -241,7 +245,7 @@ def test_get_relevant_templates_400(self):
         )
         self.assertEqual(response.status_code, 404)
 
-    def get_template_default_values_authorization(self):
+    def test_get_default_values_authorization(self):
         org1 = self._get_org()
         org1_template = self._create_template(
             organization=org1, default_values={'org1': 'secret1'}
@@ -253,8 +257,11 @@ def get_template_default_values_authorization(self):
         shared_template = self._create_template(
             name='shared-template', default_values={'key': 'value'}
         )
+        org2_device_group = self._create_device_group(
+            organization=org2, context={'key': 'org2 device group'}
+        )
         url = (
-            reverse('admin:get_template_default_values')
+            reverse('admin:get_default_values')
             + f'?pks={org1_template.pk},{org2_template.pk},{shared_template.pk}'
         )
 
@@ -281,8 +288,9 @@ def get_template_default_values_authorization(self):
             org1_user.is_staff = True
             org1_user.save()
             self.client.force_login(org1_user)
+            response = self.client.get(url + f'&group={org2_device_group.pk}')
+            # Do not override default value from device group of another org
             expected_response = {'default_values': {'org1': 'secret1', 'key': 'value'}}
-            response = self.client.get(url)
             self.assertEqual(response.status_code, 200)
             self.assertJSONEqual(response.content, expected_response)
 
@@ -295,7 +303,7 @@ def get_template_default_values_authorization(self):
             self.assertEqual(response.status_code, 200)
             self.assertJSONEqual(response.content, expected_response)
 
-    def get_template_default_values_same_keys(self):
+    def test_get_default_values_same_keys(self):
         self._login()
         # Atleast 4 templates are required to create enough entropy in database
         # to make the test fail consistently without patch
@@ -312,7 +320,7 @@ def get_template_default_values_same_keys(self):
         template5 = self._create_template(
             name='VNI 5', default_values={'vn1': '5', 'vn2': '50', 'vn3': '500'}
         )
-        url = reverse('admin:get_template_default_values')
+        url = reverse('admin:get_default_values')
         templates = [template5, template4, template3, template2, template1]
         template_pks = ','.join([str(template.pk) for template in templates])
         response = self.client.get(url, {'pks': template_pks})
diff --git a/openwisp_controller/config/tests/utils.py b/openwisp_controller/config/tests/utils.py
index 581e049f0..d09b5cc33 100644
--- a/openwisp_controller/config/tests/utils.py
+++ b/openwisp_controller/config/tests/utils.py
@@ -233,7 +233,7 @@ def _create_device_group(self, **kwargs):
         options = {
             'name': 'Routers',
             'description': 'Group for all routers',
-            'meta_data': {},
+            'context': {},
         }
         options.update(kwargs)
         if 'organization' not in options:
diff --git a/openwisp_controller/config/views.py b/openwisp_controller/config/views.py
index e0cf25c11..a98cd8734 100644
--- a/openwisp_controller/config/views.py
+++ b/openwisp_controller/config/views.py
@@ -15,6 +15,7 @@
 
 Organization = load_model('openwisp_users', 'Organization')
 Template = load_model('config', 'Template')
+DeviceGroup = load_model('config', 'DeviceGroup')
 
 
 def get_relevant_templates(request, organization_id):
@@ -92,36 +93,73 @@ def schema(request):
     return HttpResponse(c, status=status, content_type='application/json')
 
 
-def get_template_default_values(request):
+def get_default_values(request):
     """
-    returns default_values for one or more templates
+    The view returns default values from the templates
+    and group specified in the URL's query parameters.
+
+    URL query parameters:
+        pks (required): Comma separated primary keys of Template
+        group (optional): Primary key of the DeviceGroup
+
+    The conflicting keys between the templates' default_values
+    and DeviceGroup's context are overridden by the value present
+    in DeviceGroup's context, i.e. DeviceGroup takes precedence.
+
+    NOTE: Not all key-value pair of DeviceGroup.context are added
+    in the response. Only the conflicting keys are altered.
     """
+
+    def _clean_pk(pks):
+        pk_list = []
+        for pk in pks:
+            UUID(pk, version=4)
+            pk_list.append(pk)
+        return pk_list
+
     user = request.user
-    pk_list = []
-    for pk in request.GET.get('pks', '').split(','):
+    try:
+        templates_pk_list = _clean_pk(request.GET.get('pks', '').split(','))
+    except ValueError:
+        return JsonResponse({'error': 'invalid template pks were received'}, status=400)
+    group_pk = request.GET.get('group', None)
+    if group_pk:
         try:
-            UUID(pk, version=4)
+            group_pk = _clean_pk([group_pk])[0]
         except ValueError:
-            return JsonResponse(
-                {'error': 'invalid template pks were received'}, status=400
-            )
+            return JsonResponse({'error': 'invalid group pk were received'}, status=400)
         else:
-            pk_list.append(pk)
-    where = Q(pk__in=pk_list)
+            group_where = Q(pk=group_pk)
+            if not request.user.is_superuser:
+                group_where &= Q(organization__in=user.organizations_managed)
+
+    templates_where = Q(pk__in=templates_pk_list)
     if not user.is_superuser:
-        where = where & (
+        templates_where = templates_where & (
             Q(organization=None) | Q(organization__in=user.organizations_managed)
         )
-    qs = Template.objects.filter(where).values('id', 'default_values')
-    qs_dict = {}
-    # Create a mapping of UUID to default values of the templates in qs_dict.
-    # Iterate over received pk_list and retrieve default_values for corresponding
-    # template from qs_dict.
+    templates_qs = Template.objects.filter(templates_where).values(
+        'id', 'default_values'
+    )
+    templates_qs_dict = {}
+    # Create a mapping of UUID to default values of the templates in templates_
+    # qs_dict. Iterate over received templates_pk_list and retrieve default_values for
+    # corresponding template from templates_qs_dict.
     # This ensures that default_values of templates that come later in the order
     # will override default_values of any previous template if same keys are present.
-    for template in qs:
-        qs_dict[str(template['id'])] = template['default_values']
+    for template in templates_qs:
+        templates_qs_dict[str(template['id'])] = template['default_values']
     default_values = {}
-    for pk in pk_list:
-        default_values.update(qs_dict[pk])
+    for pk in templates_pk_list:
+        default_values.update(templates_qs_dict.get(pk, {}))
+    # Check for conflicting key's in DeviceGroup.context
+    if group_pk:
+        try:
+            group = DeviceGroup.objects.only('context').get(group_where)
+        except DeviceGroup.DoesNotExist:
+            pass
+        else:
+            for key, value in group.get_context().items():
+                if key in default_values:
+                    default_values[key] = value
     return JsonResponse({'default_values': default_values})
diff --git a/tests/openwisp2/sample_config/migrations/0001_initial.py b/tests/openwisp2/sample_config/migrations/0001_initial.py
index 8bb0ea91d..77ca53f35 100644
--- a/tests/openwisp2/sample_config/migrations/0001_initial.py
+++ b/tests/openwisp2/sample_config/migrations/0001_initial.py
@@ -734,6 +734,26 @@ class Migration(migrations.Migration):
                         default=dict,
                         dump_kwargs={'ensure_ascii': False, 'indent': 4},
                         load_kwargs={'object_pairs_hook': collections.OrderedDict},
+                        help_text=(
+                            'Group meta data, use this field to store data which is'
+                            ' related to this group and can be retrieved via the'
+                            ' REST API.'
+                        ),
+                        verbose_name='Metadata',
+                    ),
+                ),
+                (
+                    'context',
+                    jsonfield.fields.JSONField(
+                        blank=True,
+                        default=dict,
+                        dump_kwargs={'ensure_ascii': False, 'indent': 4},
+                        help_text=(
+                            'This field can be used to add meta data for the group'
+                            ' or to add "Configuration Variables" to the devices.'
+                        ),
+                        load_kwargs={'object_pairs_hook': collections.OrderedDict},
+                        verbose_name='Configuration Variables',
                     ),
                 ),
                 (