diff --git a/packages/@aws-cdk/aws-iam/lib/policy-statement.ts b/packages/@aws-cdk/aws-iam/lib/policy-statement.ts
index fd89301cb766c..ce817a58e508e 100644
--- a/packages/@aws-cdk/aws-iam/lib/policy-statement.ts
+++ b/packages/@aws-cdk/aws-iam/lib/policy-statement.ts
@@ -1,4 +1,5 @@
 import * as cdk from '@aws-cdk/core';
+import { Group } from './group';
 import {
   AccountPrincipal, AccountRootPrincipal, Anyone, ArnPrincipal, CanonicalUserPrincipal,
   FederatedPrincipal, IPrincipal, PrincipalBase, PrincipalPolicyFragment, ServicePrincipal, ServicePrincipalOpts,
@@ -138,6 +139,7 @@ export class PolicyStatement {
       throw new Error('Cannot add \'Principals\' to policy statement if \'NotPrincipals\' have been added');
     }
     for (const principal of principals) {
+      this.validatePolicyPrincipal(principal);
       const fragment = principal.policyFragment;
       mergePrincipal(this.principal, fragment.principalJson);
       this.addPrincipalConditions(fragment.conditions);
@@ -157,12 +159,19 @@ export class PolicyStatement {
       throw new Error('Cannot add \'NotPrincipals\' to policy statement if \'Principals\' have been added');
     }
     for (const notPrincipal of notPrincipals) {
+      this.validatePolicyPrincipal(notPrincipal);
       const fragment = notPrincipal.policyFragment;
       mergePrincipal(this.notPrincipal, fragment.principalJson);
       this.addPrincipalConditions(fragment.conditions);
     }
   }
 
+  private validatePolicyPrincipal(principal: IPrincipal) {
+    if (principal instanceof Group) {
+      throw new Error('Cannot use an IAM Group as the \'Principal\' or \'NotPrincipal\' in an IAM Policy');
+    }
+  }
+
   /**
    * Specify AWS account ID as the principal entity to the "Principal" section of a policy statement.
    */
diff --git a/packages/@aws-cdk/aws-iam/test/policy-statement.test.ts b/packages/@aws-cdk/aws-iam/test/policy-statement.test.ts
index 5f08f45e814a1..089fa34dba74e 100644
--- a/packages/@aws-cdk/aws-iam/test/policy-statement.test.ts
+++ b/packages/@aws-cdk/aws-iam/test/policy-statement.test.ts
@@ -1,6 +1,6 @@
 import '@aws-cdk/assert/jest';
 import { Stack } from '@aws-cdk/core';
-import { AnyPrincipal, PolicyDocument, PolicyStatement } from '../lib';
+import { AnyPrincipal, Group, PolicyDocument, PolicyStatement } from '../lib';
 
 describe('IAM policy statement', () => {
 
@@ -180,4 +180,14 @@ describe('IAM policy statement', () => {
     });
   });
 
+  test('throws error when group is specified for \'Principal\' or \'NotPrincipal\'', () => {
+    const stack = new Stack();
+    const group = new Group(stack, 'groupId');
+    const policyStatement = new PolicyStatement();
+
+    expect(() => policyStatement.addPrincipals(group))
+      .toThrow(/Cannot use an IAM Group as the 'Principal' or 'NotPrincipal' in an IAM Policy/);
+    expect(() => policyStatement.addNotPrincipals(group))
+      .toThrow(/Cannot use an IAM Group as the 'Principal' or 'NotPrincipal' in an IAM Policy/);
+  });
 });