diff --git a/docs/pages/api/avatar-group.md b/docs/pages/api/avatar-group.md
index 1d6e752f384e45..393a0e92dbd03a 100644
--- a/docs/pages/api/avatar-group.md
+++ b/docs/pages/api/avatar-group.md
@@ -26,6 +26,7 @@ You can learn more about the difference by [reading this guide](/guides/minimizi
 |:-----|:-----|:--------|:------------|
 | <span class="prop-name">children</span> | <span class="prop-type">node</span> |  | The avatars to stack. |
 | <span class="prop-name">classes</span> | <span class="prop-type">object</span> |  | Override or extend the styles applied to the component. See [CSS API](#css) below for more details. |
+| <span class="prop-name">spacing</span> | <span class="prop-type">'medium'<br>&#124;&nbsp;'small'<br>&#124;&nbsp;number</span> | <span class="prop-default">'medium'</span> | Spacing between avatars. |
 
 The `ref` is forwarded to the root element.
 
diff --git a/packages/material-ui-lab/src/AvatarGroup/AvatarGroup.d.ts b/packages/material-ui-lab/src/AvatarGroup/AvatarGroup.d.ts
index 2d2e7065d971e1..1a0403bf6a7fa5 100644
--- a/packages/material-ui-lab/src/AvatarGroup/AvatarGroup.d.ts
+++ b/packages/material-ui-lab/src/AvatarGroup/AvatarGroup.d.ts
@@ -7,8 +7,12 @@ export interface AvatarGroupProps
    * The avatars to stack.
    */
   children: React.ReactNode;
+  /**
+   * Spacing between avatars.
+   */
+  spacing?: 'small' | 'medium' | number;
 }
 
 export type AvatarGroupClassKey = 'root' | 'avatar';
 
-export default function AvatarGroup(props: AvatarGroupProps): JSX.Element | null;
+export default function AvatarGroup(props: AvatarGroupProps): JSX.Element;
diff --git a/packages/material-ui-lab/src/AvatarGroup/AvatarGroup.js b/packages/material-ui-lab/src/AvatarGroup/AvatarGroup.js
index 016441e475b9ed..f598c40fb82653 100644
--- a/packages/material-ui-lab/src/AvatarGroup/AvatarGroup.js
+++ b/packages/material-ui-lab/src/AvatarGroup/AvatarGroup.js
@@ -4,6 +4,11 @@ import { isFragment } from 'react-is';
 import clsx from 'clsx';
 import { withStyles } from '@material-ui/core/styles';
 
+const SPACINGS = {
+  small: -16,
+  medium: null,
+};
+
 export const styles = theme => ({
   /* Styles applied to the root element. */
   root: {
@@ -17,7 +22,7 @@ export const styles = theme => ({
 });
 
 const AvatarGroup = React.forwardRef(function AvatarGroup(props, ref) {
-  const { children: childrenProp, classes, className, ...other } = props;
+  const { children: childrenProp, classes, className, spacing = 'medium', ...other } = props;
 
   const children = React.Children.toArray(childrenProp).filter(child => {
     if (process.env.NODE_ENV !== 'production') {
@@ -41,6 +46,7 @@ const AvatarGroup = React.forwardRef(function AvatarGroup(props, ref) {
           className: clsx(child.props.className, classes.avatar),
           style: {
             zIndex: children.length - index,
+            marginLeft: spacing && SPACINGS[spacing] !== undefined ? SPACINGS[spacing] : -spacing,
             ...child.props.style,
           },
         });
@@ -67,6 +73,10 @@ AvatarGroup.propTypes = {
    * @ignore
    */
   className: PropTypes.string,
+  /**
+   * Spacing between avatars.
+   */
+  spacing: PropTypes.oneOfType([PropTypes.oneOf(['medium', 'small']), PropTypes.number]),
 };
 
 export default withStyles(styles, { name: 'MuiAvatarGroup' })(AvatarGroup);