diff --git a/CHANGELOG.md b/CHANGELOG.md
index d22c6baa..b1f66b85 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,9 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [UNRELEASED] - YYYY-MM-DD
 
+### Added
+- [#528](https://github.com/equinor/webviz-config/pull/528) - Implemented `initiallyCollapsed` setting for groups in menu.
+
 ## [0.3.5] - 2021-10-08
 
 ### Changed
diff --git a/webviz_config/_config_parser.py b/webviz_config/_config_parser.py
index 56f2eb90..94bd0841 100644
--- a/webviz_config/_config_parser.py
+++ b/webviz_config/_config_parser.py
@@ -519,6 +519,19 @@ def _parse_navigation(self) -> None:
                         f"{terminal_colors.END}"
                     )
 
+                if "initially_collapsed" not in self.configuration["options"]["menu"]:
+                    self.configuration["options"]["menu"]["initially_collapsed"] = False
+                elif not isinstance(
+                    self.configuration["options"]["menu"]["initially_collapsed"], bool
+                ):
+                    raise ParserError(
+                        f"{terminal_colors.RED}{terminal_colors.BOLD}"
+                        "Invalid option for options > menu > initially_collapsed: "
+                        f"{self.configuration['options']['menu']['initially_collapsed']}. "
+                        "Please select a boolean value: True, False"
+                        f"{terminal_colors.END}"
+                    )
+
                 if "show_logo" not in self.configuration["options"]["menu"]:
                     self.configuration["options"]["menu"]["show_logo"] = True
                 elif not isinstance(
@@ -526,7 +539,7 @@ def _parse_navigation(self) -> None:
                 ):
                     raise ParserError(
                         f"{terminal_colors.RED}{terminal_colors.BOLD}"
-                        "Invalid option for options > menu > initially_pinned: "
+                        "Invalid option for options > menu > show_logo: "
                         f"{self.configuration['options']['menu']['show_logo']}. "
                         "Please select a boolean value: True, False"
                         f"{terminal_colors.END}"
@@ -540,5 +553,6 @@ def _parse_navigation(self) -> None:
                 "bar_position": "left",
                 "drawer_position": "left",
                 "initially_pinned": False,
+                "initially_collapsed": False,
                 "show_logo": True,
             }
diff --git a/webviz_config/_docs/_create_schema.py b/webviz_config/_docs/_create_schema.py
index 46c92a12..1a108dca 100644
--- a/webviz_config/_docs/_create_schema.py
+++ b/webviz_config/_docs/_create_schema.py
@@ -37,6 +37,10 @@
                         "description": "State if the menu shall be pinned when initially showing.",
                         "type": "boolean",
                     },
+                    "initially_collapsed": {
+                        "description": "State if all groups in menu shall initially be collapsed",
+                        "type": "boolean",
+                    },
                 },
                 "additionalProperties": False,
             },
diff --git a/webviz_config/templates/webviz_template.py.jinja2 b/webviz_config/templates/webviz_template.py.jinja2
index cf890991..84c146fc 100644
--- a/webviz_config/templates/webviz_template.py.jinja2
+++ b/webviz_config/templates/webviz_template.py.jinja2
@@ -138,6 +138,7 @@ else:
                         menuBarPosition="{{options.menu.bar_position}}",
                         menuDrawerPosition="{{options.menu.drawer_position}}",
                         initiallyPinned={{options.menu.initially_pinned}},
+                        initiallyCollapsed={{options.menu.initially_collapsed}},
                         navigationItems={{navigation_items}},
                     )
                 ]