diff --git a/e2e/profile.spec.ts b/e2e/profile.spec.ts
index 93d9248c..30231262 100644
--- a/e2e/profile.spec.ts
+++ b/e2e/profile.spec.ts
@@ -230,6 +230,37 @@ test('test that theme can be changed to dark and light', async ({ page }) => {
     await expect(page.getByText('System default:')).toBeVisible();
 });
 
+// =============================================
+// Group similar time entries
+// =============================================
+
+test('test that group similar time entries setting can be toggled', async ({ page }) => {
+    await goToProfilePage(page);
+
+    // Get the checkbox
+    const checkbox = page.getByLabel('Group similar time entries');
+
+    // Get initial value and verify it is checked (default is true)
+    const initialValue = await checkbox.isChecked();
+    await expect(checkbox).toBeChecked();
+
+    // Toggle the checkbox
+    await checkbox.click();
+
+    // Reload
+    await page.reload();
+
+    // Verify the value is toggled
+    const afterValue = await page.getByLabel('Group similar time entries').isChecked();
+    expect(afterValue).toBe(!initialValue);
+
+    // Verify localStorage persists the setting
+    const storedValue = await page.evaluate(() =>
+        localStorage.getItem('group-similar-time-entries')
+    );
+    expect(storedValue).toBe(String(!initialValue));
+});
+
 // =============================================
 // Two Factor Authentication Tests
 // =============================================
diff --git a/e2e/time.spec.ts b/e2e/time.spec.ts
index 9c311b03..dfd4ba4e 100644
--- a/e2e/time.spec.ts
+++ b/e2e/time.spec.ts
@@ -39,6 +39,10 @@ function getMonthFromTimestamp(timestamp: string): number {
     return new Date(timestamp).getUTCMonth() + 1;
 }
 
+async function goToProfilePage(page: Page) {
+    await page.goto(PLAYWRIGHT_BASE_URL + '/user/profile');
+}
+
 async function goToTimeOverview(page: Page) {
     await page.goto(PLAYWRIGHT_BASE_URL + '/time');
 }
@@ -67,6 +71,14 @@ async function createEmptyTimeEntry(page: Page) {
     ]);
 }
 
+async function setTimeEntriesGrouping(page: Page, enabled: boolean) {
+    await goToProfilePage(page);
+    const checkbox = page.getByLabel('Group similar time entries');
+    const isChecked = await checkbox.isChecked();
+    if (isChecked !== enabled) await checkbox.click();
+    await goToTimeOverview(page);
+}
+
 test('test that starting and stopping an empty time entry shows a new time entry in the overview', async ({
     page,
 }) => {
@@ -333,6 +345,30 @@ test.skip('test that load more works when the end of page is reached', async ({
     await expect(page.locator('body')).toHaveText(/All time entries are loaded!/);
 });
 
+test('test that Group similar time entries option is affected', async ({ page }) => {
+    // Enable grouping
+    await setTimeEntriesGrouping(page, true);
+
+    // Create 2 similar time entries
+    await createEmptyTimeEntry(page);
+    await page.waitForSelector('[data-testid="time_entry_row"]', { timeout: 1000 });
+    await createEmptyTimeEntry(page);
+
+    // Verify similar time entries are grouped
+    await expect(page.getByTestId('grouped_items_count_button').first()).toBeVisible({
+        timeout: 1000,
+    });
+
+    // Disable grouping
+    await setTimeEntriesGrouping(page, false);
+
+    // Verify similar time entries are not grouped
+    await expect(page.locator('[data-testid="time_entry_row"]')).toHaveCount(2, { timeout: 1000 });
+    await expect(page.locator('[data-testid="grouped_items_count_button"]')).toHaveCount(0, {
+        timeout: 1000,
+    });
+});
+
 // TODO: Test that updating the time entry start / end times works while it is running
 
 // TODO: Test for project update
diff --git a/resources/js/Pages/Profile/Partials/ThemeForm.vue b/resources/js/Pages/Profile/Partials/ThemeForm.vue
index 69de1786..022a1d70 100644
--- a/resources/js/Pages/Profile/Partials/ThemeForm.vue
+++ b/resources/js/Pages/Profile/Partials/ThemeForm.vue
@@ -2,8 +2,10 @@
 import FormSection from '@/Components/FormSection.vue';
 import { Field, FieldLabel, FieldDescription } from '@/packages/ui/src/field';
 import { Select, SelectContent, SelectItem, SelectTrigger, SelectValue } from '@/packages/ui/src';
+import { Checkbox } from '@/packages/ui/src';
 import { usePreferredColorScheme } from '@vueuse/core';
 import { themeSetting } from '@/utils/theme';
+import { groupSimilarTimeEntriesSetting } from '@/utils/timeEntryGrouping';
 
 const preferredColor = usePreferredColorScheme();
 </script>
@@ -15,6 +17,7 @@ const preferredColor = usePreferredColorScheme();
         <template #description> Choose how you want solidtime to look on your device </template>
 
         <template #form>
+            <!-- Theme -->
             <Field class="col-span-6 sm:col-span-4">
                 <FieldLabel for="theme">Theme</FieldLabel>
                 <Select id="theme" v-model="themeSetting">
@@ -31,6 +34,14 @@ const preferredColor = usePreferredColorScheme();
                     System default: {{ preferredColor }}
                 </FieldDescription>
             </Field>
+
+            <!-- Group similar time entries -->
+            <Field class="col-span-6 sm:col-span-4" orientation="horizontal">
+                <Checkbox
+                    id="group_similar_time_entries"
+                    v-model:checked="groupSimilarTimeEntriesSetting" />
+                <FieldLabel for="group_similar_time_entries">Group similar time entries</FieldLabel>
+            </Field>
         </template>
     </FormSection>
 </template>
diff --git a/resources/js/Pages/Time.vue b/resources/js/Pages/Time.vue
index 7d772682..ebc210e9 100644
--- a/resources/js/Pages/Time.vue
+++ b/resources/js/Pages/Time.vue
@@ -16,6 +16,7 @@ import { useElementVisibility } from '@vueuse/core';
 import { ClockIcon } from '@heroicons/vue/20/solid';
 import LoadingSpinner from '@/packages/ui/src/LoadingSpinner.vue';
 import { useCurrentTimeEntryStore } from '@/utils/useCurrentTimeEntry';
+import { groupSimilarTimeEntriesSetting } from '@/utils/timeEntryGrouping';
 import { useTasksQuery } from '@/utils/useTasksQuery';
 import { useProjectsQuery } from '@/utils/useProjectsQuery';
 import TimeEntryGroupedTable from '@/packages/ui/src/TimeEntry/TimeEntryGroupedTable.vue';
@@ -151,6 +152,7 @@ function deleteSelected() {
             :tasks="tasks"
             :currency="getOrganizationCurrencyString()"
             :time-entries="timeEntries"
+            :group-similar-time-entries="groupSimilarTimeEntriesSetting"
             :tags="tags"></TimeEntryGroupedTable>
         <div v-if="isPending" class="flex justify-center items-center py-12">
             <LoadingSpinner></LoadingSpinner>
diff --git a/resources/js/packages/ui/src/GroupedItemsCountButton.vue b/resources/js/packages/ui/src/GroupedItemsCountButton.vue
index 23a1d965..c9a8a1f1 100644
--- a/resources/js/packages/ui/src/GroupedItemsCountButton.vue
+++ b/resources/js/packages/ui/src/GroupedItemsCountButton.vue
@@ -6,10 +6,15 @@ const props = withDefaults(
     defineProps<{
         expanded?: boolean;
         size?: string;
+        /**
+         * Test ID used for Playwright/E2E tests.
+         */
+        testId?: string;
     }>(),
     {
         expanded: false,
         size: 'w-7 h-7',
+        testId: 'grouped_items_count_button',
     }
 );
 
@@ -23,6 +28,7 @@ const expandedStatusClasses = computed(() => {
 
 <template>
     <button
+        :data-testid="props.testId"
         :class="
             twMerge(
                 'font-medium text-base rounded flex items-center transition justify-center focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-ring focus-visible:border-transparent',
diff --git a/resources/js/packages/ui/src/TimeEntry/TimeEntryGroupedTable.vue b/resources/js/packages/ui/src/TimeEntry/TimeEntryGroupedTable.vue
index e19fdbf8..93133a6c 100644
--- a/resources/js/packages/ui/src/TimeEntry/TimeEntryGroupedTable.vue
+++ b/resources/js/packages/ui/src/TimeEntry/TimeEntryGroupedTable.vue
@@ -37,6 +37,7 @@ const props = defineProps<{
     organizationBillableRate: number | null;
     enableEstimatedTime: boolean;
     canCreateProject: boolean;
+    groupSimilarTimeEntries: boolean;
 }>();
 
 const groupedTimeEntries = computed(() => {
@@ -58,6 +59,11 @@ const groupedTimeEntries = computed(() => {
         const newDailyEntries: TimeEntriesGroupedByType[] = [];
 
         for (const entry of dailyEntries) {
+            if (!props.groupSimilarTimeEntries) {
+                newDailyEntries.push({ ...entry, timeEntries: [entry] });
+                continue;
+            }
+
             // check if same entry already exists
             const oldEntriesIndex = newDailyEntries.findIndex(
                 (e) =>
diff --git a/resources/js/utils/timeEntryGrouping.ts b/resources/js/utils/timeEntryGrouping.ts
new file mode 100644
index 00000000..34957d38
--- /dev/null
+++ b/resources/js/utils/timeEntryGrouping.ts
@@ -0,0 +1,6 @@
+import { useStorage } from '@vueuse/core';
+
+export const groupSimilarTimeEntriesSetting = useStorage<boolean>(
+    'group-similar-time-entries',
+    true
+);