diff --git a/ROADMAP.md b/ROADMAP.md
index adb624cc..8ea37c42 100644
--- a/ROADMAP.md
+++ b/ROADMAP.md
@@ -54,7 +54,7 @@
   * [x] Automatic portal creation
     * [x] At startup
     * [x] When receiving invite or message
-  * [x] Private chat creation by inviting Matrix puppet of Telegram user to new room
+  * [x] Portal creation by inviting Matrix puppet of Telegram user to new room
   * [x] Option to use bot to relay messages for unauthenticated Matrix users (relaybot)
   * [x] Option to use own Matrix account for messages sent from other Telegram clients (double puppeting)
   * [ ] ‡ Calls (hard, not yet supported by Telethon)
diff --git a/mautrix_telegram/commands/portal/create_chat.py b/mautrix_telegram/commands/portal/create_chat.py
index f17e422b..512bd409 100644
--- a/mautrix_telegram/commands/portal/create_chat.py
+++ b/mautrix_telegram/commands/portal/create_chat.py
@@ -81,4 +81,3 @@ async def create(evt: CommandEvent) -> EventID:
     except ValueError as e:
         await portal.delete()
         return await evt.reply(e.args[0])
-    return await evt.reply(f"Telegram chat created. ID: {portal.tgid}")
diff --git a/mautrix_telegram/config.py b/mautrix_telegram/config.py
index 71772b80..861569af 100644
--- a/mautrix_telegram/config.py
+++ b/mautrix_telegram/config.py
@@ -130,6 +130,7 @@ class Config(BaseBridgeConfig):
         copy("bridge.sync_direct_chat_list")
         copy("bridge.double_puppet_server_map")
         copy("bridge.double_puppet_allow_discovery")
+        copy("bridge.create_group_on_invite")
         if "bridge.login_shared_secret" in self:
             base["bridge.login_shared_secret_map"] = {
                 base["homeserver.domain"]: self["bridge.login_shared_secret"]
diff --git a/mautrix_telegram/example-config.yaml b/mautrix_telegram/example-config.yaml
index c78f2066..49448cab 100644
--- a/mautrix_telegram/example-config.yaml
+++ b/mautrix_telegram/example-config.yaml
@@ -312,6 +312,9 @@ bridge:
     kick_on_logout: true
     # Should the "* user joined Telegram" notice always be marked as read automatically?
     always_read_joined_telegram_notice: true
+    # auto-create group chat portals by inviting Matrix puppet of Telegram user to a room
+    # requires double-puppeting to be enabled
+    create_group_on_invite: true
     # Settings for backfilling messages from Telegram.
     backfill:
         # Whether or not the Telegram ghosts of logged in Matrix users should be
diff --git a/mautrix_telegram/matrix.py b/mautrix_telegram/matrix.py
index 8db3a31c..b1eceacd 100644
--- a/mautrix_telegram/matrix.py
+++ b/mautrix_telegram/matrix.py
@@ -42,6 +42,8 @@ from mautrix.types import (
 )
 
 from . import commands as com, portal as po, puppet as pu, user as u
+from .commands.portal.util import get_initial_state, user_has_power_level, warn_missing_power
+from .types import TelegramID
 
 if TYPE_CHECKING:
     from .__main__ import TelegramBridge
@@ -69,16 +71,78 @@ class MatrixHandler(BaseMatrixHandler):
         evt: StateEvent,
         members: list[UserID],
     ) -> None:
-        if self.az.bot_mxid not in members:
+        if not invited_by.is_logged_in:
             await puppet.default_mxid_intent.leave_room(
-                room_id, reason="This ghost does not join multi-user rooms without the bridge bot."
+                room_id, reason="You are not logged into this Telegram bridge"
             )
-        else:
-            await puppet.default_mxid_intent.send_notice(
+            return
+        double_puppet = await pu.Puppet.get_by_custom_mxid(invited_by.mxid)
+        if not double_puppet or self.az.bot_mxid in members:
+            if self.az.bot_mxid not in members:
+                await puppet.default_mxid_intent.leave_room(
+                    room_id,
+                    reason="This ghost does not join multi-user rooms without the bridge bot.",
+                )
+            else:
+                await puppet.default_mxid_intent.send_notice(
+                    room_id,
+                    "This ghost will remain inactive until a Telegram chat is created for this room.",
+                )
+            return
+
+        elif not await user_has_power_level(
+            evt.room_id, double_puppet.intent, invited_by, "bridge"
+        ):
+            await puppet.default_mxid_intent.leave_room(
+                room_id, reason="You do not have the permissions to bridge this room."
+            )
+            return
+        elif not self.config["bridge.create_group_on_invite"]:
+            return
+
+        await double_puppet.intent.invite_user(room_id, self.az.bot_mxid)
+
+        title, about, levels, encrypted = await get_initial_state(double_puppet.intent, room_id)
+        if not title:
+            await puppet.default_mxid_intent.leave_room(
+                room_id, reason="Please set a title before inviting Telegram puppets."
+            )
+            return
+
+        portal = po.Portal(
+            tgid=TelegramID(0),
+            tg_receiver=TelegramID(0),
+            peer_type="channel",
+            mxid=evt.room_id,
+            title=title,
+            about=about,
+            encrypted=encrypted,
+        )
+        await portal.az.intent.ensure_joined(room_id)
+        levels = await portal.az.intent.get_power_levels(room_id)
+        invited_by_level = levels.get_user_level(invited_by.mxid)
+        if invited_by_level > levels.get_user_level(self.az.bot_mxid):
+            levels.users[self.az.bot_mxid] = 100 if invited_by_level >= 100 else invited_by_level
+            await double_puppet.intent.set_power_levels(room_id, levels)
+
+        invites, errors = await portal.get_telegram_users_in_matrix_room(
+            invited_by, pre_create=True
+        )
+        if len(errors) > 0:
+            error_list = "\n".join(f"* [{mxid}](https://matrix.to/#/{mxid})" for mxid in errors)
+            await portal.az.intent.send_notice(
                 room_id,
-                "This ghost will remain inactive until a Telegram chat is created for this room.",
+                f"Failed to add the following users to the chat:\n\n{error_list}\n\n"
+                "You can try `$cmdprefix+sp search -r <username>` to help the bridge find "
+                "those users.",
             )
 
+        try:
+            await portal.create_telegram_chat(invited_by, invites=invites, supergroup=True)
+        except ValueError as e:
+            await portal.delete()
+            return await portal.az.intent.send_notice(room_id, e.args[0])
+
     async def handle_invite(
         self, room_id: RoomID, user_id: UserID, inviter: u.User, event_id: EventID
     ) -> None:
diff --git a/mautrix_telegram/portal.py b/mautrix_telegram/portal.py
index d4e1da9b..d554fbb7 100644
--- a/mautrix_telegram/portal.py
+++ b/mautrix_telegram/portal.py
@@ -567,6 +567,7 @@ class Portal(DBPortal, BasePortal):
             await self.main_intent.set_power_levels(self.mxid, levels)
         await self.handle_matrix_power_levels(source, levels.users, {}, None)
         await self.update_bridge_info()
+        await self.main_intent.send_notice(self.mxid, f"Telegram chat created. ID: {self.tgid}")
 
     async def handle_matrix_invite(
         self, invited_by: u.User, puppet: p.Puppet | au.AbstractUser
diff --git a/mautrix_telegram/portal_util/power_levels.py b/mautrix_telegram/portal_util/power_levels.py
index b1a497b8..be2f44de 100644
--- a/mautrix_telegram/portal_util/power_levels.py
+++ b/mautrix_telegram/portal_util/power_levels.py
@@ -85,7 +85,11 @@ def get_base_power_levels(
         )
     for evt_type, value in overrides.get("events", {}).items():
         levels.events[EventType.find(evt_type)] = value
-    levels.users = overrides.get("users", {})
+    userlevel_overrides = overrides.get("users", {})
+    bot_level = levels.get_user_level(portal.main_intent.mxid)
+    for user, user_level in levels.users.items():
+        if user_level < bot_level:
+            levels.users[user] = userlevel_overrides.get(user, 0)
     if portal.main_intent.mxid not in levels.users:
         levels.users[portal.main_intent.mxid] = 100
     return levels