diff --git a/src/uu/useradd/src/useradd.rs b/src/uu/useradd/src/useradd.rs
index af76918..5432915 100644
--- a/src/uu/useradd/src/useradd.rs
+++ b/src/uu/useradd/src/useradd.rs
@@ -511,7 +511,9 @@ fn parse_options(matches: &clap::ArgMatches) -> Result<UseraddOptions, UseraddEr
     let explicit_no_user_group = matches.get_flag(options::NO_USER_GROUP);
     let create_user_group = if explicit_no_user_group {
         false
-    } else if explicit_user_group || gid.is_none() {
+    } else if explicit_user_group {
+        true
+    } else if gid.is_none() {
         // Default behavior: create user group when no -g specified.
         // USERGROUPS_ENAB in login.defs controls this default.
         let usergroups_enab = defs.get("USERGROUPS_ENAB").unwrap_or("yes");
@@ -1191,6 +1193,7 @@ pub fn uu_app() -> Command {
                 .short('U')
                 .long("user-group")
                 .action(ArgAction::SetTrue)
+                .conflicts_with(options::GID)
                 .help("Also create a matching user-private group (default)"),
         )
         .arg(
@@ -1403,6 +1406,15 @@ mod tests {
         assert!(result.is_err());
     }
 
+    #[test]
+    fn test_clap_user_group_conflicts_with_gid() {
+        let result = uu_app().try_get_matches_from(["useradd", "-U", "-g", "100", "user"]);
+        assert_eq!(
+            result.unwrap_err().kind(),
+            clap::error::ErrorKind::ArgumentConflict
+        );
+    }
+
     #[test]
     fn test_clap_non_unique_requires_uid() {
         let result = uu_app().try_get_matches_from(["useradd", "-o", "user"]);
diff --git a/tests/by-util/test_useradd.rs b/tests/by-util/test_useradd.rs
index 2888165..ad7f896 100644
--- a/tests/by-util/test_useradd.rs
+++ b/tests/by-util/test_useradd.rs
@@ -510,6 +510,28 @@ fn test_create_user_with_key_long_option() {
     );
 }
 
+#[test]
+fn test_user_group_flag_wins_over_usergroups_enab_no() {
+    if crate::common::skip_unless_root() {
+        return;
+    }
+
+    let dir = setup_root_dir();
+    let defs = dir.path().join("etc/login.defs");
+    let content = std::fs::read_to_string(&defs).expect("read login.defs");
+    std::fs::write(
+        &defs,
+        content.replace("USERGROUPS_ENAB yes", "USERGROUPS_ENAB no"),
+    )
+    .expect("write login.defs");
+
+    // USERGROUPS_ENAB only sets the default; -U asks for the group explicitly
+    assert_eq!(run_with_root(&dir, &["-U", "ugu"]), 0);
+    let group = read_group(&dir);
+    assert!(group.contains("ugu:x:1000:"), "got: {group}");
+    assert!(read_passwd(&dir).contains("ugu:x:1000:1000:"));
+}
+
 #[test]
 fn test_create_system_user_with_key_sys_uid_range() {
     if crate::common::skip_unless_root() {