A method for grouping backup images in deduplication groups is described. In one embodiment, the method includes identifying a new backup image, obtaining metadata from one or more nodes in the new backup image, and comparing the metadata from the one or more nodes in the new backup image with information from one or more nodes in a backup image from a first deduplication group. Each of the one or more nodes include at least in part a file or a directory. The first deduplication group is one group from a plurality of deduplication groups.