The present disclosure is directed to a system and method for providing dynamic grouping and regrouping for users in a joint positional tracking session. The method includes receiving positional data associated with a first user and at least one other user in the plurality of users in the joint positional tracking session. The method includes determining that a separation parameter associated with the first user has exceeded a threshold separation value, the separation parameter associated with the first user representing a distance between the first user and one other user in the plurality of users. The method includes automatically generating navigational data for reducing the separation parameter between the first user and one other user in the joint positional tracking session to below the threshold separation value. The method includes transmitting the navigational data to at least the first user in the joint positional tracking session.