Azure Resource Groups act as containers that hold related resources like VMs, databases, and networks, simplifying organization and management. They make it easy to apply policies, permissions, and tags consistently across multiple assets. This logical grouping helps in automation, cost tracking, and access control. When a project ends, deleting the resource group removes all associated services, saving time and preventing orphaned resources. Proper resource group design enhances clarity in multi-team environments and aligns with governance best practices. For large enterprises, resource groups serve as the backbone of efficient, secure, and organized Azure infrastructure management.