Background: Self-managed learning groups are increasingly used in higher education. There is a need for more systematic investigation of university students' perceptions of the processes and outcomes of this learning method. Aims: This study aimed to identify the domains of process issues that students perceive as relevant to their participation in self-managed learning groups, and how these processes are perceived to influence group outcomes. Sample: Participants were undergraduate psychology students who were members of self-managed learning groups. Method: The first study employed qualitative methods (namely, students' written accounts, interviews, and observation) to study learning groups (N = 180 students) and identify the process domains. In the second study, first and second year students (N = 207) used a questionnaire (based on the domains identified in Study 1) to evaluate the processes and outcomes of their learning groups. Results: Analysis of qualitative data (Study 1) identified seven process domains: task focus, staff support, process learning, environmental fit, managing differences, equity and responsibility, and collaboration and cooperation. Factor analysis of students' responses (Study 2) identified an underlying structure of two process factors: personal responsibility and collaborative climate, and staff support and environmental fit. Both process factors were associated with the self-reported satisfaction and productivity of this group of students. Conclusions: University students' perceptions of the processes of self-managed learning groups have a clear structure. These process factors are associated with perceived group outcomes in systematic and theoretically consistent ways.