diff --git a/packages/js/product-editor/changelog/update-41965_reorder_grouped_products b/packages/js/product-editor/changelog/update-41965_reorder_grouped_products
new file mode 100644
index 00000000000..a9b93f27ac4
--- /dev/null
+++ b/packages/js/product-editor/changelog/update-41965_reorder_grouped_products
@@ -0,0 +1,4 @@
+Significance: minor
+Type: update
+
+Update products list field to add re-order option.
diff --git a/packages/js/product-editor/src/blocks/product-fields/product-list/edit.tsx b/packages/js/product-editor/src/blocks/product-fields/product-list/edit.tsx
index b6585cec9ca..1ee25a89aab 100644
--- a/packages/js/product-editor/src/blocks/product-fields/product-list/edit.tsx
+++ b/packages/js/product-editor/src/blocks/product-fields/product-list/edit.tsx
@@ -24,6 +24,7 @@ import classNames from 'classnames';
 import {
 	AddProductsModal,
 	getProductImageStyle,
+	ReorderProductsModal,
 } from '../../../components/add-products-modal';
 import { ProductEditorBlockEditProps } from '../../../types';
 import { Shirt, Pants, Glasses } from './images';
@@ -40,6 +41,8 @@ export function Edit( {
 	const { property } = attributes;
 	const blockProps = useWooBlockProps( attributes );
 	const [ openAddProductsModal, setOpenAddProductsModal ] = useState( false );
+	const [ openReorderProductsModal, setOpenReorderProductsModal ] =
+		useState( false );
 	const [ isLoading, setIsLoading ] = useState( false );
 	const [ preventFetch, setPreventFetch ] = useState( false );
 	const [ groupedProductIds, setGroupedProductIds ] = useEntityProp<
@@ -72,6 +75,10 @@ export function Edit( {
 		setOpenAddProductsModal( true );
 	}
 
+	function handleReorderProductsButtonClick() {
+		setOpenReorderProductsModal( true );
+	}
+
 	function handleAddProductsModalSubmit( value: Product[] ) {
 		const newGroupedProducts = [ ...groupedProducts, ...value ];
 		setPreventFetch( true );
@@ -82,10 +89,20 @@ export function Edit( {
 		setOpenAddProductsModal( false );
 	}
 
+	function handleReorderProductsModalSubmit( value: Product[] ) {
+		setGroupedProducts( value );
+		setGroupedProductIds( value.map( ( product ) => product.id ) );
+		setOpenReorderProductsModal( false );
+	}
+
 	function handleAddProductsModalClose() {
 		setOpenAddProductsModal( false );
 	}
 
+	function handleReorderProductsModalClose() {
+		setOpenReorderProductsModal( false );
+	}
+
 	function removeProductHandler( product: Product ) {
 		return function handleRemoveClick() {
 			const newGroupedProducts = groupedProducts.filter(
@@ -104,6 +121,14 @@ export function Edit( {
 	return (
 		<div { ...blockProps }>
 			<div className="wp-block-woocommerce-product-list-field__header">
+				{ ! isLoading && groupedProducts.length > 0 && (
+					<Button
+						onClick={ handleReorderProductsButtonClick }
+						variant="tertiary"
+					>
+						{ __( 'Reorder', 'woocommerce' ) }
+					</Button>
+				) }
 				<Button
 					onClick={ handleAddProductsButtonClick }
 					variant="secondary"
@@ -294,6 +319,13 @@ export function Edit( {
 					onClose={ handleAddProductsModalClose }
 				/>
 			) }
+			{ openReorderProductsModal && (
+				<ReorderProductsModal
+					products={ groupedProducts }
+					onSubmit={ handleReorderProductsModalSubmit }
+					onClose={ handleReorderProductsModalClose }
+				/>
+			) }
 		</div>
 	);
 }
diff --git a/packages/js/product-editor/src/blocks/product-fields/product-list/editor.scss b/packages/js/product-editor/src/blocks/product-fields/product-list/editor.scss
index 26bbbf38a54..d3b5e024890 100644
--- a/packages/js/product-editor/src/blocks/product-fields/product-list/editor.scss
+++ b/packages/js/product-editor/src/blocks/product-fields/product-list/editor.scss
@@ -7,6 +7,7 @@
 		display: flex;
 		align-items: center;
 		justify-content: end;
+		gap: $gap-smaller;
 	}
 
 	&__empty-state {
diff --git a/packages/js/product-editor/src/components/add-products-modal/add-products-modal.tsx b/packages/js/product-editor/src/components/add-products-modal/add-products-modal.tsx
index 1b9abae1557..6e4f9d68907 100644
--- a/packages/js/product-editor/src/components/add-products-modal/add-products-modal.tsx
+++ b/packages/js/product-editor/src/components/add-products-modal/add-products-modal.tsx
@@ -12,7 +12,7 @@ import {
 	useState,
 } from '@wordpress/element';
 import { __ } from '@wordpress/i18n';
-import { closeSmall, dragHandle } from '@wordpress/icons';
+import { closeSmall } from '@wordpress/icons';
 import {
 	__experimentalSelectControl as SelectControl,
 	__experimentalSelectControlMenu as Menu,
@@ -21,13 +21,11 @@ import {
 } from '@woocommerce/components';
 import { CurrencyContext } from '@woocommerce/currency';
 import { PRODUCTS_STORE_NAME, Product } from '@woocommerce/data';
-import classNames from 'classnames';
 
 /**
  * Internal dependencies
  */
 import { AddProductsModalProps } from './types';
-import { useDraggable } from '../../hooks/use-draggable';
 
 export function getProductImageStyle( product: Product ) {
 	return product.images.length > 0
@@ -103,10 +101,6 @@ export function AddProductsModal( {
 		};
 	}
 
-	const { container, draggable, handler } = useDraggable( {
-		onSort: setSelectedProducts,
-	} );
-
 	return (
 		<Modal
 			title={ __( 'Add products to this group', 'woocommerce' ) }
@@ -204,29 +198,12 @@ export function AddProductsModal( {
 					</div>
 
 					{ Boolean( selectedProducts.length ) && (
-						<ul
-							{ ...container }
-							className={ classNames(
-								'woocommerce-add-products-modal__list',
-								container.className
-							) }
-						>
+						<ul className="woocommerce-add-products-modal__list">
 							{ selectedProducts.map( ( item ) => (
 								<li
-									{ ...draggable }
 									key={ item.id }
 									className="woocommerce-add-products-modal__list-item"
 								>
-									<Button
-										{ ...handler }
-										icon={ dragHandle }
-										variant="tertiary"
-										type="button"
-										aria-label={ __(
-											'Sortable handler',
-											'woocommerce'
-										) }
-									/>
 									<div
 										className="woocommerce-add-products-modal__list-item-image"
 										style={ getProductImageStyle( item ) }
diff --git a/packages/js/product-editor/src/components/add-products-modal/index.ts b/packages/js/product-editor/src/components/add-products-modal/index.ts
index c571c701f0f..0670224e58c 100644
--- a/packages/js/product-editor/src/components/add-products-modal/index.ts
+++ b/packages/js/product-editor/src/components/add-products-modal/index.ts
@@ -1,2 +1,3 @@
 export * from './add-products-modal';
+export * from './reorder-products-modal';
 export * from './types';
diff --git a/packages/js/product-editor/src/components/add-products-modal/reorder-products-modal.tsx b/packages/js/product-editor/src/components/add-products-modal/reorder-products-modal.tsx
new file mode 100644
index 00000000000..54d694c4a7f
--- /dev/null
+++ b/packages/js/product-editor/src/components/add-products-modal/reorder-products-modal.tsx
@@ -0,0 +1,119 @@
+/**
+ * External dependencies
+ */
+import { FormEvent } from 'react';
+import { Button, Modal } from '@wordpress/components';
+import { createElement, useState } from '@wordpress/element';
+import { __ } from '@wordpress/i18n';
+import { dragHandle } from '@wordpress/icons';
+import { Product } from '@woocommerce/data';
+import classNames from 'classnames';
+
+/**
+ * Internal dependencies
+ */
+import { ReorderProductsModalProps } from './types';
+import { useDraggable } from '../../hooks/use-draggable';
+import { getProductImageStyle } from './add-products-modal';
+
+export function ReorderProductsModal( {
+	products,
+	onSubmit,
+	onClose,
+}: ReorderProductsModalProps ) {
+	const [ selectedProducts, setSelectedProducts ] = useState< Product[] >( [
+		...products,
+	] );
+
+	function handleSubmit( event: FormEvent< HTMLFormElement > ) {
+		event.preventDefault();
+
+		onSubmit( [ ...selectedProducts ] );
+	}
+
+	function handleCancelClick() {
+		onClose();
+	}
+
+	const { container, draggable, handler } = useDraggable( {
+		onSort: setSelectedProducts,
+	} );
+
+	return (
+		<Modal
+			title={ __( 'Reorder products in this group', 'woocommerce' ) }
+			className="woocommerce-reorder-products-modal"
+			onRequestClose={ onClose }
+		>
+			<form
+				noValidate
+				onSubmit={ handleSubmit }
+				className="woocommerce-add-products-modal__form"
+			>
+				<fieldset className="woocommerce-add-products-modal__form-group">
+					<legend className="woocommerce-add-products-modal__form-group-title">
+						{ __(
+							'Click and drag to reorder on the product page.',
+							'woocommerce'
+						) }
+					</legend>
+
+					{ Boolean( selectedProducts.length ) && (
+						<ul
+							{ ...container }
+							className={ classNames(
+								'woocommerce-add-products-modal__list',
+								container.className
+							) }
+						>
+							{ selectedProducts.map( ( item ) => (
+								<li
+									{ ...draggable }
+									key={ item.id }
+									className="woocommerce-add-products-modal__list-item"
+								>
+									<Button
+										{ ...handler }
+										icon={ dragHandle }
+										variant="tertiary"
+										type="button"
+										aria-label={ __(
+											'Sortable handler',
+											'woocommerce'
+										) }
+									/>
+									<div
+										className="woocommerce-add-products-modal__list-item-image"
+										style={ getProductImageStyle( item ) }
+									/>
+									<div className="woocommerce-add-products-modal__list-item-content">
+										<div className="woocommerce-add-products-modal__list-item-title">
+											{ item.name }
+										</div>
+
+										<div className="woocommerce-add-products-modal__list-item-description">
+											{ item.sku }
+										</div>
+									</div>
+								</li>
+							) ) }
+						</ul>
+					) }
+				</fieldset>
+
+				<div className="woocommerce-add-products-modal__actions">
+					<Button
+						variant="tertiary"
+						type="button"
+						onClick={ handleCancelClick }
+					>
+						{ __( 'Cancel', 'woocommerce' ) }
+					</Button>
+					<Button variant="primary" type="submit">
+						{ __( 'Done', 'woocommerce' ) }
+					</Button>
+				</div>
+			</form>
+		</Modal>
+	);
+}
diff --git a/packages/js/product-editor/src/components/add-products-modal/style.scss b/packages/js/product-editor/src/components/add-products-modal/style.scss
index fedf2960b61..d4f484044a9 100644
--- a/packages/js/product-editor/src/components/add-products-modal/style.scss
+++ b/packages/js/product-editor/src/components/add-products-modal/style.scss
@@ -1,4 +1,5 @@
-.woocommerce-add-products-modal {
+.woocommerce-add-products-modal,
+.woocommerce-reorder-products-modal {
 	@include breakpoint(">600px") {
 		width: calc(100% - 32px);
 	}
diff --git a/packages/js/product-editor/src/components/add-products-modal/types.ts b/packages/js/product-editor/src/components/add-products-modal/types.ts
index b06784c97d4..77bb8c25d1c 100644
--- a/packages/js/product-editor/src/components/add-products-modal/types.ts
+++ b/packages/js/product-editor/src/components/add-products-modal/types.ts
@@ -1,10 +1,16 @@
 /**
  * External dependencies
  */
-import { Product } from '@woocommerce/data';
+import type { Product } from '@woocommerce/data';
 
 export type AddProductsModalProps = {
 	initialValue: Product[];
 	onSubmit( value: Product[] ): void;
 	onClose(): void;
 };
+
+export type ReorderProductsModalProps = {
+	products: Product[];
+	onSubmit( value: Product[] ): void;
+	onClose(): void;
+};