diff --git a/src/app/(app)/course/[courseId]/setup/(hooks)/useSetupSteps.tsx b/src/app/(app)/course/[courseId]/setup/(hooks)/useSetupSteps.tsx
index d930d12..26d5f89 100644
--- a/src/app/(app)/course/[courseId]/setup/(hooks)/useSetupSteps.tsx
+++ b/src/app/(app)/course/[courseId]/setup/(hooks)/useSetupSteps.tsx
@@ -9,6 +9,7 @@ import { useImportStudentsFromLms } from "@/hooks/use-import-students-from-lms"
 import { useImportStudentGradebookData } from "@/hooks/use-import-student-gradebook-data"
 import { GenerateOptInQuiz } from "@/app/(app)/course/[courseId]/setup/(components)/GenerateOptInQuiz"
 import { useOnboardingProgress } from "@/hooks/use-onboarding-progress"
+import { useGenerateTeams } from "@/hooks/use-generate-teams"
 
 interface UseSetupStepsReturnType {
   steps: NonEmptyArray<StepDefinition>;
@@ -21,12 +22,13 @@ export const useSetupSteps = (): UseSetupStepsReturnType => {
 
   const { importStudentsFromLmsAsync } = useImportStudentsFromLms()
   const { importStudentGradebookData } = useImportStudentGradebookData()
-
-  // todo: generate teams mutation
+  const { generateTeamsAsync } = useGenerateTeams()
 
   if (!data || isLoading) {
     return {
-      steps: ORDERED_STEPS.map((step) => BASE_STEPS[step]) as NonEmptyArray<StepDefinition>,
+      steps: ORDERED_STEPS.map(
+        (step) => BASE_STEPS[step],
+      ) as NonEmptyArray<StepDefinition>,
       isLoading,
       onboardingProgress: data,
     }
@@ -41,6 +43,10 @@ export const useSetupSteps = (): UseSetupStepsReturnType => {
       content: "Import gradebook data",
       onClick: () => importStudentGradebookData(undefined),
     },
+    GENERATE_TEAMS: {
+      content: "Generate teams",
+      onClick: () => generateTeamsAsync(undefined),
+    },
   }
 
   const currentStep = getCurrentStep(data)
diff --git a/src/hooks/use-generate-teams.ts b/src/hooks/use-generate-teams.ts
new file mode 100644
index 0000000..fc433b4
--- /dev/null
+++ b/src/hooks/use-generate-teams.ts
@@ -0,0 +1,36 @@
+import { useToast } from "@/hooks/use-toast"
+import { useCourse } from "@/app/(app)/course/[courseId]/(hooks)/useCourse"
+import { useMutation } from "@tanstack/react-query"
+import { defaultMutationFn } from "@/app/(providers)/query-client-provider"
+
+export const useGenerateTeams = () => {
+  const { toast } = useToast()
+  const { courseId } = useCourse()
+  const mutation = useMutation<void, any, void>({
+    mutationFn: async () => {
+      return defaultMutationFn(
+        `courses/${courseId}/generate_teams/`,
+        undefined,
+        { allowEmptyResponse: true },
+      )
+    },
+    onSuccess: () => {
+      toast({
+        title: "Teams generated successfully",
+      })
+    },
+    onError: () => {
+      toast({
+        variant: "destructive",
+        title: "Unable to generate teams",
+        description:
+          "Something went wrong while generating teams. Please try again later.",
+      })
+    },
+  })
+
+  return {
+    generateTeamsAsync: mutation.mutateAsync,
+    ...mutation,
+  }
+}
diff --git a/src/hooks/use-import-student-gradebook-data.ts b/src/hooks/use-import-student-gradebook-data.ts
index b560678..f247922 100644
--- a/src/hooks/use-import-student-gradebook-data.ts
+++ b/src/hooks/use-import-student-gradebook-data.ts
@@ -6,7 +6,7 @@ import { defaultMutationFn } from "@/app/(providers)/query-client-provider"
 export const useImportStudentGradebookData = () => {
   const { toast } = useToast()
   const { courseId } = useCourse()
-  const mutation = useMutation<undefined, unknown, undefined>({
+  const mutation = useMutation<void, unknown, void>({
     mutationFn: async () => {
       return defaultMutationFn(
         `courses/${courseId}/import_gradebook_attribute_from_lms/`,
diff --git a/src/hooks/use-import-students-from-lms.ts b/src/hooks/use-import-students-from-lms.ts
index 2f7c975..5bbe83c 100644
--- a/src/hooks/use-import-students-from-lms.ts
+++ b/src/hooks/use-import-students-from-lms.ts
@@ -6,7 +6,7 @@ import { defaultMutationFn } from "@/app/(providers)/query-client-provider"
 export const useImportStudentsFromLms = () => {
   const { toast } = useToast()
   const { courseId } = useCourse()
-  const mutation = useMutation<undefined, unknown, undefined>({
+  const mutation = useMutation<void, unknown, void>({
     mutationFn: async () => {
       return defaultMutationFn(`courses/${courseId}/import_students_from_lms/`, undefined, {allowEmptyResponse: true})
     },