diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7b71f7cda6..b614745898 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,8 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/) a
 
 ### Added
 
+- [#145](https://github.com/nf-core/sarek/pull/145) - Add `UMI annotation and consensus` functionality to Sarek
+
 ### Changed
 
 - [#237](https://github.com/nf-core/sarek/pull/237) - Switch `bwa 0.7.17` for `bwa-mem2 2.0`
diff --git a/conf/test_umi.config b/conf/test_umi.config
new file mode 100644
index 0000000000..a6f2a25100
--- /dev/null
+++ b/conf/test_umi.config
@@ -0,0 +1,6 @@
+process{
+  withName:UMIMapBamFile {
+    cpus = 2
+    memory = 8.GB
+  }
+}
diff --git a/docs/usage.md b/docs/usage.md
index 90461d1bfe..17509ab96c 100644
--- a/docs/usage.md
+++ b/docs/usage.md
@@ -37,6 +37,9 @@
   - [--cf_window](#--cf_window)
   - [--no_gvcf](#--no_gvcf)
   - [--no_strelka_bp](#--no_strelka_bp)
+  - [--umi](#--umi)
+  - [--read_structure1](#--read_structure1)
+  - [--read_structure2](#--read_structure2)
   - [--pon](#--pon)
   - [--pon_index](#--pon_index)
 - [Annotation](#annotation)
@@ -478,6 +481,21 @@ Path to CADD SNVs index.
 
 Enable genesplicer within VEP.
 
+### --umi
+
+If provided, UMIs steps will be run to extract and annotate the reads with UMIs and create consensus reads: this part of the pipeline uses *FGBIO* to convert the fastq files into a unmapped BAM, where reads are tagged with the UMIs extracted from the fastq sequences. In order to allow the correct tagging, the UMI sequence must be contained in the read sequence itself, and not in the FASTQ name.
+Following this step, the uBam is aligned and reads are then grouped based on mapping position and UMI tag.
+Finally, reads in the same groups are collapsed to create a consensus read. To create consensus, we have chosen to use the *adjacency method* [ref](https://cgatoxford.wordpress.com/2015/08/14/unique-molecular-identifiers-the-problem-the-solution-and-the-proof/).
+In order for the correct tagging to be performed, a read structure needs to be  specified as indicated below.
+
+### --read_structure1
+
+When processing UMIs, a read structure should always be provided for each of the fastq files, to allow the correct annotation of the bam file. If the read does not contain any UMI, the structure will be +T (i.e. only template of any length). The read structure follows a format adopted by different tools, and described [here](https://github.com/fulcrumgenomics/fgbio/wiki/Read-Structures)
+
+### --read_structure2
+
+When processing UMIs, a read structure should always be provided for each of the fastq files, to allow the correct annotation of the bam file. If the read does not contain any UMI, the structure will be +T (i.e. only template of any length). The read structure follows a format adopted by different tools, and described [here](https://github.com/fulcrumgenomics/fgbio/wiki/Read-Structures)
+
 ## Reference genomes
 
 The pipeline config files come bundled with paths to the Illumina iGenomes reference index files.
diff --git a/environment.yml b/environment.yml
index 7ff022f2ed..91e9bb2342 100644
--- a/environment.yml
+++ b/environment.yml
@@ -17,6 +17,7 @@ dependencies:
   - bioconda::control-freec=11.5
   - bioconda::ensembl-vep=99.2
   - bioconda::fastqc=0.11.9
+  - bioconda::fgbio=1.1.0
   - bioconda::freebayes=1.3.2
   - bioconda::gatk4-spark=4.1.7.0
   - bioconda::genesplicer=1.0
@@ -25,6 +26,7 @@ dependencies:
   - bioconda::msisensor=0.5
   - bioconda::multiqc=1.8
   - bioconda::qualimap=2.2.2d
+  - bioconda::samblaster=0.1.24
   - bioconda::samtools=1.9
   - bioconda::snpeff=4.3.1t
   - bioconda::strelka=2.9.10
@@ -34,3 +36,4 @@ dependencies:
   - bioconda::vcftools=0.1.16
   - conda-forge::pigz=2.3.4 
   - conda-forge::r-ggplot2=3.3.0
+  
\ No newline at end of file
diff --git a/main.nf b/main.nf
index fec7937b06..e1734495d4 100644
--- a/main.nf
+++ b/main.nf
@@ -97,6 +97,11 @@ def helpMessage() {
       --ignore_soft_clipped_bases [bool] Do not analyze soft clipped bases in the reads for GATK Mutect2
       --no_gvcf                [bool] No g.vcf output from GATK HaplotypeCaller
       --no_strelka_bp          [bool] Will not use Manta candidateSmallIndels for Strelka (not recommended by Best Practices)
+      --umi                    [bool] If provided, UMIs steps will be run to extract and annotate the reads with UMI and create consensus reads
+      --read_structure1      [string] When processing UMIs, a read structure should always be provided for each of the fastq files. If the read does not contain any UMI, the structure will be +T (i.e. only template of any length). 
+                                      See: https://github.com/fulcrumgenomics/fgbio/wiki/Read-Structures
+      --read_structure2      [string] When processing UMIs, a read structure should always be provided for each of the fastq files. If the read does not contain any UMI, the structure will be +T (i.e. only template of any length). 
+                                      See: https://github.com/fulcrumgenomics/fgbio/wiki/Read-Structures
       --pon                    [file] Panel-of-normals VCF (bgzipped) for GATK Mutect2 / Sentieon TNscope
                                       See: https://software.broadinstitute.org/gatk/documentation/tooldocs/current/org_broadinstitute_hellbender_tools_walkers_mutect_CreateSomaticPanelOfNormals.php
       --pon_index              [file] Index of pon panel-of-normals VCF
@@ -1068,7 +1073,10 @@ if (params.split_fastq){
 
 inputPairReads = inputPairReads.dump(tag:'INPUT')
 
-(inputPairReads, inputPairReadsTrimGalore, inputPairReadsFastQC) = inputPairReads.into(3)
+(inputPairReads, inputPairReadsTrimGalore, inputPairReadsFastQC, inputPairReadsUMI) = inputPairReads.into(4)
+if(params.umi) inputPairReads.close()
+else inputPairReadsUMI.close()
+
 
 // STEP 0.5: QC ON READS
 
@@ -1178,18 +1186,161 @@ process TrimGalore {
     """
 }
 
-if (!params.trim_fastq) inputPairReadsTrimGalore.close()
+/*
+================================================================================
+                            UMIs PROCESSING
+================================================================================
+*/
+
+// UMI - STEP 1 - ANNOTATE
+// the process needs to convert fastq to unmapped bam
+// and while doing the conversion, tag the bam field RX with the UMI sequence
+
+process UMIFastqToBAM {
+
+  publishDir "${params.outdir}/Reports/${idSample}/UMI/${idSample}_${idRun}", mode: params.publishDirMode
+
+  input:
+  set idPatient, idSample, idRun, file("${idSample}_${idRun}_R1.fastq.gz"), file("${idSample}_${idRun}_R2.fastq.gz") from inputPairReadsUMI
+
+  output:
+  tuple val(idPatient), val(idSample), val(idRun), file("${idSample}_umi_converted.bam") into umi_converted_bams_ch
+
+  when: params.umi && params.read_structure1 && params.read_structure2
+
+
+  // tmp folder for fgbio might be solved more elengantly?
+
+  script:
+  """
+  mkdir tmpFolder
+
+  fgbio --tmp-dir=${PWD}/tmpFolder \
+  FastqToBam \
+  -i "${idSample}_${idRun}_R1.fastq.gz" "${idSample}_${idRun}_R2.fastq.gz" \
+  -o "${idSample}_umi_converted.bam" \
+  --read-structures $params.read_structure1 $params.read_structure2 \
+  --sample $idSample \
+  --library $idSample
+  """
+
+}
+
+// UMI - STEP 2 - MAP THE BAM FILE
+// this is necessary because the UMI groups are created based on
+// mapping position + same UMI tag
+
+process UMIMapBamFile {
+
+  input:
+  set idPatient, idSample, idRun, file(convertedBam) from umi_converted_bams_ch
+  file(bwaIndex) from ch_bwa
+  file(fasta) from ch_fasta
+  file(fastaFai) from ch_fai
+
+  output:
+  tuple val(idPatient), val(idSample), val(idRun), file("${idSample}_umi_unsorted.bam") into umi_aligned_bams_ch
+
+  when: params.umi && params.read_structure1 && params.read_structure2
+
+  script:
+  """
+  samtools bam2fq -T RX ${convertedBam} | \
+  bwa mem -p -t ${task.cpus} -C -M -R \"@RG\\tID:${idSample}\\tSM:${idSample}\\tPL:Illumina\" \
+  ${fasta} - | \
+  samtools view -bS - > ${idSample}_umi_unsorted.bam
+  """
+
+}
+
+// UMI - STEP 3 - GROUP READS BY UMIs
+// We have chose the Adjacency method, following the nice paper and blog explanation integrated in both
+// UMItools and FGBIO
+// https://cgatoxford.wordpress.com/2015/08/14/unique-molecular-identifiers-the-problem-the-solution-and-the-proof/
+// alternatively we can define this as input for the user to choose from
+
+process GroupReadsByUmi {
+
+  publishDir "${params.outdir}/Reports/${idSample}/UMI/${idSample}_${idRun}", mode: params.publishDirMode
+
+  input:
+  set idPatient, idSample, idRun, file(alignedBam) from umi_aligned_bams_ch
+
+  output:
+  file("${idSample}_umi_histogram.txt") into umi_histogram_ch
+  tuple val(idPatient), val(idSample), val(idRun), file("${idSample}_umi-grouped.bam") into umi_grouped_bams_ch
+
+  when: params.umi && params.read_structure1 && params.read_structure2
+
+  script:
+  """
+  mkdir tmpFolder
+
+  samtools view -h $alignedBam | \
+  samblaster -M --addMateTags | \
+  samtools view -Sb - >${idSample}_unsorted_tagged.bam
+
+  fgbio --tmp-dir=${PWD}/tmpFolder \
+  GroupReadsByUmi \
+  -s Adjacency \
+  -i ${idSample}_unsorted_tagged.bam \
+  -o ${idSample}_umi-grouped.bam \
+  -f ${idSample}_umi_histogram.txt
+  """
+
+}
+
+// UMI - STEP 4 - CALL MOLECULAR CONSENSUS
+// Now that the reads are organised by UMI groups a molecular consensus will be created
+// the resulting bam file will be again unmapped and therefore can be fed into the
+// existing workflow from the step mapping
+
+process CallMolecularConsensusReads {
+
+  publishDir "${params.outdir}/Reports/${idSample}/UMI/${idSample}_${idRun}", mode: params.publishDirMode
+
+  input:
+  set idPatient, idSample, idRun, file(groupedBamFile) from umi_grouped_bams_ch
+
+  output:
+  tuple val(idPatient), val(idSample), val(idRun), file("${idSample}_umi-consensus.bam") into consensus_bam_ch
+
+  when: params.umi && params.read_structure1 && params.read_structure2
+
+  script:
+  """
+  mkdir tmpFolder
+
+  fgbio --tmp-dir=${PWD}/tmpFolder \
+  CallMolecularConsensusReads \
+  -i $groupedBamFile \
+  -o ${idSample}_umi-consensus.bam \
+  -M 1 -S Coordinate
+  """
+}
+
+// ################# END OF UMI READS PRE-PROCESSING
+// from this moment on the generated uBam files can feed into the existing tools
 
 // STEP 1: MAPPING READS TO REFERENCE GENOME WITH BWA MEM
 
-if (params.trim_fastq) inputPairReads = outputPairReadsTrimGalore
-else inputPairReads = inputPairReads.mix(inputBam)
+if (params.umi){
+  (inputPairReads, input_pair_reads_sentieon) = consensus_bam_ch.into(2)
 
-inputPairReads = inputPairReads.dump(tag:'INPUT')
+  inputPairReads = inputPairReads.dump(tag:'INPUT')
 
-(inputPairReads, input_pair_reads_sentieon) = inputPairReads.into(2)
-if (params.sentieon) inputPairReads.close()
-else input_pair_reads_sentieon.close()
+  if (params.sentieon) inputPairReads.close()
+  else input_pair_reads_sentieon.close()
+}
+else {
+  if (params.trim_fastq) inputPairReads = outputPairReadsTrimGalore
+  else inputPairReads = inputPairReads.mix(inputBam)
+  inputPairReads = inputPairReads.dump(tag:'INPUT')
+
+  (inputPairReads, input_pair_reads_sentieon) = inputPairReads.into(2)
+  if (params.sentieon) inputPairReads.close()
+  else input_pair_reads_sentieon.close()
+}
 
 process MapReads {
     label 'cpus_max'
@@ -2506,7 +2657,7 @@ process MergeMutect2Stats {
 
     when: 'mutect2' in tools
 
-    script:   
+    script:
                stats = statsFiles.collect{ "-stats ${it} " }.join(' ')
     """
     gatk --java-options "-Xmx${task.memory.toGiga()}g" \
@@ -2670,7 +2821,7 @@ process CalculateContamination {
 
     input:
         set idPatient, idSampleNormal, idSampleTumor, file(bamNormal), file(baiNormal), file(bamTumor), file(baiTumor), file(mergedPileup) from pairBamCalculateContamination
- 
+
      output:
         set idPatient, val("${idSampleTumor}_vs_${idSampleNormal}"), file("${idSampleTumor}_contamination.table") into contaminationTable