Face-to-face interactions in social groups are a central aspect of human social lives. Although the composition of such groups has received ample attention in various fields—e.g., sociology, social psychology, management, and educational science—their micro-level dynamics are rarely analyzed empirically. In this article, we present a new statistical network model (DyNAM-i) that can represent the dynamics of conversation groups and interpersonal interaction in different social contexts. Taking an actor-oriented perspective, this model can be applied to test how individuals’ interaction patterns differ and how they choose and change their interaction groups. It moves beyond dyadic interaction mechanisms and translates central social network mechanisms—such as homophily, transitivity, and popularity—to the context of interactions in group settings. The utility and practical applicability of the new model are illustrated in two social network studies that investigate face-to-face interactions in a small party and an office setting.