We report the discovery of an X-ray group of galaxies located at a high redshift of z = 1.61 in the Chandra Deep Field South . Based on the 4Msec Chandra data , the group is first identified as an extended X-ray source . We use a wealth of deep multi-wavelength data to identify the optical counterpart – our red sequence finder detects a significant over-density of galaxies at z \sim 1.6 . The brightest group galaxy is spectroscopically confirmed at z = 1.61 based on published spectroscopic redshifts . Using this as a central redshift of the group , we measure an X-ray luminosity of L _ { 0.1 - 2.4 keV } = ( 1.8 \pm 0.6 ) \times 10 ^ { 43 } erg s ^ { -1 } , which then translates into a group mass of ( 3.2 \pm 0.8 ) \times 10 ^ { 13 } M _ { \odot } . This is the lowest mass group ever confirmed at z > 1.5 . The deep optical-nearIR images from CANDELS reveal that the group exhibits a surprisingly prominent red sequence and most of the galaxies are consistent with a formation redshift of z _ { f } = 3 . A detailed analysis of the spectral energy distributions of the group member candidates confirms that most of them are indeed passive galaxies . Furthermore , their structural parameters measured from the near-IR CANDELS images show that they are morphologically early-type . The newly identified group at z = 1.61 is dominated by quiescent early-type galaxies and the group appears similar to those in the local Universe . One possible difference is the high fraction of AGN — 38 ^ { +23 } _ { -20 } % of the bright group member candidates are AGN , which might indicate a role for AGN in quenching of star formation . However , a statistical sample of high- z groups is needed to draw a general picture of groups at this redshift . Such a sample will hopefully be available in near future surveys .