Abstract Relational rule learning algorithms are typically designed to construct classification and prediction rules. However, relational rule learning can be adapted also to subgroup discovery. This paper proposes a propositionalization approach to relational subgroup discovery, achieved through appropriately adapting rule learning and first-order feature construction. The proposed approach was successfully applied to standard ILP problems (East-West trains, King-Rook-King chess endgame and mutagenicity prediction) and two real-life problems (analysis of telephone calls and traffic accident analysis). Keywords Relational data mining . Propositionalization . Feature construction . Subgroup discovery