Using four tasks to test intelligence, scientists from the University of Exeter in the UK and the University of Western Australia found wild Australian magpies from larger groups showed "elevated cognitive performance."
The study also found more intelligent females produced more offspring.
The research suggests that the demands of living in complex social groups may play a role in the evolution of intelligence.
"Australian magpies - from Western Australia, where we conducted our research - live in stable social groups," said Alex Thornton from the University of Exeter.
"Repeated testing of juveniles at different ages showed that the link between group size and intelligence emerged in early life," said Thornton.
Researchers examined 14 wild groups of Australian magpies (Western Australian subspecies Cracticus tibicen dorsalis) in Perth, ranging in size from three to 12 birds.
Cognitive ability of each magpie was tested using four tasks, including one in which they had to learn to associate a particular colour with the presence of food, a memory task where food was hidden in the same place many times.
"The challenges of living in complex social groups have long been thought to drive cognitive evolution," said Ben Ashton from the University of Western Australia.
"However, evidence to support this is contentious, and has recently been called into question," Ashton said.
"Our results suggest that the social environment plays a key role in the development of cognition," he said.
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