ABSTRACT As part of our program to identify host galaxies of known z = 2–3 Mg ii absorbers with the Keck Cosmic Web Imager (KCWI), we discovered a compact group giving rise to a z = 2.431 DLA with ultrastrong Mg ii absorption in quasar field J234628+124859. The group consists of four star-forming galaxies within 8–28 kpc and v ∼ 40–340 km s−1 of each other, where tidal streams are weakly visible in deep HST imaging. The group geometric centre is D = 25 kpc from the quasar (D = 20–40 kpc for each galaxy). Galaxy G1 dominates the group (1.66L*, SFRFUV = 11.6 M⊙ yr−1) while G2, G3, and G4 are less massive (0.1–0.3L*, SFRFUV = 1.4–2.0 M⊙ yr−1). Using a VLT/UVES quasar spectrum covering the H i Lyman series and metal lines such as Mg ii, Si iii, and C iv, we characterized the kinematic structure and physical conditions along the line of sight with cloud-by-cloud multiphase Bayesian modelling. The absorption system has a total $\log (N({{{\rm H}\,\rm{\small I}}})/{\rm cm}^{-2})=20.53$ and an $N({{{\rm H}\,\rm{\small I}}})$-weighted mean metallicity of log (Z/Z⊙) = −0.68, with a very large Mg ii linewidth of Δv ∼ 700 km s−1. The highly kinematically complex profile is well modelled with 30 clouds across low- and intermediate-ionization phases with values ${13\lesssim \log (N({{{\rm H}\,\rm{\small I}}})/{\rm cm}^{-2})\lesssim 20}$ and −3 ≲ log (Z/Z⊙) ≲ 1. Comparing these properties to the galaxy properties, we infer a wide range of gaseous environments, including metal-rich outflows, metal-poor IGM accretion, and tidal streams from galaxy–galaxy interactions. This diversity of structures forms the intragroup medium around a complex compact group environment at the epoch of peak star formation activity. Surveys of low-redshift compact groups would benefit from obtaining a more complete census of this medium for characterizing evolutionary pathways.