The resonance upscattering effect (the thermal agitation effect) is implemented in the generation capability of multigroup neutron cross sections of the FRENDY nuclear data processing system. The resonance upscattering effect is considered by (1) the variation of self-shielding factors (effective cross sections) due to the change in the ultra-fine group spectrum and (2) the variation of group-to-group elastic scattering cross sections. Since the upscattering effect is considered in the ultra-fine group spectrum calculation, an iteration calculation is necessary to consider the upscattering. The impacts of the iteration strategy (Jacobi or Gauss-Seidel), as well as the number of iterations, are discussed. In the verification calculations, impacts on the ultra-fine group spectrum, effective cross sections, and neutronics characteristics (the Doppler effect) are confirmed. The effect of energy group structure and the impact of resonance upscattering treatments on the Doppler effect through the variation of effective cross sections and the elastic scattering matrix are investigated. The results indicate that FRENDY can provide appropriate multigroup cross sections considering the resonance upscattering effect.