diff --git a/classes/form/edit.php b/classes/form/edit.php
index fc6bd76..bb8be02 100644
--- a/classes/form/edit.php
+++ b/classes/form/edit.php
@@ -33,6 +33,9 @@ class edit extends \core\form\persistent {
     /** @var string Persistent class name. */
     protected static $persistentclass = persistent::class;
 
+    /** @var array Fields to remove when getting the final data. */
+    protected static $fieldstoremove = array('submitbutton', 'modeid');
+
     /**
      * Form definition
      *
@@ -41,16 +44,26 @@ class edit extends \core\form\persistent {
     protected function definition() {
         $mform = $this->_form;
 
+        $mode = $this->_customdata['modeid'];
+
+        $mform->addElement('hidden', 'modeid', $mode);
+        $mform->setType('modeid', PARAM_INT);
+
         $mform->addElement('select', 'cohortid', get_string('cohort', 'local_cohortrole'), self::get_cohorts());
         $mform->addRule('cohortid', get_string('required'), 'required', null, 'client');
         $mform->setType('cohortid', PARAM_INT);
         $mform->addHelpButton('cohortid', 'cohort', 'local_cohortrole');
 
-        $mform->addElement('select', 'roleid', get_string('role', 'local_cohortrole'), self::get_roles());
+        $mform->addElement('select', 'roleid', get_string('role', 'local_cohortrole'), self::get_roles($mode));
         $mform->addRule('roleid', get_string('required'), 'required', null, 'client');
         $mform->setType('roleid', PARAM_INT);
         $mform->addHelpButton('roleid', 'role', 'local_cohortrole');
 
+        $mform->addElement('select', 'categoryid', get_string('category', 'local_cohortrole'), self::get_categories());
+        $mform->setType('categoryid', PARAM_INT);
+        $mform->addHelpButton('categoryid', 'category', 'local_cohortrole');
+        $mform->hideIf('categoryid', 'modeid', 'eq', 0);
+
         $this->add_action_buttons();
     }
 
@@ -63,8 +76,8 @@ protected function definition() {
      * @return array
      */
     public function extra_validation($data, $files, array &$errors) {
-        if ($this->get_persistent()->record_exists_select('cohortid = :cohortid AND roleid = :roleid',
-                ['cohortid' => $data->cohortid, 'roleid' => $data->roleid])) {
+        if ($this->get_persistent()->record_exists_select('cohortid = :cohortid AND roleid = :roleid AND categoryid = :categoryid',
+            ['cohortid' => $data->cohortid, 'roleid' => $data->roleid, 'categoryid' => $data->categoryid])) {
 
             $errors['cohortid'] = get_string('errorexists', 'local_cohortrole');
         }
@@ -89,15 +102,31 @@ protected static function get_cohorts() {
     }
 
     /**
-     * Get roles that are assignable in the system context
+     * Get roles that are assignable in the system or course category context
      *
+     * @param string $modeid The selected modeid (0 = System, 1 = Category)
      * @return array
      */
-    protected static function get_roles() {
-        $roles = get_assignable_roles(\context_system::instance(), ROLENAME_ALIAS);
+    protected static function get_roles($modeid) {
+        $context = local_cohortrole_get_context($modeid);
+
+        $roles = get_assignable_roles($context, ROLENAME_ALIAS);
 
         \core_collator::asort($roles, \core_collator::SORT_STRING);
 
         return $roles;
     }
+
+    /**
+     * Get categories from the system
+     *
+     * @return array
+     */
+    protected static function get_categories() {
+        $categories = [0 => get_string('choosedots')] + \core_course_category::make_categories_list();
+
+        \core_collator::asort($categories, \core_collator::SORT_STRING);
+
+        return $categories;
+    }
 }
diff --git a/classes/observers.php b/classes/observers.php
index b1ce657..dcff584 100644
--- a/classes/observers.php
+++ b/classes/observers.php
@@ -39,12 +39,10 @@ public static function cohort_deleted(\core\event\cohort_deleted $event) {
             $cohort = $event->get_record_snapshot('cohort', $event->objectid);
 
             $instances = persistent::get_records(['cohortid' => $cohort->id]);
-            if (count($instances) > 0) {
-                local_cohortrole_unsynchronize($cohort->id);
+            foreach ($instances as $instance) {
+                local_cohortrole_unsynchronize($cohort->id, $instance->get('roleid'), $instance->get('categoryid'));
 
-                foreach ($instances as $instance) {
-                    $instance->delete();
-                }
+                $instance->delete();
             }
         }
     }
@@ -64,7 +62,8 @@ public static function cohort_member_added(\core\event\cohort_member_added $even
                 $user = \core_user::get_user($event->relateduserid, '*', MUST_EXIST);
 
                 foreach ($instances as $instance) {
-                    local_cohortrole_role_assign($instance->get('cohortid'), $instance->get('roleid'), [$user->id]);
+                    local_cohortrole_role_assign($instance->get('cohortid'), $instance->get('roleid'), $instance->get('categoryid'),
+                        [$user->id]);
                 }
             }
         }
@@ -85,7 +84,8 @@ public static function cohort_member_removed(\core\event\cohort_member_removed $
                 $user = \core_user::get_user($event->relateduserid, '*', MUST_EXIST);
 
                 foreach ($instances as $instance) {
-                    local_cohortrole_role_unassign($instance->get('cohortid'), $instance->get('roleid'), [$user->id]);
+                    local_cohortrole_role_unassign($instance->get('cohortid'), $instance->get('roleid'),
+                        $instance->get('categoryid'), [$user->id]);
                 }
             }
         }
diff --git a/classes/output/summary_table.php b/classes/output/summary_table.php
index 1431f76..f2a34ed 100644
--- a/classes/output/summary_table.php
+++ b/classes/output/summary_table.php
@@ -41,6 +41,7 @@ public function __construct() {
         $columns = [
             'cohort' => get_string('cohort', 'local_cohortrole'),
             'role' => get_string('role', 'local_cohortrole'),
+            'category' => get_string('category', 'local_cohortrole'),
             'timecreated' => get_string('modified'),
             'edit' => get_string('edit'),
         ];
@@ -124,6 +125,22 @@ public function col_role(\stdClass $record) {
         return role_get_name($persistent->get_role(), \context_system::instance(), ROLENAME_ALIAS);
     }
 
+    /**
+     * Format record category column
+     *
+     * @param stdClass $record
+     * @return string
+     */
+    public function col_category(\stdClass $record) {
+        if ($record->categoryid == LOCAL_COHORTROLE_MODE_SYSTEM) {
+            return '';
+        }
+
+        $persistent = new persistent(0, $record);
+
+        return $persistent->get_category()->name;
+    }
+
     /**
      * Format record time created column
      *
diff --git a/classes/persistent.php b/classes/persistent.php
index 6be275f..554acca 100644
--- a/classes/persistent.php
+++ b/classes/persistent.php
@@ -45,6 +45,9 @@ protected static function define_properties() {
             'roleid' => array(
                 'type' => PARAM_INT,
             ),
+            'categoryid' => array(
+                'type' => PARAM_INT,
+            ),
         );
     }
 
@@ -82,6 +85,26 @@ protected function validate_roleid($roleid) {
         return true;
     }
 
+    /**
+     * Validate category ID
+     *
+     * @param int $categoryid
+     * @return true|lang_string
+     */
+    protected function validate_categoryid($categoryid) {
+        global $DB;
+
+        if ($categoryid == LOCAL_COHORTROLE_MODE_SYSTEM) {
+            return true;
+        }
+
+        if (! $DB->record_exists('course_categories', ['id' => $categoryid])) {
+            return new \lang_string('invalidcategoryid', 'error');
+        }
+
+        return true;
+    }
+
     /**
      * Hook to execute after model is created
      *
@@ -122,4 +145,15 @@ public function get_role() {
 
         return $DB->get_record('role', ['id' => $this->get('roleid')], '*', MUST_EXIST);
     }
+
+    /**
+     * Returns the category object
+     *
+     * @return stdClass
+     */
+    public function get_category() {
+        global $DB;
+
+        return $DB->get_record('course_categories', ['id' => $this->get('categoryid')], '*', MUST_EXIST);
+    }
 }
diff --git a/db/install.xml b/db/install.xml
index 17c1101..353cd55 100644
--- a/db/install.xml
+++ b/db/install.xml
@@ -9,6 +9,7 @@
         <FIELD NAME="id" TYPE="int" LENGTH="10" NOTNULL="true" SEQUENCE="true"/>
         <FIELD NAME="cohortid" TYPE="int" LENGTH="10" NOTNULL="true" SEQUENCE="false" COMMENT="The id of the cohort"/>
         <FIELD NAME="roleid" TYPE="int" LENGTH="10" NOTNULL="true" SEQUENCE="false" COMMENT="The id of the role"/>
+        <FIELD NAME="categoryid" TYPE="int" LENGTH="10" NOTNULL="true" SEQUENCE="false" COMMENT="The id of the category"/>
         <FIELD NAME="usermodified" TYPE="int" LENGTH="10" NOTNULL="true" DEFAULT="0" SEQUENCE="false" COMMENT="The id of the user"/>
         <FIELD NAME="timecreated" TYPE="int" LENGTH="10" NOTNULL="true" DEFAULT="0" SEQUENCE="false" COMMENT="Time the definition was created"/>
         <FIELD NAME="timemodified" TYPE="int" LENGTH="10" NOTNULL="true" DEFAULT="0" SEQUENCE="false" COMMENT="Time the definition was modified"/>
@@ -17,10 +18,11 @@
         <KEY NAME="primary" TYPE="primary" FIELDS="id"/>
         <KEY NAME="fk_cohort" TYPE="foreign" FIELDS="cohortid" REFTABLE="cohort" REFFIELDS="id"/>
         <KEY NAME="fk_role" TYPE="foreign" FIELDS="roleid" REFTABLE="role" REFFIELDS="id"/>
+        <KEY NAME="fk_category" TYPE="foreign" FIELDS="categoryid" REFTABLE="course_categories" REFFIELDS="id"/>
         <KEY NAME="fk_user" TYPE="foreign" FIELDS="usermodified" REFTABLE="user" REFFIELDS="id"/>
       </KEYS>
       <INDEXES>
-        <INDEX NAME="uq_cohort_role" UNIQUE="true" FIELDS="cohortid, roleid" COMMENT="Cohort and role identifiers must be unique"/>
+        <INDEX NAME="uq_cohort_role" UNIQUE="true" FIELDS="cohortid, roleid, categoryid" COMMENT="Cohort, role and category identifiers must be unique"/>
       </INDEXES>
     </TABLE>
   </TABLES>
diff --git a/db/upgrade.php b/db/upgrade.php
index e54529b..b43ae85 100644
--- a/db/upgrade.php
+++ b/db/upgrade.php
@@ -119,5 +119,33 @@ function xmldb_local_cohortrole_upgrade($oldversion) {
         upgrade_plugin_savepoint(true, 2018121001, 'local', 'cohortrole');
     }
 
+    if ($oldversion < 2020110901) {
+        // Define field categoryid to be added to local_cohortrole.
+        $table = new xmldb_table('local_cohortrole');
+        $field = new xmldb_field('categoryid', XMLDB_TYPE_INTEGER, '10', null, XMLDB_NOTNULL, null, null, 'roleid');
+
+        // Conditionally launch add field categoryid.
+        if (! $dbman->field_exists($table, $field)) {
+            $dbman->add_field($table, $field);
+        }
+
+        // Define key fk_category (foreign) to be added to local_cohortrole.
+        $key = new xmldb_key('fk_category', XMLDB_KEY_FOREIGN, array('categoryid'), 'course_categories', array('id'));
+        $dbman->add_key($table, $key);
+
+        // Conditionally launch drop and add index 'uq_cohort_role'.
+        $index = new xmldb_index('uq_cohort_role', XMLDB_INDEX_UNIQUE, array('cohortid', 'roleid'));
+
+        if ($dbman->index_exists($table, $index)) {
+            $dbman->drop_index($table, $index);
+        }
+
+        $index = new xmldb_index('uq_cohort_role', XMLDB_INDEX_UNIQUE, array('cohortid', 'roleid', 'categoryid'));
+        $dbman->add_index($table, $index);
+
+        // Cohortrole savepoint reached.
+        upgrade_plugin_savepoint(true, 2020110901, 'local', 'cohortrole');
+    }
+
     return true;
 }
diff --git a/edit.php b/edit.php
index aef49ed..79e7dbe 100644
--- a/edit.php
+++ b/edit.php
@@ -26,19 +26,20 @@
 
 use \local_cohortrole\persistent;
 
-$delete   = optional_param('delete', 0, PARAM_INT);
-$confirm  = optional_param('confirm', 0, PARAM_BOOL);
+$delete = optional_param('delete', 0, PARAM_INT);
+$confirm = optional_param('confirm', 0, PARAM_BOOL);
+$mode = optional_param('mode', 0, PARAM_INT);
 
 admin_externalpage_setup('local_cohortrole');
 
-$editurl   = new moodle_url('/local/cohortrole/edit.php');
+$editurl = new moodle_url('/local/cohortrole/edit.php');
 $returnurl = clone($PAGE->url);
 
 if ($delete) {
     $persistent = new persistent($delete);
 
     if ($confirm and confirm_sesskey()) {
-        local_cohortrole_unsynchronize($persistent->get('cohortid'), $persistent->get('roleid'));
+        local_cohortrole_unsynchronize($persistent->get('cohortid'), $persistent->get('roleid'), $persistent->get('categoryid'));
 
         $persistent->delete();
 
@@ -58,14 +59,14 @@
     die;
 }
 
-$mform = new \local_cohortrole\form\edit($editurl, ['persistent' => null]);
+$mform = new \local_cohortrole\form\edit($editurl, ['persistent' => null, 'modeid' => $mode]);
 
 if ($mform->is_cancelled()) {
     redirect($returnurl);
 } else if ($data = $mform->get_data()) {
     $persistent = (new persistent(0, $data))->create();
 
-    local_cohortrole_synchronize($persistent->get('cohortid'), $persistent->get('roleid'));
+    local_cohortrole_synchronize($persistent->get('cohortid'), $persistent->get('roleid'), $persistent->get('categoryid'));
 
     redirect($returnurl, get_string('notificationcreated', 'local_cohortrole'), null,
         \core\output\notification::NOTIFY_SUCCESS);
@@ -74,7 +75,7 @@
 $PAGE->navbar->add(get_string('add'));
 
 echo $OUTPUT->header();
-echo $OUTPUT->heading(get_string('heading_add', 'local_cohortrole'));
+echo $OUTPUT->heading(get_string('heading_add', 'local_cohortrole', local_cohortrole_get_context_name($mode)));
 
 $mform->display();
 
diff --git a/index.php b/index.php
index 726605d..6b35dc7 100644
--- a/index.php
+++ b/index.php
@@ -22,6 +22,7 @@
 
 require(__DIR__ . '/../../config.php');
 require_once($CFG->libdir . '/adminlib.php');
+require_once($CFG->dirroot . '/local/cohortrole/locallib.php');
 
 admin_externalpage_setup('local_cohortrole');
 
@@ -33,6 +34,6 @@
 
 echo $PAGE->get_renderer('local_cohortrole')->render($table);
 
-echo $OUTPUT->single_button(new moodle_url('/local/cohortrole/edit.php'), get_string('add'), 'get', ['class' => 'continuebutton']);
+echo local_cohortrole_render_add_buttons();
 
 echo $OUTPUT->footer();
diff --git a/lang/en/local_cohortrole.php b/lang/en/local_cohortrole.php
index fac2125..60fab40 100644
--- a/lang/en/local_cohortrole.php
+++ b/lang/en/local_cohortrole.php
@@ -28,7 +28,7 @@
 $string['errorexists'] = 'Synchronization already defined';
 $string['eventdefinitioncreated'] = 'Cohort role synchronization created';
 $string['eventdefinitiondeleted'] = 'Cohort role synchronization deleted';
-$string['heading_add'] = 'Define new synchronization';
+$string['heading_add'] = 'Define new synchronization in {$a}';
 $string['heading_delete'] = 'Delete defined synchronization';
 $string['heading_index'] = 'Currently defined synchronization';
 $string['notificationcreated'] = 'Created new synchronization';
@@ -40,4 +40,10 @@
 $string['privacy:metadata:cohortrole:usermodified'] = 'The ID of the user who created the definition';
 $string['privacy:metadata:cohortrole:timecreated'] = 'The timestamp the definition was created';
 $string['role'] = 'Role';
+<<<<<<< HEAD
+$string['role_help'] = 'List of assignable roles in the selected mode context';
+=======
 $string['role_help'] = 'List of assignable roles in the system context';
+>>>>>>> Assign role synchronization to course category context (#1)
+$string['category'] = 'Category';
+$string['category_help'] = 'You can optionally select a course category to assign roles not in the system context';
diff --git a/locallib.php b/locallib.php
index f8697bb..f3b4df3 100644
--- a/locallib.php
+++ b/locallib.php
@@ -22,18 +22,21 @@
 
 defined('MOODLE_INTERNAL') || die();
 
+define('LOCAL_COHORTROLE_MODE_SYSTEM', '0');
+define('LOCAL_COHORTROLE_MODE_CATEGORY', '1');
 define('LOCAL_COHORTROLE_ROLE_COMPONENT', 'local_cohortrole');
 
 /**
  * Assign users to a role; using local role component
  *
- * @param integer $cohortid the id of a cohort
- * @param integer $roleid the id of a role
+ * @param int $cohortid the id of a cohort
+ * @param int $roleid the id of a role
+ * @param int $categoryid the id of a category
  * @param array $userids an array of user ids to assign
  * @return void
  */
-function local_cohortrole_role_assign($cohortid, $roleid, array $userids) {
-    $context = context_system::instance();
+function local_cohortrole_role_assign($cohortid, $roleid, $categoryid, array $userids) {
+    $context = local_cohortrole_get_context($categoryid);
 
     foreach ($userids as $userid) {
         role_assign($roleid, $userid, $context->id, LOCAL_COHORTROLE_ROLE_COMPONENT, $cohortid);
@@ -43,13 +46,14 @@ function local_cohortrole_role_assign($cohortid, $roleid, array $userids) {
 /**
  * Unassign users from a role; using local role component
  *
- * @param integer $cohortid the id of a cohort
- * @param integer $roleid the id of a role
+ * @param int $cohortid the id of a cohort
+ * @param int $roleid the id of a role
+ * @param int $categoryid the id of a category
  * @param array $userids an array of user ids to unassign
  * @return void
  */
-function local_cohortrole_role_unassign($cohortid, $roleid, array $userids) {
-    $context = context_system::instance();
+function local_cohortrole_role_unassign($cohortid, $roleid, $categoryid, array $userids) {
+    $context = local_cohortrole_get_context($categoryid);
 
     foreach ($userids as $userid) {
         role_unassign($roleid, $userid, $context->id, LOCAL_COHORTROLE_ROLE_COMPONENT, $cohortid);
@@ -59,16 +63,17 @@ function local_cohortrole_role_unassign($cohortid, $roleid, array $userids) {
 /**
  * Add users to a role that synchronizes from a cohort
  *
- * @param integer $cohortid the id of a cohort
- * @param integer $roleid the id of a role
+ * @param int $cohortid the id of a cohort
+ * @param int $roleid the id of a role
+ * @param int $categoryid the id of a category
  * @return void
  */
-function local_cohortrole_synchronize($cohortid, $roleid) {
+function local_cohortrole_synchronize($cohortid, $roleid, $categoryid) {
     global $DB;
 
     $userids = $DB->get_records_menu('cohort_members', array('cohortid' => $cohortid), null, 'id, userid');
 
-    local_cohortrole_role_assign($cohortid, $roleid, $userids);
+    local_cohortrole_role_assign($cohortid, $roleid, $categoryid, $userids);
 }
 
 /**
@@ -78,9 +83,11 @@ function local_cohortrole_synchronize($cohortid, $roleid) {
  * @param integer|null $roleid the id of a role, all roles if null
  * @return void
  */
-function local_cohortrole_unsynchronize($cohortid, $roleid = null) {
+function local_cohortrole_unsynchronize($cohortid, $roleid = null, $categoryid) {
+    $context = local_cohortrole_get_context($categoryid);
+
     $params = array(
-        'contextid' => context_system::instance()->id, 'component' => LOCAL_COHORTROLE_ROLE_COMPONENT, 'itemid' => $cohortid);
+        'contextid' => $context->id, 'component' => LOCAL_COHORTROLE_ROLE_COMPONENT, 'itemid' => $cohortid);
 
     if ($roleid === null) {
         $roleids = local_cohortrole_get_cohort_roles($cohortid);
@@ -98,11 +105,66 @@ function local_cohortrole_unsynchronize($cohortid, $roleid = null) {
 /**
  * Get roles defined as being populated by a cohort
  *
- * @param integer $cohortid the id of a cohort
+ * @param int $cohortid the id of a cohort
  * @return array role ids
  */
-function local_cohortrole_get_cohort_roles($cohortid) {
+function local_cohortrole_get_cohort_roles(int $cohortid) {
     global $DB;
 
     return $DB->get_records_menu('local_cohortrole', array('cohortid' => $cohortid), null, 'id, roleid');
 }
+
+/**
+ * Get the context to assign and unassign roles.
+ *
+ * @param int $categoryid
+ * @return bool|context|context_coursecat|context_system|null
+ * @throws dml_exception
+ */
+function local_cohortrole_get_context(int $categoryid) {
+    if ($categoryid >= LOCAL_COHORTROLE_MODE_CATEGORY) {
+        return context_coursecat::instance($categoryid);
+    }
+
+    return $context = context_system::instance();
+}
+
+/**
+ * Returns the context name by the given mode.
+ *
+ * @param $mode
+ * @return string
+ * @throws coding_exception
+ * @throws dml_exception
+ */
+function local_cohortrole_get_context_name($mode): string {
+    $context = local_cohortrole_get_context($mode);
+    $contextname = strtok($context->get_context_name(), ':');
+
+    return $contextname;
+}
+
+/**
+ * Returns the buttons to launch the edit form by mode.
+ *
+ * @return string
+ * @throws coding_exception
+ * @throws dml_exception
+ * @throws moodle_exception
+ */
+function local_cohortrole_render_add_buttons(): string {
+    global $OUTPUT;
+
+    $output = html_writer::start_div('continuebutton mt-3', ['role' => 'group']);
+
+    $modes = [LOCAL_COHORTROLE_MODE_SYSTEM, LOCAL_COHORTROLE_MODE_CATEGORY];
+    foreach ($modes as $mode) {
+        $contextname = local_cohortrole_get_context_name($mode);
+
+        $output .= $OUTPUT->single_button(new moodle_url('/local/cohortrole/edit.php', ['mode' => $mode]), get_string('assignrolesin', 'core_role', $contextname), 'get');
+    }
+
+    $output .= html_writer::end_div();
+
+    return $output;
+}
diff --git a/tests/behat/behat_local_cohortrole_data_generators.php b/tests/behat/behat_local_cohortrole_data_generators.php
index 9ec195a..21dbee2 100644
--- a/tests/behat/behat_local_cohortrole_data_generators.php
+++ b/tests/behat/behat_local_cohortrole_data_generators.php
@@ -40,7 +40,7 @@ public function the_following_cohort_role_definitions_exist(TableNode $data) {
 
         $generator = testing_util::get_data_generator()->get_plugin_generator('local_cohortrole');
 
-        $requiredfields = ['cohort', 'role'];
+        $requiredfields = ['cohort', 'role', 'category'];
 
         foreach ($data->getHash() as $elementdata) {
             foreach ($requiredfields as $requiredfield) {
@@ -71,6 +71,9 @@ protected function preprocess_definition(array $data) {
         $data['roleid'] = $DB->get_field('role', 'id', ['shortname' => $data['role']], MUST_EXIST);
         unset($data['role']);
 
+        $data['categoryid'] = $DB->get_field('course_categories', 'id', ['idnumber' => $data['category']], MUST_EXIST);
+        unset($data['category']);
+
         return $data;
     }
 }
diff --git a/tests/behat/configure.feature b/tests/behat/configure.feature
index ddd5523..b5dc400 100644
--- a/tests/behat/configure.feature
+++ b/tests/behat/configure.feature
@@ -6,37 +6,56 @@ Feature: An admin can configure Cohort role synchronizations
 
   Background:
     Given the following "cohorts" exist:
-      | name | idnumber |
-      | Cohort One | C1 |
-      | Cohort Two | C2 |
+      | name       | idnumber |
+      | Cohort One | C1       |
+      | Cohort Two | C2       |
     And the following "roles" exist:
-      | name | shortname |
-      | Super Role | R1 |
+      | name       | shortname |
+      | Super Role | R1        |
+    And the following "categories" exist:
+      | name  | category | idnumber |
+      | Cat 1 | 0        | CAT1     |
     And the following Cohort role definitions exist:
-      | cohort | role |
-      | C1 | R1 |
+      | cohort | role | category |
+      | C1     | R1   | CAT1     |
     And I log in as "admin"
     And I navigate to "Users > Accounts > Cohort role synchronization" in site administration
 
   @javascript
-  Scenario: Add new Cohort role definition
-    When I press "Add"
+  Scenario: Add new Cohort role system definition
+    When I press "Assign roles in System"
     And I set the following fields to these values:
       | Cohort | Cohort Two |
-      | Role | Super Role |
+      | Role   | Super Role |
     And I click on "Save changes" "button"
     Then I should see "Created new synchronization"
     And the following should exist in the "local-cohortrole-summary-table" table:
-      | Cohort | Role |
-      | Cohort One | Super Role |
-      | Cohort Two | Super Role |
+      | Cohort     | Role       | Category |
+      | Cohort One | Super Role | Cat 1    |
+      | Cohort Two | Super Role |          |
+
+  @javascript
+  Scenario: Add new Cohort role category definition
+    When I press "Assign roles in Category"
+    And I set the following fields to these values:
+      | Cohort   | Cohort Two |
+      | Role     | Super Role |
+      | Category | Cat 1      |
+    And I click on "Save changes" "button"
+    Then I should see "Created new synchronization"
+    And the following should exist in the "local-cohortrole-summary-table" table:
+      | Cohort     | Role       | Category |
+      | Cohort One | Super Role | Cat 1    |
+      | Cohort Two | Super Role |          |
+      | Cohort Two | Super Role | Cat 1    |
 
   @javascript
   Scenario: Add duplicate Cohort role definition
-    When I press "Add"
+    When I press "Assign roles in Category"
     And I set the following fields to these values:
-      | Cohort | Cohort One |
-      | Role | Super Role |
+      | Cohort   | Cohort One |
+      | Role     | Super Role |
+      | Category | Cat 1      |
     And I click on "Save changes" "button"
     Then I should see "Synchronization already defined"
     And I click on "Cancel" "button"
@@ -48,5 +67,5 @@ Feature: An admin can configure Cohort role synchronizations
     And I click on "Continue" "button"
     And I should see "Deleted synchronization"
     And the following should not exist in the "local-cohortrole-summary-table" table:
-      | Cohort | Role |
+      | Cohort     | Role       |
       | Cohort One | Super Role |
diff --git a/tests/observers_test.php b/tests/observers_test.php
index 85f7ab5..ce1429f 100644
--- a/tests/observers_test.php
+++ b/tests/observers_test.php
@@ -32,7 +32,7 @@
  */
 class local_cohortrole_observers_testcase extends advanced_testcase {
 
-    /** @var \local_cohortrole\persistent $persistent. */
+    /** @var \local_cohortrole\persistent $persistent */
     protected $persistent;
 
     /**
@@ -42,6 +42,7 @@ public static function setUpBeforeClass(): void {
         global $CFG;
 
         require_once("{$CFG->dirroot}/cohort/lib.php");
+        require_once("{$CFG->dirroot}/local/cohortrole/locallib.php");
     }
 
     /**
@@ -50,13 +51,17 @@ public static function setUpBeforeClass(): void {
     protected function setUp(): void {
         $this->resetAfterTest(true);
 
-        // Create test role/cohort.
+        // Create test role, cohort and category.
         $roleid = $this->getDataGenerator()->create_role();
         $cohort = $this->getDataGenerator()->create_cohort();
-
-        // Link them together.
-        $this->persistent = $this->getDataGenerator()->get_plugin_generator('local_cohortrole')
-            ->create_persistent(['roleid' => $roleid, 'cohortid' => $cohort->id]);
+        $category = $this->getDataGenerator()->create_category();
+
+        // Create role synchronizations and link them together.
+        $categoryids = [0, $category->id];
+        foreach ($categoryids as $categoryid) {
+            $this->persistent = $this->getDataGenerator()->get_plugin_generator('local_cohortrole')
+                ->create_persistent(['roleid' => $roleid, 'cohortid' => $cohort->id, 'categoryid' => $categoryid]);
+        }
     }
 
     /**
@@ -65,19 +70,29 @@ protected function setUp(): void {
      * @return void
      */
     public function test_cohort_deleted() {
-        $context = context_system::instance();
+        $systemcontext = local_cohortrole_get_context(LOCAL_COHORTROLE_MODE_SYSTEM);
+        $coursecategorycontext = local_cohortrole_get_context($this->persistent->get('categoryid'));
 
         $user = $this->getDataGenerator()->create_user();
         cohort_add_member($this->persistent->get('cohortid'), $user->id);
 
-        $userhasrole = user_has_role_assignment($user->id, $this->persistent->get('roleid'), $context->id);
-        $this->assertTrue($userhasrole);
+        $userhasroleinsystem = user_has_role_assignment($user->id, $this->persistent->get('roleid'), $systemcontext->id);
+        $this->assertTrue($userhasroleinsystem);
+
+        $userhasroleincoursecategory =
+            user_has_role_assignment($user->id, $this->persistent->get('roleid'), $coursecategorycontext->id);
+        $this->assertTrue($userhasroleincoursecategory);
 
         cohort_delete_cohort($this->persistent->get_cohort());
 
-        // User should not be assigned to the test role.
-        $userhasrole = user_has_role_assignment($user->id, $this->persistent->get('roleid'), $context->id);
-        $this->assertFalse($userhasrole);
+        // User should not be assigned to the test role in the system.
+        $userhasroleinsystem = user_has_role_assignment($user->id, $this->persistent->get('roleid'), $systemcontext->id);
+        $this->assertFalse($userhasroleinsystem);
+
+        // User should not be assigned to the test role in the course category.
+        $userhasroleincoursecategory =
+            user_has_role_assignment($user->id, $this->persistent->get('roleid'), $coursecategorycontext->id);
+        $this->assertFalse($userhasroleincoursecategory);
 
         // Ensure plugin tables are cleaned up.
         $exists = $this->persistent->record_exists_select('cohortid = ?', [$this->persistent->get('cohortid')]);
@@ -90,18 +105,28 @@ public function test_cohort_deleted() {
      * @return void
      */
     public function test_cohort_member_added() {
-        $context = context_system::instance();
+        $systemcontext = local_cohortrole_get_context(LOCAL_COHORTROLE_MODE_SYSTEM);
+        $coursecategorycontext = local_cohortrole_get_context($this->persistent->get('categoryid'));
 
         $user = $this->getDataGenerator()->create_user();
 
-        $userhasrole = user_has_role_assignment($user->id, $this->persistent->get('roleid'), $context->id);
-        $this->assertFalse($userhasrole);
+        $userhasroleinsystem = user_has_role_assignment($user->id, $this->persistent->get('roleid'), $systemcontext->id);
+        $this->assertFalse($userhasroleinsystem);
+
+        $userhasroleincoursecategory =
+            user_has_role_assignment($user->id, $this->persistent->get('roleid'), $coursecategorycontext->id);
+        $this->assertFalse($userhasroleincoursecategory);
 
         cohort_add_member($this->persistent->get('cohortid'), $user->id);
 
-        // User should be assigned to the test role.
-        $userhasrole = user_has_role_assignment($user->id, $this->persistent->get('roleid'), $context->id);
-        $this->assertTrue($userhasrole);
+        // User should be assigned to the test role in the system.
+        $userhasroleinsystem = user_has_role_assignment($user->id, $this->persistent->get('roleid'), $systemcontext->id);
+        $this->assertTrue($userhasroleinsystem);
+
+        // User should be assigned to the test role in the course category.
+        $userhasroleincoursecategory =
+            user_has_role_assignment($user->id, $this->persistent->get('roleid'), $coursecategorycontext->id);
+        $this->assertTrue($userhasroleincoursecategory);
     }
 
     /**
@@ -110,7 +135,8 @@ public function test_cohort_member_added() {
      * @return void
      */
     public function test_cohort_member_removed() {
-        $context = context_system::instance();
+        $systemcontext = local_cohortrole_get_context(LOCAL_COHORTROLE_MODE_SYSTEM);
+        $coursecategorycontext = local_cohortrole_get_context($this->persistent->get('categoryid'));
 
         $user1 = $this->getDataGenerator()->create_user();
         cohort_add_member($this->persistent->get('cohortid'), $user1->id);
@@ -120,12 +146,21 @@ public function test_cohort_member_removed() {
 
         cohort_remove_member($this->persistent->get('cohortid'), $user1->id);
 
-        // User 2 should be assigned to the test role, user 1 should not.
-        $userhasrole = user_has_role_assignment($user2->id, $this->persistent->get('roleid'), $context->id);
-        $this->assertTrue($userhasrole);
+        // User 2 should be assigned to the test role in the system, user 1 should not.
+        $userhasroleinsystem = user_has_role_assignment($user2->id, $this->persistent->get('roleid'), $systemcontext->id);
+        $this->assertTrue($userhasroleinsystem);
+
+        $userhasroleinsystem = user_has_role_assignment($user1->id, $this->persistent->get('roleid'), $systemcontext->id);
+        $this->assertFalse($userhasroleinsystem);
+
+        // User 2 should be assigned to the test role in the course category, user 1 should not.
+        $userhasroleincoursecategory =
+            user_has_role_assignment($user2->id, $this->persistent->get('roleid'), $coursecategorycontext->id);
+        $this->assertTrue($userhasroleincoursecategory);
 
-        $userhasrole = user_has_role_assignment($user1->id, $this->persistent->get('roleid'), $context->id);
-        $this->assertFalse($userhasrole);
+        $userhasroleincoursecategory =
+            user_has_role_assignment($user1->id, $this->persistent->get('roleid'), $coursecategorycontext->id);
+        $this->assertFalse($userhasroleincoursecategory);
     }
 
     /**
@@ -140,4 +175,4 @@ public function test_role_deleted() {
         $exists = $this->persistent->record_exists_select('roleid = ?', [$this->persistent->get('roleid')]);
         $this->assertFalse($exists);
     }
-}
\ No newline at end of file
+}
diff --git a/tests/privacy_test.php b/tests/privacy_test.php
index bbec147..774b31c 100644
--- a/tests/privacy_test.php
+++ b/tests/privacy_test.php
@@ -55,13 +55,14 @@ protected function setUp(): void {
         $this->user = $this->getDataGenerator()->create_user();
         $this->setUser($this->user);
 
-        // Create test role/cohort.
+        // Create test role, cohort and category.
         $roleid = $this->getDataGenerator()->create_role();
         $cohort = $this->getDataGenerator()->create_cohort();
+        $category = $this->getDataGenerator()->create_category();
 
         // Link them together.
         $this->persistent = $this->getDataGenerator()->get_plugin_generator('local_cohortrole')
-            ->create_persistent(['roleid' => $roleid, 'cohortid' => $cohort->id]);
+            ->create_persistent(['roleid' => $roleid, 'cohortid' => $cohort->id, 'categoryid' => $category->id]);
     }
 
     /**
diff --git a/version.php b/version.php
index 064b0d8..8e14dc9 100644
--- a/version.php
+++ b/version.php
@@ -24,6 +24,6 @@
 
 $plugin->component = 'local_cohortrole';
 $plugin->release   = '3.3';
-$plugin->version   = 2020110900;
+$plugin->version   = 2020110901;
 $plugin->requires  = 2018051703; // Moodle 3.5.3 onwards.
 $plugin->maturity  = MATURITY_STABLE;