diff --git a/backup/util/dbops/restore_dbops.class.php b/backup/util/dbops/restore_dbops.class.php
index 9992713aeff..7ef9117e230 100644
--- a/backup/util/dbops/restore_dbops.class.php
+++ b/backup/util/dbops/restore_dbops.class.php
@@ -723,7 +723,7 @@ abstract class restore_dbops {
 
             // 8) Check if backup is made on Moodle >= 3.5 and there are more than one top-level category in the context.
             if ($after35 && $topcats > 1) {
-                $errors[] = get_string('restoremultipletopcats', 'questions', $contextid);
+                $errors[] = get_string('restoremultipletopcats', 'question', $contextid);
             }
 
         }
diff --git a/lib/db/upgrade.php b/lib/db/upgrade.php
index 2f06ce21f6b..fd89e14776f 100644
--- a/lib/db/upgrade.php
+++ b/lib/db/upgrade.php
@@ -2254,5 +2254,30 @@ function xmldb_main_upgrade($oldversion) {
         upgrade_main_savepoint(true, 2018051700.08);
     }
 
+    if ($oldversion < 2018051701.03) {
+        // Find all duplicate top level categories per context.
+        $duplicates = $DB->get_records_sql("SELECT qc1.*
+                                              FROM {question_categories} qc1
+                                              JOIN {question_categories} qc2
+                                                ON qc1.contextid = qc2.contextid AND qc1.id <> qc2.id
+                                             WHERE qc1.parent = 0 AND qc2.parent = 0
+                                          ORDER BY qc1.contextid, qc1.id");
+
+        // For each context, let the first top category to remain as top category and make the rest its children.
+        $currentcontextid = 0;
+        $chosentopid = 0;
+        foreach ($duplicates as $duplicate) {
+            if ($currentcontextid != $duplicate->contextid) {
+                $currentcontextid = $duplicate->contextid;
+                $chosentopid = $duplicate->id;
+            } else {
+                $DB->set_field('question_categories', 'parent', $chosentopid, ['id' => $duplicate->id]);
+            }
+        }
+
+        // Main savepoint reached.
+        upgrade_main_savepoint(true, 2018051701.03);
+    }
+
     return true;
 }
diff --git a/lib/questionlib.php b/lib/questionlib.php
index 91d734c1f32..ebd67962554 100644
--- a/lib/questionlib.php
+++ b/lib/questionlib.php
@@ -504,7 +504,7 @@ function question_save_from_deletion($questionids, $newcontextid, $oldplace,
     // Make a category in the parent context to move the questions to.
     if (is_null($newcategory)) {
         $newcategory = new stdClass();
-        $newcategory->parent = 0;
+        $newcategory->parent = question_get_top_category($newcontextid, true)->id;
         $newcategory->contextid = $newcontextid;
         $newcategory->name = get_string('questionsrescuedfrom', 'question', $oldplace);
         $newcategory->info = get_string('questionsrescuedfrominfo', 'question', $oldplace);
diff --git a/lib/tests/questionlib_test.php b/lib/tests/questionlib_test.php
index dde35cf2d62..da003ffc6a7 100644
--- a/lib/tests/questionlib_test.php
+++ b/lib/tests/questionlib_test.php
@@ -458,6 +458,29 @@ class core_questionlib_testcase extends advanced_testcase {
         $this->assertEquals(0, $DB->count_records('question_categories', $criteria));
     }
 
+    /**
+     * This function tests the question_save_from_deletion function when it is supposed to make a new category and
+     * move question categories to that new category.
+     */
+    public function test_question_save_from_deletion() {
+        global $DB;
+        $this->resetAfterTest(true);
+        $this->setAdminUser();
+
+        list($category, $course, $quiz, $qcat, $questions) = $this->setup_quiz_and_questions();
+
+        $context = context::instance_by_id($qcat->contextid);
+
+        $newcat = question_save_from_deletion(array_column($questions, 'id'),
+                $context->get_parent_context()->id, $context->get_context_name());
+
+        // Verify that the newcat itself is not a tep level category.
+        $this->assertNotEquals(0, $newcat->parent);
+
+        // Verify there is just a single top-level category.
+        $this->assertEquals(1, $DB->count_records('question_categories', ['contextid' => $qcat->contextid, 'parent' => 0]));
+    }
+
     public function test_question_remove_stale_questions_from_category() {
         global $DB;
         $this->resetAfterTest(true);