diff --git a/lib/navigationlib.php b/lib/navigationlib.php
index f8627217923..da03b029ccc 100644
--- a/lib/navigationlib.php
+++ b/lib/navigationlib.php
@@ -2880,20 +2880,49 @@ class global_navigation_for_ajax extends global_navigation {
                 $this->add_category($category, $this, $nodetype);
                 $basecategory = $this->addedcategories[$category->id];
             } else {
-                $subcategories[] = $category;
+                $subcategories[$category->id] = $category;
             }
         }
         $categories->close();
 
-        if (!is_null($basecategory)) {
-            foreach ($subcategories as $category) {
-                $this->add_category($category, $basecategory, $nodetype);
-            }
-        }
 
-        // If category is shown in MyHome then only show enrolled courses, else show all courses.
+        // If category is shown in MyHome then only show enrolled courses and hide empty subcategories,
+        // else show all courses.
         if ($nodetype === self::TYPE_MY_CATEGORY) {
             $courses = enrol_get_my_courses();
+            $categoryids = array();
+
+            // Only search for categories if basecategory was found.
+            if (!is_null($basecategory)) {
+                // Get course parent category ids.
+                foreach ($courses as $course) {
+                    $categoryids[] = $course->category;
+                }
+
+                // Get a unique list of category ids which a part of the path
+                // to user's courses.
+                $coursesubcategories = array();
+                $addedsubcategories = array();
+
+                list($sql, $params) = $DB->get_in_or_equal($categoryids);
+                $categories = $DB->get_recordset_select('course_categories', 'id '.$sql, $params, 'sortorder, id', 'id, path');
+
+                foreach ($categories as $category){
+                    $coursesubcategories = array_merge($coursesubcategories, explode('/', trim($category->path, "/")));
+                }
+                $coursesubcategories = array_unique($coursesubcategories);
+
+                // Only add a subcategory if it is part of the path to user's course and
+                // wasn't already added.
+                foreach ($subcategories as $subid => $subcategory) {
+                    if (in_array($subid, $coursesubcategories) &&
+                            !in_array($subid, $addedsubcategories)) {
+                            $this->add_category($subcategory, $basecategory, $nodetype);
+                            $addedsubcategories[] = $subid;
+                    }
+                }
+            }
+
             foreach ($courses as $course) {
                 // Add course if it's in category.
                 if (in_array($course->category, $categorylist)) {
@@ -2901,6 +2930,11 @@ class global_navigation_for_ajax extends global_navigation {
                 }
             }
         } else {
+            if (!is_null($basecategory)) {
+                foreach ($subcategories as $key=>$category) {
+                    $this->add_category($category, $basecategory, $nodetype);
+                }
+            }
             $courses = $DB->get_recordset('course', array('category' => $categoryid), 'sortorder', '*' , 0, $limit);
             foreach ($courses as $course) {
                 $this->add_course($course);