diff --git a/mod/assign/locallib.php b/mod/assign/locallib.php
index ae24d0f7db8..57981d53d42 100644
--- a/mod/assign/locallib.php
+++ b/mod/assign/locallib.php
@@ -3774,7 +3774,7 @@ class assign {
         $grade = $this->get_user_grade($userid, false, $attemptnumber);
         $flags = $this->get_user_flags($userid, false);
         if ($this->can_view_submission($userid)) {
-            $gradelocked = ($flags && $flags->locked) || $this->grading_disabled($userid);
+            $submissionlocked = ($flags && $flags->locked);
             $extensionduedate = null;
             if ($flags) {
                 $extensionduedate = $flags->extensionduedate;
@@ -3791,7 +3791,7 @@ class assign {
                                                                      $submissiongroup,
                                                                      $notsubmitted,
                                                                      $this->is_any_submission_plugin_enabled(),
-                                                                     $gradelocked,
+                                                                     $submissionlocked,
                                                                      $this->is_graded($userid),
                                                                      $instance->duedate,
                                                                      $instance->cutoffdate,
@@ -3972,7 +3972,7 @@ class assign {
         $grade = $this->get_user_grade($userid, false, $attemptnumber);
         $flags = $this->get_user_flags($userid, false);
         if ($this->can_view_submission($userid)) {
-            $gradelocked = ($flags && $flags->locked) || $this->grading_disabled($userid);
+            $submissionlocked = ($flags && $flags->locked);
             $extensionduedate = null;
             if ($flags) {
                 $extensionduedate = $flags->extensionduedate;
@@ -3989,7 +3989,7 @@ class assign {
                                                              $submissiongroup,
                                                              $notsubmitted,
                                                              $this->is_any_submission_plugin_enabled(),
-                                                             $gradelocked,
+                                                             $submissionlocked,
                                                              $this->is_graded($userid),
                                                              $instance->duedate,
                                                              $instance->cutoffdate,
@@ -4946,7 +4946,7 @@ class assign {
                     ($this->is_any_submission_plugin_enabled()) &&
                     $this->can_edit_submission($user->id);
 
-        $gradelocked = ($flags && $flags->locked) || $this->grading_disabled($user->id, false);
+        $submissionlocked = ($flags && $flags->locked);
 
         // Grading criteria preview.
         $gradingmanager = get_grading_manager($this->context, 'mod_assign', 'submissions');
@@ -4977,7 +4977,7 @@ class assign {
                                                           $submissiongroup,
                                                           $notsubmitted,
                                                           $this->is_any_submission_plugin_enabled(),
-                                                          $gradelocked,
+                                                          $submissionlocked,
                                                           $this->is_graded($user->id),
                                                           $instance->duedate,
                                                           $instance->cutoffdate,
diff --git a/mod/assign/tests/locallib_test.php b/mod/assign/tests/locallib_test.php
index 43391b640b8..e5adc30158b 100644
--- a/mod/assign/tests/locallib_test.php
+++ b/mod/assign/tests/locallib_test.php
@@ -3096,4 +3096,51 @@ Anchor link 2:<a title=\"bananas\" href=\"../logo-240x60.gif\">Link text</a>
         // Check that the grade was updated in the gradebook by fix_null_grades.
         $this->assertEquals($gradebookvalue, $gradegrade->finalgrade);
     }
+
+    /**
+     * Test grade override displays 'Graded' for students
+     */
+    public function test_grade_submission_override() {
+        global $DB, $PAGE, $OUTPUT;
+
+        $this->setUser($this->editingteachers[0]);
+        $assign = $this->create_instance(array('assignsubmission_onlinetext_enabled' => 1));
+
+        $studentid = $this->students[0]->id;
+
+        // Simulate adding a grade.
+        $this->setUser($this->teachers[0]);
+        $data = new stdClass();
+        $data->grade = '50.0';
+        $assign->testable_apply_grade_to_user($data, $studentid, 0);
+
+        // Set grade override.
+        $gradegrade = grade_grade::fetch(array('userid' => $studentid, 'itemid' => $assign->get_grade_item()->id));
+
+        // Check that grade submission is not overridden yet.
+        $this->assertEquals(false, $gradegrade->is_overridden());
+
+        // Simulate a submission.
+        $this->setUser($this->students[0]);
+        $submission = $assign->get_user_submission($studentid, true);
+
+        $PAGE->set_url(new moodle_url('/mod/assign/view.php', array('id' => $assign->get_course_module()->id)));
+
+        // Set override grade grade, and check that grade submission has been overridden.
+        $gradegrade->set_overridden(true);
+        $this->assertEquals(true, $gradegrade->is_overridden());
+
+        // Check that submissionslocked message 'This assignment is not accepting submissions' does not appear for student.
+        $gradingtable = new assign_grading_table($assign, 1, '', 0, true);
+        $output = $assign->get_renderer()->render($gradingtable);
+        $this->assertContains(get_string('submissionstatus_', 'assign'), $output);
+
+        $assignsubmissionstatus = $assign->get_assign_submission_status_renderable($this->students[0], true);
+        $output2 = $assign->get_renderer()->render($assignsubmissionstatus);
+
+        // Check that submissionslocked 'This assignment is not accepting submissions' message does not appear for student.
+        $this->assertNotContains(get_string('submissionslocked', 'assign'), $output2);
+        // Check that submissionstatus_marked 'Graded' message does appear for student.
+        $this->assertContains(get_string('submissionstatus_marked', 'assign'), $output2);
+    }
 }