diff --git a/enrol/manual/lib.php b/enrol/manual/lib.php
index d894916f975..d5d7ec3d860 100644
--- a/enrol/manual/lib.php
+++ b/enrol/manual/lib.php
@@ -173,6 +173,9 @@ class enrol_manual_plugin extends enrol_plugin {
                 }
             }
         }
+
+        $data->notifyall = $data->expirynotify == 2 ? 1 : 0;
+
         return parent::update_instance($instance, $data);
     }
 
diff --git a/enrol/manual/tests/lib_test.php b/enrol/manual/tests/lib_test.php
index a8a6e86a3bd..0f4b09bdc10 100644
--- a/enrol/manual/tests/lib_test.php
+++ b/enrol/manual/tests/lib_test.php
@@ -647,4 +647,118 @@ class lib_test extends \advanced_testcase {
             ],
         ];
     }
+
+    /**
+     * Tests an enrolment instance is updated properly.
+     *
+     * @covers \enrol_manual::update_instance
+     * @dataProvider update_enrolment_instance_data_provider
+     *
+     * @param stdClass $expectation
+     * @param stdClass $updatedata
+     */
+    public function test_enrolment_instance_is_updated(stdClass $expectation, stdClass $updatedata): void {
+        global $DB;
+
+        $this->resetAfterTest();
+
+        $generator = $this->getDataGenerator();
+
+        $studentroles = get_archetype_roles('student');
+        $studentrole = array_shift($studentroles);
+
+        // Given the plugin is globally configured with the following settings.
+        $plugin = enrol_get_plugin('manual');
+        $plugin->set_config('status', ENROL_INSTANCE_ENABLED);
+        $plugin->set_config('roleid', $studentrole->id);
+        $plugin->set_config('enrolperiod', 30 * DAYSECS);
+        $plugin->set_config('expirynotify', 1);
+        $plugin->set_config('expirythreshold', 2 * DAYSECS);
+
+        // And a course is created with the default enrolment instance.
+        $course = $generator->create_course();
+
+        // When the enrolment instance is being updated.
+        $enrolinstance = $DB->get_record('enrol', ['courseid' => $course->id, 'enrol' => 'manual']);
+        $successfullyupdated = $plugin->update_instance($enrolinstance, $updatedata);
+
+        // Then the update is successful.
+        $this->assertTrue($successfullyupdated);
+
+        // And the updated enrolment instance contains the expected values.
+        $enrolinstance = $DB->get_record('enrol', ['id' => $enrolinstance->id]);
+        $this->assertEquals($expectation->status, $enrolinstance->status);
+        $this->assertEquals($expectation->roleid, $enrolinstance->roleid);
+        $this->assertEquals($expectation->enrolperiod, $enrolinstance->enrolperiod);
+        $this->assertEquals($expectation->expirynotify, $enrolinstance->expirynotify);
+        $this->assertEquals($expectation->notifyall, $enrolinstance->notifyall);
+        $this->assertEquals($expectation->expirythreshold, $enrolinstance->expirythreshold);
+    }
+
+    /**
+     * Data provider for test_enrolment_instance_is_updated().
+     *
+     * @return array
+     */
+    public function update_enrolment_instance_data_provider(): array {
+        $studentroles = get_archetype_roles('student');
+        $studentrole = array_shift($studentroles);
+
+        $teacherroles = get_archetype_roles('teacher');
+        $teacherrole = array_shift($teacherroles);
+
+        return [
+            'disabled, all the others are default' => [
+                'expectation' => (object) [
+                    'status' => ENROL_INSTANCE_DISABLED,
+                    'roleid' => $studentrole->id,
+                    'enrolperiod' => 30 * DAYSECS,
+                    'expirynotify' => 1,
+                    'notifyall' => 0,
+                    'expirythreshold' => 2 * DAYSECS,
+                ],
+                'update data' => (object) [
+                    'status' => ENROL_INSTANCE_DISABLED,
+                    'roleid' => $studentrole->id,
+                    'enrolperiod' => 30 * DAYSECS,
+                    'expirynotify' => 1,
+                    'expirythreshold' => 2 * DAYSECS,
+                ],
+            ],
+            'enabled, teacher role, no duration set, notify no one on expiry, 0 notification threshold' => [
+                'expectation' => (object) [
+                    'status' => ENROL_INSTANCE_ENABLED,
+                    'roleid' => $teacherrole->id,
+                    'enrolperiod' => 0,
+                    'expirynotify' => 0,
+                    'notifyall' => 0,
+                    'expirythreshold' => 0,
+                ],
+                'update data' => (object) [
+                    'status' => ENROL_INSTANCE_ENABLED,
+                    'roleid' => $teacherrole->id,
+                    'enrolperiod' => 0,
+                    'expirynotify' => 0,
+                    'expirythreshold' => 0,
+                ],
+            ],
+            'notify enroller and enrolled on expiry, all the others are default' => [
+                'expectation' => (object) [
+                    'status' => ENROL_INSTANCE_ENABLED,
+                    'roleid' => $studentrole->id,
+                    'enrolperiod' => 30 * DAYSECS,
+                    'expirynotify' => 2,
+                    'notifyall' => 1,
+                    'expirythreshold' => 2 * DAYSECS,
+                ],
+                'update data' => (object) [
+                    'status' => ENROL_INSTANCE_ENABLED,
+                    'roleid' => $studentrole->id,
+                    'enrolperiod' => 30 * DAYSECS,
+                    'expirynotify' => 2,
+                    'expirythreshold' => 2 * DAYSECS,
+                ],
+            ],
+        ];
+    }
 }