diff --git a/badges/tests/behat/badge_navigation.feature b/badges/tests/behat/badge_navigation.feature
index 446919fe463..c14b2689556 100644
--- a/badges/tests/behat/badge_navigation.feature
+++ b/badges/tests/behat/badge_navigation.feature
@@ -84,10 +84,21 @@ Feature: Test tertiary navigation as various users
       | nonediting | should not exist | Badges    |
 
   Scenario: Check navigation as a student
-    Given I log in as "student1"
-    And I am on "Course 1" course homepage
-    When I navigate to "Badges" in current page administration
-    Then "Back" "button" should not exist
+    Given I am on the "C1" "Course" page logged in as "student1"
+    And "Badges" "link" should not exist in current page administration
+    And I log out
+    # Enable one badge.
+    When I am on the "C1" "Course" page logged in as "admin"
+    And I navigate to "Badges" in current page administration
+    And I click on "Manage badges" "button"
+    And I click on "Enable access" "link" in the "Testing course badge" "table_row"
+    And I press "Continue"
+    And I log out
+    # Now student should see the Badges link.
+    And I am on the "C1" "Course" page logged in as "student1"
+    Then "Badges" "link" should exist in current page administration
+    And I navigate to "Badges" in current page administration
+    And "Back" "button" should not exist
     And "Manage badges" "button" should not exist
     And "Add a new badge" "button" should not exist
     And I should see "Badges" is active in secondary navigation
diff --git a/badges/tests/behat/nobadge_navigation.feature b/badges/tests/behat/nobadge_navigation.feature
index 2b1bcfce633..9b3a76354ae 100644
--- a/badges/tests/behat/nobadge_navigation.feature
+++ b/badges/tests/behat/nobadge_navigation.feature
@@ -58,3 +58,45 @@ Feature: Manage badges is not shown when there are no existing badges.
     And "Manage badges" "button" should exist
 #    Badge is already enabled so is listed.
     And I should see "Testing course badge"
+
+  Scenario: Check navigation at course level with no badges as a student
+    # Create a badge, but leave it not enabled for now.
+    Given the following "users" exist:
+      | username | firstname | lastname | email                |
+      | student1 | Student   | 1        | student1@example.com |
+    And the following "courses" exist:
+      | fullname | shortname | format | enablecompletion |
+      | Course 1 | C1        | topics | 1                |
+    And the following "course enrolments" exist:
+      | user     | course | role           |
+      | student1 | C1     | student        |
+    And I am on the "C1" "Course" page logged in as "admin"
+    And I navigate to "Badges > Add a new badge" in current page administration
+    And I set the following fields to these values:
+      | Name | Testing course badge |
+      | Version | 1.0 |
+      | Language | Catalan |
+      | Description | Testing course badge description |
+    And I upload "badges/tests/behat/badge.png" file to "Image" filemanager
+    And I press "Create badge"
+    And I set the field "type" to "Manual issue by role"
+    And I expand all fieldsets
+    And I set the field "Teacher" to "1"
+    And I press "Save"
+    And I log out
+    When I am on the "C1" "Course" page logged in as "student1"
+    Then "Badges" "link" should not exist in current page administration
+    And I log out
+    # Enable the badge.
+    And I am on the "C1" "Course" page logged in as "admin"
+    And I navigate to "Badges" in current page administration
+    And I click on "Manage badges" "button"
+    And I click on "Enable access" "link" in the "Testing course badge" "table_row"
+    And I press "Continue"
+    And I log out
+    # Now student should see the Badges link.
+    And I am on the "C1" "Course" page logged in as "student1"
+    And I follow "Badges"
+    And "Manage badges" "button" should not exist
+    And "Add a new badge" "button" should not exist
+    And I should not see "There are no badges available."
diff --git a/course/lib.php b/course/lib.php
index 95474d8206c..6d3089a5954 100644
--- a/course/lib.php
+++ b/course/lib.php
@@ -3999,7 +3999,7 @@ function course_get_tagged_course_modules($tag, $exclusivemode = false, $fromcon
  * @since  Moodle 3.2
  */
 function course_get_user_navigation_options($context, $course = null) {
-    global $CFG;
+    global $CFG, $USER;
 
     $isloggedin = isloggedin();
     $isguestuser = isguestuser();
@@ -4040,8 +4040,33 @@ function course_get_user_navigation_options($context, $course = null) {
     } else {
         // We are in a course, so make sure we use the proper capability (course:viewparticipants).
         $options->participants = course_can_view_participants($context);
+
+        // Only display badges if the current user can manage them or if they can view them and have, at least, one available badge.
+        require_once($CFG->dirroot.'/lib/badgeslib.php');
+        $canmanage = has_any_capability([
+                'moodle/badges:createbadge',
+                'moodle/badges:awardbadge',
+                'moodle/badges:configurecriteria',
+                'moodle/badges:configuremessages',
+                'moodle/badges:configuredetails',
+                'moodle/badges:deletebadge',
+            ],
+            $context
+        );
+        $totalbadges = [];
+        $canview = false;
+        if (!$canmanage) {
+            // This only needs to be calculated if the user can't manage badges (to improve performance).
+            $canview = has_capability('moodle/badges:viewbadges', $context);
+            if (is_null($course)) {
+                $totalbadges = count(badges_get_badges(BADGE_TYPE_SITE, 0, '', '', 0, 0, $USER->id));
+            } else {
+                $totalbadges = count(badges_get_badges(BADGE_TYPE_COURSE, $course->id, '', '', 0, 0, $USER->id));
+            }
+        }
+
         $options->badges = !empty($CFG->enablebadges) && !empty($CFG->badges_allowcoursebadges) &&
-                            has_capability('moodle/badges:viewbadges', $context);
+                            ($canmanage || ($canview && $totalbadges > 0));
         // Add view grade report is permitted.
         $grades = false;
 
diff --git a/course/tests/courselib_test.php b/course/tests/courselib_test.php
index 334acaf54f9..33c1fd13fa9 100644
--- a/course/tests/courselib_test.php
+++ b/course/tests/courselib_test.php
@@ -3253,7 +3253,7 @@ class core_course_courselib_testcase extends advanced_testcase {
         $this->assertTrue($navoptions->blogs);
         $this->assertFalse($navoptions->notes);
         $this->assertTrue($navoptions->participants);
-        $this->assertTrue($navoptions->badges);
+        $this->assertFalse($navoptions->badges);
 
         // Disable some options.
         $CFG->badges_allowcoursebadges = 0;
@@ -3266,6 +3266,13 @@ class core_course_courselib_testcase extends advanced_testcase {
         $this->assertFalse($navoptions->notes);
         $this->assertFalse($navoptions->participants);
         $this->assertFalse($navoptions->badges);
+
+        // Re-enable some options to check badges are displayed as expected.
+        $CFG->badges_allowcoursebadges = 1;
+        assign_capability('moodle/badges:createbadge', CAP_ALLOW, $roleid, $context);
+
+        $navoptions = course_get_user_navigation_options($context);
+        $this->assertTrue($navoptions->badges);
     }
 
     /**
diff --git a/course/tests/externallib_test.php b/course/tests/externallib_test.php
index 16a89ac0584..60ba1a207b4 100644
--- a/course/tests/externallib_test.php
+++ b/course/tests/externallib_test.php
@@ -2552,7 +2552,7 @@ class externallib_test extends externallib_advanced_testcase {
                 $this->assertTrue($navoptions->blogs);
                 $this->assertFalse($navoptions->notes);
                 $this->assertTrue($navoptions->participants);
-                $this->assertTrue($navoptions->badges);
+                $this->assertFalse($navoptions->badges);
                 $this->assertFalse($navoptions->tags);
                 $this->assertTrue($navoptions->grades);
                 $this->assertFalse($navoptions->search);