diff --git a/course/lib.php b/course/lib.php
index 37a28627d1b..3eca82d2fa2 100644
--- a/course/lib.php
+++ b/course/lib.php
@@ -3244,6 +3244,23 @@ function duplicate_module($course, $cm, int $sectionid = null, bool $changename
         // The following line is to be removed in MDL-58906.
         course_module_update_calendar_events($newcm->modname, null, $newcm);
 
+        // Copy permission overrides to new course module.
+        $newcmcontext = context_module::instance($newcm->id);
+        $overrides = $DB->get_records('role_capabilities', ['contextid' => $cmcontext->id]);
+        foreach ($overrides as $override) {
+            $override->contextid = $newcmcontext->id;
+            unset($override->id);
+            $DB->insert_record('role_capabilities', $override);
+        }
+
+        // Copy locally assigned roles to new course module.
+        $overrides = $DB->get_records('role_assignments', ['contextid' => $cmcontext->id]);
+        foreach ($overrides as $override) {
+            $override->contextid = $newcmcontext->id;
+            unset($override->id);
+            $DB->insert_record('role_assignments', $override);
+        }
+
         // Trigger course module created event. We can trigger the event only if we know the newcmid.
         $newcm = get_fast_modinfo($cm->course)->get_cm($newcmid);
         $event = \core\event\course_module_created::create_from_cm($newcm);
diff --git a/course/tests/courselib_test.php b/course/tests/courselib_test.php
index f811ec9ac6b..cbdbb136e13 100644
--- a/course/tests/courselib_test.php
+++ b/course/tests/courselib_test.php
@@ -3058,6 +3058,81 @@ class courselib_test extends advanced_testcase {
         }
     }
 
+    /**
+     * Test that permissions are duplicated correctly after duplicate_module().
+     * @covers ::duplicate_module
+     * @return void
+     */
+    public function test_duplicate_module_permissions(): void {
+        global $DB;
+        $this->setAdminUser();
+        $this->resetAfterTest();
+
+        // Create course and course module.
+        $course = self::getDataGenerator()->create_course();
+        $res = self::getDataGenerator()->create_module('assign', ['course' => $course]);
+        $cm = get_coursemodule_from_id('assign', $res->cmid, 0, false, MUST_EXIST);
+        $cmcontext = \context_module::instance($cm->id);
+
+        // Enrol student user.
+        $user = self::getDataGenerator()->create_user();
+        $roleid = $DB->get_field('role', 'id', ['shortname' => 'student'], MUST_EXIST);
+        self::getDataGenerator()->enrol_user($user->id, $course->id, $roleid);
+
+        // Add capability to original course module.
+        assign_capability('gradereport/grader:view', CAP_ALLOW, $roleid, $cmcontext->id);
+
+        // Duplicate module.
+        $newcm = duplicate_module($course, $cm);
+        $newcmcontext = \context_module::instance($newcm->id);
+
+        // Assert that user still has capability.
+        $this->assertTrue(has_capability('gradereport/grader:view', $newcmcontext, $user));
+
+        // Assert that both modules contain the same count of overrides.
+        $overrides = $DB->get_records('role_capabilities', ['contextid' => $cmcontext->id]);
+        $newoverrides = $DB->get_records('role_capabilities', ['contextid' => $newcmcontext->id]);
+        $this->assertEquals(count($overrides), count($newoverrides));
+    }
+
+    /**
+     * Test that locally assigned roles are duplicated correctly after duplicate_module().
+     * @covers ::duplicate_module
+     * @return void
+     */
+    public function test_duplicate_module_role_assignments(): void {
+        global $DB;
+        $this->setAdminUser();
+        $this->resetAfterTest();
+
+        // Create course and course module.
+        $course = self::getDataGenerator()->create_course();
+        $res = self::getDataGenerator()->create_module('assign', ['course' => $course]);
+        $cm = get_coursemodule_from_id('assign', $res->cmid, 0, false, MUST_EXIST);
+        $cmcontext = \context_module::instance($cm->id);
+
+        // Enrol student user.
+        $user = self::getDataGenerator()->create_user();
+        $roleid = $DB->get_field('role', 'id', ['shortname' => 'student'], MUST_EXIST);
+        self::getDataGenerator()->enrol_user($user->id, $course->id, $roleid);
+
+        // Assign user a new local role.
+        $newroleid = $DB->get_field('role', 'id', ['shortname' => 'editingteacher'], MUST_EXIST);
+        role_assign($newroleid, $user->id, $cmcontext->id);
+
+        // Duplicate module.
+        $newcm = duplicate_module($course, $cm);
+        $newcmcontext = \context_module::instance($newcm->id);
+
+        // Assert that user still has role assigned.
+        $this->assertTrue(user_has_role_assignment($user->id, $newroleid, $newcmcontext->id));
+
+        // Assert that both modules contain the same count of overrides.
+        $overrides = $DB->get_records('role_assignments', ['contextid' => $cmcontext->id]);
+        $newoverrides = $DB->get_records('role_assignments', ['contextid' => $newcmcontext->id]);
+        $this->assertEquals(count($overrides), count($newoverrides));
+    }
+
     /**
      * Tests that when creating or updating a module, if the availability settings
      * are present but set to an empty tree, availability is set to null in
diff --git a/mod/assign/tests/behat/duplicate_permissions.feature b/mod/assign/tests/behat/duplicate_permissions.feature
new file mode 100644
index 00000000000..5d560386727
--- /dev/null
+++ b/mod/assign/tests/behat/duplicate_permissions.feature
@@ -0,0 +1,62 @@
+@mod @mod_assign
+Feature: Duplicate assign activity module with permissions
+  In order to ensure that locally assigned roles and permissions are correctly duplicated
+  As a teacher
+  I need to add the roles and permissions and ensure they are correctly duplicated
+
+  Background:
+    Given the following "courses" exist:
+      | fullname | shortname | category | groupmode |
+      | Course 1 | C1 | 0 | 1 |
+    And the following "users" exist:
+      | username | firstname | lastname | email |
+      | teacher1 | Teacher | 1 | teacher1@example.com |
+      | student1 | Student | 1 | student10@example.com |
+      | student2 | Student | 2 | student20@example.com |
+    And the following "course enrolments" exist:
+      | user | course | role |
+      | teacher1 | C1 | editingteacher |
+      | student1 | C1 | student |
+      | student2 | C1 | student |
+    And the following "activity" exists:
+      | activity         | assign                      |
+      | course           | C1                          |
+      | name             | Test assignment name        |
+      | intro            | Test assignment description |
+      | markingworkflow  | 1                           |
+      | submissiondrafts | 0                           |
+
+  @javascript
+  Scenario: Add a locally assigned role and duplicate activity
+    Given I log in as "teacher 1"
+    And I am on "Course 1" course homepage with editing mode on
+
+    When I open "Test assignment name" actions menu
+    And I click on "Assign roles" "link" in the "Test assignment name" activity
+    And I click on "Non-editing teacher" "link"
+    And I click on "Student 2" "option"
+    And I click on "Add" "button"
+    And I am on "Course 1" course homepage with editing mode on
+    And I duplicate "Test assignment name" activity
+    Then I should see "Test assignment name (copy)"
+
+    And I open "Test assignment name (copy)" actions menu
+    And I click on "Assign roles" "link" in the "Test assignment name (copy)" activity
+    Then "Non-editing teacher" row "Users with role" column of "generaltable" table should contain "1"
+
+  @javascript
+  Scenario: Add a permission override to activity and duplicate
+    Given the following "permission overrides" exist:
+      | capability | permission | role | contextlevel | reference |
+      | mod/assign:grade | Allow | student | 70 | Test assignment name |
+    And I log in as "admin"
+
+    When I am on "Course 1" course homepage with editing mode on
+    And I duplicate "Test assignment name" activity
+    Then I should see "Test assignment name (copy)"
+
+    And I open "Test assignment name (copy)" actions menu
+    And I click on "Edit settings" "link" in the "Test assignment name (copy)" activity
+    And I navigate to "Permissions" in current page administration
+    And I set the field "permissionscapabilitysearch" to "mod/assign:grade"
+    Then "mod/assign:grade" row "Roles with permission" column of "permissions" table should contain "Student"