diff --git a/mod/data/locallib.php b/mod/data/locallib.php
index de36ed31360..7ef3673ff41 100644
--- a/mod/data/locallib.php
+++ b/mod/data/locallib.php
@@ -1082,11 +1082,7 @@ function data_search_entries($data, $cm, $context, $mode, $currentgroup, $search
     // If a student is not part of a group and seperate groups is enabled, we don't
     // want them seeing all records.
     $groupmode = groups_get_activity_groupmode($cm);
-    if ($currentgroup == 0 && $groupmode == 1 && !$canmanageentries) {
-        $canviewallrecords = false;
-    } else {
-        $canviewallrecords = true;
-    }
+    $canviewallrecords = $groupmode != SEPARATEGROUPS || has_capability('moodle/site:accessallgroups', $context);
 
     $numentries = data_numentries($data);
     $requiredentriesallowed = true;
diff --git a/mod/data/tests/behat/group_mode.feature b/mod/data/tests/behat/group_mode.feature
index ac3676dbf21..0da4d1426e1 100644
--- a/mod/data/tests/behat/group_mode.feature
+++ b/mod/data/tests/behat/group_mode.feature
@@ -16,6 +16,8 @@ Feature: Group data activity
     And the following "users" exist:
       | username | firstname    | lastname | email                |
       | teacher1 | TeacherG1    | 1        | teacher1@example.com |
+      | teacher2 | TeacherGNone | 2        | teacher2@example.com |
+      | teacher3 | TeacherGNone | 3        | teacher3@example.com |
       | user1    | User1G1      | 1        | user1@example.com    |
       | user2    | User2G2      | 2        | user2@example.com    |
       | user3    | User3None    | 3        | user3@example.com    |
@@ -23,6 +25,8 @@ Feature: Group data activity
     And the following "course enrolments" exist:
       | user     | course | role           |
       | teacher1 | C1     | editingteacher |
+      | teacher2 | C1     | editingteacher |
+      | teacher3 | C1     | teacher        |
       | user1    | C1     | student        |
       | user2    | C1     | student        |
       | user3    | C1     | student        |
@@ -73,11 +77,15 @@ Feature: Group data activity
     Examples:
       | data  | user     | all            | G1             | G2             | user1          | user2          |
       | data1 | teacher1 | should see     | should see     | should see     | should see     | should see     |
+      | data1 | teacher2 | should see     | should see     | should see     | should see     | should see     |
+      | data1 | teacher3 | should see     | should not see | should not see | should not see | should not see |
       | data1 | user1    | should not see | should see     | should not see | should see     | should not see |
       | data1 | user2    | should not see | should not see | should see     | should not see | should see     |
       | data1 | user3    | should see     | should not see | should not see | should not see | should not see |
       | data1 | user4    | should see     | should not see | should not see | should not see | should not see |
       | data2 | teacher1 | should see     | should see     | should see     | should see     | should see     |
+      | data2 | teacher2 | should see     | should see     | should see     | should see     | should see     |
+      | data2 | teacher3 | should see     | should see     | should see     | should see     | should not see |
       | data2 | user1    | should see     | should see     | should see     | should see     | should not see |
       | data2 | user2    | should see     | should see     | should see     | should not see | should see     |
       | data2 | user3    | should see     | should see     | should see     | should see     | should not see |
diff --git a/mod/data/tests/locallib_test.php b/mod/data/tests/locallib_test.php
index d60cd5d764d..82d25d5b07a 100644
--- a/mod/data/tests/locallib_test.php
+++ b/mod/data/tests/locallib_test.php
@@ -96,6 +96,101 @@ class locallib_test extends \advanced_testcase {
         $this->assert_record_entries_contains($records, $captionfield->field->id, 'caption');
     }
 
+    /**
+     * Confirms that search is working with groups
+     * @covers ::data_search_entries
+     */
+    public function test_data_search_entries_with_groups(): void {
+        $this->resetAfterTest();
+        $this->setAdminUser();
+        $course = $this->getDataGenerator()->create_course(['groupmode' => SEPARATEGROUPS, 'groupmodeforce' => 1]);
+        $group1 = $this->getDataGenerator()->create_group(['courseid' => $course->id]);
+        $group2 = $this->getDataGenerator()->create_group(['courseid' => $course->id]);
+        $student1 = $this->getDataGenerator()->create_and_enrol($course);
+        $student2 = $this->getDataGenerator()->create_and_enrol($course);
+        $student3 = $this->getDataGenerator()->create_and_enrol($course);
+        $teacher1 = $this->getDataGenerator()->create_and_enrol($course, 'teacher');
+        $teacher2 = $this->getDataGenerator()->create_and_enrol($course, 'teacher');
+        $teacher3 = $this->getDataGenerator()->create_and_enrol($course, 'teacher');
+        groups_add_member($group1->id, $student1->id);
+        groups_add_member($group1->id, $teacher1->id);
+        groups_add_member($group2->id, $student3->id);
+        groups_add_member($group2->id, $teacher3->id);
+
+        $record = new \stdClass();
+        $record->course = $course->id;
+        $record->name = "Mod data delete test";
+        $record->intro = "Some intro of some sort";
+        $module = $this->getDataGenerator()->create_module('data', $record);
+        $titlefield = $this->getDataGenerator()->get_plugin_generator('mod_data')->create_field(
+            (object) [
+                'name' => 'title',
+                'type' => 'text',
+                'required' => 1,
+            ],
+            $module);
+        $captionfield = $this->getDataGenerator()->get_plugin_generator('mod_data')->create_field(
+            (object) [
+                'name' => 'caption',
+                'type' => 'text',
+                'required' => 1,
+            ],
+            $module);
+        $this->getDataGenerator()->get_plugin_generator('mod_data')->create_entry($module, [
+            $titlefield->field->id => 'Entry 1 - group 1',
+            $captionfield->field->id => 'caption',
+        ],
+            $group1->id,
+            [],
+            null,
+            $student1->id
+        );
+        $this->getDataGenerator()->get_plugin_generator('mod_data')->create_entry($module, [
+            $titlefield->field->id => 'Entry 2 - group 1',
+            $captionfield->field->id => 'caption',
+        ],
+            $group1->id,
+            [],
+            null,
+            $student1->id
+        );
+        $this->getDataGenerator()->get_plugin_generator('mod_data')->create_entry($module, [
+            $titlefield->field->id => 'Entry 3 - group 2',
+            $captionfield->field->id => '',
+        ],
+            $group2->id,
+            [],
+            null,
+            $student3->id
+        );
+        $this->getDataGenerator()->get_plugin_generator('mod_data')->create_entry($module, [
+            $titlefield->field->id => 'Entry 3 - no group',
+            $captionfield->field->id => '',
+        ],
+            0,
+            [],
+            null,
+            $student2->id
+        );
+        $cm = get_coursemodule_from_id('data', $module->cmid);
+        $this->setUser($teacher1);
+        // As a non editing teacher in group 1, I should see only the entries for group 1.
+        list($records, $maxcount, $totalcount, $page, $nowperpage, $sort, $mode) =
+            data_search_entries($module, $cm, \context_course::instance($course->id), 'list', $group1->id);
+        $this->assertCount(3, $records); // Record with group 1 and record with no group.
+        // As a non editing teacher not in a group, I should see the entry from users not in a group.
+        $this->setUser($teacher3);
+        list($records, $maxcount, $totalcount, $page, $nowperpage, $sort, $mode) =
+            data_search_entries($module, $cm, \context_course::instance($course->id), 'list', $group2->id);
+        $this->assertCount(2, $records); // Record with group 2 and record with no group.
+        // As a non editing teacher not in a group, I should see the entry from users not in a group.
+        $this->setUser($teacher2);
+        list($records, $maxcount, $totalcount, $page, $nowperpage, $sort, $mode) =
+            data_search_entries($module, $cm, \context_course::instance($course->id), 'list', 0);
+        $this->assertCount(1, $records); // Just the record with no group.
+        $this->assert_record_entries_contains($records, $titlefield->field->id, 'Entry 3 - no group');
+    }
+
     /**
      * Assert that all records contains a value for the matching field id.
      *