diff --git a/lib/questionlib.php b/lib/questionlib.php
index 91d734c1f32..ebd67962554 100644
--- a/lib/questionlib.php
+++ b/lib/questionlib.php
@@ -504,7 +504,7 @@ function question_save_from_deletion($questionids, $newcontextid, $oldplace,
     // Make a category in the parent context to move the questions to.
     if (is_null($newcategory)) {
         $newcategory = new stdClass();
-        $newcategory->parent = 0;
+        $newcategory->parent = question_get_top_category($newcontextid, true)->id;
         $newcategory->contextid = $newcontextid;
         $newcategory->name = get_string('questionsrescuedfrom', 'question', $oldplace);
         $newcategory->info = get_string('questionsrescuedfrominfo', 'question', $oldplace);
diff --git a/lib/tests/questionlib_test.php b/lib/tests/questionlib_test.php
index dde35cf2d62..da003ffc6a7 100644
--- a/lib/tests/questionlib_test.php
+++ b/lib/tests/questionlib_test.php
@@ -458,6 +458,29 @@ class core_questionlib_testcase extends advanced_testcase {
         $this->assertEquals(0, $DB->count_records('question_categories', $criteria));
     }
 
+    /**
+     * This function tests the question_save_from_deletion function when it is supposed to make a new category and
+     * move question categories to that new category.
+     */
+    public function test_question_save_from_deletion() {
+        global $DB;
+        $this->resetAfterTest(true);
+        $this->setAdminUser();
+
+        list($category, $course, $quiz, $qcat, $questions) = $this->setup_quiz_and_questions();
+
+        $context = context::instance_by_id($qcat->contextid);
+
+        $newcat = question_save_from_deletion(array_column($questions, 'id'),
+                $context->get_parent_context()->id, $context->get_context_name());
+
+        // Verify that the newcat itself is not a tep level category.
+        $this->assertNotEquals(0, $newcat->parent);
+
+        // Verify there is just a single top-level category.
+        $this->assertEquals(1, $DB->count_records('question_categories', ['contextid' => $qcat->contextid, 'parent' => 0]));
+    }
+
     public function test_question_remove_stale_questions_from_category() {
         global $DB;
         $this->resetAfterTest(true);