diff --git a/classes/helper.php b/classes/helper.php
index 9f84ea4..adbb414 100644
--- a/classes/helper.php
+++ b/classes/helper.php
@@ -78,12 +78,13 @@ class helper {
     /**
      * Set up configuration item.
      *
-     * @param stdClass $course Course to set up it for.
      * @param int $itemid Item ID number
-     * @param string $itemtype Item type (tag, course, category)/
+     * @param string $itemtype Item type (tag, course, category).
      * @param string $itemname Item name.
+     * @param stdClass|null $course Course to set up enrolment method. If not set, the no enrolment method will be created.
+     * @return void
      */
-    public static function set_up_item(stdClass $course, int $itemid, string $itemtype, string $itemname): void {
+    public static function set_up_item(int $itemid, string $itemtype, string $itemname, ?stdClass $course = null): void {
         $cohort = self::get_cohort_by_item($itemid, $itemtype);
 
         if (empty($cohort)) {
@@ -105,8 +106,11 @@ public static function set_up_item(stdClass $course, int $itemid, string $itemty
         self::add_rule($cohort, $itemtype);
         // Add a tag to a custom profile field.
         self::update_profile_field($itemtype, $itemname);
-        // If yes, create enrolment method for the cohort for a given course.
-        self::add_enrolment_method($course, $cohort);
+
+        // Create enrolment method for the cohort for a given course.
+        if (!empty($course)) {
+            self::add_enrolment_method($course, $cohort);
+        }
     }
 
     /**
diff --git a/classes/observer.php b/classes/observer.php
index e3ad72f..094795b 100644
--- a/classes/observer.php
+++ b/classes/observer.php
@@ -16,6 +16,7 @@
 
 namespace tool_enrolprofile;
 
+use core\event\course_category_created;
 use core\event\course_created;
 use core\event\tag_added;
 
@@ -44,7 +45,7 @@ public static function tag_added(tag_added $event): void {
         $tagname = $event->other['tagrawname'];
         $course = get_course($event->other['itemid']);
 
-        helper::set_up_item($course, $tagid, 'tag', $tagname);
+        helper::set_up_item($tagid, helper::ITEM_TYPE_TAG, $tagname, $course);
     }
 
     /**
@@ -56,9 +57,21 @@ public static function course_created(course_created $event): void {
         global $DB;
 
         $course = get_course($event->courseid);
-        helper::set_up_item($course, $course->id, 'course', $course->{helper::COURSE_NAME});
+        helper::set_up_item($course->id, helper::ITEM_TYPE_COURSE, $course->{helper::COURSE_NAME}, $course);
 
         $category = $DB->get_record('course_categories', ['id' => $course->category]);
-        helper::set_up_item($course, $category->id, 'category', $category->name);
+        helper::set_up_item($category->id, helper::ITEM_TYPE_CATEGORY, $category->name, $course);
+    }
+
+    /**
+     * Process course_category_created event.
+     *
+     * @param course_category_created $event The event.
+     */
+    public static function course_category_created(course_category_created $event): void {
+        global $DB;
+
+        $category = $DB->get_record('course_categories', ['id' => $event->objectid]);
+        helper::set_up_item($category->id, helper::ITEM_TYPE_CATEGORY, $category->name);
     }
 }
diff --git a/db/events.php b/db/events.php
index 5744525..8d5dd1e 100644
--- a/db/events.php
+++ b/db/events.php
@@ -33,4 +33,8 @@
         'eventname' => '\core\event\course_created',
         'callback' => '\tool_enrolprofile\observer::course_created',
     ],
+    [
+        'eventname' => '\core\event\course_category_created',
+        'callback' => '\tool_enrolprofile\observer::course_category_created',
+    ],
 ];
diff --git a/tests/observer_test.php b/tests/observer_test.php
index 93ae625..ee5e586 100644
--- a/tests/observer_test.php
+++ b/tests/observer_test.php
@@ -125,9 +125,8 @@ protected function create_cohort_custom_field(string $shortname, string $datatyp
 
     /**
      * Check logic when adding a tag.
-     * @return void
      */
-    public function test_tag_added() {
+    public function test_tag_added(): void {
         global $DB;
 
         $course = $this->getDataGenerator()->create_course();
@@ -155,7 +154,7 @@ public function test_tag_added() {
                 $this->assertSame($tag->id, $customfield->export_value());
             }
             if ($customfield->get_field()->get('shortname') == helper::COHORT_FIELD_TYPE) {
-                $this->assertSame('tag', $customfield->export_value());
+                $this->assertSame(helper::ITEM_TYPE_TAG, $customfield->export_value());
             }
         }
 
@@ -177,15 +176,13 @@ public function test_tag_added() {
 
     /**
      * Check logic when creating a course.
-     * @return void
      */
-    public function test_course_created() {
+    public function test_course_created(): void {
         global $DB;
 
         $coursename = 'Course name';
         $this->assertEmpty($DB->get_record('cohort', ['name' => $coursename]));
         $this->assertEmpty($DB->get_field('user_info_field', 'param1', ['id' => $this->courseprofilefield->id]));
-        $this->assertEmpty($DB->get_record('tag', ['rawname' => $coursename]));
         $this->assertEmpty($DB->get_record('tool_dynamic_cohorts', ['name' => $coursename]));
 
         $course = $this->getDataGenerator()->create_course(['fullname' => $coursename]);
@@ -203,7 +200,7 @@ public function test_course_created() {
                 $this->assertSame($course->id, $customfield->export_value());
             }
             if ($customfield->get_field()->get('shortname') == helper::COHORT_FIELD_TYPE) {
-                $this->assertSame('course', $customfield->export_value());
+                $this->assertSame(helper::ITEM_TYPE_COURSE, $customfield->export_value());
             }
         }
 
@@ -232,7 +229,7 @@ public function test_course_created() {
                 $this->assertSame($category->id, $customfield->export_value());
             }
             if ($customfield->get_field()->get('shortname') == helper::COHORT_FIELD_TYPE) {
-                $this->assertSame('category', $customfield->export_value());
+                $this->assertSame(helper::ITEM_TYPE_CATEGORY, $customfield->export_value());
             }
         }
 
@@ -250,4 +247,43 @@ public function test_course_created() {
         $enrol = $DB->get_record('enrol', ['courseid' => $course->id, 'enrol' => 'cohort', 'customint1' => $cohort->id]);
         $this->assertNotEmpty($enrol);
     }
+
+    /**
+     * Check logic when creating a course category.
+     */
+    public function test_course_category_created(): void {
+        global $DB;
+
+        $categoryname = 'Category name';
+        $this->assertEmpty($DB->get_record('cohort', ['name' => $categoryname]));
+        $this->assertEmpty($DB->get_field('user_info_field', 'param1', ['id' => $this->categoryprofilefield->id]));
+        $this->assertEmpty($DB->get_record('tool_dynamic_cohorts', ['name' => $categoryname]));
+
+        $category = $this->getDataGenerator()->create_category(['name' => $categoryname]);
+
+        // Check everything about category cohort.
+        $categorycohort = $DB->get_record('cohort', ['name' => $category->name]);
+        $this->assertNotEmpty($categorycohort);
+
+        $cohort = cohort_get_cohort($categorycohort->id, \context_coursecat::instance($category->id), true);
+        foreach ($cohort->customfields as $customfield) {
+            if ($customfield->get_field()->get('shortname') == helper::COHORT_FIELD_ID) {
+                $this->assertSame($category->id, $customfield->export_value());
+            }
+            if ($customfield->get_field()->get('shortname') == helper::COHORT_FIELD_TYPE) {
+                $this->assertSame(helper::ITEM_TYPE_CATEGORY, $customfield->export_value());
+            }
+        }
+
+        $profilefielddata = $DB->get_field('user_info_field', 'param1', ['id' => $this->categoryprofilefield->id]);
+        $this->assertNotEmpty($profilefielddata);
+        $this->assertTrue(in_array($categoryname, explode("\n", $profilefielddata)));
+
+        $rule = $DB->get_record('tool_dynamic_cohorts', ['name' => $categoryname]);
+        $this->assertNotEmpty($rule);
+        $this->assertEquals($cohort->id, $rule->cohortid);
+        $this->assertEquals(1, $rule->enabled);
+        $conditions = $DB->get_records('tool_dynamic_cohorts_c', ['ruleid' => $rule->id]);
+        $this->assertCount(2, $conditions);
+    }
 }