diff --git a/classes/observer.php b/classes/observer.php
index 2578db9..9fd4ab6 100644
--- a/classes/observer.php
+++ b/classes/observer.php
@@ -18,6 +18,7 @@
 
 use core\event\course_category_created;
 use core\event\course_category_deleted;
+use core\event\course_category_updated;
 use core\event\course_created;
 use core\event\course_deleted;
 use core\event\course_updated;
@@ -144,6 +145,18 @@ public static function course_category_created(course_category_created $event):
         helper::add_item($category->id, helper::ITEM_TYPE_CATEGORY, $category->name);
     }
 
+    /**
+     * Process course_category_updated event.
+     *
+     * @param course_category_updated $event The event.
+     */
+    public static function course_category_updated(course_category_updated $event): void {
+        global $DB;
+
+        $category = $DB->get_record('course_categories', ['id' => $event->objectid]);
+        helper::rename_item($category->id, helper::ITEM_TYPE_CATEGORY, $category->name);
+    }
+
     /**
      * Process course_category_deleted event.
      *
diff --git a/db/events.php b/db/events.php
index c4a20e2..ab638f8 100644
--- a/db/events.php
+++ b/db/events.php
@@ -57,6 +57,10 @@
         'eventname' => '\core\event\course_category_created',
         'callback' => '\tool_enrolprofile\observer::course_category_created',
     ],
+    [
+        'eventname' => '\core\event\course_category_updated',
+        'callback' => '\tool_enrolprofile\observer::course_category_updated',
+    ],
     [
         'eventname' => '\core\event\course_category_deleted',
         'callback' => '\tool_enrolprofile\observer::course_category_deleted',
diff --git a/tests/observer_test.php b/tests/observer_test.php
index 74c5432..058345d 100644
--- a/tests/observer_test.php
+++ b/tests/observer_test.php
@@ -539,7 +539,7 @@ public function test_course_name_updated(): void {
 
         $enrol = $DB->get_record('enrol', ['courseid' => $course->id, 'enrol' => 'cohort', 'customint1' => $cohort->id]);
         $this->assertNotEmpty($enrol);
-        
+
         profile_load_data($user1);
         $this->assertSame([
             'Not course',
@@ -640,6 +640,115 @@ public function test_course_category_created(): void {
         $this->assertCount(2, $conditions);
     }
 
+    /**
+     * Check logic when updating a name of the course category.
+     */
+    public function test_course_category_name_updated(): void {
+        global $DB;
+
+        $categoryname = 'Category name';
+        $profilefield = 'profile_field_' . helper::ITEM_TYPE_CATEGORY;
+
+        $category = $this->getDataGenerator()->create_category(['name' => $categoryname]);
+        $this->getDataGenerator()->create_category(['name' => 'Not category']);
+
+        // Check everything about category cohort.
+        $categorycohort = $DB->get_record('cohort', ['name' => $categoryname]);
+        $this->assertNotEmpty($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);
+
+        $user1 = $this->getDataGenerator()->create_user();
+        profile_save_data((object)[
+            'id' => $user1->id,
+            $profilefield => [
+                'Not category',
+                $categoryname,
+            ]
+        ]);
+
+        $user2 = $this->getDataGenerator()->create_user();
+        profile_save_data((object)[
+            'id' => $user2->id,
+            $profilefield => [
+                $categoryname,
+                'Not category',
+            ]
+        ]);
+
+        profile_load_data($user1);
+        $this->assertSame([
+                'Not category',
+                $categoryname,
+            ], $user1->$profilefield
+        );
+        profile_load_data($user2);
+        $this->assertSame([
+                $categoryname,
+                'Not category',
+            ], $user2->$profilefield
+        );
+
+        // Update category name.
+        $newcategoryname = 'New category name';
+        $categoryrecord = $DB->get_record('course_categories', ['id' => $category->id]);
+        $categoryrecord->name = $newcategoryname;
+        $category->update($categoryrecord);
+
+        $categorycohort = $DB->get_record('cohort', ['name' => $newcategoryname]);
+        $this->assertNotEmpty($categorycohort);
+        $this->assertEmpty($DB->get_record('cohort', ['name' => $categoryname]));
+
+        $cohort = cohort_get_cohort($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);
+        $this->assertTrue(in_array($newcategoryname, explode("\n", $profilefielddata)));
+        $this->assertFalse(in_array($categoryname, explode("\n", $profilefielddata)));
+
+        $rule = $DB->get_record('tool_dynamic_cohorts', ['name' => $newcategoryname]);
+        $this->assertNotEmpty($rule);
+        $this->assertEquals($cohort->id, $rule->cohortid);
+        $this->assertEmpty($DB->get_record('cohort', ['name' => $categoryname]));
+
+        profile_load_data($user1);
+        $this->assertSame([
+                'Not category',
+                $newcategoryname,
+            ], $user1->$profilefield
+        );
+        profile_load_data($user2);
+        $this->assertSame([
+                $newcategoryname,
+                'Not category',
+            ], $user2->$profilefield
+        );
+    }
+
     /**
      * Check logic when deleting a course category.
      */