diff --git a/lib/navigationlib.php b/lib/navigationlib.php
index 72db666906190..516eb8afc465b 100644
--- a/lib/navigationlib.php
+++ b/lib/navigationlib.php
@@ -2834,20 +2834,49 @@ protected function load_category($categoryid, $nodetype = self::TYPE_CATEGORY) {
                 $this->add_category($category, $this, $nodetype);
                 $basecategory = $this->addedcategories[$category->id];
             } else {
-                $subcategories[] = $category;
+                $subcategories[$category->id] = $category;
             }
         }
         $categories->close();
 
-        if (!is_null($basecategory)) {
-            foreach ($subcategories as $category) {
-                $this->add_category($category, $basecategory, $nodetype);
-            }
-        }
 
-        // If category is shown in MyHome then only show enrolled courses, else show all courses.
+        // If category is shown in MyHome then only show enrolled courses and hide empty subcategories,
+        // else show all courses.
         if ($nodetype === self::TYPE_MY_CATEGORY) {
             $courses = enrol_get_my_courses();
+            $categoryids = array();
+
+            //only search for categories if basecategory was found
+            if (!is_null($basecategory)) {
+                // get course parent category ids 
+                foreach ($courses as $course) {
+                    $categoryids[] = $course->category;
+                }
+
+                // get a unique list of category ids which a part of the path
+                // to user's courses
+                $course_subcategories = array();
+                $added_subcategories = array();
+
+                list($sql, $params) = $DB->get_in_or_equal($categoryids);
+                $categories = $DB->get_recordset_select('course_categories', 'id '.$sql, $params, 'sortorder, id', 'id, path');
+
+                foreach ($categories as $category){
+                    $course_subcategories = array_merge($course_subcategories, explode('/', trim($category->path, "/")));
+                }
+                $course_subcategories = array_unique($course_subcategories);
+
+                // only add a subcategory if it is part of the path to user's course and
+                // wasn't already added
+                foreach ($subcategories as $sub_id => $subcategory) {
+                    if (in_array($sub_id, $course_subcategories) &&
+                            !in_array($sub_id, $added_subcategories)) {
+                            $this->add_category($subcategory, $basecategory, $nodetype);
+                            $added_subcategories[] = $sub_id;
+                    }
+                }
+            }
+            
             foreach ($courses as $course) {
                 // Add course if it's in category.
                 if (in_array($course->category, $categorylist)) {
@@ -2855,6 +2884,11 @@ protected function load_category($categoryid, $nodetype = self::TYPE_CATEGORY) {
                 }
             }
         } else {
+            if (!is_null($basecategory)) {
+                foreach ($subcategories as $key=>$category) {
+                    $this->add_category($category, $basecategory, $nodetype);
+                }
+            }
             $courses = $DB->get_recordset('course', array('category' => $categoryid), 'sortorder', '*' , 0, $limit);
             foreach ($courses as $course) {
                 $this->add_course($course);