diff --git a/stream_alert/rule_processor/rules_engine.py b/stream_alert/rule_processor/rules_engine.py
index 0c4483601..e777b8dce 100644
--- a/stream_alert/rule_processor/rules_engine.py
+++ b/stream_alert/rule_processor/rules_engine.py
@@ -284,7 +284,10 @@ def process_rule(record, rule):
             (bool): The return function of the rule
         """
         try:
-            rule_result = rule.rule_function(record)
+            if rule.context:
+                rule_result = rule.rule_function(record, rule.context)
+            else:
+                rule_result = rule.rule_function(record)
         except Exception:  # pylint: disable=broad-except
             rule_result = False
             LOGGER.exception(
diff --git a/tests/unit/stream_alert_rule_processor/test_rules_engine.py b/tests/unit/stream_alert_rule_processor/test_rules_engine.py
index 3210618ba..78f429c57 100644
--- a/tests/unit/stream_alert_rule_processor/test_rules_engine.py
+++ b/tests/unit/stream_alert_rule_processor/test_rules_engine.py
@@ -852,3 +852,39 @@ def match_ipaddress(_): # pylint: disable=unused-variable
             payload = load_and_classify_payload(toggled_config, service, entity, raw_record)
 
             assert_equal(len(new_rules_engine.process(payload)), 1)
+
+    def test_rule_modify_context(self):
+        """Rules Engine - Testing Context Modification"""
+        @rule(logs=['test_log_type_json_nested_with_data'],
+              outputs=['s3:sample_bucket'],
+              context={'assigned_user': 'not_set', 'assigned_policy': 'not_set2'})
+        def modify_context_test(rec, context): # pylint: disable=unused-variable
+            """Modify context rule"""
+            context['assigned_user'] = 'valid_user'
+            context['assigned_policy'] = 'valid_policy'
+            return rec['application'] == 'web-app'
+
+        kinesis_data = json.dumps({
+            'date': 'Dec 01 2016',
+            'unixtime': '1483139547',
+            'host': 'host1.web.prod.net',
+            'application': 'web-app',
+            'environment': 'prod',
+            'data': {
+                'category': 'web-server',
+                'type': '1',
+                'source': 'eu'
+            }
+        })
+
+        # prepare the payloads
+        service, entity = 'kinesis', 'test_kinesis_stream'
+        raw_record = make_kinesis_raw_record(entity, kinesis_data)
+        payload = load_and_classify_payload(self.config, service, entity, raw_record)
+
+        # process payloads
+        alerts = self.rules_engine.process(payload)
+
+        # alert tests
+        assert_equal(alerts[0]['context']['assigned_user'], 'valid_user')
+        assert_equal(alerts[0]['context']['assigned_policy'], 'valid_policy')