diff --git a/babel/messages/catalog.py b/babel/messages/catalog.py
index 5e6c28255..c3ef7e621 100644
--- a/babel/messages/catalog.py
+++ b/babel/messages/catalog.py
@@ -973,7 +973,11 @@ def update(
                 if msgid and messages[msgid].string:
                     key = self._key_for(msgid)
                     ctxt = messages[msgid].context
-                    fuzzy_candidates[self._to_fuzzy_match_key(key)] = (key, ctxt)
+                    # Several messages can share the same msgid when they
+                    # differ only by context, so keep every candidate.
+                    fuzzy_candidates.setdefault(self._to_fuzzy_match_key(key), []).append(
+                        (key, ctxt)
+                    )
         fuzzy_matches = set()
 
         def _merge(
@@ -1032,7 +1036,13 @@ def _merge(
                         )
                         if matches:
                             modified_key = matches[0]
-                            newkey, newctxt = fuzzy_candidates[modified_key]
+                            pairs = fuzzy_candidates[modified_key]
+                            # Prefer the candidate whose context matches the
+                            # template message, if there is one.
+                            newkey, newctxt = next(
+                                (pair for pair in pairs if pair[1] == message.context),
+                                pairs[0],
+                            )
                             if newctxt is not None:
                                 newkey = newkey, newctxt
                             _merge(message, newkey, key)
diff --git a/tests/messages/test_catalog.py b/tests/messages/test_catalog.py
index 7c730d325..e20fbb216 100644
--- a/tests/messages/test_catalog.py
+++ b/tests/messages/test_catalog.py
@@ -510,6 +510,30 @@ def test_catalog_add():
     assert cat['foo'] is foo
 
 
+def test_catalog_update_fuzzy_matching_with_contexts():
+    # Messages that share a msgid but differ by context must each keep
+    # their own translation when the msgid is renamed.
+    cat = catalog.Catalog(locale='de')
+    cat.add('Guide', 'NavFuehrer', context='navigation')
+    cat.add('Guide', 'MenuHilfe', context='menu')
+
+    template = catalog.Catalog()
+    template.add('Guids', context='navigation')
+    template.add('Guids', context='menu')
+
+    cat.update(template)
+
+    nav = cat.get('Guids', context='navigation')
+    assert nav is not None
+    assert nav.string == 'NavFuehrer'
+    assert 'fuzzy' in nav.flags
+
+    menu = cat.get('Guids', context='menu')
+    assert menu is not None
+    assert menu.string == 'MenuHilfe'
+    assert 'fuzzy' in menu.flags
+
+    assert not cat.obsolete
 def test_catalog_update():
     template = catalog.Catalog(header_comment="# A Custom Header")
     template.add('green', locations=[('main.py', 99)])