diff --git a/app/models/user.rb b/app/models/user.rb
index bbf2c60dd3..ea80ef8132 100644
--- a/app/models/user.rb
+++ b/app/models/user.rb
@@ -457,6 +457,10 @@ def can_escalate?
     admin? || can?(:escalate_roles)
   end
 
+  def can_assign_for_usergroup?(role_ids, usergroup, new_role_ids)
+    can_escalate_excluding_roles?(usergroup, new_role_ids) || role_ids.all? { |r| role_ids_was.include?(r) }
+  end
+
   # only admin can change admin flag
   def can_change_admin_flag?
     admin?
@@ -610,6 +614,16 @@ def authenticate_by_personal_access_token(token)
 
   private
 
+  def can_escalate_excluding_roles?(usergroup, role_ids)
+    return true if admin?
+    tainted_user_role_ids = UserRole.where(owner: usergroup, role_id: role_ids).pluck(:id)
+    cached_user_roles
+      .where.not(user_role_id: tainted_user_role_ids)
+      .joins(role: { filters: :permissions })
+      .where(permissions: { name: :escalate_roles })
+      .exists?
+  end
+
   def prepare_password
     if password.present?
       self.password_salt = salt_password
diff --git a/app/models/usergroup.rb b/app/models/usergroup.rb
index ff4c738078..3575b2b103 100644
--- a/app/models/usergroup.rb
+++ b/app/models/usergroup.rb
@@ -41,6 +41,7 @@ class Usergroup < ApplicationRecord
   scoped_search :relation => :roles, :on => :id, :rename => :role_id, :complete_enabled => false, :only_explicit => true, :validator => ScopedSearch::Validators::INTEGER
   validate :ensure_uniq_name, :ensure_last_admin_remains_admin
   validate :admin_can_be_set, :if => ->(o) { o.changed.include?('admin') }
+  validate :ensure_roles_not_escalated
 
   accepts_nested_attributes_for :external_usergroups, :reject_if => ->(a) { a[:name].blank? }, :allow_destroy => true
 
@@ -131,4 +132,16 @@ def other_admins
   def admin_can_be_set
     errors.add :admin, _('admin flag can only be modified by admins') unless User.current.admin?
   end
+
+  def ensure_roles_not_escalated
+    return if User.current.nil?
+
+    roles_check = new_record? ? role_ids.present? : role_ids_changed?
+    if roles_check
+      new_role_ids = new_record? ? role_ids : role_ids - role_ids_was
+      unless User.current.can_assign_for_usergroup?(role_ids, self, new_role_ids)
+        errors.add :role_ids, _("you can't assign some of roles you selected")
+      end
+    end
+  end
 end
diff --git a/test/models/usergroup_test.rb b/test/models/usergroup_test.rb
index 1f198c63bd..0ab0e87e0d 100644
--- a/test/models/usergroup_test.rb
+++ b/test/models/usergroup_test.rb
@@ -209,7 +209,119 @@ def populate_usergroups
     assert_equal recipients, [users[0]]
   end
 
-  # TODO test who can modify usergroup roles and who can assign users!!! possible privileges escalation
+  context 'role assignment (privilege escalation)' do
+    setup do
+      @owned_role = Role.where(:name => "usergroup_test_owned_role").first_or_create
+      @foreign_role = Role.where(:name => "usergroup_test_foreign_role").first_or_create
+    end
+
+    test "non-admin with create_usergroups cannot assign roles they do not have" do
+      setup_user "create", "usergroups"
+      usergroup = Usergroup.new(:name => "escalation-blocked-create", :role_ids => [@foreign_role.id])
+      refute usergroup.valid?
+      assert_includes usergroup.errors.attribute_names, :role_ids
+    end
+
+    test "non-admin with create_usergroups can assign roles they already hold" do
+      setup_user "create", "usergroups" do |user|
+        user.roles << @owned_role
+      end
+      usergroup = Usergroup.new(:name => "delegated-roles-ok", :role_ids => [@owned_role.id])
+      assert_valid usergroup
+      assert usergroup.save
+    end
+
+    test "non-admin with edit_usergroups cannot add roles they do not hold" do
+      usergroup = as_admin { FactoryBot.create(:usergroup, :name => "escalation-update-target", :role_ids => [@owned_role.id]) }
+      setup_user "edit", "usergroups" do |user|
+        user.roles << @owned_role
+      end
+      usergroup.role_ids = usergroup.role_ids + [@foreign_role.id]
+      refute usergroup.valid?
+      assert_includes usergroup.errors.attribute_names, :role_ids
+    end
+
+    test "non-admin member of usergroup cannot add a role granting escalate_roles" do
+      usergroup = as_admin { FactoryBot.create(:usergroup, :name => "escalate-via-membership") }
+      escalate_role = as_admin do
+        role = FactoryBot.create(:role, :name => "role_with_escalate")
+        FactoryBot.create(:filter, :role => role, :permissions => [permissions(:escalate_roles)])
+        role
+      end
+      setup_user "edit", "usergroups" do |user|
+        usergroup.users << user
+      end
+      usergroup.role_ids = [escalate_role.id]
+      refute usergroup.valid?
+      assert_includes usergroup.errors.attribute_names, :role_ids
+    end
+
+    test "member of usergroup with escalate_roles can add other roles to that usergroup" do
+      escalate_role = as_admin do
+        role = FactoryBot.create(:role, :name => "role_with_escalate_for_member")
+        FactoryBot.create(:filter, :role => role, :permissions => [permissions(:escalate_roles)])
+        role
+      end
+      usergroup = as_admin { FactoryBot.create(:usergroup, :name => "escalate-member-adds-role", :role_ids => [escalate_role.id]) }
+      setup_user "edit", "usergroups" do |user|
+        usergroup.users << user
+      end
+      usergroup.role_ids = usergroup.role_ids + [@foreign_role.id]
+      assert_valid usergroup
+    end
+
+    test "transitive member of usergroup cannot add a role granting escalate_roles" do
+      parent_usergroup = as_admin { FactoryBot.create(:usergroup, :name => "escalate-transitive-parent") }
+      child_usergroup = as_admin { FactoryBot.create(:usergroup, :name => "escalate-transitive-child") }
+      as_admin { parent_usergroup.usergroups << child_usergroup }
+      escalate_role = as_admin do
+        role = FactoryBot.create(:role, :name => "role_with_escalate_transitive")
+        FactoryBot.create(:filter, :role => role, :permissions => [permissions(:escalate_roles)])
+        role
+      end
+      setup_user "edit", "usergroups" do |user|
+        child_usergroup.users << user
+      end
+      parent_usergroup.role_ids = [escalate_role.id]
+      refute parent_usergroup.valid?
+      assert_includes parent_usergroup.errors.attribute_names, :role_ids
+    end
+
+    test "non-admin cannot create usergroup with self as member and a role granting escalate_roles" do
+      escalate_role = as_admin do
+        role = FactoryBot.create(:role, :name => "role_with_escalate_create_self")
+        FactoryBot.create(:filter, :role => role, :permissions => [permissions(:escalate_roles)])
+        role
+      end
+      setup_user "create", "usergroups"
+      usergroup = Usergroup.new(:name => "escalate-create-self", :role_ids => [escalate_role.id], :user_ids => [User.current.id])
+      refute usergroup.valid?
+      assert_includes usergroup.errors.attribute_names, :role_ids
+    end
+
+    test "admin can assign arbitrary roles to usergroup" do
+      as_admin do
+        usergroup = Usergroup.new(:name => "admin-assigns-roles", :role_ids => [@foreign_role.id])
+        assert_valid usergroup
+        assert usergroup.save
+      end
+    end
+
+    test "user with escalate_roles permission can assign roles they do not hold to usergroup" do
+      user = FactoryBot.create(:user, :admin => false)
+      escalate_role = FactoryBot.create(:role)
+      FactoryBot.create(:user_role, :owner => user, :role => escalate_role)
+      FactoryBot.create(:filter, :role => escalate_role, :permissions => [permissions(:escalate_roles)])
+      usergroup_role = FactoryBot.create(:role)
+      FactoryBot.create(:user_role, :owner => user, :role => usergroup_role)
+      FactoryBot.create(:filter, :role => usergroup_role, :permissions => [permissions(:create_usergroups)])
+      as_user user do
+        usergroup = Usergroup.new(:name => "escalate-roles-ok", :role_ids => [@foreign_role.id])
+        assert_valid usergroup
+        assert usergroup.save
+      end
+    end
+  end
 
   context 'external usergroups' do
     setup do