diff --git a/homeassistant/components/automation/__init__.py b/homeassistant/components/automation/__init__.py
index 35cf695f1e3a..ad231a2a348d 100644
--- a/homeassistant/components/automation/__init__.py
+++ b/homeassistant/components/automation/__init__.py
@@ -7,7 +7,7 @@ import logging
 import voluptuous as vol
 
 from homeassistant.setup import async_prepare_setup_platform
-from homeassistant.core import CoreState
+from homeassistant.core import CoreState, Context
 from homeassistant.loader import bind_hass
 from homeassistant.const import (
     ATTR_ENTITY_ID, CONF_PLATFORM, STATE_ON, SERVICE_TURN_ON, SERVICE_TURN_OFF,
@@ -280,15 +280,21 @@ class AutomationEntity(ToggleEntity, RestoreEntity):
 
         This method is a coroutine.
         """
-        if skip_condition or self._cond_func(variables):
-            self.async_set_context(context)
-            self.hass.bus.async_fire(EVENT_AUTOMATION_TRIGGERED, {
-                ATTR_NAME: self._name,
-                ATTR_ENTITY_ID: self.entity_id,
-            }, context=context)
-            await self._async_action(self.entity_id, variables, context)
-            self._last_triggered = utcnow()
-            await self.async_update_ha_state()
+        if not skip_condition and not self._cond_func(variables):
+            return
+
+        # Create a new context referring to the old context.
+        parent_id = None if context is None else context.id
+        trigger_context = Context(parent_id=parent_id)
+
+        self.async_set_context(trigger_context)
+        self.hass.bus.async_fire(EVENT_AUTOMATION_TRIGGERED, {
+            ATTR_NAME: self._name,
+            ATTR_ENTITY_ID: self.entity_id,
+        }, context=trigger_context)
+        await self._async_action(self.entity_id, variables, trigger_context)
+        self._last_triggered = utcnow()
+        await self.async_update_ha_state()
 
     async def async_will_remove_from_hass(self):
         """Remove listeners when removing automation from HASS."""
diff --git a/homeassistant/components/recorder/migration.py b/homeassistant/components/recorder/migration.py
index 825f402aef21..972862e7a9c0 100644
--- a/homeassistant/components/recorder/migration.py
+++ b/homeassistant/components/recorder/migration.py
@@ -220,6 +220,15 @@ def _apply_update(engine, new_version, old_version):
         _create_index(engine, "states", "ix_states_context_user_id")
     elif new_version == 7:
         _create_index(engine, "states", "ix_states_entity_id")
+    elif new_version == 8:
+        # Pending migration, want to group a few.
+        pass
+        # _add_columns(engine, "events", [
+        #     'context_parent_id CHARACTER(36)',
+        # ])
+        # _add_columns(engine, "states", [
+        #     'context_parent_id CHARACTER(36)',
+        # ])
     else:
         raise ValueError("No schema migration defined for version {}"
                          .format(new_version))
diff --git a/homeassistant/components/recorder/models.py b/homeassistant/components/recorder/models.py
index d1be17b83d50..bea2b12b3702 100644
--- a/homeassistant/components/recorder/models.py
+++ b/homeassistant/components/recorder/models.py
@@ -34,16 +34,20 @@ class Events(Base):  # type: ignore
     created = Column(DateTime(timezone=True), default=datetime.utcnow)
     context_id = Column(String(36), index=True)
     context_user_id = Column(String(36), index=True)
+    # context_parent_id = Column(String(36), index=True)
 
     @staticmethod
     def from_event(event):
         """Create an event database object from a native event."""
-        return Events(event_type=event.event_type,
-                      event_data=json.dumps(event.data, cls=JSONEncoder),
-                      origin=str(event.origin),
-                      time_fired=event.time_fired,
-                      context_id=event.context.id,
-                      context_user_id=event.context.user_id)
+        return Events(
+            event_type=event.event_type,
+            event_data=json.dumps(event.data, cls=JSONEncoder),
+            origin=str(event.origin),
+            time_fired=event.time_fired,
+            context_id=event.context.id,
+            context_user_id=event.context.user_id,
+            # context_parent_id=event.context.parent_id,
+        )
 
     def to_native(self):
         """Convert to a natve HA Event."""
@@ -81,6 +85,7 @@ class States(Base):   # type: ignore
     created = Column(DateTime(timezone=True), default=datetime.utcnow)
     context_id = Column(String(36), index=True)
     context_user_id = Column(String(36), index=True)
+    # context_parent_id = Column(String(36), index=True)
 
     __table_args__ = (
         # Used for fetching the state of entities at a specific time
@@ -99,6 +104,7 @@ class States(Base):   # type: ignore
             entity_id=entity_id,
             context_id=event.context.id,
             context_user_id=event.context.user_id,
+            # context_parent_id=event.context.parent_id,
         )
 
         # State got deleted
diff --git a/homeassistant/core.py b/homeassistant/core.py
index 48ef4f462729..253900a39ef8 100644
--- a/homeassistant/core.py
+++ b/homeassistant/core.py
@@ -409,6 +409,10 @@ class Context:
         type=str,
         default=None,
     )
+    parent_id = attr.ib(
+        type=Optional[str],
+        default=None
+    )
     id = attr.ib(
         type=str,
         default=attr.Factory(lambda: uuid.uuid4().hex),
@@ -418,6 +422,7 @@ class Context:
         """Return a dictionary representation of the context."""
         return {
             'id': self.id,
+            'parent_id': self.parent_id,
             'user_id': self.user_id,
         }
 
diff --git a/tests/components/automation/test_event.py b/tests/components/automation/test_event.py
index 4b669fc13562..8ca7f6b13f5e 100644
--- a/tests/components/automation/test_event.py
+++ b/tests/components/automation/test_event.py
@@ -41,7 +41,7 @@ async def test_if_fires_on_event(hass, calls):
     hass.bus.async_fire('test_event', context=context)
     await hass.async_block_till_done()
     assert 1 == len(calls)
-    assert calls[0].context is context
+    assert calls[0].context.parent_id == context.id
 
     await common.async_turn_off(hass)
     await hass.async_block_till_done()
diff --git a/tests/components/automation/test_geo_location.py b/tests/components/automation/test_geo_location.py
index 928296c8d276..92ded1a07db2 100644
--- a/tests/components/automation/test_geo_location.py
+++ b/tests/components/automation/test_geo_location.py
@@ -68,7 +68,7 @@ async def test_if_fires_on_zone_enter(hass, calls):
     await hass.async_block_till_done()
 
     assert 1 == len(calls)
-    assert calls[0].context is context
+    assert calls[0].context.parent_id == context.id
     assert 'geo_location - geo_location.entity - hello - hello - test' == \
         calls[0].data['some']
 
@@ -221,7 +221,7 @@ async def test_if_fires_on_zone_appear(hass, calls):
     await hass.async_block_till_done()
 
     assert 1 == len(calls)
-    assert calls[0].context is context
+    assert calls[0].context.parent_id == context.id
     assert 'geo_location - geo_location.entity -  - hello - test' == \
         calls[0].data['some']
 
diff --git a/tests/components/automation/test_init.py b/tests/components/automation/test_init.py
index 12c97507a137..a019f65afcf5 100644
--- a/tests/components/automation/test_init.py
+++ b/tests/components/automation/test_init.py
@@ -369,38 +369,47 @@ async def test_shared_context(hass, calls):
     })
 
     context = Context()
-    automation_mock = Mock()
+    first_automation_listener = Mock()
     event_mock = Mock()
 
-    hass.bus.async_listen('test_event2', automation_mock)
+    hass.bus.async_listen('test_event2', first_automation_listener)
     hass.bus.async_listen(EVENT_AUTOMATION_TRIGGERED, event_mock)
     hass.bus.async_fire('test_event', context=context)
     await hass.async_block_till_done()
 
     # Ensure events was fired
-    assert automation_mock.call_count == 1
+    assert first_automation_listener.call_count == 1
     assert event_mock.call_count == 2
 
-    # Ensure context carries through the event
-    args, kwargs = automation_mock.call_args
-    assert args[0].context == context
+    # Verify automation triggered evenet for 'hello' automation
+    args, kwargs = event_mock.call_args_list[0]
+    first_trigger_context = args[0].context
+    assert first_trigger_context.parent_id == context.id
+    # Ensure event data has all attributes set
+    assert args[0].data.get(ATTR_NAME) is not None
+    assert args[0].data.get(ATTR_ENTITY_ID) is not None
 
-    for call in event_mock.call_args_list:
-        args, kwargs = call
-        assert args[0].context == context
-        # Ensure event data has all attributes set
-        assert args[0].data.get(ATTR_NAME) is not None
-        assert args[0].data.get(ATTR_ENTITY_ID) is not None
+    # Ensure context set correctly for event fired by 'hello' automation
+    args, kwargs = first_automation_listener.call_args
+    assert args[0].context is first_trigger_context
 
-    # Ensure the automation state shares the same context
+    # Ensure the 'hello' automation state has the right context
     state = hass.states.get('automation.hello')
     assert state is not None
-    assert state.context == context
+    assert state.context is first_trigger_context
+
+    # Verify automation triggered evenet for 'bye' automation
+    args, kwargs = event_mock.call_args_list[1]
+    second_trigger_context = args[0].context
+    assert second_trigger_context.parent_id == first_trigger_context.id
+    # Ensure event data has all attributes set
+    assert args[0].data.get(ATTR_NAME) is not None
+    assert args[0].data.get(ATTR_ENTITY_ID) is not None
 
     # Ensure the service call from the second automation
     # shares the same context
     assert len(calls) == 1
-    assert calls[0].context == context
+    assert calls[0].context is second_trigger_context
 
 
 async def test_services(hass, calls):
diff --git a/tests/components/automation/test_numeric_state.py b/tests/components/automation/test_numeric_state.py
index 92a5f3b8b921..803a15e9634f 100644
--- a/tests/components/automation/test_numeric_state.py
+++ b/tests/components/automation/test_numeric_state.py
@@ -45,7 +45,7 @@ async def test_if_fires_on_entity_change_below(hass, calls):
     hass.states.async_set('test.entity', 9, context=context)
     await hass.async_block_till_done()
     assert 1 == len(calls)
-    assert calls[0].context is context
+    assert calls[0].context.parent_id == context.id
 
     # Set above 12 so the automation will fire again
     hass.states.async_set('test.entity', 12)
@@ -134,7 +134,7 @@ async def test_if_not_fires_on_entity_change_below_to_below(hass, calls):
     hass.states.async_set('test.entity', 9, context=context)
     await hass.async_block_till_done()
     assert 1 == len(calls)
-    assert calls[0].context is context
+    assert calls[0].context.parent_id == context.id
 
     # already below so should not fire again
     hass.states.async_set('test.entity', 5)
diff --git a/tests/components/automation/test_state.py b/tests/components/automation/test_state.py
index abe02638f265..53c1eaab3d99 100644
--- a/tests/components/automation/test_state.py
+++ b/tests/components/automation/test_state.py
@@ -55,7 +55,7 @@ async def test_if_fires_on_entity_change(hass, calls):
     hass.states.async_set('test.entity', 'world', context=context)
     await hass.async_block_till_done()
     assert 1 == len(calls)
-    assert calls[0].context is context
+    assert calls[0].context.parent_id == context.id
     assert 'state - test.entity - hello - world - None' == \
         calls[0].data['some']
 
diff --git a/tests/components/automation/test_template.py b/tests/components/automation/test_template.py
index c326c7f03f48..f803f97f4abd 100644
--- a/tests/components/automation/test_template.py
+++ b/tests/components/automation/test_template.py
@@ -257,7 +257,7 @@ async def test_if_fires_on_change_with_template_advanced(hass, calls):
     hass.states.async_set('test.entity', 'world', context=context)
     await hass.async_block_till_done()
     assert 1 == len(calls)
-    assert calls[0].context is context
+    assert calls[0].context.parent_id == context.id
     assert 'template - test.entity - hello - world' == \
         calls[0].data['some']
 
diff --git a/tests/components/automation/test_zone.py b/tests/components/automation/test_zone.py
index 04ffeaf13aad..d5bfd9fdf885 100644
--- a/tests/components/automation/test_zone.py
+++ b/tests/components/automation/test_zone.py
@@ -66,7 +66,7 @@ async def test_if_fires_on_zone_enter(hass, calls):
     await hass.async_block_till_done()
 
     assert 1 == len(calls)
-    assert calls[0].context is context
+    assert calls[0].context.parent_id == context.id
     assert 'zone - test.entity - hello - hello - test' == \
         calls[0].data['some']
 
diff --git a/tests/test_core.py b/tests/test_core.py
index e2ed249f441d..5e23fab36e77 100644
--- a/tests/test_core.py
+++ b/tests/test_core.py
@@ -310,6 +310,7 @@ class TestEvent(unittest.TestCase):
             'time_fired': now,
             'context': {
                 'id': event.context.id,
+                'parent_id': None,
                 'user_id': event.context.user_id,
             },
         }
@@ -1076,3 +1077,16 @@ async def test_service_call_event_contains_original_data(hass):
     assert len(calls) == 1
     assert calls[0].data['number'] == 23
     assert calls[0].context is context
+
+
+def test_context():
+    """Test context init."""
+    c = ha.Context()
+    assert c.user_id is None
+    assert c.parent_id is None
+    assert c.id is not None
+
+    c = ha.Context(23, 100)
+    assert c.user_id == 23
+    assert c.parent_id == 100
+    assert c.id is not None