diff --git a/test-context-macros/src/lib.rs b/test-context-macros/src/lib.rs
index af7185e..4efac74 100644
--- a/test-context-macros/src/lib.rs
+++ b/test-context-macros/src/lib.rs
@@ -40,7 +40,7 @@ pub fn test_context(attr: TokenStream, item: TokenStream) -> TokenStream {
 
     let context_arg = context_args.into_iter().next().unwrap();
 
-    if !args.skip_teardown && context_arg.mode == ContextArgMode::Owned {
+    if !args.skip_teardown && context_arg.mode.is_owned() {
         panic!(
             "It is not possible to take ownership of the context if the teardown has to be ran."
         );
@@ -97,6 +97,7 @@ fn refactor_input_body(
 
     let context_binding = match context_arg.mode {
         ContextArgMode::Owned => quote! { let #context_arg_name = __context; },
+        ContextArgMode::OwnedMut => quote! { let mut #context_arg_name = __context; },
         ContextArgMode::Reference => quote! { let #context_arg_name = &__context; },
         ContextArgMode::MutableReference => quote! { let #context_arg_name = &mut __context; },
     };
diff --git a/test-context-macros/src/test_args.rs b/test-context-macros/src/test_args.rs
index 94069e4..664ee62 100644
--- a/test-context-macros/src/test_args.rs
+++ b/test-context-macros/src/test_args.rs
@@ -13,12 +13,25 @@ pub struct ContextArg {
 pub enum ContextArgMode {
     /// The argument was passed as an owned value (`ContextType`). Only valid with `skip_teardown`.
     Owned,
+    /// The argument was passed as an owned value (mut `ContextType`). Only valid with `skip_teardown`.
+    OwnedMut,
     /// The argument was passed as an immutable reference (`&ContextType`).
     Reference,
     /// The argument was passed as a mutable reference (`&mut ContextType`).
     MutableReference,
 }
 
+impl ContextArgMode {
+    pub fn is_owned(&self) -> bool {
+        match self {
+            ContextArgMode::Owned => true,
+            ContextArgMode::OwnedMut => true,
+            ContextArgMode::Reference => false,
+            ContextArgMode::MutableReference => false,
+        }
+    }
+}
+
 #[derive(Clone)]
 pub enum TestArg {
     Any(FnArg),
@@ -47,9 +60,18 @@ impl TestArg {
                     mode,
                 })
             } else if types_equal(arg_type, expected_context_type) {
+                // To determine mutability for an owned type, we check the identifier pattern.
+                let mode = if pat_ident.mutability.is_some() {
+                    // This catches signatures like: `mut my_ctx: ContextType`
+                    ContextArgMode::OwnedMut
+                } else {
+                    // This catches signatures like: `my_ctx: ContextType`
+                    ContextArgMode::Owned
+                };
+
                 TestArg::Context(ContextArg {
                     name: pat_ident.ident.clone(),
-                    mode: ContextArgMode::Owned,
+                    mode,
                 })
             } else {
                 TestArg::Any(arg)
diff --git a/test-context/tests/test.rs b/test-context/tests/test.rs
index 891d56f..c8919d6 100644
--- a/test-context/tests/test.rs
+++ b/test-context/tests/test.rs
@@ -182,6 +182,12 @@ async fn test_async_skip_teardown_with_immutable_ref(_ctx: &TeardownPanicContext
 #[tokio::test]
 async fn test_async_skip_teardown_with_full_ownership(_ctx: TeardownPanicContext) {}
 
+#[test_context(TeardownPanicContext, skip_teardown)]
+#[tokio::test]
+async fn test_async_skip_teardown_with_full_mut_ownership(mut ctx: TeardownPanicContext) {
+    let _test = &mut ctx;
+}
+
 #[test_context(TeardownPanicContext, skip_teardown)]
 #[test]
 fn test_sync_skip_teardown(_ctx: &mut TeardownPanicContext) {}
@@ -194,6 +200,12 @@ fn test_sync_skip_teardown_with_immutable_ref(_ctx: &TeardownPanicContext) {}
 #[test]
 fn test_sync_skip_teardown_with_full_ownership(_ctx: TeardownPanicContext) {}
 
+#[test_context(TeardownPanicContext, skip_teardown)]
+#[test]
+fn test_sync_skip_teardown_with_full_mut_ownership(mut ctx: TeardownPanicContext) {
+    let _test = &mut ctx;
+}
+
 struct GenericContext<T> {
     contents: T,
 }