diff --git a/modules/block/block.module b/modules/block/block.module
index 70f55e5..f9704df 100644
--- a/modules/block/block.module
+++ b/modules/block/block.module
@@ -910,7 +910,7 @@ function _block_get_cache_id($block) {
   // it brings too many chances of having unwanted output get in the cache
   // and later be served to other users. We therefore exclude user 1 from
   // block caching.
-  if (variable_get('block_cache', FALSE) && !in_array($block->cache, array(DRUPAL_NO_CACHE, DRUPAL_CACHE_CUSTOM)) && $user->uid != 1) {
+  if (variable_get('block_cache', FALSE) && $block->cache != DRUPAL_NO_CACHE && $block->cache != DRUPAL_CACHE_CUSTOM && $user->uid != 1) {
     // Start with common sub-patterns: block identification, theme, language.
     $cid_parts[] = $block->module;
     $cid_parts[] = $block->delta;
diff --git a/modules/contextual/contextual.module b/modules/contextual/contextual.module
index 0f371a5..3098f83 100644
--- a/modules/contextual/contextual.module
+++ b/modules/contextual/contextual.module
@@ -167,3 +167,18 @@ function contextual_pre_render_links($element) {
   return $element;
 }
 
+/**
+ * Implements hook_block_info_alter().
+ */
+function contextual_block_info_alter(&$blocks) {
+  foreach ($blocks as &$module_blocks) {
+    foreach ($module_blocks as &$block) {
+      // Blocks that may be cached need to be cached at least per role.
+      // @see _block_get_cache_id()
+      // @see drupal_render_cid_parts()
+      if (isset($block->cache) && $block->cache != DRUPAL_NO_CACHE && $block->cache != DRUPAL_CACHE_CUSTOM) {
+        $block->cache |= DRUPAL_CACHE_PER_ROLE;
+      }
+    }
+  }
+}
diff --git a/modules/contextual/contextual.test b/modules/contextual/contextual.test
index 79eedb8..46bad38 100644
--- a/modules/contextual/contextual.test
+++ b/modules/contextual/contextual.test
@@ -47,3 +47,46 @@ class ContextualDynamicContextTestCase extends DrupalWebTestCase {
     $this->assertRaw('node/' . $node3->nid . '/edit', 'Edit link for most recent article node showing.');
   }
 }
+
+/**
+ * Tests to ensure that contextual links in blocks are cached properly.
+ */
+class ContextualBlockCacheTestCase extends DrupalWebTestCase {
+  protected $profile = 'testing';
+
+  public static function getInfo() {
+    return array(
+      'name' => 'Contextual link block caching',
+      'description' => 'Tests if contextual links in blocks are cached properly and not shown to users without the correct permissions.',
+      'group' => 'Contextual',
+    );
+  }
+
+  function setUp() {
+    parent::setUp(array('contextual', 'block', 'forum'));
+    $web_user = $this->drupalCreateUser(array('access content', 'access contextual links', 'administer blocks'));
+    $this->drupalLogin($web_user);
+  }
+
+  /**
+   * Tests contextual links on Active forum topics block with different users.
+   */
+  function testForumBlock() {
+    // Set the forum_active block to the content region.
+    $edit = array();
+    $edit['blocks[forum_active][region]'] = 'content';
+    $edit['blocks[system_main][region]'] = 'content';
+    $this->drupalPost('admin/structure/block', $edit, t('Save blocks'));
+    $this->assertText(t('The block settings have been updated.'), 'Active forum topics block successfully moved to content region.');
+
+    // Make sure the block is visible on the front page to the logged in user.
+    $this->drupalGet('node');
+    $this->assertLinkByHref('admin/structure/block/manage/forum/active/configure', 0, 'Configure block link for Active forum topics block is displayed.');
+
+    // Log out and make sure the "Configure block" link is not visible to
+    // anonymous users.
+    $this->drupalLogout();
+    $this->drupalGet('node');
+    $this->assertNoLinkByHref('admin/structure/block/manage/forum/active/configure', 'Configure block link for Active forum topics block is not displayed for logged out user.');
+  }
+}
diff --git a/modules/forum/forum.module b/modules/forum/forum.module
index 8083233..26c5352 100644
--- a/modules/forum/forum.module
+++ b/modules/forum/forum.module
@@ -694,8 +694,11 @@ function forum_block_view($delta = '') {
   }
 
   $block['subject'] = $title;
-  // Cache based on the altered query. Enables us to cache with node access enabled.
-  $block['content'] = drupal_render_cache_by_query($query, 'forum_block_view');
+  // Cache based on the altered query. Enables us to cache with node access
+  // enabled. However, contextual links on the block need to be cached at least
+  // per role.
+  // @see contextual_block_info_alter()
+  $block['content'] = drupal_render_cache_by_query($query, 'forum_block_view', CACHE_TEMPORARY, DRUPAL_CACHE_PER_ROLE);
   $block['content']['#access'] = user_access('access content');
   return $block;
 }