Index: translate/storage/test_cpo.py
===================================================================
--- translate/storage/test_cpo.py	(revision 7848)
+++ translate/storage/test_cpo.py	(working copy)
@@ -72,6 +72,17 @@
         unit.addnote("# Double commented comment")
         assert unit.getnotes() == "# Double commented comment"
 
+    def test_context(self):
+        """tests if we handle msgctxt properly"""
+        unit = self.UnitClass("content")
+        assert unit.getcontext() == ""
+
+        unit.setcontext("content context")
+        assert unit.getcontext() == "content context"
+
+        unit.setcontext("")
+        assert unit.getcontext() == ""
+
 class TestCPOFile(test_po.TestPOFile):
     StoreClass = cpo.pofile
     def test_msgidcomments(self):
Index: translate/storage/cpo.py
===================================================================
--- translate/storage/cpo.py	(revision 7848)
+++ translate/storage/cpo.py	(working copy)
@@ -513,6 +513,11 @@
         else:
             return msgidcomment
 
+    def setcontext(self, context):
+        """Sets the current context for this unit"""
+        # TODO: inspect what behavior this should really have
+        gpo.po_message_set_msgctxt(self._gpo_message, context)
+
 class pofile(pocommon.pofile):
     UnitClass = pounit
     def __init__(self, inputfile=None, encoding=None, unitclass=pounit):
Index: translate/convert/xliff2po.py
===================================================================
--- translate/convert/xliff2po.py	(revision 7848)
+++ translate/convert/xliff2po.py	(working copy)
@@ -42,6 +42,11 @@
             thepo.source = transunit.source
         thepo.target = transunit.target
 
+        #Context
+        context = transunit.getcontextgroups('po-1025')
+        if context:
+            thepo.setcontext(context[0][0][1])
+
         #Location comments
         locations = transunit.getlocations()
         if locations:
Index: translate/convert/test_xliff2po.py
===================================================================
--- translate/convert/test_xliff2po.py	(revision 7848)
+++ translate/convert/test_xliff2po.py	(working copy)
@@ -170,7 +170,20 @@
         assert potext.index('msgstr[0] "inkomo"')
         assert potext.index('msgstr[1] "iinkomo"')
 
+    def test_xliff_with_context(self):
+        """tests if we support context strings"""
+        minixlf = self.xliffskeleton % '''<trans-unit id="1">
+        <source>gold</source>
+        <target>ouro</target>
+        <context-group name="po-1025" purpose="match information">
+            <context context-type="x-unknown">the precious</context>
+        </context-group>
+</trans-unit>'''
+        pofile = self.xliff2po(minixlf)
+        unit = pofile.units[0]
+        assert unit.getcontext() == "the precious"
 
+
 class TestBasicXLIFF2PO(TestXLIFF2PO):
     """This tests a basic XLIFF file without xmlns attribute"""
 
Index: translate/convert/po2xliff.py
===================================================================
--- translate/convert/po2xliff.py	(revision 7848)
+++ translate/convert/po2xliff.py	(working copy)
@@ -45,6 +45,12 @@
                 unit.markfuzzy(inputunit.isfuzzy())
             else:
                 unit.markapproved(False)
+
+            #Handle msgctxt
+            context = inputunit.getcontext()
+            if context:
+                unit.createcontextgroup("po-1025", [("x-unknown", context)],
+                                        purpose="match information")
             
             #Handle #: location comments
             for location in inputunit.getlocations():
Index: translate/convert/test_po2xliff.py
===================================================================
--- translate/convert/test_po2xliff.py	(revision 7848)
+++ translate/convert/test_po2xliff.py	(working copy)
@@ -294,3 +294,15 @@
         assert xliff.units[2].xmlelement.get("approved") == "no"
         assert not xliff.units[2].isapproved()
 
+    def test_po_with_msgctxt(self):
+        minipo = 'msgctxt "numbers"\nmsgid "one"\nmsgstr "um"\n'
+        xliff = self.po2xliff(minipo)
+        print str(xliff)
+        node = xliff.units[0].xmlelement
+        contextgroups = node.findall(".//%s" % xliff.namespaced("context-group"))
+        assert len(contextgroups) == 1
+        for group in contextgroups:
+            assert group.get("name") == "po-1025"
+            assert group.get("purpose") == "match information"
+        tuples = self.getcontexttuples(node, xliff.namespace)
+        assert tuples == [('x-unknown', 'numbers')]