diff --git a/lms/djangoapps/instructor/tests/test_api.py b/lms/djangoapps/instructor/tests/test_api.py
index 016af27a45..ce021ca2b8 100644
--- a/lms/djangoapps/instructor/tests/test_api.py
+++ b/lms/djangoapps/instructor/tests/test_api.py
@@ -394,13 +394,39 @@ class TestInstructorAPIBulkAccountCreationAndEnrollment(SharedModuleStoreTestCas
     def setUpClass(cls):
         super(TestInstructorAPIBulkAccountCreationAndEnrollment, cls).setUpClass()
         cls.course = CourseFactory.create()
-        cls.url = reverse('register_and_enroll_students', kwargs={'course_id': cls.course.id.to_deprecated_string()})
+
+        # Create a course with mode 'audit'
+        cls.audit_course = CourseFactory.create()
+        CourseModeFactory(course_id=cls.audit_course.id, mode_slug=CourseMode.AUDIT)
+
+        cls.url = reverse(
+            'register_and_enroll_students', kwargs={'course_id': cls.course.id.to_deprecated_string()}
+        )
+        cls.audit_course_url = reverse(
+            'register_and_enroll_students', kwargs={'course_id': cls.audit_course.id.to_deprecated_string()}
+        )
 
     def setUp(self):
         super(TestInstructorAPIBulkAccountCreationAndEnrollment, self).setUp()
 
+        # Create a course with mode 'honor' and with price
+        self.white_label_course = CourseFactory.create()
+        self.white_label_course_mode = CourseModeFactory(
+            course_id=self.white_label_course.id,
+            mode_slug=CourseMode.HONOR,
+            min_price=10,
+            suggested_prices='10',
+        )
+
+        self.white_label_course_url = reverse(
+            'register_and_enroll_students', kwargs={'course_id': self.white_label_course.id.to_deprecated_string()}
+        )
+
         self.request = RequestFactory().request()
         self.instructor = InstructorFactory(course_key=self.course.id)
+        self.audit_course_instructor = InstructorFactory(course_key=self.audit_course.id)
+        self.white_label_course_instructor = InstructorFactory(course_key=self.white_label_course.id)
+
         self.client.login(username=self.instructor.username, password='test')
 
         self.not_enrolled_student = UserFactory(
@@ -687,6 +713,89 @@ class TestInstructorAPIBulkAccountCreationAndEnrollment(SharedModuleStoreTestCas
         manual_enrollments = ManualEnrollmentAudit.objects.all()
         self.assertEqual(manual_enrollments.count(), 0)
 
+    @patch.dict(settings.FEATURES, {'ALLOW_AUTOMATED_SIGNUPS': True})
+    def test_audit_enrollment_mode(self):
+        """
+        Test that enrollment mode for audit courses (paid courses) is 'audit'.
+        """
+        # Login Audit Course instructor
+        self.client.login(username=self.audit_course_instructor.username, password='test')
+
+        csv_content = "test_student_wl@example.com,test_student_wl,Test Student,USA"
+        uploaded_file = SimpleUploadedFile("temp.csv", csv_content)
+        response = self.client.post(self.audit_course_url, {'students_list': uploaded_file})
+
+        self.assertEqual(response.status_code, 200)
+        data = json.loads(response.content)
+        self.assertEquals(len(data['row_errors']), 0)
+        self.assertEquals(len(data['warnings']), 0)
+        self.assertEquals(len(data['general_errors']), 0)
+
+        manual_enrollments = ManualEnrollmentAudit.objects.all()
+        self.assertEqual(manual_enrollments.count(), 1)
+        self.assertEqual(manual_enrollments[0].state_transition, UNENROLLED_TO_ENROLLED)
+
+        # Verify enrollment modes to be 'audit'
+        for enrollment in manual_enrollments:
+            self.assertEqual(enrollment.enrollment.mode, CourseMode.AUDIT)
+
+    @patch.dict(settings.FEATURES, {'ALLOW_AUTOMATED_SIGNUPS': True})
+    def test_honor_enrollment_mode(self):
+        """
+        Test that enrollment mode for unpaid honor courses is 'honor'.
+        """
+        # Remove white label course price
+        self.white_label_course_mode.min_price = 0
+        self.white_label_course_mode.suggested_prices = ''
+        self.white_label_course_mode.save()  # pylint: disable=no-member
+
+        # Login Audit Course instructor
+        self.client.login(username=self.white_label_course_instructor.username, password='test')
+
+        csv_content = "test_student_wl@example.com,test_student_wl,Test Student,USA"
+        uploaded_file = SimpleUploadedFile("temp.csv", csv_content)
+        response = self.client.post(self.white_label_course_url, {'students_list': uploaded_file})
+
+        self.assertEqual(response.status_code, 200)
+        data = json.loads(response.content)
+        self.assertEquals(len(data['row_errors']), 0)
+        self.assertEquals(len(data['warnings']), 0)
+        self.assertEquals(len(data['general_errors']), 0)
+
+        manual_enrollments = ManualEnrollmentAudit.objects.all()
+        self.assertEqual(manual_enrollments.count(), 1)
+        self.assertEqual(manual_enrollments[0].state_transition, UNENROLLED_TO_ENROLLED)
+
+        # Verify enrollment modes to be 'honor'
+        for enrollment in manual_enrollments:
+            self.assertEqual(enrollment.enrollment.mode, CourseMode.HONOR)
+
+    @patch.dict(settings.FEATURES, {'ALLOW_AUTOMATED_SIGNUPS': True})
+    def test_default_shopping_cart_enrollment_mode_for_white_label(self):
+        """
+        Test that enrollment mode for white label courses (paid courses) is DEFAULT_SHOPPINGCART_MODE_SLUG.
+        """
+        # Login white label course instructor
+        self.client.login(username=self.white_label_course_instructor.username, password='test')
+
+        csv_content = "test_student_wl@example.com,test_student_wl,Test Student,USA"
+        uploaded_file = SimpleUploadedFile("temp.csv", csv_content)
+        response = self.client.post(self.white_label_course_url, {'students_list': uploaded_file})
+
+        self.assertEqual(response.status_code, 200)
+        data = json.loads(response.content)
+        self.assertEquals(len(data['row_errors']), 0)
+        self.assertEquals(len(data['warnings']), 0)
+        self.assertEquals(len(data['general_errors']), 0)
+
+        manual_enrollments = ManualEnrollmentAudit.objects.all()
+        self.assertEqual(manual_enrollments.count(), 1)
+        self.assertEqual(manual_enrollments[0].state_transition, UNENROLLED_TO_ENROLLED)
+
+        # Verify enrollment modes to be CourseMode.DEFAULT_SHOPPINGCART_MODE_SLUG
+        for enrollment in manual_enrollments:
+            self.assertEqual(enrollment.enrollment.mode, CourseMode.DEFAULT_SHOPPINGCART_MODE_SLUG)
+
 
 @attr('shard_1')
 @ddt.ddt
diff --git a/lms/djangoapps/instructor/views/api.py b/lms/djangoapps/instructor/views/api.py
index d52efa6c10..0027034329 100644
--- a/lms/djangoapps/instructor/views/api.py
+++ b/lms/djangoapps/instructor/views/api.py
@@ -343,6 +343,13 @@ def register_and_enroll_students(request, course_id):  # pylint: disable=too-man
     row_errors = []
     general_errors = []
 
+    # for white labels we use 'shopping cart' which uses CourseMode.DEFAULT_SHOPPINGCART_MODE_SLUG as
+    # course mode for creating course enrollments.
+    if CourseMode.is_white_label(course_id):
+        course_mode = CourseMode.DEFAULT_SHOPPINGCART_MODE_SLUG
+    else:
+        course_mode = None
+
     if 'students_list' in request.FILES:
         students = []
 
@@ -418,7 +425,7 @@ def register_and_enroll_students(request, course_id):  # pylint: disable=too-man
 
                     # make sure user is enrolled in course
                     if not CourseEnrollment.is_enrolled(user, course_id):
-                        enrollment_obj = CourseEnrollment.enroll(user, course_id)
+                        enrollment_obj = CourseEnrollment.enroll(user, course_id, mode=course_mode)
                         reason = 'Enrolling via csv upload'
                         ManualEnrollmentAudit.create_manual_enrollment_audit(
                             request.user, email, UNENROLLED_TO_ENROLLED, reason, enrollment_obj
@@ -437,7 +444,9 @@ def register_and_enroll_students(request, course_id):  # pylint: disable=too-man
 
                     try:
                         with transaction.atomic():
-                            enrollment_obj = create_and_enroll_user(email, username, name, country, password, course_id)
+                            enrollment_obj = create_and_enroll_user(
+                                email, username, name, country, password, course_id, course_mode
+                            )
                             reason = 'Enrolling via csv upload'
                             ManualEnrollmentAudit.create_manual_enrollment_audit(
                                 request.user, email, UNENROLLED_TO_ENROLLED, reason, enrollment_obj
@@ -497,7 +506,7 @@ def generate_unique_password(generated_passwords, password_length=12):
     return password
 
 
-def create_and_enroll_user(email, username, name, country, password, course_id):
+def create_and_enroll_user(email, username, name, country, password, course_id, course_mode=None):
     """ Creates a user and enroll him/her in the course"""
 
     user = User.objects.create_user(username, email, password)
@@ -510,7 +519,7 @@ def create_and_enroll_user(email, username, name, country, password, course_id):
     profile.save()
 
     # try to enroll the user in this course
-    return CourseEnrollment.enroll(user, course_id)
+    return CourseEnrollment.enroll(user, course_id, mode=course_mode)
 
 
 @ensure_csrf_cookie