diff --git a/lms/static/js/spec/student_account/account_settings_factory_spec.js b/lms/static/js/spec/student_account/account_settings_factory_spec.js
index 58c1554250..fd417507c2 100644
--- a/lms/static/js/spec/student_account/account_settings_factory_spec.js
+++ b/lms/static/js/spec/student_account/account_settings_factory_spec.js
@@ -108,6 +108,11 @@ define(['backbone',
 
                 request = requests[1];
                 expect(request.method).toBe('GET');
+                expect(request.url).toBe('/user_api/v1/preferences/time_zones/?country_code=1');
+                AjaxHelpers.respondWithJson(requests, Helpers.TIME_ZONE_RESPONSE);
+
+                request = requests[2];
+                expect(request.method).toBe('GET');
                 expect(request.url).toBe(Helpers.USER_PREFERENCES_API_URL);
 
                 AjaxHelpers.respondWithError(requests, 500);
@@ -126,6 +131,7 @@ define(['backbone',
                 Helpers.expectSettingsSectionsButNotFieldsToBeRendered(accountSettingsView);
 
                 AjaxHelpers.respondWithJson(requests, Helpers.createAccountSettingsData());
+                AjaxHelpers.respondWithJson(requests, Helpers.TIME_ZONE_RESPONSE);
                 AjaxHelpers.respondWithJson(requests, Helpers.createUserPreferencesData());
 
                 Helpers.expectLoadingIndicatorIsVisible(accountSettingsView, false);
@@ -141,6 +147,7 @@ define(['backbone',
                 var accountSettingsView = createAccountSettingsPage();
 
                 AjaxHelpers.respondWithJson(requests, Helpers.createAccountSettingsData());
+                AjaxHelpers.respondWithJson(requests, Helpers.TIME_ZONE_RESPONSE);
                 AjaxHelpers.respondWithJson(requests, Helpers.createUserPreferencesData());
                 AjaxHelpers.respondWithJson(requests, {});  // Page viewed analytics event
 
diff --git a/lms/static/js/spec/student_account/account_settings_fields_spec.js b/lms/static/js/spec/student_account/account_settings_fields_spec.js
index ca19620440..c69958b75a 100644
--- a/lms/static/js/spec/student_account/account_settings_fields_spec.js
+++ b/lms/static/js/spec/student_account/account_settings_fields_spec.js
@@ -45,7 +45,74 @@ define(['backbone',
                 );
             });
 
-            it('sends request to /i18n/setlang/ after changing language preference in LanguagePreferenceFieldView', function() {
+            it('update time zone dropdown after country dropdown changes', function() {
+                var baseSelector = '.u-field-value > select';
+                var groupsSelector = baseSelector + '> optgroup';
+                var groupOptionsSelector = groupsSelector + '> option';
+
+                var timeZoneData = FieldViewsSpecHelpers.createFieldData(AccountSettingsFieldViews.TimeZoneFieldView, {
+                    valueAttribute: 'time_zone',
+                    groupOptions: [{
+                        groupTitle: gettext('All Time Zones'),
+                        selectOptions: FieldViewsSpecHelpers.SELECT_OPTIONS
+                    }],
+                    persistChanges: true,
+                    required: true
+                });
+                var countryData = FieldViewsSpecHelpers.createFieldData(AccountSettingsFieldViews.DropdownFieldView, {
+                    valueAttribute: 'country',
+                    options: [['KY', 'Cayman Islands'], ['CA', 'Canada'], ['GY', 'Guyana']],
+                    persistChanges: true
+                });
+
+                var countryChange = {country: 'GY'};
+                var timeZoneChange = {time_zone: 'Pacific/Kosrae'};
+
+                var timeZoneView = new AccountSettingsFieldViews.TimeZoneFieldView(timeZoneData).render();
+                var countryView = new AccountSettingsFieldViews.DropdownFieldView(countryData).render();
+
+                requests = AjaxHelpers.requests(this);
+
+                timeZoneView.listenToCountryView(countryView);
+
+                // expect time zone dropdown to have single subheader ('All Time Zones')
+                expect(timeZoneView.$(groupsSelector).length).toBe(1);
+                expect(timeZoneView.$(groupOptionsSelector).length).toBe(3);
+                expect(timeZoneView.$(groupOptionsSelector)[0].value).toBe(FieldViewsSpecHelpers.SELECT_OPTIONS[0][0]);
+
+                // change country
+                countryView.$(baseSelector).val(countryChange[countryData.valueAttribute]).change();
+                FieldViewsSpecHelpers.expectAjaxRequestWithData(requests, countryChange);
+                AjaxHelpers.respondWithJson(requests, {success: 'true'});
+
+                AjaxHelpers.expectRequest(
+                    requests,
+                    'GET',
+                    '/user_api/v1/preferences/time_zones/?country_code=GY'
+                );
+                AjaxHelpers.respondWithJson(requests, [
+                    {time_zone: 'America/Guyana', description: 'America/Guyana (ECT, UTC-0500)'},
+                    {time_zone: 'Pacific/Kosrae', description: 'Pacific/Kosrae (KOST, UTC+1100)'}
+                ]);
+
+                // expect time zone dropdown to have two subheaders (country/all time zone sub-headers) with new values
+                expect(timeZoneView.$(groupsSelector).length).toBe(2);
+                expect(timeZoneView.$(groupOptionsSelector).length).toBe(5);
+                expect(timeZoneView.$(groupOptionsSelector)[0].value).toBe('America/Guyana');
+
+                // select time zone option from option
+                timeZoneView.$(baseSelector).val(timeZoneChange[timeZoneData.valueAttribute]).change();
+                FieldViewsSpecHelpers.expectAjaxRequestWithData(requests, timeZoneChange);
+                AjaxHelpers.respondWithJson(requests, {success: 'true'});
+                timeZoneView.render();
+
+                // expect time zone dropdown to have three subheaders (currently selected/country/all time zones)
+                expect(timeZoneView.$(groupsSelector).length).toBe(3);
+                expect(timeZoneView.$(groupOptionsSelector).length).toBe(6);
+                expect(timeZoneView.$(groupOptionsSelector)[0].value).toBe('Pacific/Kosrae');
+            });
+
+            it('sends request to /i18n/setlang/ after changing language in LanguagePreferenceFieldView', function() {
                 requests = AjaxHelpers.requests(this);
 
                 var selector = '.u-field-value > select';
diff --git a/lms/static/js/spec/student_account/helpers.js b/lms/static/js/spec/student_account/helpers.js
index 49e9bd44fa..0bfc695ef1 100644
--- a/lms/static/js/spec/student_account/helpers.js
+++ b/lms/static/js/spec/student_account/helpers.js
@@ -49,6 +49,11 @@ define(['underscore'], function(_) {
         ['3', 'Option 3']
     ];
 
+    var TIME_ZONE_RESPONSE = [{
+        time_zone: 'America/Guyana',
+        description: 'America/Guyana (ECT, UTC-0500)'
+    }];
+
     var IMAGE_MAX_BYTES = 1024 * 1024;
     var IMAGE_MIN_BYTES = 100;
 
@@ -123,6 +128,7 @@ define(['underscore'], function(_) {
         createAccountSettingsData: createAccountSettingsData,
         createUserPreferencesData: createUserPreferencesData,
         FIELD_OPTIONS: FIELD_OPTIONS,
+        TIME_ZONE_RESPONSE: TIME_ZONE_RESPONSE,
         expectLoadingIndicatorIsVisible: expectLoadingIndicatorIsVisible,
         expectLoadingErrorIsVisible: expectLoadingErrorIsVisible,
         expectElementContainsField: expectElementContainsField,
diff --git a/lms/static/js/student_account/views/account_settings_factory.js b/lms/static/js/student_account/views/account_settings_factory.js
index d9d464f3e2..fc92c267da 100644
--- a/lms/static/js/student_account/views/account_settings_factory.js
+++ b/lms/static/js/student_account/views/account_settings_factory.js
@@ -20,7 +20,7 @@
         ) {
             var accountSettingsElement, userAccountModel, userPreferencesModel, aboutSectionsData,
                 accountsSectionData, ordersSectionData, accountSettingsView, showAccountSettingsPage,
-                showLoadingError, orderNumber;
+                showLoadingError, orderNumber, getUserField, userFields, timeZoneDropdownField, countryDropdownField;
 
             accountSettingsElement = $('.wrapper-account-settings');
 
@@ -110,7 +110,7 @@
                             })
                         },
                         {
-                            view: new AccountSettingsFieldViews.DropdownFieldView({
+                            view: new AccountSettingsFieldViews.TimeZoneFieldView({
                                 model: userPreferencesModel,
                                 required: true,
                                 title: gettext('Time Zone'),
@@ -120,7 +120,10 @@
                                     'time zone here, course dates, including assignment deadlines, are displayed in ' +
                                     'Coordinated Universal Time (UTC).'
                                 ),
-                                options: fieldsData.time_zone.options,
+                                groupOptions: [{
+                                    groupTitle: gettext('All Time Zones'),
+                                    selectOptions: fieldsData.time_zone.options
+                                }],
                                 persistChanges: true
                             })
                         }
@@ -169,6 +172,19 @@
                 }
             ];
 
+            // set TimeZoneField to listen to CountryField
+            getUserField = function(list, search) {
+                return _.find(list, function(field) {
+                    return field.view.options.valueAttribute === search;
+                }).view;
+            };
+            userFields = _.find(aboutSectionsData, function(section) {
+                return section.title === gettext('Basic Account Information');
+            }).fields;
+            timeZoneDropdownField = getUserField(userFields, 'time_zone');
+            countryDropdownField = getUserField(userFields, 'country');
+            timeZoneDropdownField.listenToCountryView(countryDropdownField);
+
             accountsSectionData = [
                 {
                     title: gettext('Linked Accounts'),
diff --git a/lms/static/js/student_account/views/account_settings_fields.js b/lms/static/js/student_account/views/account_settings_fields.js
index 4262fa7330..1e350b22cc 100644
--- a/lms/static/js/student_account/views/account_settings_fields.js
+++ b/lms/static/js/student_account/views/account_settings_fields.js
@@ -76,6 +76,67 @@
                     });
                 }
 
+            }),
+            TimeZoneFieldView: FieldViews.DropdownFieldView.extend({
+                fieldTemplate: field_dropdown_account_template,
+
+                initialize: function(options) {
+                    this.options = _.extend({}, options);
+                    _.bindAll(this, 'listenToCountryView', 'updateCountrySubheader', 'replaceOrAddGroupOption');
+                    this._super(options);  // eslint-disable-line no-underscore-dangle
+                },
+
+                listenToCountryView: function(view) {
+                    this.listenTo(view.model, 'change:country', this.updateCountrySubheader);
+                },
+
+                updateCountrySubheader: function(user) {
+                    var view = this;
+                    $.ajax({
+                        type: 'GET',
+                        url: '/user_api/v1/preferences/time_zones/',
+                        data: {country_code: user.attributes.country},
+                        success: function(data) {
+                            var countryTimeZones = $.map(data, function(timeZoneInfo) {
+                                return [[timeZoneInfo.time_zone, timeZoneInfo.description]];
+                            });
+                            view.replaceOrAddGroupOption(
+                                'Country Time Zones',
+                                countryTimeZones
+                            );
+                            view.render();
+                        }
+                    });
+                },
+
+                updateValueInField: function() {
+                    var options;
+                    if (this.modelValue()) {
+                        options = [[this.modelValue(), this.displayValue(this.modelValue())]];
+                        this.replaceOrAddGroupOption(
+                            'Currently Selected Time Zone',
+                            options
+                        );
+                    }
+                    this._super(); // eslint-disable-line no-underscore-dangle
+                },
+
+                replaceOrAddGroupOption: function(title, options) {
+                    var groupOption = {
+                        groupTitle: gettext(title),
+                        selectOptions: options
+                    };
+
+                    var index = _.findIndex(this.options.groupOptions, function(group) {
+                        return group.groupTitle === gettext(title);
+                    });
+                    if (index >= 0) {
+                        this.options.groupOptions[index] = groupOption;
+                    } else {
+                        this.options.groupOptions.unshift(groupOption);
+                    }
+                }
+
             }),
             PasswordFieldView: FieldViews.LinkFieldView.extend({
                 fieldType: 'button',
diff --git a/lms/static/js/views/fields.js b/lms/static/js/views/fields.js
index ccf44340f1..c67f185711 100644
--- a/lms/static/js/views/fields.js
+++ b/lms/static/js/views/fields.js
@@ -369,7 +369,8 @@
             },
 
             initialize: function(options) {
-                _.bindAll(this, 'render', 'optionForValue', 'fieldValue', 'displayValue', 'updateValueInField', 'saveValue');
+                _.bindAll(this, 'render', 'optionForValue', 'fieldValue', 'displayValue', 'updateValueInField',
+                    'saveValue', 'createGroupOptions');
                 this._super(options);
 
                 this.listenTo(this.model, 'change:' + this.options.valueAttribute, this.updateValueInField);
@@ -385,7 +386,7 @@
                     titleVisible: this.options.titleVisible !== undefined ? this.options.titleVisible : true,
                     iconName: this.options.iconName,
                     showBlankOption: (!this.options.required || !this.modelValueIsSet()),
-                    selectOptions: this.options.options,
+                    groupOptions: this.createGroupOptions(),
                     message: this.helpMessage
                 }));
                 this.delegateEvents();
@@ -407,7 +408,17 @@
             },
 
             optionForValue: function(value) {
-                return _.find(this.options.options, function(option) { return option[0] === value; });
+                var options = [];
+                if (_.isUndefined(this.options.groupOptions)) {
+                    return _.find(this.options.options, function(option) { return option[0] === value; });
+                } else {
+                    _.each(this.options.groupOptions, function(groupOption) {
+                        options = options.concat(groupOption.selectOptions);
+                    });
+                    return _.find(options, function(option) {
+                        return option[0] === value;
+                    });
+                }
             },
 
             fieldValue: function() {
@@ -483,6 +494,14 @@
                 if (this.editable !== 'never') {
                     this.$('.u-field-value select').prop('disabled', disable);
                 }
+            },
+
+            createGroupOptions: function() {
+                return !(_.isUndefined(this.options.groupOptions)) ? this.options.groupOptions :
+                    [{
+                        groupTitle: null,
+                        selectOptions: this.options.options
+                    }];
             }
         });
 
diff --git a/lms/templates/fields/field_dropdown.underscore b/lms/templates/fields/field_dropdown.underscore
index 8f0c61f5b2..097365c9dc 100644
--- a/lms/templates/fields/field_dropdown.underscore
+++ b/lms/templates/fields/field_dropdown.underscore
@@ -23,8 +23,13 @@
             <% if (showBlankOption) { %>
                 <option value=""></option>
             <% } %>
-            <% _.each(selectOptions, function(selectOption) { %>
-                <option value="<%- selectOption[0] %>"><%- selectOption[1] %></option>
+            <% _.each(groupOptions, function(groupOption) { %>
+                <% if (groupOption.groupTitle != null) { %>
+                    <optgroup label="<%- groupOption.groupTitle %>">
+                <% } %>
+                <% _.each(groupOption.selectOptions, function(selectOption) { %>
+                    <option value="<%- selectOption[0] %>"><%- selectOption[1] %></option>
+                <% }); %>
             <% }); %>
         </select>
         <button class="u-field-value-display">
diff --git a/lms/templates/fields/field_dropdown_account.underscore b/lms/templates/fields/field_dropdown_account.underscore
index 535cee9a15..718fffb3eb 100644
--- a/lms/templates/fields/field_dropdown_account.underscore
+++ b/lms/templates/fields/field_dropdown_account.underscore
@@ -23,8 +23,13 @@
             <% if (showBlankOption) { %>
                 <option value=""></option>
             <% } %>
-            <% _.each(selectOptions, function(selectOption) { %>
-                <option value="<%- selectOption[0] %>"><%- selectOption[1] %></option>
+            <% _.each(groupOptions, function(groupOption) { %>
+                <% if (groupOption.groupTitle != null) { %>
+                    <optgroup label="<%- groupOption.groupTitle %>">
+                <% } %>
+                <% _.each(groupOption.selectOptions, function(selectOption) { %>
+                    <option value="<%- selectOption[0] %>"><%- selectOption[1] %></option>
+                <% }); %>
             <% }); %>
         </select>
         <span class="icon-caret-down" aria-hidden="true"></span>
diff --git a/openedx/core/djangoapps/user_api/preferences/api.py b/openedx/core/djangoapps/user_api/preferences/api.py
index cc18bb51df..12704eb9a8 100644
--- a/openedx/core/djangoapps/user_api/preferences/api.py
+++ b/openedx/core/djangoapps/user_api/preferences/api.py
@@ -12,6 +12,7 @@ from django.db import IntegrityError
 from django.utils.translation import ugettext as _
 from django.utils.translation import ugettext_noop
 
+from openedx.core.lib.time_zone_utils import get_display_time_zone
 from pytz import common_timezones, common_timezones_set, country_timezones
 from student.models import User, UserProfile
 from request_cache import get_request_or_stub
@@ -422,8 +423,8 @@ def _create_preference_update_error(preference_key, preference_value, error):
 
 def get_country_time_zones(country_code=None):
     """
-    Returns a list of time zones commonly used in given country
-    or list of all time zones, if country code is None.
+    Returns a sorted list of time zones commonly used in given
+    country or list of all time zones, if country code is None.
 
     Arguments:
         country_code (str): ISO 3166-1 Alpha-2 country code
@@ -432,7 +433,34 @@ def get_country_time_zones(country_code=None):
         CountryCodeError: the given country code is invalid
     """
     if country_code is None:
-        return common_timezones
+        return _get_sorted_time_zone_list(common_timezones)
     if country_code.upper() in set(countries.alt_codes):
-        return country_timezones(country_code)
+        return _get_sorted_time_zone_list(country_timezones(country_code))
     raise CountryCodeError
+
+
+def _get_sorted_time_zone_list(time_zone_list):
+    """
+    Returns a list of time zone dictionaries sorted by their display values
+
+    :param time_zone_list (list): pytz time zone list
+    """
+    return sorted(
+        [_get_time_zone_dictionary(time_zone) for time_zone in time_zone_list],
+        key=lambda tz_dict: tz_dict['description']
+    )
+
+
+def _get_time_zone_dictionary(time_zone_name):
+    """
+    Returns a dictionary of time zone information:
+
+        * time_zone: Name of pytz time zone
+        * description: Display version of time zone [e.g. US/Pacific (PST, UTC-0800)]
+
+    :param time_zone_name (str): Name of pytz time zone
+    """
+    return {
+        'time_zone': time_zone_name,
+        'description': get_display_time_zone(time_zone_name),
+    }
diff --git a/openedx/core/djangoapps/user_api/preferences/tests/test_api.py b/openedx/core/djangoapps/user_api/preferences/tests/test_api.py
index c294b285a1..d02fd37ef3 100644
--- a/openedx/core/djangoapps/user_api/preferences/tests/test_api.py
+++ b/openedx/core/djangoapps/user_api/preferences/tests/test_api.py
@@ -15,6 +15,7 @@ from django.test import TestCase
 from django.test.utils import override_settings
 from dateutil.parser import parse as parse_datetime
 
+from openedx.core.lib.time_zone_utils import get_display_time_zone
 from student.tests.factories import UserFactory
 
 from xmodule.modulestore.tests.django_utils import ModuleStoreTestCase
@@ -445,13 +446,20 @@ class CountryTimeZoneTest(TestCase):
     Test cases to validate country code api functionality
     """
 
-    @ddt.data(('NZ', ['Pacific/Auckland', 'Pacific/Chatham']),
-              (None, common_timezones))
+    @ddt.data(('ES', ['Africa/Ceuta', 'Atlantic/Canary', 'Europe/Madrid']),
+              (None, common_timezones[:10]))
     @ddt.unpack
     def test_get_country_time_zones(self, country_code, expected_time_zones):
-        """Verify that list of common country time zones are returned"""
-        country_time_zones = get_country_time_zones(country_code)
-        self.assertEqual(country_time_zones, expected_time_zones)
+        """Verify that list of common country time zones dictionaries is returned"""
+        expected_dict = [
+            {
+                'time_zone': time_zone,
+                'description': get_display_time_zone(time_zone)
+            }
+            for time_zone in expected_time_zones
+        ]
+        country_time_zones_dicts = get_country_time_zones(country_code)[:10]
+        self.assertEqual(country_time_zones_dicts, expected_dict)
 
     def test_country_code_errors(self):
         """Verify that country code error is raised for invalid country code"""
diff --git a/openedx/core/djangoapps/user_api/serializers.py b/openedx/core/djangoapps/user_api/serializers.py
index 3453c2dcb5..19a320bc0c 100644
--- a/openedx/core/djangoapps/user_api/serializers.py
+++ b/openedx/core/djangoapps/user_api/serializers.py
@@ -4,7 +4,6 @@ Django REST Framework serializers for the User API application
 from django.contrib.auth.models import User
 from rest_framework import serializers
 
-from openedx.core.lib.time_zone_utils import get_display_time_zone
 from student.models import UserProfile
 
 from .models import UserPreference
@@ -89,17 +88,5 @@ class CountryTimeZoneSerializer(serializers.Serializer):  # pylint: disable=abst
     """
     Serializer that generates a list of common time zones for a country
     """
-    time_zone = serializers.SerializerMethodField()
-    description = serializers.SerializerMethodField()
-
-    def get_time_zone(self, time_zone_name):
-        """
-        Returns inputted time zone name
-        """
-        return time_zone_name
-
-    def get_description(self, time_zone_name):
-        """
-        Returns the display version of time zone [e.g. US/Pacific (PST, UTC-0800)]
-        """
-        return get_display_time_zone(time_zone_name)
+    time_zone = serializers.CharField()
+    description = serializers.CharField()