diff --git a/cms/djangoapps/contentstore/views/course.py b/cms/djangoapps/contentstore/views/course.py
index 70686f0353..d49ae2f6c7 100644
--- a/cms/djangoapps/contentstore/views/course.py
+++ b/cms/djangoapps/contentstore/views/course.py
@@ -467,7 +467,10 @@ def course_listing(request):
     List all courses available to the logged in user
     """
     courses, in_process_course_actions = get_courses_accessible_to_user(request)
-    libraries = _accessible_libraries_list(request.user) if LIBRARIES_ENABLED else []
+    user = request.user
+    user_has_permission =\
+        user.is_active and (user.is_staff or CourseCreatorRole().has_user(user))
+    libraries = _accessible_libraries_list(request.user) if LIBRARIES_ENABLED and user_has_permission else []
 
     programs_config = ProgramsApiConfig.current()
     raw_programs = get_programs(request.user) if programs_config.is_studio_tab_enabled else []
@@ -516,18 +519,18 @@ def course_listing(request):
     return render_to_response('index.html', {
         'courses': courses,
         'in_process_course_actions': in_process_course_actions,
-        'libraries_enabled': LIBRARIES_ENABLED,
-        'libraries': [format_library_for_view(lib) for lib in libraries],
-        'show_new_library_button': LIBRARIES_ENABLED and request.user.is_active,
         'user': request.user,
         'request_course_creator_url': reverse('contentstore.views.request_course_creator'),
         'course_creator_status': _get_course_creator_status(request.user),
         'rerun_creator_status': GlobalStaff().has_user(request.user),
         'allow_unicode_course_id': settings.FEATURES.get('ALLOW_UNICODE_COURSE_ID', False),
         'allow_course_reruns': settings.FEATURES.get('ALLOW_COURSE_RERUNS', True),
+        'libraries_enabled': LIBRARIES_ENABLED,
+        'libraries': [format_library_for_view(lib) for lib in libraries],
+        'library_creator_status': _get_library_creator_status(user),
         'is_programs_enabled': programs_config.is_studio_tab_enabled and request.user.is_staff,
         'programs': programs,
-        'program_authoring_url': reverse('programs'),
+        'program_authoring_url': reverse('programs')
     })
 
 
@@ -1646,3 +1649,25 @@ def _get_course_creator_status(user):
         course_creator_status = 'granted'
 
     return course_creator_status
+
+
+def _get_library_creator_status(user):
+    """
+    Helper method for returning the library creation status for a particular user,
+    taking into account the values of DISABLE_LIBRARY_CREATION and LIBRARIES_ENABLED.
+    """
+    if user.is_staff:
+        library_creator_status = 'granted'
+    elif settings.FEATURES.get('DISABLE_LIBRARY_CREATION', False):
+        library_creator_status = 'disallowed_for_this_site'
+    elif settings.FEATURES.get('ENABLE_CREATOR_GROUP', False):
+        library_creator_status = get_course_creator_status(user)
+        if library_creator_status is None:
+            # User not grandfathered in as an existing user, has not previously visited the dashboard page.
+            # Add the user to the course creator admin table with status 'unrequested'.
+            add_user_with_status_unrequested(user)
+            library_creator_status = get_course_creator_status(user)
+    else:
+        library_creator_status = 'granted'
+
+    return library_creator_status
diff --git a/cms/envs/common.py b/cms/envs/common.py
index 11c0842b8d..3c94ee9ed1 100644
--- a/cms/envs/common.py
+++ b/cms/envs/common.py
@@ -168,6 +168,7 @@ FEATURES = {
     # Enable support for content libraries. Note that content libraries are
     # only supported in courses using split mongo.
     'ENABLE_CONTENT_LIBRARIES': True,
+    'DISABLE_LIBRARY_CREATION': False,
 
     # Milestones application flag
     'MILESTONES_APP': False,
diff --git a/cms/templates/index.html b/cms/templates/index.html
index daf518d8a6..ad652dd5e3 100644
--- a/cms/templates/index.html
+++ b/cms/templates/index.html
@@ -34,7 +34,7 @@ from openedx.core.djangolib.markup import HTML, Text
           <a href="mailto:${settings.FEATURES.get('STUDIO_REQUEST_EMAIL','')}">${_("Email staff to create course")}</a>
           % endif
 
-          % if show_new_library_button:
+          % if library_creator_status=='granted':
             <a href="#" class="button new-button new-library-button"><span class="icon fa fa-plus icon-inline" aria-hidden="true"></span>
             ${_("New Library")}</a>
           % endif
@@ -130,7 +130,7 @@ from openedx.core.djangolib.markup import HTML, Text
 
       % endif
 
-      %if libraries_enabled and show_new_library_button:
+      %if libraries_enabled and library_creator_status=='granted':
       <div class="wrapper-create-element wrapper-create-library">
         <form class="form-create create-library library-info" id="create-library-form" name="create-library-form">
           <div class="wrap-error">
@@ -497,7 +497,7 @@ from openedx.core.djangolib.markup import HTML, Text
               </div>
           </div>
         </div>
-        % if show_new_library_button:
+        % if library_creator_status=='granted':
         <div class="notice-item has-actions">
           <div class="msg">
               <h3 class="title">${_('Create Your First Library')}</h3>