diff --git a/cms/static/js/views/pages/course_outline.js b/cms/static/js/views/pages/course_outline.js
index 00335e92a3..cd86d63997 100644
--- a/cms/static/js/views/pages/course_outline.js
+++ b/cms/static/js/views/pages/course_outline.js
@@ -82,7 +82,7 @@ define([
                 }
 
                 /* globals course */
-                if (this.model.get('highlights_enabled') && course.get('self_paced')) {
+                if (this.model.get('highlights_enabled')) {
                     this.highlightsEnableView = new CourseHighlightsEnableView({
                         el: this.$('.status-highlights-enabled'),
                         model: this.model
diff --git a/cms/templates/js/course-outline.underscore b/cms/templates/js/course-outline.underscore
index ac9fb06e21..e41860960e 100644
--- a/cms/templates/js/course-outline.underscore
+++ b/cms/templates/js/course-outline.underscore
@@ -212,7 +212,7 @@ if (is_proctored_exam) {
                 </p>
               </div>
             <% } %>
-            <% if (xblockInfo.get('highlights_enabled') && course.get('self_paced') && xblockInfo.isChapter()) { %>
+            <% if (xblockInfo.get('highlights_enabled') && xblockInfo.isChapter()) { %>
                 <div class="block-highlights">
                     <% var number_of_highlights = (xblockInfo.get('highlights') || []).length; %>
                         <button class="block-highlights-value highlights-button action-button">
diff --git a/openedx/core/djangoapps/schedules/management/commands/tests/test_send_course_update.py b/openedx/core/djangoapps/schedules/management/commands/tests/test_send_course_update.py
index 0239c3e37d..866102116b 100644
--- a/openedx/core/djangoapps/schedules/management/commands/tests/test_send_course_update.py
+++ b/openedx/core/djangoapps/schedules/management/commands/tests/test_send_course_update.py
@@ -7,6 +7,7 @@ from unittest import skipUnless
 
 import ddt
 from django.conf import settings
+from django.core import mail
 from edx_ace.utils.date import serialize
 from mock import patch
 from six.moves import range
@@ -34,6 +35,9 @@ from xmodule.modulestore.tests.factories import CourseFactory, ItemFactory
     "Can't test schedules if the app isn't installed",
 )
 class TestSendCourseUpdate(ScheduleUpsellTestMixin, ScheduleSendEmailTestMixin, ModuleStoreTestCase):
+    """
+    Tests for django management command 'send_course_update'
+    """
     __test__ = True
 
     # pylint: disable=protected-access
@@ -55,6 +59,28 @@ class TestSendCourseUpdate(ScheduleUpsellTestMixin, ScheduleSendEmailTestMixin,
         mock_highlights.return_value = [u'Highlight {}'.format(num + 1) for num in range(3)]
         self.addCleanup(self.stop_highlights_patcher)
 
+    def prepare_course_data(self, mock_get_current_site, is_self_paced=True):
+        """
+        Prepare course data with highlights
+        """
+        self.highlights_patcher.stop()
+        self.highlights_patcher = None
+        mock_get_current_site.return_value = self.site_config.site
+
+        course = CourseFactory(highlights_enabled_for_messaging=True, self_paced=is_self_paced)
+        with self.store.bulk_operations(course.id):
+            ItemFactory.create(parent=course, category='chapter', highlights=[u'highlights'])
+
+        enrollment = CourseEnrollmentFactory(course_id=course.id, user=self.user, mode=u'audit')
+        self.assertEqual(enrollment.schedule.get_experience_type(), ScheduleExperience.EXPERIENCES.course_updates)
+
+        _, offset, target_day, _ = self._get_dates(offset=self.expected_offsets[0])
+        enrollment.schedule.start = target_day
+        enrollment.schedule.start_date = target_day
+        enrollment.schedule.save()
+
+        return offset, target_day, enrollment
+
     def stop_highlights_patcher(self):
         """
         Stops the patcher for the get_week_highlights method
@@ -74,21 +100,7 @@ class TestSendCourseUpdate(ScheduleUpsellTestMixin, ScheduleSendEmailTestMixin,
     @override_waffle_flag(COURSE_UPDATE_WAFFLE_FLAG, True)
     @patch('openedx.core.djangoapps.schedules.signals.get_current_site')
     def test_with_course_data(self, mock_get_current_site):
-        self.highlights_patcher.stop()
-        self.highlights_patcher = None
-        mock_get_current_site.return_value = self.site_config.site
-
-        course = CourseFactory(highlights_enabled_for_messaging=True, self_paced=True)
-        with self.store.bulk_operations(course.id):
-            ItemFactory.create(parent=course, category='chapter', highlights=[u'highlights'])
-
-        enrollment = CourseEnrollmentFactory(course_id=course.id, user=self.user, mode=u'audit')
-        self.assertEqual(enrollment.schedule.get_experience_type(), ScheduleExperience.EXPERIENCES.course_updates)
-
-        _, offset, target_day, _ = self._get_dates(offset=self.expected_offsets[0])
-        enrollment.schedule.start = target_day
-        enrollment.schedule.start_date = target_day
-        enrollment.schedule.save()
+        offset, target_day, enrollment = self.prepare_course_data(mock_get_current_site)
 
         with patch.object(tasks, 'ace') as mock_ace:
             self.task().apply(kwargs=dict(
@@ -99,3 +111,20 @@ class TestSendCourseUpdate(ScheduleUpsellTestMixin, ScheduleSendEmailTestMixin,
             ))
 
             self.assertTrue(mock_ace.send.called)
+
+    @override_waffle_flag(COURSE_UPDATE_WAFFLE_FLAG, True)
+    @patch('openedx.core.djangoapps.schedules.signals.get_current_site')
+    def test_template_for_instructor_led_courses(self, mock_get_current_site):
+        """
+        Test that InstructorLedCourseUpdate template is picked for instructor led
+        courses
+        """
+        offset, target_day, enrollment = self.prepare_course_data(mock_get_current_site, is_self_paced=False)
+
+        self.task().apply(kwargs=dict(
+            site_id=self.site_config.site.id,
+            target_day_str=serialize(target_day),
+            day_offset=offset,
+            bin_num=self._calculate_bin_for_user(enrollment.user),
+        ))
+        self.assertEqual(u'{} Weekly Update'.format(enrollment.course.display_name), mail.outbox[0].subject)
diff --git a/openedx/core/djangoapps/schedules/message_types.py b/openedx/core/djangoapps/schedules/message_types.py
index c43113d7ce..4373875e99 100644
--- a/openedx/core/djangoapps/schedules/message_types.py
+++ b/openedx/core/djangoapps/schedules/message_types.py
@@ -1,4 +1,6 @@
-
+"""
+ACE message types for the schedules module.
+"""
 
 import logging
 
@@ -24,3 +26,7 @@ class UpgradeReminder(ScheduleMessageType):
 
 class CourseUpdate(ScheduleMessageType):
     pass
+
+
+class InstructorLedCourseUpdate(ScheduleMessageType):
+    pass
diff --git a/openedx/core/djangoapps/schedules/resolvers.py b/openedx/core/djangoapps/schedules/resolvers.py
index c92f755f1e..c3402c81fb 100644
--- a/openedx/core/djangoapps/schedules/resolvers.py
+++ b/openedx/core/djangoapps/schedules/resolvers.py
@@ -20,6 +20,7 @@ from openedx.core.djangoapps.ace_common.template_context import get_base_templat
 from openedx.core.djangoapps.schedules.config import COURSE_UPDATE_SHOW_UNSUBSCRIBE_WAFFLE_SWITCH
 from openedx.core.djangoapps.schedules.content_highlights import get_week_highlights
 from openedx.core.djangoapps.schedules.exceptions import CourseUpdateDoesNotExist
+from openedx.core.djangoapps.schedules.message_types import CourseUpdate, InstructorLedCourseUpdate
 from openedx.core.djangoapps.schedules.models import Schedule, ScheduleExperience
 from openedx.core.djangoapps.schedules.utils import PrefixedDebugLoggerMixin
 from openedx.core.djangoapps.site_configuration.models import SiteConfiguration
@@ -254,6 +255,8 @@ class RecurringNudgeResolver(BinnedSchedulesBaseResolver):
 
     def get_template_context(self, user, user_schedules):
         first_schedule = user_schedules[0]
+        if not first_schedule.enrollment.course.self_paced:
+            raise InvalidContextError
         context = {
             'course_name': first_schedule.enrollment.course.display_name,
             'course_url': _get_trackable_course_home_url(first_schedule.enrollment.course_id),
@@ -286,6 +289,10 @@ class UpgradeReminderResolver(BinnedSchedulesBaseResolver):
         first_valid_upsell_context = None
         first_schedule = None
         for schedule in user_schedules:
+            if not schedule.enrollment.course.self_paced:
+                # We don't want to include instructor led courses in this email
+                continue
+
             upsell_context = _get_upsell_information_for_schedule(user, schedule)
             if not upsell_context['show_upsell']:
                 continue
@@ -349,6 +356,20 @@ class CourseUpdateResolver(BinnedSchedulesBaseResolver):
     num_bins = COURSE_UPDATE_NUM_BINS
     experience_filter = Q(experience__experience_type=ScheduleExperience.EXPERIENCES.course_updates)
 
+    def send(self, msg_type):
+        for (user, language, context, is_self_paced) in self.schedules_for_bin():
+            msg_type = CourseUpdate() if is_self_paced else InstructorLedCourseUpdate()
+            msg = msg_type.personalize(
+                Recipient(
+                    user.username,
+                    self.override_recipient_email or user.email,
+                ),
+                language,
+                context,
+            )
+            with function_trace('enqueue_send_task'):
+                self.async_send_task.apply_async((self.site.id, str(msg)), retry=False)  # pylint: disable=no-member
+
     def schedules_for_bin(self):
         week_num = abs(self.day_offset) // 7
         schedules = self.get_schedules_with_target_date_by_bin_and_orgs(
@@ -358,6 +379,7 @@ class CourseUpdateResolver(BinnedSchedulesBaseResolver):
         template_context = get_base_template_context(self.site)
         for schedule in schedules:
             enrollment = schedule.enrollment
+            course = schedule.enrollment.course
             user = enrollment.user
 
             try:
@@ -391,7 +413,7 @@ class CourseUpdateResolver(BinnedSchedulesBaseResolver):
                 })
                 template_context.update(_get_upsell_information_for_schedule(user, schedule))
 
-                yield (user, schedule.enrollment.course.closest_released_language, template_context)
+                yield (user, schedule.enrollment.course.closest_released_language, template_context, course.self_paced)
 
 
 def _get_trackable_course_home_url(course_id):
diff --git a/openedx/core/djangoapps/schedules/signals.py b/openedx/core/djangoapps/schedules/signals.py
index b6a128cf8a..39c371f110 100644
--- a/openedx/core/djangoapps/schedules/signals.py
+++ b/openedx/core/djangoapps/schedules/signals.py
@@ -1,4 +1,6 @@
-
+"""
+CourseEnrollment related signal handlers.
+"""
 
 import datetime
 import logging
@@ -175,10 +177,6 @@ def _create_schedule(enrollment, enrollment_created):
         log.debug('Schedules: Creation not enabled for this course or for this site')
         return
 
-    if not enrollment.course_overview.self_paced:
-        log.debug('Schedules: Creation only enabled for self-paced courses')
-        return
-
     # This represents the first date at which the learner can access the content. This will be the latter of
     # either the enrollment date or the course's start date.
     content_availability_date = max(enrollment.created, enrollment.course_overview.start)
diff --git a/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/body.html b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/body.html
new file mode 100644
index 0000000000..d74c2847bb
--- /dev/null
+++ b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/body.html
@@ -0,0 +1,45 @@
+{% extends 'ace_common/edx_ace/common/base_body.html' %}
+{% load i18n %}
+{% load django_markup %}
+
+{% block preview_text %}
+    {% filter force_escape %}
+    {% blocktrans trimmed %}
+        Welcome to week {{ week_num }} of {{ course_name }}!
+    {% endblocktrans %}
+    {% endfilter %}
+{% endblock %}
+
+{% block content %}
+<table width="100%" align="left" border="0" cellpadding="0" cellspacing="0" role="presentation">
+    <tr>
+        <td>
+            <p>
+                {% blocktrans trimmed asvar tmsg %}
+                    We hope you're enjoying {start_strong}{course_name}{end_strong}!
+                    We want to let you know what you can look forward to in the coming weeks:
+                {% endblocktrans %}
+                {% interpolate_html tmsg start_strong='<strong>'|safe end_strong='</strong>'|safe course_name=course_name|force_escape|safe week_num=week_num|force_escape|safe %}
+                <ul>
+                    {% for highlight in week_highlights %}
+                        <li>{{ highlight }}</li>
+                    {% endfor %}
+                </ul>
+            </p>
+            <p>
+                {% filter force_escape %}
+                {% blocktrans trimmed %}
+                    We encourage you to spend time with the course each week.
+                    Your focused attention will pay off in the end!
+                {% endblocktrans %}
+                {% endfilter %}
+            </p>
+            {# xss-lint: disable=django-trans-missing-escape #}
+            {% trans "Resume your course now" as course_cta_text %}
+            {% include "ace_common/edx_ace/common/return_to_course_cta.html" with course_cta_text=course_cta_text%}
+
+            {% include "ace_common/edx_ace/common/upsell_cta.html"%}
+        </td>
+    </tr>
+</table>
+{% endblock %}
diff --git a/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/body.txt b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/body.txt
new file mode 100644
index 0000000000..f47f5cd5f5
--- /dev/null
+++ b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/body.txt
@@ -0,0 +1,17 @@
+{% autoescape off %}
+{% load i18n %}
+
+{% blocktrans trimmed %}
+We hope you're enjoying {{ course_name }}!
+We want to let you know what you can look forward to in the coming weeks:
+{% endblocktrans %}
+
+{% for highlight in week_highlights %}
+  * {{ highlight }}
+{% endfor %}
+
+{% blocktrans trimmed %}
+We encourage you to spend time with the course each week. Your focused attention will pay off in the end!
+{% endblocktrans %}
+{% include "ace_common/edx_ace/common/upsell_cta.txt"%}
+{% endautoescape %}
diff --git a/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/from_name.txt b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/from_name.txt
new file mode 100644
index 0000000000..fd8b9b7554
--- /dev/null
+++ b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/from_name.txt
@@ -0,0 +1,3 @@
+{% autoescape off %}
+{{ course_name }}
+{% endautoescape %}
diff --git a/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/head.html b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/head.html
new file mode 100644
index 0000000000..366ada7ad9
--- /dev/null
+++ b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/head.html
@@ -0,0 +1 @@
+{% extends 'ace_common/edx_ace/common/base_head.html' %}
diff --git a/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/subject.txt b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/subject.txt
new file mode 100644
index 0000000000..997efda931
--- /dev/null
+++ b/openedx/core/djangoapps/schedules/templates/schedules/edx_ace/instructorledcourseupdate/email/subject.txt
@@ -0,0 +1,5 @@
+{% autoescape off %}
+{% load i18n %}
+
+{% blocktrans trimmed %}{{ course_name }} Weekly Update {% endblocktrans %}
+{% endautoescape %}
diff --git a/openedx/core/djangoapps/schedules/tests/test_resolvers.py b/openedx/core/djangoapps/schedules/tests/test_resolvers.py
index e47458f5e8..df9882bc10 100644
--- a/openedx/core/djangoapps/schedules/tests/test_resolvers.py
+++ b/openedx/core/djangoapps/schedules/tests/test_resolvers.py
@@ -147,7 +147,7 @@ class TestCourseUpdateResolver(SchedulesResolverTestMixin, ModuleStoreTestCase):
             'week_highlights': ['good stuff'],
             'week_num': 1,
         }
-        self.assertEqual(schedules, [(self.user, None, expected_context)])
+        self.assertEqual(schedules, [(self.user, None, expected_context, True)])
 
     @override_waffle_flag(COURSE_UPDATE_WAFFLE_FLAG, True)
     @override_switch('schedules.course_update_show_unsubscribe', True)
diff --git a/openedx/core/djangoapps/schedules/tests/test_signals.py b/openedx/core/djangoapps/schedules/tests/test_signals.py
index 8d6d0a0935..b80b58266e 100644
--- a/openedx/core/djangoapps/schedules/tests/test_signals.py
+++ b/openedx/core/djangoapps/schedules/tests/test_signals.py
@@ -7,23 +7,23 @@ import datetime
 
 import ddt
 import pytest
-from mock import patch
-from pytz import utc
-
 from course_modes.models import CourseMode
 from course_modes.tests.factories import CourseModeFactory
-from lms.djangoapps.courseware.models import DynamicUpgradeDeadlineConfiguration
-from openedx.core.djangoapps.schedules.models import ScheduleExperience
-from openedx.core.djangoapps.schedules.signals import CREATE_SCHEDULE_WAFFLE_FLAG
-from openedx.core.djangoapps.site_configuration.tests.factories import SiteFactory
-from openedx.core.djangoapps.waffle_utils.testutils import override_waffle_flag
-from openedx.core.djangolib.testing.utils import skip_unless_lms
+from mock import patch
+from pytz import utc
 from student.models import CourseEnrollment
 from student.tests.factories import CourseEnrollmentFactory
+from testfixtures import LogCapture
 from xmodule.modulestore import ModuleStoreEnum
 from xmodule.modulestore.tests.django_utils import SharedModuleStoreTestCase
 from xmodule.modulestore.tests.factories import CourseFactory
 
+from lms.djangoapps.courseware.models import DynamicUpgradeDeadlineConfiguration
+from openedx.core.djangoapps.schedules.models import ScheduleExperience
+from openedx.core.djangoapps.schedules.signals import CREATE_SCHEDULE_WAFFLE_FLAG, log
+from openedx.core.djangoapps.site_configuration.tests.factories import SiteFactory
+from openedx.core.djangoapps.waffle_utils.testutils import override_waffle_flag
+from openedx.core.djangolib.testing.utils import skip_unless_lms
 from ..models import Schedule
 from ..tests.factories import ScheduleConfigFactory
 
@@ -33,8 +33,12 @@ from ..tests.factories import ScheduleConfigFactory
 @skip_unless_lms
 class CreateScheduleTests(SharedModuleStoreTestCase):
 
-    def assert_schedule_created(self, experience_type=ScheduleExperience.EXPERIENCES.default):
-        course = _create_course_run(self_paced=True)
+    def assert_schedule_created(self, is_self_paced=True, experience_type=ScheduleExperience.EXPERIENCES.default):
+        """
+        Checks whether schedule is created and that it is created with the correct
+        experience type
+        """
+        course = _create_course_run(self_paced=is_self_paced)
         enrollment = CourseEnrollmentFactory(
             course_id=course.id,
             mode=CourseMode.AUDIT,
@@ -83,17 +87,17 @@ class CreateScheduleTests(SharedModuleStoreTestCase):
         site = SiteFactory.create()
         mock_get_current_site.return_value = site
         ScheduleConfigFactory.create(site=site, create_schedules=False)
-        self.assert_schedule_not_created()
+        with LogCapture(log.name) as log_capture:
+            self.assert_schedule_not_created()
+            log_capture.check((log.name, 'DEBUG', 'Schedules: Creation not enabled for this course or for this site'))
 
     @override_waffle_flag(CREATE_SCHEDULE_WAFFLE_FLAG, True)
-    def test_schedule_config_creation_enabled_instructor_paced(self, mock_get_current_site):
+    @patch('openedx.core.djangoapps.schedules.signals.course_has_highlights')
+    def test_schedule_config_creation_enabled_instructor_paced(self, mock_course_has_highlights, mock_get_current_site):
         site = SiteFactory.create()
+        mock_course_has_highlights.return_value = True
         mock_get_current_site.return_value = site
-        ScheduleConfigFactory.create(site=site, enabled=True, create_schedules=True)
-        course = _create_course_run(self_paced=False)
-        enrollment = CourseEnrollmentFactory(course_id=course.id, mode=CourseMode.AUDIT)
-        with pytest.raises(Schedule.DoesNotExist):
-            enrollment.schedule
+        self.assert_schedule_created(is_self_paced=False, experience_type=ScheduleExperience.EXPERIENCES.course_updates)
 
     @override_waffle_flag(CREATE_SCHEDULE_WAFFLE_FLAG, True)
     @patch('openedx.core.djangoapps.schedules.signals.course_has_highlights')
@@ -141,6 +145,30 @@ class CreateScheduleTests(SharedModuleStoreTestCase):
         mock_log.assert_called_once()
         assert 'Encountered error in creating a Schedule for CourseEnrollment' in mock_log.call_args[0][0]
 
+    @override_waffle_flag(CREATE_SCHEDULE_WAFFLE_FLAG, True)
+    def test_course_start_date_in_future(self, mock_get_current_site):
+        """
+        Test that the schedule start date will be set to course's start date
+        if course starts after enrollment
+        """
+        site = SiteFactory.create()
+        mock_get_current_site.return_value = site
+        course = _create_course_run(self_paced=True, start_day_offset=5)  # course starts in future
+        enrollment = CourseEnrollmentFactory(course_id=course.id, mode=CourseMode.AUDIT)
+        assert _strip_secs(enrollment.schedule.start) == _strip_secs(course.start)
+
+    @override_waffle_flag(CREATE_SCHEDULE_WAFFLE_FLAG, True)
+    def test_course_already_started(self, mock_get_current_site):
+        """
+        Test that the schedule start date will be set to the date enrollment was
+        created if course has already started
+        """
+        site = SiteFactory.create()
+        mock_get_current_site.return_value = site
+        course = _create_course_run(self_paced=True, start_day_offset=-5)  # course already started
+        enrollment = CourseEnrollmentFactory(course_id=course.id, mode=CourseMode.AUDIT)
+        assert _strip_secs(enrollment.schedule.start) == _strip_secs(enrollment.created)
+
 
 @ddt.ddt
 @skip_unless_lms