diff --git a/cms/djangoapps/contentstore/tests/test_contentstore.py b/cms/djangoapps/contentstore/tests/test_contentstore.py
index 1eb70347399c..42fde9a3f992 100644
--- a/cms/djangoapps/contentstore/tests/test_contentstore.py
+++ b/cms/djangoapps/contentstore/tests/test_contentstore.py
@@ -1368,6 +1368,16 @@ def test_create_course_with_unicode_in_id_disabled(self):
             self.course_data['run'] = '����������'
             self.assert_create_course_failed(error_message)
 
+    @override_settings(DEFAULT_COURSE_INVITATION_ONLY=True)
+    def test_create_course_invitation_only(self):
+        """
+        Test new course creation with setting: DEFAULT_COURSE_INVITATION_ONLY=True.
+        """
+        test_course_data = self.assert_created_course()
+        course_id = _get_course_id(self.store, test_course_data)
+        course = self.store.get_course(course_id)
+        self.assertEqual(course.invitation_only, True)
+
     def assert_course_permission_denied(self):
         """
         Checks that the course did not get created due to a PermissionError.
diff --git a/cms/djangoapps/contentstore/views/course.py b/cms/djangoapps/contentstore/views/course.py
index a67a087e144a..3ae5b0aec519 100644
--- a/cms/djangoapps/contentstore/views/course.py
+++ b/cms/djangoapps/contentstore/views/course.py
@@ -932,8 +932,9 @@ def create_new_course_in_store(store, user, org, number, run, fields):
 
     # Set default language from settings and enable web certs
     fields.update({
-        'language': getattr(settings, 'DEFAULT_COURSE_LANGUAGE', 'en'),
         'cert_html_view_enabled': True,
+        'invitation_only': getattr(settings, 'DEFAULT_COURSE_INVITATION_ONLY', False),
+        'language': getattr(settings, 'DEFAULT_COURSE_LANGUAGE', 'en'),
     })
 
     with modulestore().default_store(store):
diff --git a/cms/envs/common.py b/cms/envs/common.py
index 10ec4b3aa084..e2a7b375b839 100644
--- a/cms/envs/common.py
+++ b/cms/envs/common.py
@@ -2811,3 +2811,7 @@
 #### Event bus publishing ####
 ## Will be more filled out as part of https://github.com/edx/edx-arch-experiments/issues/381
 EVENT_BUS_PRODUCER_CONFIG = {}
+
+############## Default value for invitation_only when creating courses ##############
+
+DEFAULT_COURSE_INVITATION_ONLY = False