diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.hbs b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.hbs
index e3f6cdfde92..c67f099c5b7 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.hbs
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.hbs
@@ -2,36 +2,44 @@
     {{#if isAuthorized}}
         <span id="logged-in-user" class="hidden" data-username="{{@user.username}}" data-domain="{{@user.domain}}"
               data-tenant-id="{{@user.tenantId}}" data-iscloud="{{isCloud}}"
-              data-isDeviceOwnerEnabled="{{isDeviceOwnerEnabled}}" data-storeapps="{{storeApps}}">
+              data-isDeviceOwnerEnabled="{{isDeviceOwnerEnabled}}" data-storeapps="{{storeApps}}"
+              data-corrective-policies="{{correctivePolicies}}">
         </span>
         <div class="row">
             <div class="col-md-12">
 
                 <div class="wr-steps hidden">
-                    <div class="col-md-3 col-xs-3">
+                    <div class="col-md-2 col-xs-2 col-md-offset-1">
                         <div class="itm-wiz itm-wiz-current" data-step="policy-platform">
                             <div class="wiz-no">1</div>
                             <div class="wiz-lbl hidden-xs"><span>Select a platform</span></div>
                         </div>
                         <br class="c-both"/>
                     </div>
-                    <div class="col-md-3 col-xs-3">
+                    <div class="col-md-2 col-xs-2">
                         <div class="itm-wiz" data-step="policy-profile">
                             <div class="wiz-no">2</div>
                             <div class="wiz-lbl hidden-xs"><span>Configure profile</span></div>
                         </div>
                         <br class="c-both"/>
                     </div>
-                    <div class="col-md-3 col-xs-3">
-                        <div class="itm-wiz" data-step="policy-criteria">
+                    <div class="col-md-2 col-xs-2">
+                        <div class="itm-wiz" data-step="policy-type">
                             <div class="wiz-no">3</div>
+                            <div class="wiz-lbl hidden-xs"><span>Select policy type</span></div>
+                        </div>
+                        <br class="c-both"/>
+                    </div>
+                    <div class="col-md-2 col-xs-2">
+                        <div class="itm-wiz" data-step="policy-criteria">
+                            <div class="wiz-no">4</div>
                             <div class="wiz-lbl hidden-xs"><span>Assign to groups</span></div>
                         </div>
                         <br class="c-both"/>
                     </div>
-                    <div class="col-md-3 col-xs-3">
+                    <div class="col-md-2 col-xs-2">
                         <div class="itm-wiz" data-step="policy-naming">
-                            <div class="wiz-no">4</div>
+                            <div class="wiz-no">5</div>
                             <div class="wiz-lbl hidden-xs"><span>Publish to devices</span></div>
                         </div>
                         <br class="c-both"/>
@@ -55,7 +63,7 @@
                         <hr>
                         <div class="row">
                             <div class="col-lg-12">
-                                <h4 class="hidden-xs">Step 4: Publish to devices</h4>
+                                <h4 class="hidden-xs">Step 5: Publish to devices</h4>
                                 <br>
                                 <div id="policy-naming-main-error-msg" class="alert alert-danger hidden" role="alert">
                                     <i class="icon fw fw-error"></i><span></span>
@@ -110,7 +118,7 @@
                         <hr>
                         <div class="row">
                             <div class="col-lg-12">
-                                <h4 class="hidden-xs">Step 3: Assign to groups</h4>
+                                <h4 class="hidden-xs">Step 4: Assign to groups</h4>
                                 <br>
                                 <div id="policy-criteria-main-error-msg" class="alert alert-danger hidden" role="alert">
                                     <i class="icon fw fw-error"></i><span></span>
@@ -201,7 +209,7 @@
                                 </div>
                                 <div class="wr-input-control wr-btn-grp">
                                     <a href="javascript:void(0)" class="wr-btn wizard-stepper" data-is-back-btn="true"
-                                       data-current="policy-criteria" data-next="policy-profile">Back</a>
+                                       data-current="policy-criteria" data-next="policy-type">Back</a>
                                     <a href="javascript:void(0)" class="wr-btn wizard-stepper"
                                        data-current="policy-criteria" data-next="policy-naming" data-validate="true">Continue</a>
                                 </div>
@@ -209,7 +217,45 @@
                         </div>
                     </div>
                 </div>
-
+                <div class="col-centered wr-content policy-type hidden">
+                    <div class="wr-form">
+                        <h1 id="policy-type-page-wizard-title" class="page-sub-title">ADD POLICY</h1>
+                        <hr>
+                        <div id="policy-type-wizard-steps" class="row wr-wizard"></div>
+                        <hr>
+                        <div class="row">
+                            <div class="col-lg-12">
+                                <h4 class="hidden-xs"> Step 3: Select policy type</h4>
+                                <br>
+                                <div id="policy-type-main-error-msg" class="alert alert-danger hidden" role="alert">
+                                    <i class="icon fw fw-error"></i><span></span>
+                                </div>
+                                <div>
+                                    <div class="wr-input-control">
+                                        <label class="wr-input-control radio light">
+                                            <input type="radio" id="policy-type-general" name="policy-type-radio-btn"
+                                                   value="GENERAL" checked/>
+                                            <span class="helper">General Policy</span>
+                                        </label>
+                                        <label class="wr-input-control radio light">
+                                            <input type="radio" id="policy-type-corrective" name="policy-type-radio-btn"
+                                                   value="CORRECTIVE"/>
+                                            <span class="helper">Corrective Policy</span>
+                                        </label>
+                                    </div>
+                                </div>
+                                <div id="select-general-policy-type"></div>
+                                <div class="wr-input-control wr-btn-grp">
+                                    <a href="javascript:void(0)" class="wr-btn wizard-stepper" data-is-back-btn="true"
+                                       data-current="policy-type" data-next="policy-profile">Back</a>
+                                    <a href="javascript:void(0)" class="wr-btn wizard-stepper"
+                                       data-current="policy-type"
+                                       data-next="policy-criteria" data-validate="false">Continue</a>
+                                </div>
+                            </div>
+                        </div>
+                    </div>
+                </div>
                 <div class="col-centered wr-content policy-profile hidden">
                     <div class="wr-form">
                         <h1 id="policy-profile-page-wizard-title" class="page-sub-title">ADD POLICY</h1>
@@ -242,7 +288,7 @@
                                        data-current="policy-profile" data-next="policy-platform">Back</a>
                                     <a href="javascript:void(0)" class="wr-btn wizard-stepper"
                                        data-current="policy-profile"
-                                       data-next="policy-criteria" data-validate="true">Continue</a>
+                                       data-next="policy-type" data-validate="true">Continue</a>
                                 </div>
                             </div>
                         </div>
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.js b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.js
index 94f0b1235b2..b3646d88849 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.js
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/create.js
@@ -118,5 +118,7 @@ function onRequest(context) {
     var enrollmentApps = policyModule.getStoreAppsForPolicy();
     types["storeApps"] = JSON.stringify(enrollmentApps["content"]);
 
+	types["correctivePolicies"] = JSON.stringify(policyModule.getAllPoliciesByType("CORRECTIVE")["content"]);
+
 	return types;
 }
\ No newline at end of file
diff --git a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/public/js/policy-create.js b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/public/js/policy-create.js
index 703c808923c..16085c4b777 100644
--- a/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/public/js/policy-create.js
+++ b/components/device-mgt/org.wso2.carbon.device.mgt.ui/src/main/resources/jaggeryapps/devicemgt/app/units/cdmf.unit.policy.create/public/js/policy-create.js
@@ -39,6 +39,7 @@ var validateInline = {};
 var clearInline = {};
 var validateStep = {};
 var hasPolicyProfileScript = false;
+var isCorrectiveActionProfileAdded = false;
 
 var enableInlineError = function (inputField, errorMsg, errorSign) {
     var fieldIdentifier = "#" + inputField;
@@ -221,8 +222,36 @@ stepForwardFrom["policy-profile"] = function () {
          */
         policy["profile"] = generatePolicyProfile();
     }
+
+    // add policy correction action page
+    if (!isCorrectiveActionProfileAdded) {
+        var policyCorrectiveActionTemplateSrc =
+                "/public/cdmf.unit.policy.corrective-action/templates/policy-corrective-action.hbs";
+        var policyCorrectiveActionScriptSrc =
+                "/public/cdmf.unit.policy.corrective-action/js/policy-corrective-action.js";
+        var policyCorrectiveActionTemplateCacheKey = "policy-corrective-action";
+
+        $.template(policyCorrectiveActionTemplateCacheKey, context + policyCorrectiveActionTemplateSrc,
+                   function (template) {
+            var content = template(
+                    {
+                        "deviceType": policy["platform"],
+                        "correctivePolicies": $("#logged-in-user").data("corrective-policies")
+                    }
+            );
+            $("#select-general-policy-type").html(content)
+        });
+
+        var script = document.createElement('script');
+        script.type = 'text/javascript';
+        script.src = context + policyCorrectiveActionScriptSrc;
+        document.head.append(script);
+
+        isCorrectiveActionProfileAdded = true
+    }
+
     // updating next-page wizard title with selected platform
-    $("#policy-criteria-page-wizard-title").text("ADD " + policy["platform"] + " POLICY");
+    $("#policy-type-page-wizard-title").text("ADD " + policy["platform"] + " POLICY");
 };
 
 /**
@@ -238,6 +267,28 @@ stepBackFrom["policy-profile"] = function () {
     }
 };
 
+
+/**
+ * Forward action of policy type page.
+ */
+stepForwardFrom["policy-type"] = function () {
+    policy["type"] = $("input[name=policy-type-radio-btn]:checked").val();
+    var correctiveActionList = [];
+    if (policy.type === "GENERAL") {
+        var selectedCorrectivePolicyId = $("#corrective-policy-input").val();
+        if (selectedCorrectivePolicyId !== "none") {
+            var correctiveAction = {
+                "actionType": "POLICY",
+                "policyId": selectedCorrectivePolicyId
+            };
+            correctiveActionList.push(correctiveAction);
+        }
+    }
+    policy["correctiveActionList"] = correctiveActionList;
+    //updating next-page wizard title with selected platform
+    $("#policy-criteria-page-wizard-title").text("ADD " + policy["platform"] + " POLICY");
+};
+
 /**
  * Forward action of policy criteria page.
  */
@@ -438,6 +489,8 @@ var savePolicy = function (policy, isActive, serviceURL) {
         "compliance": policy["selectedNonCompliantAction"],
         "ownershipType": null,
         "active": isActive,
+        "policyType": policy["type"],
+        "correctiveActions": policy["correctiveActionList"],
         "profile": {
             "profileName": policy["policyName"],
             "deviceType": policy["platform"],
@@ -458,8 +511,6 @@ var savePolicy = function (policy, isActive, serviceURL) {
         payload["deviceGroups"] = policy["selectedGroups"];
     }
 
-    payload["policyType"] = "GENERAL";
-
     invokerUtil.post(
         serviceURL,
         payload,
@@ -594,6 +645,16 @@ $(document).ready(function () {
         }
     });
 
+    isCorrectiveActionProfileAdded = false;
+
+    $('input[type=radio][name=policy-type-radio-btn]').change(function() {
+        if ($(this).val() === "CORRECTIVE") {
+            $("#select-general-policy-type").addClass("hidden");
+        } else {
+            $("#select-general-policy-type").removeClass("hidden");
+        }
+    });
+
     //Policy wizard stepper
     $(".wizard-stepper").click(function () {
         // button clicked here can be either a continue button or a back button.