diff --git a/.gitignore b/.gitignore
index f90cabec15..a94d37922f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -85,4 +85,5 @@ private.py
 docs/_build/
 course_discovery/static/bower_components/
 node_modules/
+course_discovery/media/
 docker/volumes/
diff --git a/course_discovery/apps/api/fields.py b/course_discovery/apps/api/fields.py
new file mode 100644
index 0000000000..2ada952642
--- /dev/null
+++ b/course_discovery/apps/api/fields.py
@@ -0,0 +1,26 @@
+from rest_framework import serializers
+
+
+class StdImageSerializerField(serializers.Field):
+    """
+    Custom serializer field to render out proper JSON representation of the StdImage field on model
+    """
+    def to_representation(self, obj):
+        serialized = {}
+        for size_key in obj.field.variations:
+            # Get different sizes specs from the model field
+            # Then get the file path from the available files
+            sized_file = getattr(obj, size_key, None)
+            if sized_file:
+                path = sized_file.url
+                serialized_image = serialized.setdefault(size_key, {})
+                # In case MEDIA_URL does not include scheme+host, ensure that the URLs are absolute and not relative
+                serialized_image['url'] = self.context['request'].build_absolute_uri(path)
+                serialized_image['width'] = obj.field.variations[size_key]['width']
+                serialized_image['height'] = obj.field.variations[size_key]['height']
+
+        return serialized
+
+    def to_internal_value(self, obj):
+        """ We do not need to save/edit this banner image through serializer yet """
+        pass
diff --git a/course_discovery/apps/api/serializers.py b/course_discovery/apps/api/serializers.py
index 2eab6e1356..bf3387ea11 100644
--- a/course_discovery/apps/api/serializers.py
+++ b/course_discovery/apps/api/serializers.py
@@ -9,6 +9,7 @@
 from rest_framework.fields import DictField
 from taggit_serializer.serializers import TagListSerializerField, TaggitSerializer
 
+from course_discovery.apps.api.fields import StdImageSerializerField
 from course_discovery.apps.catalogs.models import Catalog
 from course_discovery.apps.course_metadata.models import (
     Course, CourseRun, Image, Organization, Person, Prerequisite, Seat, Subject, Video, Program, ProgramType,
@@ -279,6 +280,7 @@ class ProgramSerializer(serializers.ModelSerializer):
     courses = serializers.SerializerMethodField()
     authoring_organizations = OrganizationSerializer(many=True)
     type = serializers.SlugRelatedField(slug_field='name', queryset=ProgramType.objects.all())
+    banner_image = StdImageSerializerField()
 
     def get_courses(self, program):
         course_serializer = ProgramCourseSerializer(
@@ -294,8 +296,8 @@ def get_courses(self, program):
     class Meta:
         model = Program
         fields = ('uuid', 'title', 'subtitle', 'type', 'marketing_slug', 'marketing_url', 'card_image_url',
-                  'banner_image_url', 'authoring_organizations', 'courses',)
-        read_only_fields = ('uuid', 'marketing_url',)
+                  'banner_image', 'banner_image_url', 'authoring_organizations', 'courses',)
+        read_only_fields = ('uuid', 'marketing_url', 'banner_image')
 
 
 class AffiliateWindowSerializer(serializers.ModelSerializer):
diff --git a/course_discovery/apps/api/tests/test_serializers.py b/course_discovery/apps/api/tests/test_serializers.py
index dbf3c27a9a..d990e24bd2 100644
--- a/course_discovery/apps/api/tests/test_serializers.py
+++ b/course_discovery/apps/api/tests/test_serializers.py
@@ -16,6 +16,7 @@
 from course_discovery.apps.catalogs.tests.factories import CatalogFactory
 from course_discovery.apps.core.models import User
 from course_discovery.apps.core.tests.factories import UserFactory
+from course_discovery.apps.core.tests.helpers import make_image_file
 from course_discovery.apps.course_metadata.models import CourseRun, Program
 from course_discovery.apps.course_metadata.search_indexes import OrganizationsMixin
 from course_discovery.apps.course_metadata.tests.factories import (
@@ -251,7 +252,20 @@ def test_data(self):
         org_list = OrganizationFactory.create_batch(1)
         course_list = CourseFactory.create_batch(3)
         program = ProgramFactory(authoring_organizations=org_list, courses=course_list)
+        program.banner_image = make_image_file('test_banner.jpg')
+        program.save()
         serializer = ProgramSerializer(program, context={'request': request})
+        expected_banner_image_urls = {
+            size_key: {
+                'url': '{}{}'.format(
+                    'http://testserver',
+                    getattr(program.banner_image, size_key).url
+                ),
+                'width': program.banner_image.field.variations[size_key]['width'],
+                'height': program.banner_image.field.variations[size_key]['height']
+            }
+            for size_key in program.banner_image.field.variations
+        }
 
         expected = {
             'uuid': str(program.uuid),
@@ -262,6 +276,7 @@ def test_data(self):
             'marketing_url': program.marketing_url,
             'card_image_url': program.card_image_url,
             'banner_image_url': program.banner_image_url,
+            'banner_image': expected_banner_image_urls,
             'authoring_organizations': OrganizationSerializer(program.authoring_organizations, many=True).data,
             'courses': ProgramCourseSerializer(
                 program.courses,
@@ -300,6 +315,7 @@ def test_with_exclusions(self):
             'marketing_slug': program.marketing_slug,
             'marketing_url': program.marketing_url,
             'card_image_url': program.card_image_url,
+            'banner_image': {},
             'banner_image_url': program.banner_image_url,
             'authoring_organizations': OrganizationSerializer(program.authoring_organizations, many=True).data,
             'courses': ProgramCourseSerializer(
diff --git a/course_discovery/apps/core/tests/helpers.py b/course_discovery/apps/core/tests/helpers.py
new file mode 100644
index 0000000000..53e4c41c05
--- /dev/null
+++ b/course_discovery/apps/core/tests/helpers.py
@@ -0,0 +1,22 @@
+"""
+Helper methods for testing the processing of image files.
+"""
+from io import BytesIO
+from PIL import Image
+
+from django.core.files.uploadedfile import SimpleUploadedFile
+
+
+def make_image_stream():
+    """
+    Helper to generate values for program banner_image
+    """
+    image = Image.new('RGB', (1440, 900), 'green')
+    bio = BytesIO()
+    image.save(bio, format='JPEG')
+    return bio
+
+
+def make_image_file(name):
+    image_stream = make_image_stream()
+    return SimpleUploadedFile(name, image_stream.getvalue(), content_type='image/jpeg')
diff --git a/course_discovery/apps/core/tests/utils.py b/course_discovery/apps/core/tests/utils.py
index 5149181703..0d9dcd4b08 100644
--- a/course_discovery/apps/core/tests/utils.py
+++ b/course_discovery/apps/core/tests/utils.py
@@ -5,6 +5,8 @@
     BaseFuzzyAttribute, FuzzyText, FuzzyChoice
 )
 
+from course_discovery.apps.core.tests.helpers import make_image_stream
+
 
 class FuzzyDomain(BaseFuzzyAttribute):
     def fuzz(self):
@@ -81,3 +83,12 @@ def request_callback(request):
         return 200, {}, json.dumps(body)
 
     return request_callback
+
+
+def mock_jpeg_callback():
+    def request_callback(request):  # pylint: disable=unused-argument
+        image_stream = make_image_stream()
+
+        return 200, {}, image_stream.getvalue()
+
+    return request_callback
diff --git a/course_discovery/apps/course_metadata/data_loaders/api.py b/course_discovery/apps/course_metadata/data_loaders/api.py
index 17737c11f0..595b571a80 100644
--- a/course_discovery/apps/course_metadata/data_loaders/api.py
+++ b/course_discovery/apps/course_metadata/data_loaders/api.py
@@ -1,7 +1,10 @@
 import logging
 from decimal import Decimal
+from io import BytesIO
+import requests
 
 from opaque_keys.edx.keys import CourseKey
+from django.core.files import File
 
 from course_discovery.apps.core.models import Currency
 from course_discovery.apps.course_metadata.data_loaders import AbstractDataLoader
@@ -299,6 +302,7 @@ def update_program(self, body):
             program, __ = Program.objects.update_or_create(uuid=uuid, defaults=defaults)
             self._update_program_organizations(body, program)
             self._update_program_courses_and_runs(body, program)
+            self._update_program_banner_image(body, program)
             program.save()
         except Exception:  # pylint: disable=broad-except
             logger.exception('Failed to load program %s', uuid)
@@ -335,3 +339,20 @@ def _get_banner_image_url(self, body):
         image_key = 'w{width}h{height}'.format(width=self.image_width, height=self.image_height)
         image_url = body.get('banner_image_urls', {}).get(image_key)
         return image_url
+
+    def _update_program_banner_image(self, body, program):
+        image_url = self._get_banner_image_url(body)
+        if not image_url:
+            logger.warning('There are no banner image url for program %s', program.title)
+            return
+
+        r = requests.get(image_url)
+        if r.status_code == 200:
+            banner_downloaded = File(BytesIO(r.content))
+            program.banner_image.save(
+                'banner.jpg',
+                banner_downloaded
+            )
+            program.save()
+        else:
+            logger.exception('Loading the banner image %s for program %s failed', image_url, program.title)
diff --git a/course_discovery/apps/course_metadata/data_loaders/tests/__init__.py b/course_discovery/apps/course_metadata/data_loaders/tests/__init__.py
index f54caed6c0..60bf6fec80 100644
--- a/course_discovery/apps/course_metadata/data_loaders/tests/__init__.py
+++ b/course_discovery/apps/course_metadata/data_loaders/tests/__init__.py
@@ -1 +1,2 @@
 JSON = 'application/json'
+JPEG = 'image/jpeg'
diff --git a/course_discovery/apps/course_metadata/data_loaders/tests/test_api.py b/course_discovery/apps/course_metadata/data_loaders/tests/test_api.py
index e6049358b1..01948b427c 100644
--- a/course_discovery/apps/course_metadata/data_loaders/tests/test_api.py
+++ b/course_discovery/apps/course_metadata/data_loaders/tests/test_api.py
@@ -7,11 +7,11 @@
 from django.test import TestCase
 from pytz import UTC
 
-from course_discovery.apps.core.tests.utils import mock_api_callback
+from course_discovery.apps.core.tests.utils import mock_api_callback, mock_jpeg_callback
 from course_discovery.apps.course_metadata.data_loaders.api import (
     OrganizationsApiDataLoader, CoursesApiDataLoader, EcommerceApiDataLoader, AbstractDataLoader, ProgramsApiDataLoader
 )
-from course_discovery.apps.course_metadata.data_loaders.tests import JSON
+from course_discovery.apps.course_metadata.data_loaders.tests import JSON, JPEG
 from course_discovery.apps.course_metadata.data_loaders.tests.mixins import ApiClientTestMixin, DataLoaderTestMixin
 from course_discovery.apps.course_metadata.models import (
     Course, CourseRun, Organization, Seat, Program, ProgramType,
@@ -418,6 +418,22 @@ def assert_program_loaded(self, body):
         # Verify the additional course runs added in create_mock_courses_and_runs are excluded.
         self.assertEqual(program.excluded_course_runs.count(), len(course_codes))
 
+    def assert_program_banner_image_loaded(self, body):
+        """ Assert a program corresponding to the specified data body has banner image loaded into DB """
+        program = Program.objects.get(uuid=AbstractDataLoader.clean_string(body['uuid']), partner=self.partner)
+        banner_image_url = body.get('banner_image_urls', {}).get('w1440h480')
+        if banner_image_url:
+            for size_key in program.banner_image.field.variations:
+                # Get different sizes specs from the model field
+                # Then get the file path from the available files
+                sized_image = getattr(program.banner_image, size_key, None)
+                self.assertIsNotNone(sized_image)
+                if sized_image:
+                    path = getattr(program.banner_image, size_key).url
+                    self.assertIsNotNone(path)
+                    self.assertIsNotNone(program.banner_image.field.variations[size_key]['width'])
+                    self.assertIsNotNone(program.banner_image.field.variations[size_key]['height'])
+
     @responses.activate
     def test_ingest(self):
         """ Verify the method ingests data from the Organizations API. """
@@ -427,7 +443,7 @@ def test_ingest(self):
         self.loader.ingest()
 
         # Verify the API was called with the correct authorization header
-        self.assert_api_called(1)
+        self.assert_api_called(2)
 
         # Verify the Programs were created correctly
         self.assertEqual(Program.objects.count(), len(api_data))
@@ -452,3 +468,25 @@ def test_ingest_with_missing_organizations(self):
 
         self.assertEqual(Program.objects.count(), len(api_data))
         self.assertEqual(Organization.objects.count(), 0)
+
+    @responses.activate
+    def test_ingest_with_existing_banner_image(self):
+        programs = self.mock_api()
+
+        for program_data in programs:
+            banner_image_url = program_data.get('banner_image_urls', {}).get('w1440h480')
+            if banner_image_url:
+                responses.add_callback(
+                    responses.GET,
+                    banner_image_url,
+                    callback=mock_jpeg_callback(),
+                    content_type=JPEG
+                )
+
+        self.loader.ingest()
+        # Verify the API was called with the correct authorization header
+        self.assert_api_called(2)
+
+        for program in programs:
+            self.assert_program_loaded(program)
+            self.assert_program_banner_image_loaded(program)
diff --git a/course_discovery/apps/course_metadata/migrations/0019_program_banner_image.py b/course_discovery/apps/course_metadata/migrations/0019_program_banner_image.py
new file mode 100644
index 0000000000..99fa66dcc6
--- /dev/null
+++ b/course_discovery/apps/course_metadata/migrations/0019_program_banner_image.py
@@ -0,0 +1,21 @@
+# -*- coding: utf-8 -*-
+from __future__ import unicode_literals
+
+from django.db import migrations, models
+import stdimage.models
+import stdimage.utils
+
+
+class Migration(migrations.Migration):
+
+    dependencies = [
+        ('course_metadata', '0018_auto_20160815_2252'),
+    ]
+
+    operations = [
+        migrations.AddField(
+            model_name='program',
+            name='banner_image',
+            field=stdimage.models.StdImageField(upload_to=stdimage.utils.UploadToAutoSlugClassNameDir('uuid', path='/media/programs/banner_images'), null=True, blank=True),
+        ),
+    ]
diff --git a/course_discovery/apps/course_metadata/models.py b/course_discovery/apps/course_metadata/models.py
index e3bcc29b78..6a827eb150 100644
--- a/course_discovery/apps/course_metadata/models.py
+++ b/course_discovery/apps/course_metadata/models.py
@@ -14,6 +14,8 @@
 from haystack.query import SearchQuerySet
 from simple_history.models import HistoricalRecords
 from sortedm2m.fields import SortedManyToManyField
+from stdimage.models import StdImageField
+from stdimage.utils import UploadToAutoSlugClassNameDir
 from taggit.managers import TaggableManager
 
 from course_discovery.apps.core.models import Currency, Partner
@@ -584,7 +586,16 @@ class ProgramStatus(DjangoChoices):
     min_hours_effort_per_week = models.PositiveSmallIntegerField(null=True, blank=True)
     max_hours_effort_per_week = models.PositiveSmallIntegerField(null=True, blank=True)
     authoring_organizations = SortedManyToManyField(Organization, blank=True, related_name='authored_programs')
-
+    banner_image = StdImageField(
+        upload_to=UploadToAutoSlugClassNameDir(path='/media/programs/banner_images', populate_from='uuid'),
+        blank=True,
+        null=True,
+        variations={
+            'large': (1440, 480),
+            'medium': (726, 242),
+            'small': (435, 145),
+            'x-small': (348, 116)}
+    )
     banner_image_url = models.URLField(null=True, blank=True, help_text=_('Image used atop detail pages'))
     card_image_url = models.URLField(null=True, blank=True, help_text=_('Image used for discovery cards'))
     video = models.ForeignKey(Video, default=None, null=True, blank=True)
diff --git a/course_discovery/apps/course_metadata/tests/test_models.py b/course_discovery/apps/course_metadata/tests/test_models.py
index 107144441f..21333d5847 100644
--- a/course_discovery/apps/course_metadata/tests/test_models.py
+++ b/course_discovery/apps/course_metadata/tests/test_models.py
@@ -5,6 +5,7 @@
 import ddt
 import pytz
 from dateutil.parser import parse
+from django.conf import settings
 from django.db import IntegrityError
 from django.test import TestCase
 from freezegun import freeze_time
@@ -15,6 +16,7 @@
     AbstractNamedModel, AbstractMediaModel, AbstractValueModel, CourseOrganization, Course, CourseRun,
     SeatType)
 from course_discovery.apps.course_metadata.tests import factories
+from course_discovery.apps.core.tests.helpers import make_image_file
 from course_discovery.apps.ietf_language_tags.models import LanguageTag
 
 
@@ -357,6 +359,18 @@ def test_instructors(self):
 
         self.assertEqual(self.program.instructors, set(instructors))
 
+    def test_banner_image(self):
+        self.program.banner_image = make_image_file('test_banner.jpg')
+        self.program.save()
+        image_url_prefix = '{}program/'.format(settings.MEDIA_URL)
+        self.assertIn(image_url_prefix, self.program.banner_image.url)
+        for size_key in self.program.banner_image.field.variations:
+            # Get different sizes specs from the model field
+            # Then get the file path from the available files
+            sized_file = getattr(self.program.banner_image, size_key, None)
+            self.assertIsNotNone(sized_file)
+            self.assertIn(image_url_prefix, sized_file.url)
+
 
 class PersonSocialNetworkTests(TestCase):
     """Tests of the PersonSocialNetwork model."""
diff --git a/course_discovery/urls.py b/course_discovery/urls.py
index e93ba71b24..0152f10b96 100644
--- a/course_discovery/urls.py
+++ b/course_discovery/urls.py
@@ -18,6 +18,7 @@
 from auth_backends.urls import auth_urlpatterns
 from django.conf import settings
 from django.conf.urls import include, url
+from django.conf.urls.static import static
 from django.contrib import admin
 
 from course_discovery.apps.core import views as core_views
@@ -43,7 +44,11 @@
     url(r'^comments/', include('django_comments.urls')),
 ]
 
-if settings.DEBUG and os.environ.get('ENABLE_DJANGO_TOOLBAR', False):  # pragma: no cover
-    import debug_toolbar  # pylint: disable=wrong-import-order,wrong-import-position,import-error
+if settings.DEBUG:  # pragma: no cover
+    # We need this url pattern to serve user uploaded assets according to
+    # https://docs.djangoproject.com/en/1.10/howto/static-files/#serving-files-uploaded-by-a-user-during-development
+    urlpatterns += static(settings.MEDIA_URL, document_root=settings.MEDIA_ROOT)
+    if os.environ.get('ENABLE_DJANGO_TOOLBAR', False):
+        import debug_toolbar  # pylint: disable=wrong-import-order,wrong-import-position,import-error
 
-    urlpatterns.append(url(r'^__debug__/', include(debug_toolbar.urls)))
+        urlpatterns.append(url(r'^__debug__/', include(debug_toolbar.urls)))
diff --git a/requirements/base.txt b/requirements/base.txt
index 79ce0a5b08..71f79210cb 100644
--- a/requirements/base.txt
+++ b/requirements/base.txt
@@ -12,6 +12,7 @@ django-haystack==2.5.0
 django-libsass==0.7
 django-simple-history==1.8.1
 django-sortedm2m==1.3.2
+django-stdimage==2.3.3
 django-storages==1.5.0
 django-taggit==0.20.2
 django-taggit-serializer==0.1.5