diff --git a/python/ray/autoscaler/autoscaler.py b/python/ray/autoscaler/autoscaler.py
index 4959280b5..375f19b87 100644
--- a/python/ray/autoscaler/autoscaler.py
+++ b/python/ray/autoscaler/autoscaler.py
@@ -198,12 +198,12 @@ class StandardAutoscaler:
 
         # First let the resource demand scheduler launch nodes, if enabled.
         if self.resource_demand_scheduler and self.resource_demand_vector:
-            # TODO(ekl) include head node in the node list
-            instances = (self.resource_demand_scheduler.get_nodes_to_launch(
-                nodes, self.pending_launches.breakdown(),
+            to_launch = (self.resource_demand_scheduler.get_nodes_to_launch(
+                self.provider.non_terminated_nodes(tag_filters={}),
+                self.pending_launches.breakdown(),
                 self.resource_demand_vector))
             # TODO(ekl) also enforce max launch concurrency here?
-            for node_type, count in instances:
+            for node_type, count in to_launch:
                 self.launch_new_node(count, node_type=node_type)
 
         # Launch additional nodes of the default type, if still needed.
diff --git a/python/ray/tests/test_resource_demand_scheduler.py b/python/ray/tests/test_resource_demand_scheduler.py
index 570ad5740..2338ed60d 100644
--- a/python/ray/tests/test_resource_demand_scheduler.py
+++ b/python/ray/tests/test_resource_demand_scheduler.py
@@ -12,17 +12,22 @@ from ray.autoscaler.autoscaler import StandardAutoscaler
 from ray.autoscaler.load_metrics import LoadMetrics
 from ray.autoscaler.node_provider import NODE_PROVIDERS
 from ray.autoscaler.commands import get_or_create_head_node
-from ray.autoscaler.tags import TAG_RAY_USER_NODE_TYPE
+from ray.autoscaler.tags import TAG_RAY_USER_NODE_TYPE, TAG_RAY_NODE_KIND
 from ray.autoscaler.resource_demand_scheduler import _utilization_score, \
     get_bin_pack_residual, get_nodes_for
 
 from time import sleep
 
 TYPES_A = {
-    "m4.large": {
+    "empty_node": {
         "node_config": {
             "FooProperty": 42,
         },
+        "resources": {},
+        "max_workers": 0,
+    },
+    "m4.large": {
+        "node_config": {},
         "resources": {
             "CPU": 2
         },
@@ -63,7 +68,7 @@ TYPES_A = {
 MULTI_WORKER_CLUSTER = dict(
     SMALL_CLUSTER, **{
         "available_node_types": TYPES_A,
-        "head_node_type": "m4.large",
+        "head_node_type": "empty_node",
         "worker_default_node_type": "m4.large",
     })
 
@@ -211,14 +216,14 @@ class AutoscalingTest(unittest.TestCase):
         runner.assert_has_call("1.2.3.4", "init_cmd")
         runner.assert_has_call("1.2.3.4", "head_setup_cmd")
         runner.assert_has_call("1.2.3.4", "start_ray_head")
-        self.assertEqual(self.provider.mock_nodes[0].node_type, "m4.large")
+        self.assertEqual(self.provider.mock_nodes[0].node_type, "empty_node")
         self.assertEqual(
             self.provider.mock_nodes[0].node_config.get("FooProperty"), 42)
         self.assertEqual(
             self.provider.mock_nodes[0].node_config.get("TestProp"), 1)
         self.assertEqual(
             self.provider.mock_nodes[0].tags.get(TAG_RAY_USER_NODE_TYPE),
-            "m4.large")
+            "empty_node")
 
     def testScaleUpMinSanity(self):
         config_path = self.write_config(MULTI_WORKER_CLUSTER)
@@ -236,6 +241,43 @@ class AutoscalingTest(unittest.TestCase):
         autoscaler.update()
         self.waitForNodes(2)
 
+    def testRequestBundlesAccountsForHeadNode(self):
+        config = MULTI_WORKER_CLUSTER.copy()
+        config["head_node_type"] = "p2.8xlarge"
+        config["min_workers"] = 0
+        config["max_workers"] = 50
+        config_path = self.write_config(config)
+        self.provider = MockProvider()
+        self.provider.create_node({}, {
+            TAG_RAY_USER_NODE_TYPE: "p2.8xlarge",
+            TAG_RAY_NODE_KIND: "head"
+        }, 1)
+        runner = MockProcessRunner()
+        autoscaler = StandardAutoscaler(
+            config_path,
+            LoadMetrics(),
+            max_failures=0,
+            process_runner=runner,
+            update_interval_s=0)
+        assert len(self.provider.non_terminated_nodes({})) == 1
+
+        # These requests fit on the head node.
+        autoscaler.update()
+        self.waitForNodes(1)
+        autoscaler.request_resources([{"CPU": 1}])
+        autoscaler.update()
+        self.waitForNodes(1)
+        assert len(self.provider.mock_nodes) == 1
+        autoscaler.request_resources([{"GPU": 8}])
+        autoscaler.update()
+        self.waitForNodes(1)
+
+        # This request requires an additional worker node.
+        autoscaler.request_resources([{"GPU": 8}] * 2)
+        autoscaler.update()
+        self.waitForNodes(2)
+        assert self.provider.mock_nodes[1].node_type == "p2.8xlarge"
+
     def testRequestBundles(self):
         config = MULTI_WORKER_CLUSTER.copy()
         config["min_workers"] = 0