diff --git a/BUILD.bazel b/BUILD.bazel
index ca890a77c..6e773e145 100644
--- a/BUILD.bazel
+++ b/BUILD.bazel
@@ -871,6 +871,16 @@ cc_test(
     ],
 )
 
+cc_test(
+    name = "scheduling_resources_test",
+    srcs = ["src/ray/common/task/scheduling_resources_test.cc"],
+    copts = COPTS,
+    deps = [
+        "ray_common",
+        "@com_google_googletest//:gtest_main",
+    ],
+)
+
 cc_test(
     name = "id_test",
     srcs = ["src/ray/common/id_test.cc"],
@@ -1034,6 +1044,20 @@ cc_test(
     ],
 )
 
+cc_test(
+    name = "gcs_placement_group_scheduler_test",
+    srcs = [
+        "src/ray/gcs/gcs_server/test/gcs_placement_group_scheduler_test.cc",
+        "src/ray/gcs/gcs_server/test/gcs_server_test_util.h",
+    ],
+    copts = COPTS,
+    deps = [
+        ":gcs_server_lib",
+        ":gcs_test_util_lib",
+        "@com_google_googletest//:gtest_main",
+    ],
+)
+
 cc_test(
     name = "gcs_actor_scheduler_test",
     srcs = [
diff --git a/src/ray/common/bundle_spec.cc b/src/ray/common/bundle_spec.cc
new file mode 100644
index 000000000..44c9a961e
--- /dev/null
+++ b/src/ray/common/bundle_spec.cc
@@ -0,0 +1,59 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#include "bundle_spec.h"
+namespace ray {
+
+void BundleSpecification::ComputeResources() {
+  auto unit_resource = MapFromProtobuf(message_->unit_resources());
+
+  if (unit_resource.empty()) {
+    // A static nil object is used here to avoid allocating the empty object every time.
+    unit_resource_ = ResourceSet::Nil();
+  } else {
+    unit_resource_.reset(new ResourceSet(unit_resource));
+  }
+}
+
+const ResourceSet &BundleSpecification::GetRequiredResources() const {
+  return *unit_resource_;
+}
+
+std::pair<PlacementGroupID, int64_t> BundleSpecification::BundleId() const {
+  if (message_->bundle_id()
+          .placement_group_id()
+          .empty() /* e.g., empty proto default */) {
+    int64_t index = message_->bundle_id().bundle_index();
+    return std::make_pair(PlacementGroupID::Nil(), index);
+  }
+  int64_t index = message_->bundle_id().bundle_index();
+  return std::make_pair(
+      PlacementGroupID::FromBinary(message_->bundle_id().placement_group_id()), index);
+}
+
+std::string BundleSpecification::BundleIdAsString() const {
+  int64_t index = message_->bundle_id().bundle_index();
+  return PlacementGroupID::FromBinary(message_->bundle_id().placement_group_id()).Hex() +
+         std::to_string(index);
+}
+
+PlacementGroupID BundleSpecification::PlacementGroupId() const {
+  return PlacementGroupID::FromBinary(message_->bundle_id().placement_group_id());
+}
+
+int64_t BundleSpecification::Index() const {
+  return message_->bundle_id().bundle_index();
+}
+
+}  // namespace ray
diff --git a/src/ray/common/bundle_spec.h b/src/ray/common/bundle_spec.h
new file mode 100644
index 000000000..1176ce02a
--- /dev/null
+++ b/src/ray/common/bundle_spec.h
@@ -0,0 +1,97 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#pragma once
+
+#include <cstddef>
+#include <string>
+#include <vector>
+
+#include "absl/synchronization/mutex.h"
+#include "ray/common/function_descriptor.h"
+#include "ray/common/grpc_util.h"
+#include "ray/common/id.h"
+#include "ray/common/task/scheduling_resources.h"
+#include "ray/common/task/task_common.h"
+
+namespace ray {
+
+typedef std::function<void(const ResourceIdSet &)> ScheduleBundleCallback;
+/// Arguments are the raylet ID to spill back to, the raylet's
+/// address and the raylet's port.
+typedef std::function<void()> SpillbackBundleCallback;
+
+class BundleSpecification : public MessageWrapper<rpc::Bundle> {
+ public:
+  /// Construct from a protobuf message object.
+  /// The input message will be **copied** into this object.
+  ///
+  /// \param message The protobuf message.
+  explicit BundleSpecification(rpc::Bundle message) : MessageWrapper(message) {
+    ComputeResources();
+  }
+  /// Construct from a protobuf message shared_ptr.
+  ///
+  /// \param message The protobuf message.
+  explicit BundleSpecification(std::shared_ptr<rpc::Bundle> message)
+      : MessageWrapper(message) {
+    ComputeResources();
+  }
+  // Return the bundle_id
+  std::pair<PlacementGroupID, int64_t> BundleId() const;
+
+  // Return the bundle_id of string. eg: placement_group_id + index.
+  std::string BundleIdAsString() const;
+
+  // Return the Placement Group id which the Bundle belong to.
+  PlacementGroupID PlacementGroupId() const;
+
+  // Return the index of the bundle.
+  int64_t Index() const;
+
+  /// Return the resources that are to be acquired by this bundle.
+  ///
+  /// \return The resources that will be acquired by this bundle.
+  const ResourceSet &GetRequiredResources() const;
+
+  /// Override dispatch behaviour.
+  void OnScheduleInstead(const ScheduleBundleCallback &callback) {
+    on_schedule_ = callback;
+  }
+
+  /// Override spillback behaviour.
+  void OnSpillbackInstead(const SpillbackBundleCallback &callback) {
+    on_spillback_ = callback;
+  }
+
+  /// Returns the schedule bundle callback, or nullptr.
+  const ScheduleBundleCallback &OnSchedule() const { return on_schedule_; }
+
+  /// Returns the spillback bundle callback, or nullptr.
+  const SpillbackBundleCallback &OnSpillback() const { return on_spillback_; }
+
+ private:
+  void ComputeResources();
+
+  /// Field storing unit resources. Initialized in constructor.
+  /// TODO(ekl) consider optimizing the representation of ResourceSet for fast copies
+  /// instead of keeping shared pointers here.
+  std::shared_ptr<ResourceSet> unit_resource_;
+
+  mutable ScheduleBundleCallback on_schedule_ = nullptr;
+
+  mutable SpillbackBundleCallback on_spillback_ = nullptr;
+};
+
+}  // namespace ray
diff --git a/src/ray/common/id.cc b/src/ray/common/id.cc
index 4ee051545..330225a41 100644
--- a/src/ray/common/id.cc
+++ b/src/ray/common/id.cc
@@ -336,5 +336,5 @@ ID_OSTREAM_OPERATOR(JobID);
 ID_OSTREAM_OPERATOR(ActorID);
 ID_OSTREAM_OPERATOR(TaskID);
 ID_OSTREAM_OPERATOR(ObjectID);
-
+ID_OSTREAM_OPERATOR(PlacementGroupID);
 }  // namespace ray
diff --git a/src/ray/common/id.h b/src/ray/common/id.h
index 00475f3b2..39bc0ecd4 100644
--- a/src/ray/common/id.h
+++ b/src/ray/common/id.h
@@ -53,7 +53,6 @@ enum class ObjectType : uint8_t {
 
 using ObjectIDFlagsType = uint16_t;
 using ObjectIDIndexType = uint32_t;
-
 // Declaration.
 uint64_t MurmurHash64A(const void *key, int len, unsigned int seed);
 
@@ -345,6 +344,24 @@ class ObjectID : public BaseID<ObjectID> {
   uint8_t id_[kLength];
 };
 
+class PlacementGroupID : public BaseID<PlacementGroupID> {
+ public:
+  static constexpr size_t kLength = 16;
+
+  /// Size of `PlacementGroupID` in bytes.
+  ///
+  /// \return Size of `PlacementGroupID` in bytes.
+  static size_t Size() { return kLength; }
+
+  /// Constructor of `PlacementGroupID`.
+  PlacementGroupID() : BaseID() {}
+
+  MSGPACK_DEFINE(id_);
+
+ private:
+  uint8_t id_[kLength];
+};
+
 static_assert(sizeof(JobID) == JobID::kLength + sizeof(size_t),
               "JobID size is not as expected");
 static_assert(sizeof(ActorID) == ActorID::kLength + sizeof(size_t),
@@ -353,12 +370,15 @@ static_assert(sizeof(TaskID) == TaskID::kLength + sizeof(size_t),
               "TaskID size is not as expected");
 static_assert(sizeof(ObjectID) == ObjectID::kLength + sizeof(size_t),
               "ObjectID size is not as expected");
+static_assert(sizeof(PlacementGroupID) == PlacementGroupID::kLength + sizeof(size_t),
+              "PlacementGroupID size is not as expected");
 
 std::ostream &operator<<(std::ostream &os, const UniqueID &id);
 std::ostream &operator<<(std::ostream &os, const JobID &id);
 std::ostream &operator<<(std::ostream &os, const ActorID &id);
 std::ostream &operator<<(std::ostream &os, const TaskID &id);
 std::ostream &operator<<(std::ostream &os, const ObjectID &id);
+std::ostream &operator<<(std::ostream &os, const PlacementGroupID &id);
 
 #define DEFINE_UNIQUE_ID(type)                                                 \
   class RAY_EXPORT type : public UniqueID {                                    \
@@ -489,6 +509,7 @@ DEFINE_UNIQUE_ID(JobID);
 DEFINE_UNIQUE_ID(ActorID);
 DEFINE_UNIQUE_ID(TaskID);
 DEFINE_UNIQUE_ID(ObjectID);
+DEFINE_UNIQUE_ID(PlacementGroupID);
 #include "id_def.h"
 
 #undef DEFINE_UNIQUE_ID
diff --git a/src/ray/common/placement_group.cc b/src/ray/common/placement_group.cc
new file mode 100644
index 000000000..8925aa7fe
--- /dev/null
+++ b/src/ray/common/placement_group.cc
@@ -0,0 +1,51 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#include "ray/common/placement_group.h"
+
+namespace ray {
+void PlacementGroupSpecification::ConstructBundles() {
+  for (int i = 0; i < message_->bundles_size(); i++) {
+    bundles_.push_back(BundleSpecification(message_->bundles(i)));
+  }
+}
+
+PlacementGroupID PlacementGroupSpecification::PlacementGroupId() const {
+  if (message_->placement_group_id().empty()) {
+    return PlacementGroupID::Nil();
+  } else {
+    return PlacementGroupID::FromBinary(message_->placement_group_id());
+  }
+}
+
+std::vector<BundleSpecification> PlacementGroupSpecification::GetBundles() const {
+  return bundles_;
+}
+
+Strategy PlacementGroupSpecification::GetStrategy() const {
+  if (message_->strategy() == rpc::PlacementStrategy::PACK) {
+    return Strategy::PACK;
+  } else {
+    return Strategy::SPREAD;
+  }
+}
+
+BundleSpecification PlacementGroupSpecification::GetBundle(int position) const {
+  return bundles_[position];
+}
+
+std::string PlacementGroupSpecification::GetName() const {
+  return std::string(message_->name());
+}
+}  // namespace ray
diff --git a/src/ray/common/placement_group.h b/src/ray/common/placement_group.h
new file mode 100644
index 000000000..9ea0220db
--- /dev/null
+++ b/src/ray/common/placement_group.h
@@ -0,0 +1,96 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#pragma once
+
+#include "ray/common/bundle_spec.h"
+#include "ray/common/grpc_util.h"
+#include "ray/common/id.h"
+#include "ray/protobuf/common.pb.h"
+
+namespace ray {
+
+enum class Strategy {
+  PACK = 0x0,
+  SPREAD = 0x1,
+};
+
+class PlacementGroupSpecification : public MessageWrapper<rpc::PlacementGroupSpec> {
+ public:
+  /// Construct from a protobuf message object.
+  /// The input message will be **copied** into this object.
+  ///
+  /// \param message The protobuf message.
+  explicit PlacementGroupSpecification(rpc::PlacementGroupSpec message)
+      : MessageWrapper(message) {
+    ConstructBundles();
+  }
+  /// Construct from a protobuf message shared_ptr.
+  ///
+  /// \param message The protobuf message.
+  explicit PlacementGroupSpecification(std::shared_ptr<rpc::PlacementGroupSpec> message)
+      : MessageWrapper(message) {
+    ConstructBundles();
+  }
+  /// Return the placement group id.
+  PlacementGroupID PlacementGroupId() const;
+  /// Return the bundles in this placement group.
+  std::vector<BundleSpecification> GetBundles() const;
+  /// Return the strategy of the placement group.
+  Strategy GetStrategy() const;
+  /// Return the bundle by given index.
+  BundleSpecification GetBundle(int position) const;
+  /// Return the name of this placement group.
+  std::string GetName() const;
+
+ private:
+  /// Construct bundle vector from protobuf.
+  void ConstructBundles();
+  /// The bundles in this placement group.
+  std::vector<BundleSpecification> bundles_;
+};
+
+class PlacementGroupSpecBuilder {
+ public:
+  PlacementGroupSpecBuilder() : message_(std::make_shared<rpc::PlacementGroupSpec>()) {}
+
+  /// Set the common attributes of the placement group spec.
+  /// See `common.proto` for meaning of the arguments.
+  ///
+  /// \return Reference to the builder object itself.
+  PlacementGroupSpecBuilder &SetPlacementGroupSpec(
+      const PlacementGroupID &placement_group_id, std::string name,
+      const std::vector<rpc::Bundle> &bundles, const rpc::PlacementStrategy strategy) {
+    message_->set_placement_group_id(placement_group_id.Binary());
+    message_->set_name(name);
+    message_->set_strategy(strategy);
+    for (int i = 0; i < bundles.size(); i++) {
+      rpc::Bundle bundle = bundles[i];
+      auto message_bundle = message_->add_bundles();
+      auto mutable_bundle_id = message_bundle->mutable_bundle_id();
+      mutable_bundle_id->set_bundle_index(i);
+      mutable_bundle_id->set_placement_group_id(placement_group_id.Binary());
+      message_bundle->mutable_unit_resources()->insert(bundle.unit_resources().begin(),
+                                                       bundle.unit_resources().end());
+    }
+    return *this;
+  }
+
+  PlacementGroupSpecification Build() { return PlacementGroupSpecification(message_); }
+
+ private:
+  std::shared_ptr<rpc::PlacementGroupSpec> message_;
+};
+
+}  // namespace ray
diff --git a/src/ray/common/task/scheduling_resources.cc b/src/ray/common/task/scheduling_resources.cc
index 4d0f4b2ef..fe163eeaa 100644
--- a/src/ray/common/task/scheduling_resources.cc
+++ b/src/ray/common/task/scheduling_resources.cc
@@ -226,6 +226,30 @@ void ResourceSet::AddResources(const ResourceSet &other) {
   }
 }
 
+void ResourceSet::AddBundleResources(const std::string &bundle_id,
+                                     const ResourceSet &other) {
+  for (const auto &resource_pair : other.GetResourceAmountMap()) {
+    const std::string &resource_label = bundle_id + "_" + resource_pair.first;
+    const FractionalResourceQuantity &resource_capacity = resource_pair.second;
+    resource_capacity_[resource_label] += resource_capacity;
+  }
+}
+
+void ResourceSet::ReturnBundleResources(const std::string &bundle_id) {
+  for (auto iter = resource_capacity_.begin(); iter != resource_capacity_.end();) {
+    const std::string &bundle_resource_label = iter->first;
+    if (bundle_resource_label.find(bundle_id) != std::string::npos) {
+      const std::string &resource_label =
+          bundle_resource_label.substr(bundle_resource_label.find_last_of("_") + 1);
+      const FractionalResourceQuantity &resource_capacity = iter->second;
+      resource_capacity_[resource_label] += resource_capacity;
+      iter = resource_capacity_.erase(iter);
+    } else {
+      iter++;
+    }
+  }
+}
+
 FractionalResourceQuantity ResourceSet::GetResource(
     const std::string &resource_name) const {
   if (resource_capacity_.count(resource_name) == 0) {
@@ -639,6 +663,27 @@ void ResourceIdSet::AddOrUpdateResource(const std::string &resource_name,
   }
 }
 
+void ResourceIdSet::AddBundleResource(const std::string &resource_name,
+                                      ResourceIds &resource_ids) {
+  available_resources_[resource_name] = resource_ids;
+}
+
+void ResourceIdSet::CancelResourceReserve(const std::string &resource_name) {
+  std::string origin_resource_name = resource_name.substr(resource_name.find("_") + 1);
+  auto iter_orig = available_resources_.find(origin_resource_name);
+  auto iter_bundle = available_resources_.find(resource_name);
+  if (iter_bundle == available_resources_.end()) {
+    return;
+  } else {
+    if (iter_orig == available_resources_.end()) {
+      available_resources_[origin_resource_name] = iter_bundle->second;
+    } else {
+      iter_orig->second.Release(iter_bundle->second);
+    }
+    available_resources_.erase(iter_bundle);
+  }
+}
+
 void ResourceIdSet::DeleteResource(const std::string &resource_name) {
   available_resources_.erase(resource_name);
 }
@@ -791,6 +836,19 @@ void SchedulingResources::UpdateResourceCapacity(const std::string &resource_nam
   }
 }
 
+void SchedulingResources::UpdateBundleResource(const std::string &bundle_id,
+                                               const ResourceSet &resource_set) {
+  resources_available_.SubtractResourcesStrict(resource_set);
+  resources_available_.AddBundleResources(bundle_id, resource_set);
+  resources_total_.SubtractResourcesStrict(resource_set);
+  resources_total_.AddBundleResources(bundle_id, resource_set);
+}
+
+void SchedulingResources::ReturnBundleResource(const std::string &bundle_id) {
+  resources_available_.ReturnBundleResources(bundle_id);
+  resources_total_.ReturnBundleResources(bundle_id);
+}
+
 void SchedulingResources::DeleteResource(const std::string &resource_name) {
   resources_total_.DeleteResource(resource_name);
   resources_available_.DeleteResource(resource_name);
diff --git a/src/ray/common/task/scheduling_resources.h b/src/ray/common/task/scheduling_resources.h
index 7f4a0bdcc..b3d1bb998 100644
--- a/src/ray/common/task/scheduling_resources.h
+++ b/src/ray/common/task/scheduling_resources.h
@@ -147,6 +147,23 @@ class ResourceSet {
   /// \return Void.
   void AddResources(const ResourceSet &other);
 
+  /// \brief Aggregate resources from the other set into this set, adding any missing
+  /// resource labels to this set. The resource id will change to bundle_id + "_" +
+  /// reource_id
+  ///
+  /// \param other: The other resource set to add.
+  /// \param bundle_id: The bundle_id of the bundle.
+  /// \return Void.
+  void AddBundleResources(const std::string &bundle_id, const ResourceSet &other);
+
+  /// \brief Return back all the bundle resource. Changing the resource name and adding
+  /// any missing resource labels to this set. The resource id will remove bundle_id + "_"
+  /// part.
+  ///
+  /// \param bundle_id: The bundle_id of the bundle.
+  /// \return Void.
+  void ReturnBundleResources(const std::string &bundle_id);
+
   /// \brief Subtract a set of resources from the current set of resources and
   /// check that the post-subtraction result nonnegative. Assumes other
   /// is a subset of the ResourceSet. Deletes any resource if the capacity after
@@ -403,6 +420,16 @@ class ResourceIdSet {
   /// \param capacity capacity of the resource being added
   void AddOrUpdateResource(const std::string &resource_name, int64_t capacity);
 
+  /// \brief  Add a Bundle resource in the ResourceIdSet.
+  ///
+  /// \param resource_name the name of the resource to create/update
+  /// \param resource_ids resource_ids of the resource being added
+  void AddBundleResource(const std::string &resource_name, ResourceIds &resource_ids);
+
+  /// \brief  remove a Bundle resource in the ResourceIdSet.
+  ///
+  /// \param resource_name the name of the resource to remove.
+  void CancelResourceReserve(const std::string &resource_name);
   /// \brief Deletes a resource in the ResourceIdSet. This does not raise an exception,
   /// just deletes the resource. Tasks with acquired resources keep running.
   ///
@@ -524,6 +551,18 @@ class SchedulingResources {
   /// \return Void.
   void UpdateResourceCapacity(const std::string &resource_name, int64_t capacity);
 
+  /// \brief Update total, available and load resources with the ResourceIds.
+  /// Create if not exists.
+  /// \param resource_name: Name of the resource to be modified
+  /// \param resource_set: New resource_set of the resource.
+  void UpdateBundleResource(const std::string &bundle_id,
+                            const ResourceSet &resource_set);
+
+  /// \brief delete total, available and load resources with the ResourceIds.
+  /// Create if not exists.
+  /// \param resource_name: Name of the resource to be deleted
+  void ReturnBundleResource(const std::string &bundle_id);
+
   /// \brief Delete resource from total, available and load resources.
   ///
   /// \param resource_name: Name of the resource to be deleted.
diff --git a/src/ray/common/task/scheduling_resources_test.cc b/src/ray/common/task/scheduling_resources_test.cc
new file mode 100644
index 000000000..6442d459f
--- /dev/null
+++ b/src/ray/common/task/scheduling_resources_test.cc
@@ -0,0 +1,76 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#include <memory>
+
+#include "gtest/gtest.h"
+#include "ray/common/id.h"
+#include "scheduling_resources.h"
+
+namespace ray {
+class SchedulingResourcesTest : public ::testing::Test {
+ public:
+  void SetUp() override {
+    resource_set = std::make_shared<ResourceSet>();
+    resource_id_set = std::make_shared<ResourceIdSet>();
+  }
+
+ protected:
+  std::shared_ptr<ResourceSet> resource_set;
+  std::shared_ptr<ResourceIdSet> resource_id_set;
+};
+
+TEST_F(SchedulingResourcesTest, AddBundleResources) {
+  UniqueID bundle_id = UniqueID::FromRandom();
+  std::vector<std::string> resource_labels = {"CPU"};
+  std::vector<double> resource_capacity = {1.0};
+  ResourceSet resource(resource_labels, resource_capacity);
+  resource_set->AddBundleResources(bundle_id.Binary(), resource);
+  resource_labels.pop_back();
+  resource_labels.push_back(bundle_id.Binary() + "_" + "CPU");
+  ResourceSet result_resource(resource_labels, resource_capacity);
+  ASSERT_EQ(1, resource_set->IsEqual(result_resource));
+}
+
+TEST_F(SchedulingResourcesTest, AddBundleResource) {
+  UniqueID bundle_id = UniqueID::FromRandom();
+  std::string name = bundle_id.Binary() + "_" + "CPU";
+  std::vector<int64_t> whole_ids = {1, 2, 3};
+  ResourceIds resource_ids(whole_ids);
+  resource_id_set->AddBundleResource(name, resource_ids);
+  ASSERT_EQ(1, resource_id_set->AvailableResources().size());
+  ASSERT_EQ(name, resource_id_set->AvailableResources().begin()->first);
+}
+
+TEST_F(SchedulingResourcesTest, ReturnBundleResources) {
+  UniqueID bundle_id = UniqueID::FromRandom();
+  std::vector<std::string> resource_labels = {"CPU"};
+  std::vector<double> resource_capacity = {1.0};
+  ResourceSet resource(resource_labels, resource_capacity);
+  resource_set->AddBundleResources(bundle_id.Binary(), resource);
+  resource_labels.pop_back();
+  resource_labels.push_back(bundle_id.Binary() + "_" + "CPU");
+  ResourceSet result_resource(resource_labels, resource_capacity);
+  ASSERT_EQ(1, resource_set->IsEqual(result_resource));
+
+  resource_set->ReturnBundleResources(bundle_id.Binary());
+  ASSERT_EQ(1, resource_set->IsEqual(resource));
+}
+
+}  // namespace ray
+
+int main(int argc, char **argv) {
+  ::testing::InitGoogleTest(&argc, argv);
+  return RUN_ALL_TESTS();
+}
diff --git a/src/ray/gcs/gcs_client/service_based_accessor.cc b/src/ray/gcs/gcs_client/service_based_accessor.cc
index 651b3cecd..6f0efebca 100644
--- a/src/ray/gcs/gcs_client/service_based_accessor.cc
+++ b/src/ray/gcs/gcs_client/service_based_accessor.cc
@@ -13,7 +13,6 @@
 // limitations under the License.
 
 #include "ray/gcs/gcs_client/service_based_accessor.h"
-
 #include "ray/gcs/gcs_client/service_based_gcs_client.h"
 
 namespace ray {
diff --git a/src/ray/gcs/gcs_server/gcs_placement_group_manager.cc b/src/ray/gcs/gcs_server/gcs_placement_group_manager.cc
new file mode 100644
index 000000000..dc25c6a20
--- /dev/null
+++ b/src/ray/gcs/gcs_server/gcs_placement_group_manager.cc
@@ -0,0 +1,58 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#include "ray/gcs/gcs_server/gcs_placement_group_manager.h"
+#include <ray/common/ray_config.h>
+#include <ray/gcs/pb_util.h>
+#include <ray/protobuf/gcs.pb.h>
+
+namespace ray {
+namespace gcs {
+
+void GcsPlacementGroup::UpdateState(
+    rpc::PlacementGroupTableData::PlacementGroupState state) {
+  placement_group_table_data_.set_state(state);
+}
+
+rpc::PlacementGroupTableData::PlacementGroupState GcsPlacementGroup::GetState() const {
+  return placement_group_table_data_.state();
+}
+
+PlacementGroupID GcsPlacementGroup::GetPlacementGroupID() const {
+  return PlacementGroupID::FromBinary(placement_group_table_data_.placement_group_id());
+}
+
+std::string GcsPlacementGroup::GetName() const {
+  return placement_group_table_data_.name();
+}
+
+std::vector<std::shared_ptr<BundleSpecification>> GcsPlacementGroup::GetBundles() const {
+  auto bundles = placement_group_table_data_.bundles();
+  std::vector<std::shared_ptr<BundleSpecification>> ret_bundles;
+  for (auto iter = bundles.begin(); iter != bundles.end(); iter++) {
+    ret_bundles.push_back(std::make_shared<BundleSpecification>(*iter));
+  }
+  return ret_bundles;
+}
+
+rpc::PlacementStrategy GcsPlacementGroup::GetStrategy() const {
+  return placement_group_table_data_.strategy();
+}
+
+const rpc::PlacementGroupTableData &GcsPlacementGroup::GetPlacementGroupTableData() {
+  return placement_group_table_data_;
+}
+
+}  // namespace gcs
+}  // namespace ray
diff --git a/src/ray/gcs/gcs_server/gcs_placement_group_manager.h b/src/ray/gcs/gcs_server/gcs_placement_group_manager.h
new file mode 100644
index 000000000..19aebf15e
--- /dev/null
+++ b/src/ray/gcs/gcs_server/gcs_placement_group_manager.h
@@ -0,0 +1,82 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#pragma once
+#include <ray/common/id.h>
+#include <ray/common/task/task_execution_spec.h>
+#include <ray/common/task/task_spec.h>
+#include <ray/protobuf/gcs_service.pb.h>
+#include <ray/rpc/worker/core_worker_client.h>
+#include <utility>
+
+#include "absl/container/flat_hash_map.h"
+#include "absl/container/flat_hash_set.h"
+#include "gcs_placement_group_scheduler.h"
+#include "gcs_table_storage.h"
+#include "ray/gcs/pubsub/gcs_pub_sub.h"
+
+namespace ray {
+namespace gcs {
+
+/// GcsPlacementGroup just wraps `PlacementGroupTableData` and provides some convenient
+/// interfaces to access the fields inside `PlacementGroupTableData`. This class is not
+/// thread-safe.
+class GcsPlacementGroup {
+ public:
+  /// Create a GcsPlacementGroup by placement_group_table_data.
+  ///
+  /// \param placement_group_table_data Data of the placement_group (see gcs.proto).
+  explicit GcsPlacementGroup(rpc::PlacementGroupTableData placement_group_table_data)
+      : placement_group_table_data_(std::move(placement_group_table_data)) {}
+
+  /// Create a GcsPlacementGroup by CreatePlacementGroupRequest.
+  ///
+  /// \param request Contains the placement group creation task specification.
+  explicit GcsPlacementGroup(const ray::rpc::CreatePlacementGroupRequest &request) {
+    const auto &placement_group_spec = request.placement_group_spec();
+    placement_group_table_data_.set_placement_group_id(
+        placement_group_spec.placement_group_id());
+
+    placement_group_table_data_.set_state(rpc::PlacementGroupTableData::PENDING);
+    placement_group_table_data_.mutable_bundles()->CopyFrom(
+        placement_group_spec.bundles());
+    placement_group_table_data_.set_strategy(placement_group_spec.strategy());
+  }
+
+  /// Get the immutable PlacementGroupTableData of this placement group.
+  const rpc::PlacementGroupTableData &GetPlacementGroupTableData();
+
+  /// Update the state of this placement_group.
+  void UpdateState(rpc::PlacementGroupTableData::PlacementGroupState state);
+  /// Get the state of this gcs placement_group.
+  rpc::PlacementGroupTableData::PlacementGroupState GetState() const;
+
+  /// Get the id of this placement_group.
+  PlacementGroupID GetPlacementGroupID() const;
+  /// Get the name of this placement_group.
+  std::string GetName() const;
+
+  /// Get the bundles of this placement_group
+  std::vector<std::shared_ptr<BundleSpecification>> GetBundles() const;
+
+  /// Get the Strategy
+  rpc::PlacementStrategy GetStrategy() const;
+
+ private:
+  /// The placement_group meta data which contains the task specification as well as the
+  /// state of the gcs placement_group and so on (see gcs.proto).
+  rpc::PlacementGroupTableData placement_group_table_data_;
+};
+}  // namespace gcs
+}  // namespace ray
diff --git a/src/ray/gcs/gcs_server/gcs_placement_group_scheduler.cc b/src/ray/gcs/gcs_server/gcs_placement_group_scheduler.cc
new file mode 100644
index 000000000..af01ad795
--- /dev/null
+++ b/src/ray/gcs/gcs_server/gcs_placement_group_scheduler.cc
@@ -0,0 +1,246 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#include "ray/gcs/gcs_server/gcs_placement_group_scheduler.h"
+#include <ray/protobuf/gcs.pb.h>
+#include "ray/gcs/gcs_server/gcs_placement_group_manager.h"
+
+namespace ray {
+namespace gcs {
+
+GcsPlacementGroupScheduler::GcsPlacementGroupScheduler(
+    boost::asio::io_context &io_context,
+    std::shared_ptr<gcs::GcsTableStorage> gcs_table_storage,
+    const gcs::GcsNodeManager &gcs_node_manager,
+    ReserveResourceClientFactoryFn lease_client_factory)
+    : return_timer_(io_context),
+      gcs_table_storage_(gcs_table_storage),
+      gcs_node_manager_(gcs_node_manager),
+      lease_client_factory_(std::move(lease_client_factory)) {
+  scheduler_strategies_.push_back(std::make_shared<GcsPackStrategy>());
+  scheduler_strategies_.push_back(std::make_shared<GcsSpreadStrategy>());
+}
+
+/// This is an initial algorithm to respect pack algorithm.
+/// In this algorithm, we try to pack all the bundle in the first node
+/// and don't care the real resource.
+ScheduleMap GcsPackStrategy::Schedule(
+    std::vector<std::shared_ptr<ray::BundleSpecification>> &bundles,
+    const GcsNodeManager &node_manager) {
+  ScheduleMap schedule_map;
+  auto &alive_nodes = node_manager.GetAllAliveNodes();
+  for (size_t pos = 0; pos < bundles.size(); pos++) {
+    schedule_map[bundles[pos]->BundleId()] =
+        ClientID::FromBinary(alive_nodes.begin()->second->node_id());
+  }
+  return schedule_map;
+}
+
+/// This is an initial algorithm to respect spread algorithm.
+/// In this algorithm, we try to spread all the bundle in different node
+/// and don't care the real resource.
+ScheduleMap GcsSpreadStrategy::Schedule(
+    std::vector<std::shared_ptr<ray::BundleSpecification>> &bundles,
+    const GcsNodeManager &node_manager) {
+  ScheduleMap schedule_map;
+  auto &alive_nodes = node_manager.GetAllAliveNodes();
+  auto iter = alive_nodes.begin();
+  size_t index = 0;
+  size_t alive_nodes_size = alive_nodes.size();
+  for (; iter != alive_nodes.end(); iter++, index++) {
+    for (size_t base = 0;; base++) {
+      if (index + base * alive_nodes_size >= bundles.size()) {
+        break;
+      } else {
+        schedule_map[bundles[index + base * alive_nodes_size]->BundleId()] =
+            ClientID::FromBinary(iter->second->node_id());
+      }
+    }
+  }
+  return schedule_map;
+}
+
+void GcsPlacementGroupScheduler::Schedule(
+    std::shared_ptr<GcsPlacementGroup> placement_group,
+    std::function<void(std::shared_ptr<GcsPlacementGroup>)> schedule_failure_handler,
+    std::function<void(std::shared_ptr<GcsPlacementGroup>)> schedule_success_handler) {
+  auto bundles = placement_group->GetBundles();
+  auto strategy = placement_group->GetStrategy();
+  auto alive_nodes = gcs_node_manager_.GetAllAliveNodes();
+  /// If the placement group don't have bundle, the placement group creates success.
+  if (bundles.size() == 0) {
+    schedule_success_handler(placement_group);
+    return;
+  }
+
+  // If alive_node is empty, the the placement group creates fail.
+  if (alive_nodes.size() == 0) {
+    schedule_failure_handler(placement_group);
+    return;
+  }
+  auto schedule_map =
+      scheduler_strategies_[strategy]->Schedule(bundles, gcs_node_manager_);
+  // If schedule success, the decision will be set as schedule_map[bundles[pos]]
+  // else will be set ClientID::Nil().
+  auto decision = std::shared_ptr<std::unordered_map<BundleID, ClientID, pair_hash>>(
+      new std::unordered_map<BundleID, ClientID, pair_hash>());
+  // To count how many scheduler have been return, which include success and failure.
+  auto finish_count = std::make_shared<size_t>();
+  /// TODO(AlisaWu): Change the strategy when reserve resource failed.
+  for (size_t pos = 0; pos < bundles.size(); pos++) {
+    RAY_CHECK(node_to_bundles_when_leasing_[schedule_map.at(bundles[pos]->BundleId())]
+                  .emplace(bundles[pos]->BundleId())
+                  .second);
+    ReserveResourceFromNode(
+        bundles[pos],
+        gcs_node_manager_.GetNode(schedule_map.at(bundles[pos]->BundleId())),
+        [this, pos, bundles, schedule_map, placement_group, decision, finish_count,
+         schedule_failure_handler, schedule_success_handler](
+            const Status &status, const rpc::RequestResourceReserveReply &reply) {
+          (*finish_count)++;
+          if (status.ok() && reply.success()) {
+            (*decision)[bundles[pos]->BundleId()] =
+                schedule_map.at(bundles[pos]->BundleId());
+          } else {
+            (*decision)[bundles[pos]->BundleId()] = ClientID::Nil();
+          }
+          if ((*finish_count) == bundles.size()) {
+            bool lease_success = true;
+            for (size_t i = 0; i < (*finish_count); i++) {
+              if ((*decision)[bundles[i]->BundleId()] == ClientID::Nil()) {
+                lease_success = false;
+                break;
+              }
+            }
+            if (lease_success) {
+              rpc::ScheduleData data;
+              for (size_t i = 0; i < bundles.size(); i++) {
+                data.mutable_schedule_plan()->insert(
+                    {bundles[i]->BundleIdAsString(),
+                     (*decision)[bundles[i]->BundleId()].Binary()});
+              }
+              RAY_CHECK_OK(gcs_table_storage_->PlacementGroupScheduleTable().Put(
+                  placement_group->GetPlacementGroupID(), data, [](Status status) {}));
+              schedule_success_handler(placement_group);
+            } else {
+              for (size_t i = 0; i < (*finish_count); i++) {
+                if ((*decision)[bundles[i]->BundleId()] != ClientID::Nil()) {
+                  CancelResourceReserve(bundles[i],
+                                        gcs_node_manager_.GetNode(
+                                            schedule_map.at(bundles[pos]->BundleId())));
+                }
+              }
+              schedule_failure_handler(placement_group);
+            }
+          }
+        });
+  }
+}
+
+void GcsPlacementGroupScheduler::ReserveResourceFromNode(
+    std::shared_ptr<BundleSpecification> bundle,
+    std::shared_ptr<ray::rpc::GcsNodeInfo> node, ReserveResourceCallback callback) {
+  RAY_CHECK(node);
+
+  auto node_id = ClientID::FromBinary(node->node_id());
+  RAY_LOG(DEBUG) << "Start leasing resource from node " << node_id << " for bundle "
+                 << bundle->BundleId().first << std::to_string(bundle->BundleId().second);
+
+  rpc::Address remote_address;
+  remote_address.set_raylet_id(node->node_id());
+  remote_address.set_ip_address(node->node_manager_address());
+  remote_address.set_port(node->node_manager_port());
+  auto lease_client = GetOrConnectLeaseClient(remote_address);
+  RAY_LOG(DEBUG) << "Start leasing resource from node " << node_id << " for bundle "
+                 << bundle->BundleId().first << bundle->BundleId().second;
+  auto status = lease_client->RequestResourceReserve(
+      *bundle, [this, node_id, bundle, node, callback](
+                   const Status &status, const rpc::RequestResourceReserveReply &reply) {
+        // TODO(AlisaWu): Add placement group cancel.
+        auto iter = node_to_bundles_when_leasing_.find(node_id);
+        if (iter != node_to_bundles_when_leasing_.end()) {
+          auto bundle_iter = iter->second.find(bundle->BundleId());
+          RAY_CHECK(bundle_iter != iter->second.end());
+          if (status.ok()) {
+            if (reply.success()) {
+              RAY_LOG(DEBUG) << "Finished leasing resource from " << node_id
+                             << " for bundle " << bundle->BundleId().first
+                             << bundle->BundleId().second;
+            } else {
+              RAY_LOG(DEBUG) << "Failed leasing resource from " << node_id
+                             << " for bundle " << bundle->BundleId().first
+                             << bundle->BundleId().second;
+            }
+            // Remove the actor from the leasing map as the reply is returned from the
+            // remote node.
+            iter->second.erase(bundle_iter);
+            if (iter->second.empty()) {
+              node_to_bundles_when_leasing_.erase(iter);
+            }
+          }
+          callback(status, reply);
+        }
+      });
+  if (!status.ok()) {
+    rpc::RequestResourceReserveReply reply;
+    reply.set_success(false);
+    callback(status, reply);
+  }
+}
+
+void GcsPlacementGroupScheduler::CancelResourceReserve(
+    std::shared_ptr<BundleSpecification> bundle_spec,
+    std::shared_ptr<ray::rpc::GcsNodeInfo> node) {
+  RAY_CHECK(node);
+
+  auto node_id = ClientID::FromBinary(node->node_id());
+  RAY_LOG(DEBUG) << "Start returning resource for node " << node_id << " for bundle "
+                 << bundle_spec->BundleId().first << bundle_spec->BundleId().second;
+
+  rpc::Address remote_address;
+  remote_address.set_raylet_id(node->node_id());
+  remote_address.set_ip_address(node->node_manager_address());
+  remote_address.set_port(node->node_manager_port());
+  auto return_client = GetOrConnectLeaseClient(remote_address);
+  auto status = return_client->CancelResourceReserve(
+      *bundle_spec,
+      [this, bundle_spec, node](const Status &status,
+                                const rpc::CancelResourceReserveReply &reply) {
+        if (!status.ok()) {
+          return_timer_.expires_from_now(boost::posix_time::milliseconds(5));
+          return_timer_.async_wait(
+              [this, bundle_spec, node](const boost::system::error_code &error) {
+                if (error == boost::system::errc::operation_canceled) {
+                  return;
+                } else {
+                  CancelResourceReserve(bundle_spec, node);
+                }
+              });
+        }
+      });
+}  // namespace gcs
+
+std::shared_ptr<ResourceReserveInterface>
+GcsPlacementGroupScheduler::GetOrConnectLeaseClient(const rpc::Address &raylet_address) {
+  auto node_id = ClientID::FromBinary(raylet_address.raylet_id());
+  auto iter = remote_lease_clients_.find(node_id);
+  if (iter == remote_lease_clients_.end()) {
+    auto lease_client = lease_client_factory_(raylet_address);
+    iter = remote_lease_clients_.emplace(node_id, std::move(lease_client)).first;
+  }
+  return iter->second;
+}
+
+}  // namespace gcs
+}  // namespace ray
diff --git a/src/ray/gcs/gcs_server/gcs_placement_group_scheduler.h b/src/ray/gcs/gcs_server/gcs_placement_group_scheduler.h
new file mode 100644
index 000000000..7fdcf0582
--- /dev/null
+++ b/src/ray/gcs/gcs_server/gcs_placement_group_scheduler.h
@@ -0,0 +1,147 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+#pragma once
+
+#include <ray/common/id.h>
+#include <ray/gcs/accessor.h>
+#include <ray/protobuf/gcs_service.pb.h>
+#include <ray/raylet/raylet_client.h>
+#include <ray/rpc/node_manager/node_manager_client.h>
+#include <ray/rpc/worker/core_worker_client.h>
+#include <queue>
+#include <tuple>
+
+#include "absl/container/flat_hash_map.h"
+#include "absl/container/flat_hash_set.h"
+#include "gcs_node_manager.h"
+#include "gcs_table_storage.h"
+
+namespace ray {
+namespace gcs {
+
+using ReserveResourceClientFactoryFn =
+    std::function<std::shared_ptr<ResourceReserveInterface>(const rpc::Address &address)>;
+
+using ReserveResourceCallback =
+    std::function<void(const Status &, const rpc::RequestResourceReserveReply &)>;
+
+typedef std::pair<PlacementGroupID, int64_t> BundleID;
+struct pair_hash {
+  template <class T1, class T2>
+  std::size_t operator()(const std::pair<T1, T2> &pair) const {
+    return std::hash<T1>()(pair.first) ^ std::hash<T2>()(pair.second);
+  }
+};
+using ScheduleMap = std::unordered_map<BundleID, ClientID, pair_hash>;
+class GcsPlacementGroup;
+
+class GcsPlacementGroupSchedulerInterface {
+ public:
+  /// Schedule the specified placement_group.
+  ///
+  /// \param placement_group to be scheduled.
+  virtual void Schedule(
+      std::shared_ptr<GcsPlacementGroup> placement_group,
+      std::function<void(std::shared_ptr<GcsPlacementGroup>)> schedule_failure_handler,
+      std::function<void(std::shared_ptr<GcsPlacementGroup>)>
+          schedule_success_handler) = 0;
+
+  virtual ~GcsPlacementGroupSchedulerInterface() {}
+};
+
+class GcsScheduleStrategy {
+ public:
+  virtual ScheduleMap Schedule(
+      std::vector<std::shared_ptr<ray::BundleSpecification>> &bundles,
+      const GcsNodeManager &node_manager) = 0;
+};
+
+class GcsPackStrategy : public GcsScheduleStrategy {
+ public:
+  ScheduleMap Schedule(std::vector<std::shared_ptr<ray::BundleSpecification>> &bundles,
+                       const GcsNodeManager &node_manager) override;
+};
+
+class GcsSpreadStrategy : public GcsScheduleStrategy {
+ public:
+  ScheduleMap Schedule(std::vector<std::shared_ptr<ray::BundleSpecification>> &bundles,
+                       const GcsNodeManager &node_manager) override;
+};
+
+/// GcsPlacementGroupScheduler is responsible for scheduling placement_groups registered
+/// to GcsPlacementGroupManager. This class is not thread-safe.
+class GcsPlacementGroupScheduler : public GcsPlacementGroupSchedulerInterface {
+ public:
+  /// Create a GcsPlacementGroupScheduler
+  ///
+  /// \param io_context The main event loop.
+  /// \param placement_group_info_accessor Used to flush placement_group info to storage.
+  /// \param gcs_node_manager The node manager which is used when scheduling.
+  GcsPlacementGroupScheduler(
+      boost::asio::io_context &io_context,
+      std::shared_ptr<gcs::GcsTableStorage> gcs_table_storage,
+      const GcsNodeManager &gcs_node_manager,
+      ReserveResourceClientFactoryFn lease_client_factory = nullptr);
+  virtual ~GcsPlacementGroupScheduler() = default;
+  /// Schedule the specified placement_group.
+  /// If there is no available nodes then the `schedule_failed_handler` will be
+  /// triggered, otherwise the bundle in placement_group will be add into a queue and
+  /// schedule all bundle by calling ReserveResourceFromNode().
+  ///
+  /// \param placement_group to be scheduled.
+  void Schedule(
+      std::shared_ptr<GcsPlacementGroup> placement_group,
+      std::function<void(std::shared_ptr<GcsPlacementGroup>)> schedule_failure_handler,
+      std::function<void(std::shared_ptr<GcsPlacementGroup>)> schedule_success_handler)
+      override;
+
+ protected:
+  /// Lease resource from the specified node for the specified bundle.
+  void ReserveResourceFromNode(std::shared_ptr<BundleSpecification> bundle,
+                               std::shared_ptr<ray::rpc::GcsNodeInfo> node,
+                               ReserveResourceCallback callback);
+
+  /// return resource for the specified node for the specified bundle.
+  ///
+  /// \param bundle A description of the bundle to return.
+  /// \param node The node that the worker will be returned for.
+  void CancelResourceReserve(std::shared_ptr<BundleSpecification> bundle_spec,
+                             std::shared_ptr<ray::rpc::GcsNodeInfo> node);
+
+  /// Get an existing lease client or connect a new one.
+  std::shared_ptr<ResourceReserveInterface> GetOrConnectLeaseClient(
+      const rpc::Address &raylet_address);
+  /// A timer that ticks every cancel resource failure milliseconds.
+  boost::asio::deadline_timer return_timer_;
+  /// Used to update placement group information upon creation, deletion, etc.
+  std::shared_ptr<gcs::GcsTableStorage> gcs_table_storage_;
+  /// Reference of GcsNodeManager.
+  const GcsNodeManager &gcs_node_manager_;
+  /// The cached node clients which are used to communicate with raylet to lease workers.
+  absl::flat_hash_map<ClientID, std::shared_ptr<ResourceReserveInterface>>
+      remote_lease_clients_;
+  /// Factory for producing new clients to request leases from remote nodes.
+  ReserveResourceClientFactoryFn lease_client_factory_;
+
+  /// Map from node ID to the set of bundles for whom we are trying to acquire a lease
+  /// from that node. This is needed so that we can retry lease requests from the node
+  /// until we receive a reply or the node is removed.
+  absl::flat_hash_map<ClientID, absl::flat_hash_set<BundleID>>
+      node_to_bundles_when_leasing_;
+  /// A vector to store all the schedule strategy.
+  std::vector<std::shared_ptr<GcsScheduleStrategy>> scheduler_strategies_;
+};
+
+}  // namespace gcs
+}  // namespace ray
diff --git a/src/ray/gcs/gcs_server/gcs_table_storage.cc b/src/ray/gcs/gcs_server/gcs_table_storage.cc
index a91fd8c48..956235842 100644
--- a/src/ray/gcs/gcs_server/gcs_table_storage.cc
+++ b/src/ray/gcs/gcs_server/gcs_table_storage.cc
@@ -128,6 +128,7 @@ template class GcsTableWithJobId<TaskID, TaskTableData>;
 template class GcsTableWithJobId<TaskID, TaskLeaseData>;
 template class GcsTableWithJobId<TaskID, TaskReconstructionData>;
 template class GcsTableWithJobId<ObjectID, ObjectTableDataList>;
+template class GcsTable<PlacementGroupID, ScheduleData>;
 
 }  // namespace gcs
 }  // namespace ray
diff --git a/src/ray/gcs/gcs_server/gcs_table_storage.h b/src/ray/gcs/gcs_server/gcs_table_storage.h
index ddc9a3b81..573157846 100644
--- a/src/ray/gcs/gcs_server/gcs_table_storage.h
+++ b/src/ray/gcs/gcs_server/gcs_table_storage.h
@@ -36,6 +36,7 @@ using rpc::ObjectTableDataList;
 using rpc::ProfileTableData;
 using rpc::ResourceMap;
 using rpc::ResourceTableData;
+using rpc::ScheduleData;
 using rpc::StoredConfig;
 using rpc::TaskLeaseData;
 using rpc::TaskReconstructionData;
@@ -242,6 +243,14 @@ class GcsHeartbeatTable : public GcsTable<ClientID, HeartbeatTableData> {
   }
 };
 
+class GcsPlacementGroupScheduleTable : public GcsTable<PlacementGroupID, ScheduleData> {
+ public:
+  explicit GcsPlacementGroupScheduleTable(std::shared_ptr<StoreClient> &store_client)
+      : GcsTable(store_client) {
+    table_name_ = TablePrefix_Name(TablePrefix::PLACEMENT_GROUP_SCHEDULE);
+  }
+};
+
 class GcsHeartbeatBatchTable : public GcsTable<ClientID, HeartbeatBatchTableData> {
  public:
   explicit GcsHeartbeatBatchTable(std::shared_ptr<StoreClient> &store_client)
@@ -338,6 +347,11 @@ class GcsTableStorage {
     return *node_resource_table_;
   }
 
+  GcsPlacementGroupScheduleTable &PlacementGroupScheduleTable() {
+    RAY_CHECK(placement_group_schedule_table_ != nullptr);
+    return *placement_group_schedule_table_;
+  }
+
   GcsHeartbeatTable &HeartbeatTable() {
     RAY_CHECK(heartbeat_table_ != nullptr);
     return *heartbeat_table_;
@@ -380,6 +394,7 @@ class GcsTableStorage {
   std::unique_ptr<GcsObjectTable> object_table_;
   std::unique_ptr<GcsNodeTable> node_table_;
   std::unique_ptr<GcsNodeResourceTable> node_resource_table_;
+  std::unique_ptr<GcsPlacementGroupScheduleTable> placement_group_schedule_table_;
   std::unique_ptr<GcsHeartbeatTable> heartbeat_table_;
   std::unique_ptr<GcsHeartbeatBatchTable> heartbeat_batch_table_;
   std::unique_ptr<GcsErrorInfoTable> error_info_table_;
@@ -405,7 +420,11 @@ class RedisGcsTableStorage : public GcsTableStorage {
     object_table_.reset(new GcsObjectTable(store_client_));
     node_table_.reset(new GcsNodeTable(store_client_));
     node_resource_table_.reset(new GcsNodeResourceTable(store_client_));
+    placement_group_schedule_table_.reset(
+        new GcsPlacementGroupScheduleTable(store_client_));
     heartbeat_table_.reset(new GcsHeartbeatTable(store_client_));
+    placement_group_schedule_table_.reset(
+        new GcsPlacementGroupScheduleTable(store_client_));
     heartbeat_batch_table_.reset(new GcsHeartbeatBatchTable(store_client_));
     error_info_table_.reset(new GcsErrorInfoTable(store_client_));
     profile_table_.reset(new GcsProfileTable(store_client_));
@@ -431,6 +450,8 @@ class InMemoryGcsTableStorage : public GcsTableStorage {
     object_table_.reset(new GcsObjectTable(store_client_));
     node_table_.reset(new GcsNodeTable(store_client_));
     node_resource_table_.reset(new GcsNodeResourceTable(store_client_));
+    placement_group_schedule_table_.reset(
+        new GcsPlacementGroupScheduleTable(store_client_));
     heartbeat_table_.reset(new GcsHeartbeatTable(store_client_));
     heartbeat_batch_table_.reset(new GcsHeartbeatBatchTable(store_client_));
     error_info_table_.reset(new GcsErrorInfoTable(store_client_));
diff --git a/src/ray/gcs/gcs_server/test/gcs_actor_manager_test.cc b/src/ray/gcs/gcs_server/test/gcs_actor_manager_test.cc
index 6bd3dac49..e5b17b59f 100644
--- a/src/ray/gcs/gcs_server/test/gcs_actor_manager_test.cc
+++ b/src/ray/gcs/gcs_server/test/gcs_actor_manager_test.cc
@@ -14,11 +14,11 @@
 
 #include <ray/gcs/gcs_server/test/gcs_server_test_util.h>
 #include <ray/gcs/test/gcs_test_util.h>
-#include "ray/common/test_util.h"
 
 #include <memory>
 
 #include "gtest/gtest.h"
+#include "ray/common/test_util.h"
 
 namespace ray {
 
diff --git a/src/ray/gcs/gcs_server/test/gcs_placement_group_scheduler_test.cc b/src/ray/gcs/gcs_server/test/gcs_placement_group_scheduler_test.cc
new file mode 100644
index 000000000..2b773fa0e
--- /dev/null
+++ b/src/ray/gcs/gcs_server/test/gcs_placement_group_scheduler_test.cc
@@ -0,0 +1,178 @@
+// Copyright 2017 The Ray Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//  http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+#include <ray/gcs/gcs_server/test/gcs_server_test_util.h>
+#include <ray/gcs/test/gcs_test_util.h>
+
+#include <memory>
+#include "gtest/gtest.h"
+
+namespace ray {
+
+class GcsPlacementGroupSchedulerTest : public ::testing::Test {
+ public:
+  void SetUp() override {
+    raylet_client_ = std::make_shared<GcsServerMocker::MockRayletResourceClient>();
+    gcs_table_storage_ = std::make_shared<gcs::RedisGcsTableStorage>(redis_client_);
+    gcs_pub_sub_ = std::make_shared<GcsServerMocker::MockGcsPubSub>(redis_client_);
+    gcs_node_manager_ = std::make_shared<gcs::GcsNodeManager>(
+        io_service_, error_info_accessor_, gcs_pub_sub_, gcs_table_storage_);
+    gcs_table_storage_ = std::make_shared<gcs::InMemoryGcsTableStorage>(io_service_);
+    store_client_ = std::make_shared<gcs::InMemoryStoreClient>(io_service_);
+    gcs_placement_group_scheduler_ =
+        std::make_shared<GcsServerMocker::MockedGcsPlacementGroupScheduler>(
+            io_service_, gcs_table_storage_, *gcs_node_manager_,
+            /*lease_client_fplacement_groupy=*/
+            [this](const rpc::Address &address) { return raylet_client_; });
+  }
+
+ protected:
+  boost::asio::io_service io_service_;
+  GcsServerMocker::MockedErrorInfoAccessor error_info_accessor_;
+  std::shared_ptr<gcs::StoreClient> store_client_;
+
+  std::shared_ptr<GcsServerMocker::MockRayletResourceClient> raylet_client_;
+  std::shared_ptr<gcs::GcsNodeManager> gcs_node_manager_;
+  std::shared_ptr<GcsServerMocker::MockedGcsPlacementGroupScheduler>
+      gcs_placement_group_scheduler_;
+  std::vector<std::shared_ptr<gcs::GcsPlacementGroup>> success_placement_groups_;
+  std::vector<std::shared_ptr<gcs::GcsPlacementGroup>> failure_placement_groups_;
+  std::shared_ptr<GcsServerMocker::MockGcsPubSub> gcs_pub_sub_;
+  std::shared_ptr<gcs::GcsTableStorage> gcs_table_storage_;
+  std::shared_ptr<gcs::RedisClient> redis_client_;
+};
+
+TEST_F(GcsPlacementGroupSchedulerTest, TestScheduleFailedWithZeroNode) {
+  ASSERT_EQ(0, gcs_node_manager_->GetAllAliveNodes().size());
+  auto create_placement_group_request = Mocker::GenCreatePlacementGroupRequest();
+  auto placement_group =
+      std::make_shared<gcs::GcsPlacementGroup>(create_placement_group_request);
+
+  // Schedule the placement_group with zero node.
+  gcs_placement_group_scheduler_->Schedule(
+      placement_group,
+      [this](std::shared_ptr<gcs::GcsPlacementGroup> placement_group) {
+        failure_placement_groups_.emplace_back(std::move(placement_group));
+      },
+      [this](std::shared_ptr<gcs::GcsPlacementGroup> placement_group) {
+        success_placement_groups_.emplace_back(std::move(placement_group));
+      });
+
+  // The lease request should not be send and the scheduling of placement_group should
+  // fail as there are no available nodes.
+  ASSERT_EQ(raylet_client_->num_lease_requested, 0);
+  ASSERT_EQ(0, success_placement_groups_.size());
+  ASSERT_EQ(1, failure_placement_groups_.size());
+  ASSERT_EQ(placement_group, failure_placement_groups_.front());
+}
+
+TEST_F(GcsPlacementGroupSchedulerTest, TestSchedulePlacementGroupSuccess) {
+  auto node = Mocker::GenNodeInfo();
+  gcs_node_manager_->AddNode(node);
+  ASSERT_EQ(1, gcs_node_manager_->GetAllAliveNodes().size());
+
+  auto create_placement_group_request = Mocker::GenCreatePlacementGroupRequest();
+  auto placement_group =
+      std::make_shared<gcs::GcsPlacementGroup>(create_placement_group_request);
+
+  // Schedule the placement_group with 1 available node, and the lease request should be
+  // send to the node.
+  gcs_placement_group_scheduler_->Schedule(
+      placement_group,
+      [this](std::shared_ptr<gcs::GcsPlacementGroup> placement_group) {
+        failure_placement_groups_.emplace_back(std::move(placement_group));
+      },
+      [this](std::shared_ptr<gcs::GcsPlacementGroup> placement_group) {
+        success_placement_groups_.emplace_back(std::move(placement_group));
+      });
+
+  ASSERT_EQ(2, raylet_client_->num_lease_requested);
+  ASSERT_EQ(2, raylet_client_->lease_callbacks.size());
+  ASSERT_TRUE(raylet_client_->GrantResourceReserve());
+  ASSERT_TRUE(raylet_client_->GrantResourceReserve());
+  ASSERT_EQ(0, failure_placement_groups_.size());
+  ASSERT_EQ(1, success_placement_groups_.size());
+  ASSERT_EQ(placement_group, success_placement_groups_.front());
+}
+
+TEST_F(GcsPlacementGroupSchedulerTest, TestSchedulePlacementGroupFailed) {
+  auto node = Mocker::GenNodeInfo();
+  gcs_node_manager_->AddNode(node);
+  ASSERT_EQ(1, gcs_node_manager_->GetAllAliveNodes().size());
+
+  auto create_placement_group_request = Mocker::GenCreatePlacementGroupRequest();
+  auto placement_group =
+      std::make_shared<gcs::GcsPlacementGroup>(create_placement_group_request);
+
+  // Schedule the placement_group with 1 available node, and the lease request should be
+  // send to the node.
+  gcs_placement_group_scheduler_->Schedule(
+      placement_group,
+      [this](std::shared_ptr<gcs::GcsPlacementGroup> placement_group) {
+        failure_placement_groups_.emplace_back(std::move(placement_group));
+      },
+      [this](std::shared_ptr<gcs::GcsPlacementGroup> placement_group) {
+        success_placement_groups_.emplace_back(std::move(placement_group));
+      });
+
+  ASSERT_EQ(2, raylet_client_->num_lease_requested);
+  ASSERT_EQ(2, raylet_client_->lease_callbacks.size());
+  ASSERT_TRUE(raylet_client_->GrantResourceReserve(false));
+  ASSERT_TRUE(raylet_client_->GrantResourceReserve(false));
+  //   // Reply the placement_group creation request, then the placement_group should be
+  //   scheduled successfully.
+  ASSERT_EQ(1, failure_placement_groups_.size());
+  ASSERT_EQ(0, success_placement_groups_.size());
+  ASSERT_EQ(placement_group, failure_placement_groups_.front());
+}
+
+TEST_F(GcsPlacementGroupSchedulerTest, TestSchedulePlacementGroupReturnResource) {
+  auto node = Mocker::GenNodeInfo();
+  gcs_node_manager_->AddNode(node);
+  ASSERT_EQ(1, gcs_node_manager_->GetAllAliveNodes().size());
+
+  auto create_placement_group_request = Mocker::GenCreatePlacementGroupRequest();
+  auto placement_group =
+      std::make_shared<gcs::GcsPlacementGroup>(create_placement_group_request);
+
+  // Schedule the placement_group with 1 available node, and the lease request should be
+  // send to the node.
+  gcs_placement_group_scheduler_->Schedule(
+      placement_group,
+      [this](std::shared_ptr<gcs::GcsPlacementGroup> placement_group) {
+        failure_placement_groups_.emplace_back(std::move(placement_group));
+      },
+      [this](std::shared_ptr<gcs::GcsPlacementGroup> placement_group) {
+        success_placement_groups_.emplace_back(std::move(placement_group));
+      });
+
+  ASSERT_EQ(2, raylet_client_->num_lease_requested);
+  ASSERT_EQ(2, raylet_client_->lease_callbacks.size());
+  // One bundle success and the other failed.
+  ASSERT_TRUE(raylet_client_->GrantResourceReserve());
+  ASSERT_TRUE(raylet_client_->GrantResourceReserve(false));
+  ASSERT_EQ(1, raylet_client_->num_return_requested);
+  //   // Reply the placement_group creation request, then the placement_group should be
+  //   scheduled successfully.
+  ASSERT_EQ(1, failure_placement_groups_.size());
+  ASSERT_EQ(0, success_placement_groups_.size());
+  ASSERT_EQ(placement_group, failure_placement_groups_.front());
+}
+
+}  // namespace ray
+
+int main(int argc, char **argv) {
+  ::testing::InitGoogleTest(&argc, argv);
+  return RUN_ALL_TESTS();
+}
diff --git a/src/ray/gcs/gcs_server/test/gcs_server_test_util.h b/src/ray/gcs/gcs_server/test/gcs_server_test_util.h
index c9e0a2c1b..79b44ac86 100644
--- a/src/ray/gcs/gcs_server/test/gcs_server_test_util.h
+++ b/src/ray/gcs/gcs_server/test/gcs_server_test_util.h
@@ -23,6 +23,8 @@
 #include "ray/gcs/gcs_server/gcs_actor_manager.h"
 #include "ray/gcs/gcs_server/gcs_actor_scheduler.h"
 #include "ray/gcs/gcs_server/gcs_node_manager.h"
+#include "ray/gcs/gcs_server/gcs_placement_group_manager.h"
+#include "ray/gcs/gcs_server/gcs_placement_group_scheduler.h"
 #include "ray/util/asio_util.h"
 
 namespace ray {
@@ -136,6 +138,49 @@ struct GcsServerMocker {
     std::list<rpc::ClientCallback<rpc::CancelWorkerLeaseReply>> cancel_callbacks = {};
   };
 
+  class MockRayletResourceClient : public ResourceReserveInterface {
+   public:
+    ray::Status RequestResourceReserve(
+        const BundleSpecification &bundle_spec,
+        const ray::rpc::ClientCallback<ray::rpc::RequestResourceReserveReply> &callback)
+        override {
+      num_lease_requested += 1;
+      lease_callbacks.push_back(callback);
+      return Status::OK();
+    }
+
+    ray::Status CancelResourceReserve(
+        BundleSpecification &bundle_spec,
+        const ray::rpc::ClientCallback<ray::rpc::CancelResourceReserveReply> &callback)
+        override {
+      num_return_requested += 1;
+      return_callbacks.push_back(callback);
+      return Status::OK();
+    }
+
+    // Trigger reply to RequestWorkerLease.
+    bool GrantResourceReserve(bool success = true) {
+      Status status = Status::OK();
+      rpc::RequestResourceReserveReply reply;
+      reply.set_success(success);
+      if (lease_callbacks.size() == 0) {
+        return false;
+      } else {
+        auto callback = lease_callbacks.front();
+        callback(status, reply);
+        lease_callbacks.pop_front();
+        return true;
+      }
+    }
+
+    ~MockRayletResourceClient() {}
+
+    int num_lease_requested = 0;
+    int num_return_requested = 0;
+    ClientID node_id = ClientID::FromRandom();
+    std::list<rpc::ClientCallback<rpc::RequestResourceReserveReply>> lease_callbacks = {};
+    std::list<rpc::ClientCallback<rpc::CancelResourceReserveReply>> return_callbacks = {};
+  };
   class MockedGcsActorScheduler : public gcs::GcsActorScheduler {
    public:
     using gcs::GcsActorScheduler::GcsActorScheduler;
@@ -166,6 +211,15 @@ struct GcsServerMocker {
     int num_retry_creating_count_ = 0;
   };
 
+  class MockedGcsPlacementGroupScheduler : public gcs::GcsPlacementGroupScheduler {
+   public:
+    using gcs::GcsPlacementGroupScheduler::GcsPlacementGroupScheduler;
+
+    void ResetLeaseClientFactory(
+        gcs::ReserveResourceClientFactoryFn lease_client_factory) {
+      lease_client_factory_ = std::move(lease_client_factory);
+    }
+  };
   class MockedGcsActorTable : public gcs::GcsActorTable {
    public:
     MockedGcsActorTable(std::shared_ptr<gcs::StoreClient> store_client)
diff --git a/src/ray/gcs/test/gcs_test_util.h b/src/ray/gcs/test/gcs_test_util.h
index 006815415..f6d8d72c4 100644
--- a/src/ray/gcs/test/gcs_test_util.h
+++ b/src/ray/gcs/test/gcs_test_util.h
@@ -23,6 +23,7 @@
 #include "ray/common/test_util.h"
 #include "ray/protobuf/gcs_service.grpc.pb.h"
 #include "ray/util/asio_util.h"
+#include "src/ray/common/placement_group.h"
 
 namespace ray {
 
@@ -62,6 +63,31 @@ struct Mocker {
     return request;
   }
 
+  static PlacementGroupSpecification GenPlacementGroupCreation(
+      const std::string &name, std::vector<rpc::Bundle> &bundles,
+      rpc::PlacementStrategy strategy) {
+    PlacementGroupSpecBuilder builder;
+
+    auto placement_group_id = PlacementGroupID::FromRandom();
+    builder.SetPlacementGroupSpec(placement_group_id, name, bundles, strategy);
+    return builder.Build();
+  }
+
+  static rpc::CreatePlacementGroupRequest GenCreatePlacementGroupRequest(
+      const std::string name = "") {
+    rpc::CreatePlacementGroupRequest request;
+    std::vector<rpc::Bundle> bundles;
+    rpc::PlacementStrategy strategy = rpc::PlacementStrategy::SPREAD;
+    rpc::Bundle bundle;
+    bundles.push_back(bundle);
+    bundles.push_back(bundle);
+    auto placement_group_creation_spec =
+        GenPlacementGroupCreation(name, bundles, strategy);
+    request.mutable_placement_group_spec()->CopyFrom(
+        placement_group_creation_spec.GetMessage());
+    return request;
+  }
+
   static std::shared_ptr<rpc::GcsNodeInfo> GenNodeInfo(
       uint16_t port = 0, const std::string address = "127.0.0.1") {
     auto node = std::make_shared<rpc::GcsNodeInfo>();
diff --git a/src/ray/protobuf/common.proto b/src/ray/protobuf/common.proto
index fd36fac2f..ed8d29c8b 100644
--- a/src/ray/protobuf/common.proto
+++ b/src/ray/protobuf/common.proto
@@ -43,6 +43,14 @@ enum TaskType {
   DRIVER_TASK = 3;
 }
 
+// Type of placement group strategy.
+enum PlacementStrategy {
+  // Packs Bundles close together inside processes or nodes as tight as possible
+  PACK = 0;
+  // Places Bundles across distinct nodes or processes as even as possible.
+  SPREAD = 1;
+}
+
 // Address of a worker or node manager.
 message Address {
   bytes raylet_id = 1;
@@ -128,6 +136,26 @@ message TaskSpec {
   int32 max_retries = 16;
 }
 
+message Bundle {
+  message BundleIdentifier {
+    bytes placement_group_id = 1;
+    int32 bundle_index = 2;
+  }
+  BundleIdentifier bundle_id = 1;
+  map<string, double> unit_resources = 2;
+}
+
+message PlacementGroupSpec {
+  // ID of the PlacementGroup.
+  bytes placement_group_id = 1;
+  // The name of the placement group.
+  string name = 2;
+  // The array of the bundle in Placement Group.
+  repeated Bundle bundles = 3;
+  // The schedule strategy of this Placement Group.
+  PlacementStrategy strategy = 4;
+}
+
 message ObjectReference {
   // ObjectID that the worker has a reference to.
   bytes object_id = 1;
diff --git a/src/ray/protobuf/gcs.proto b/src/ray/protobuf/gcs.proto
index 91940a780..5c4474da4 100644
--- a/src/ray/protobuf/gcs.proto
+++ b/src/ray/protobuf/gcs.proto
@@ -45,6 +45,7 @@ enum TablePrefix {
   WORKERS = 19;
   INTERNAL_CONFIG = 20;
   TABLE_PREFIX_MAX = 21;
+  PLACEMENT_GROUP_SCHEDULE = 22;
 }
 
 // The channel that Add operations to the Table should be published on, if any.
@@ -156,6 +157,33 @@ message ErrorTableData {
   double timestamp = 4;
 }
 
+message PlacementGroupTableData {
+  // State of a placement group.
+  enum PlacementGroupState {
+    // Placement Group is pending or scheduling
+    PENDING = 0;
+    // Placement Group is alive.
+    ALIVE = 1;
+    // Placement Group is already dead and won't be reschedule.
+    DEAD = 2;
+  }
+
+  // ID of the PlacementGroup.
+  bytes placement_group_id = 1;
+  // The name of the placement group.
+  string name = 2;
+  // The array of the bundle in Placement Group.
+  repeated Bundle bundles = 3;
+  // The schedule strategy of this Placement Group.
+  PlacementStrategy strategy = 4;
+  // Current state of this placement group.
+  PlacementGroupState state = 5;
+}
+
+message ScheduleData {
+  map<string, bytes> schedule_plan = 1;
+}
+
 message ProfileTableData {
   // Represents a profile event.
   message ProfileEvent {
diff --git a/src/ray/protobuf/gcs_service.proto b/src/ray/protobuf/gcs_service.proto
index 829fb049a..9fac12af7 100644
--- a/src/ray/protobuf/gcs_service.proto
+++ b/src/ray/protobuf/gcs_service.proto
@@ -486,6 +486,14 @@ message CreateActorReply {
   GcsStatus status = 1;
 }
 
+message CreatePlacementGroupRequest {
+  PlacementGroupSpec placement_group_spec = 1;
+}
+
+message CreatePlacementGroupReply {
+  GcsStatus status = 1;
+}
+
 enum GcsServiceFailureType {
   RPC_DISCONNECT = 0;
   GCS_SERVER_RESTART = 1;
diff --git a/src/ray/protobuf/node_manager.proto b/src/ray/protobuf/node_manager.proto
index 4bdc594c2..f596e8b63 100644
--- a/src/ray/protobuf/node_manager.proto
+++ b/src/ray/protobuf/node_manager.proto
@@ -37,6 +37,24 @@ message RequestWorkerLeaseReply {
   bool canceled = 4;
 }
 
+message RequestResourceReserveRequest {
+  // Bundle containing the requested resources.
+  Bundle bundle_spec = 1;
+}
+
+message RequestResourceReserveReply {
+  // The status if resource reserve success.
+  bool success = 1;
+}
+
+message CancelResourceReserveRequest {
+  // Bundle containing the requested resources.
+  Bundle bundle_spec = 1;
+}
+
+message CancelResourceReserveReply {
+}
+
 // Release a worker back to its raylet.
 message ReturnWorkerRequest {
   // Port of the leased worker that we are now returning.
@@ -120,8 +138,8 @@ message FormatGlobalMemoryInfoRequest {
 }
 
 message FormatGlobalMemoryInfoReply {
-  // A tabular summary of the memory stats. To get this data in structured form, you
-  // can instead use GetNodeStats() directly.
+  // A tabular summary of the memory stats. To get this data in structured form,
+  // you can instead use GetNodeStats() directly.
   string memory_summary = 1;
 }
 
@@ -131,6 +149,12 @@ service NodeManagerService {
   rpc RequestWorkerLease(RequestWorkerLeaseRequest) returns (RequestWorkerLeaseReply);
   // Release a worker back to its raylet.
   rpc ReturnWorker(ReturnWorkerRequest) returns (ReturnWorkerReply);
+  // Request resource from the raylet for a bundle.
+  rpc RequestResourceReserve(RequestResourceReserveRequest)
+      returns (RequestResourceReserveReply);
+  // Return resource for the raylet.
+  rpc CancelResourceReserve(CancelResourceReserveRequest)
+      returns (CancelResourceReserveReply);
   // Cancel a pending lease request. This only returns success if the
   // lease request was not yet granted.
   rpc CancelWorkerLease(CancelWorkerLeaseRequest) returns (CancelWorkerLeaseReply);
diff --git a/src/ray/raylet/node_manager.cc b/src/ray/raylet/node_manager.cc
index 1e13f6a4c..f8a9b7868 100644
--- a/src/ray/raylet/node_manager.cc
+++ b/src/ray/raylet/node_manager.cc
@@ -1924,6 +1924,38 @@ void NodeManager::HandleRequestWorkerLease(const rpc::RequestWorkerLeaseRequest
   SubmitTask(task, Lineage());
 }
 
+void NodeManager::HandleRequestResourceReserve(
+    const rpc::RequestResourceReserveRequest &request,
+    rpc::RequestResourceReserveReply *reply, rpc::SendReplyCallback send_reply_callback) {
+  auto bundle_spec = BundleSpecification(request.bundle_spec());
+  RAY_LOG(DEBUG) << "bundle lease request " << bundle_spec.BundleId().first
+                 << bundle_spec.BundleId().second;
+  auto resource_ids = ScheduleBundle(cluster_resource_map_, bundle_spec);
+  if (resource_ids.AvailableResources().size() == 0) {
+    reply->set_success(false);
+    send_reply_callback(Status::OK(), nullptr, nullptr);
+  } else {
+    reply->set_success(true);
+    send_reply_callback(Status::OK(), nullptr, nullptr);
+  }
+}
+
+void NodeManager::HandleCancelResourceReserve(
+    const rpc::CancelResourceReserveRequest &request,
+    rpc::CancelResourceReserveReply *reply, rpc::SendReplyCallback send_reply_callback) {
+  auto bundle_spec = BundleSpecification(request.bundle_spec());
+  RAY_LOG(DEBUG) << "bundle return resource request " << bundle_spec.BundleId().first
+                 << bundle_spec.BundleId().second;
+  auto bundle_id_str = bundle_spec.BundleIdAsString();
+  auto resource_set = bundle_spec.GetRequiredResources();
+  for (auto resource : resource_set.GetResourceMap()) {
+    std::string resource_name = bundle_id_str + "_" + resource.first;
+    local_available_resources_.CancelResourceReserve(resource_name);
+  }
+  cluster_resource_map_[self_node_id_].ReturnBundleResource(bundle_id_str);
+  send_reply_callback(Status::OK(), nullptr, nullptr);
+}
+
 void NodeManager::HandleReturnWorker(const rpc::ReturnWorkerRequest &request,
                                      rpc::ReturnWorkerReply *reply,
                                      rpc::SendReplyCallback send_reply_callback) {
@@ -2047,6 +2079,31 @@ void NodeManager::ProcessSetResourceRequest(
   }
 }
 
+ResourceIdSet NodeManager::ScheduleBundle(
+    std::unordered_map<ClientID, SchedulingResources> &resource_map,
+    const BundleSpecification &bundle_spec) {
+  // If the resource map contains the local raylet, update load before calling policy.
+  if (resource_map.count(self_node_id_) > 0) {
+    resource_map[self_node_id_].SetLoadResources(local_queues_.GetResourceLoad());
+  }
+  // Invoke the scheduling policy.
+  auto reserve_resource_success =
+      scheduling_policy_.ScheduleBundle(resource_map, self_node_id_, bundle_spec);
+  auto bundle_id_str = bundle_spec.BundleIdAsString();
+  ResourceIdSet acquired_resources;
+  if (reserve_resource_success) {
+    acquired_resources =
+        local_available_resources_.Acquire(bundle_spec.GetRequiredResources());
+    for (auto resource : acquired_resources.AvailableResources()) {
+      std::string resource_name = bundle_id_str + "_" + resource.first;
+      local_available_resources_.AddBundleResource(resource_name, resource.second);
+    }
+    cluster_resource_map_[self_node_id_].UpdateBundleResource(
+        bundle_id_str, bundle_spec.GetRequiredResources());
+  }
+  return acquired_resources;
+}
+
 void NodeManager::ScheduleTasks(
     std::unordered_map<ClientID, SchedulingResources> &resource_map) {
   // If the resource map contains the local raylet, update load before calling policy.
@@ -2587,7 +2644,6 @@ void NodeManager::AssignTask(const std::shared_ptr<Worker> &worker, const Task &
                              std::vector<std::function<void()>> *post_assign_callbacks) {
   const TaskSpecification &spec = task.GetTaskSpecification();
   RAY_CHECK(post_assign_callbacks);
-
   // If this is an actor task, check that the new task has the correct counter.
   if (spec.IsActorTask()) {
     // An actor task should only be ready to be assigned if it matches the
diff --git a/src/ray/raylet/node_manager.h b/src/ray/raylet/node_manager.h
index 2b3d3f73b..8ac626fe2 100644
--- a/src/ray/raylet/node_manager.h
+++ b/src/ray/raylet/node_manager.h
@@ -36,6 +36,7 @@
 #include "ray/raylet/task_dependency_manager.h"
 #include "ray/raylet/worker_pool.h"
 #include "ray/util/ordered_set.h"
+#include "ray/common/bundle_spec.h"
 // clang-format on
 
 namespace ray {
@@ -298,6 +299,17 @@ class NodeManager : public rpc::NodeManagerServiceHandler {
   /// resource_map argument.
   /// \return Void.
   void ScheduleTasks(std::unordered_map<ClientID, SchedulingResources> &resource_map);
+
+  /// Make a placement decision for the resource_map.
+  ///
+  /// \param resource_map A mapping from node manager ID to an estimate of the
+  /// resources available to that node manager. Scheduling decisions will only
+  /// consider the local node manager and the node managers in the keys of the
+  /// resource_map argument.
+  /// \return ResourceIdSet.
+  ResourceIdSet ScheduleBundle(
+      std::unordered_map<ClientID, SchedulingResources> &resource_map,
+      const BundleSpecification &bundle_spec);
   /// Handle a task whose return value(s) must be reconstructed.
   ///
   /// \param task_id The relevant task ID.
@@ -578,6 +590,16 @@ class NodeManager : public rpc::NodeManagerServiceHandler {
   /// \return Status indicating whether setup was successful.
   ray::Status SetupPlasmaSubscription();
 
+  /// Handle a `ResourcesLease` request.
+  void HandleRequestResourceReserve(const rpc::RequestResourceReserveRequest &request,
+                                    rpc::RequestResourceReserveReply *reply,
+                                    rpc::SendReplyCallback send_reply_callback) override;
+
+  /// Handle a `ResourcesReturn` request.
+  void HandleCancelResourceReserve(const rpc::CancelResourceReserveRequest &request,
+                                   rpc::CancelResourceReserveReply *reply,
+                                   rpc::SendReplyCallback send_reply_callback) override;
+
   /// Handle a `WorkerLease` request.
   void HandleRequestWorkerLease(const rpc::RequestWorkerLeaseRequest &request,
                                 rpc::RequestWorkerLeaseReply *reply,
diff --git a/src/ray/raylet/raylet_client.cc b/src/ray/raylet/raylet_client.cc
index fbde68211..9b7f023a3 100644
--- a/src/ray/raylet/raylet_client.cc
+++ b/src/ray/raylet/raylet_client.cc
@@ -421,6 +421,22 @@ ray::Status raylet::RayletClient::CancelWorkerLease(
   return grpc_client_->CancelWorkerLease(request, callback);
 }
 
+Status raylet::RayletClient::RequestResourceReserve(
+    const BundleSpecification &bundle_spec,
+    const ray::rpc::ClientCallback<ray::rpc::RequestResourceReserveReply> &callback) {
+  rpc::RequestResourceReserveRequest request;
+  request.mutable_bundle_spec()->CopyFrom(bundle_spec.GetMessage());
+  return grpc_client_->RequestResourceReserve(request, callback);
+}
+
+Status raylet::RayletClient::CancelResourceReserve(
+    BundleSpecification &bundle_spec,
+    const ray::rpc::ClientCallback<ray::rpc::CancelResourceReserveReply> &callback) {
+  rpc::CancelResourceReserveRequest request;
+  request.mutable_bundle_spec()->CopyFrom(bundle_spec.GetMessage());
+  return grpc_client_->CancelResourceReserve(request, callback);
+}
+
 Status raylet::RayletClient::PinObjectIDs(
     const rpc::Address &caller_address, const std::vector<ObjectID> &object_ids,
     const rpc::ClientCallback<rpc::PinObjectIDsReply> &callback) {
diff --git a/src/ray/raylet/raylet_client.h b/src/ray/raylet/raylet_client.h
index 37409bf5d..278f8b017 100644
--- a/src/ray/raylet/raylet_client.h
+++ b/src/ray/raylet/raylet_client.h
@@ -22,6 +22,7 @@
 #include <unordered_map>
 #include <vector>
 
+#include "ray/common/bundle_spec.h"
 #include "ray/common/status.h"
 #include "ray/common/task/task_spec.h"
 #include "ray/rpc/node_manager/node_manager_client.h"
@@ -83,6 +84,24 @@ class WorkerLeaseInterface {
   virtual ~WorkerLeaseInterface(){};
 };
 
+/// Interface for leasing resource.
+class ResourceReserveInterface {
+ public:
+  /// Requests a resource from the raylet. The callback will be sent via gRPC.
+  /// \param resource_spec Resources that should be allocated for the worker.
+  /// \return ray::Status
+  virtual ray::Status RequestResourceReserve(
+      const BundleSpecification &bundle_spec,
+      const ray::rpc::ClientCallback<ray::rpc::RequestResourceReserveReply>
+          &callback) = 0;
+
+  virtual ray::Status CancelResourceReserve(
+      BundleSpecification &bundle_spec,
+      const ray::rpc::ClientCallback<ray::rpc::CancelResourceReserveReply> &callback) = 0;
+
+  virtual ~ResourceReserveInterface(){};
+};
+
 /// Interface for waiting dependencies. Abstract for testing.
 class DependencyWaiterInterface {
  public:
@@ -141,7 +160,8 @@ class RayletConnection {
 
 class RayletClient : public PinObjectsInterface,
                      public WorkerLeaseInterface,
-                     public DependencyWaiterInterface {
+                     public DependencyWaiterInterface,
+                     public ResourceReserveInterface {
  public:
   /// Connect to the raylet.
   ///
@@ -312,6 +332,18 @@ class RayletClient : public PinObjectsInterface,
       const TaskID &task_id,
       const rpc::ClientCallback<rpc::CancelWorkerLeaseReply> &callback) override;
 
+  /// Implements ResourceReserveInterface.
+  ray::Status RequestResourceReserve(
+      const BundleSpecification &bundle_spec,
+      const ray::rpc::ClientCallback<ray::rpc::RequestResourceReserveReply> &callback)
+      override;
+
+  /// Implements ResourceReserveInterface.
+  ray::Status CancelResourceReserve(
+      BundleSpecification &bundle_spec,
+      const ray::rpc::ClientCallback<ray::rpc::CancelResourceReserveReply> &callback)
+      override;
+
   ray::Status PinObjectIDs(
       const rpc::Address &caller_address, const std::vector<ObjectID> &object_ids,
       const ray::rpc::ClientCallback<ray::rpc::PinObjectIDsReply> &callback) override;
diff --git a/src/ray/raylet/scheduling_policy.cc b/src/ray/raylet/scheduling_policy.cc
index d4f106998..21e0ab608 100644
--- a/src/ray/raylet/scheduling_policy.cc
+++ b/src/ray/raylet/scheduling_policy.cc
@@ -133,6 +133,36 @@ std::unordered_map<TaskID, ClientID> SchedulingPolicy::Schedule(
   return decision;
 }
 
+bool SchedulingPolicy::ScheduleBundle(
+    std::unordered_map<ClientID, SchedulingResources> &cluster_resources,
+    const ClientID &local_client_id, const ray::BundleSpecification &bundle_spec) {
+#ifndef NDEBUG
+  RAY_LOG(DEBUG) << "Cluster resource map: ";
+  for (const auto &client_resource_pair : cluster_resources) {
+    const ClientID &client_id = client_resource_pair.first;
+    const SchedulingResources &resources = client_resource_pair.second;
+    RAY_LOG(DEBUG) << "client_id: " << client_id << " "
+                   << resources.GetAvailableResources().ToString();
+  }
+#endif
+  const auto &client_resource_pair = cluster_resources.find(local_client_id);
+  if (client_resource_pair == cluster_resources.end()) {
+    return false;
+  }
+  const auto &resource_demand = bundle_spec.GetRequiredResources();
+  ClientID node_client_id = client_resource_pair->first;
+  const auto &node_resources = client_resource_pair->second;
+  ResourceSet available_node_resources =
+      ResourceSet(node_resources.GetAvailableResources());
+  available_node_resources.SubtractResources(node_resources.GetLoadResources());
+  RAY_LOG(DEBUG) << "client_id " << node_client_id
+                 << " avail: " << node_resources.GetAvailableResources().ToString()
+                 << " load: " << node_resources.GetLoadResources().ToString();
+  /// If the resource_demand is subset of the whole available_node_resources, this bundle
+  /// can be set in this node, return true.
+  return resource_demand.IsSubset(available_node_resources);
+}
+
 std::vector<TaskID> SchedulingPolicy::SpillOver(
     SchedulingResources &remote_scheduling_resources) const {
   // The policy decision to be returned.
diff --git a/src/ray/raylet/scheduling_policy.h b/src/ray/raylet/scheduling_policy.h
index 62349ca95..d921ad1d7 100644
--- a/src/ray/raylet/scheduling_policy.h
+++ b/src/ray/raylet/scheduling_policy.h
@@ -17,6 +17,7 @@
 #include <random>
 #include <unordered_map>
 
+#include "ray/common/bundle_spec.h"
 #include "ray/common/task/scheduling_resources.h"
 #include "ray/raylet/scheduling_queue.h"
 
@@ -49,6 +50,17 @@ class SchedulingPolicy {
       std::unordered_map<ClientID, SchedulingResources> &cluster_resources,
       const ClientID &local_client_id);
 
+  /// \param cluster_resources: a set of cluster resources containing resource and load
+  /// information for some subset of the cluster.
+  /// \param local_client_id The ID of the node manager that owns this
+  /// SchedulingPolicy object.
+  /// \param bundle_spec the description of a bundle which include the resource the bundle
+  /// need. \return If this bundle can be scheduled in this node, return true; else return
+  /// false.
+  bool ScheduleBundle(
+      std::unordered_map<ClientID, SchedulingResources> &cluster_resources,
+      const ClientID &local_client_id, const ray::BundleSpecification &bundle_spec);
+
   /// \brief Given a set of cluster resources perform a spill-over scheduling operation.
   ///
   /// \param cluster_resources: a set of cluster resources containing resource and load
diff --git a/src/ray/rpc/node_manager/node_manager_client.h b/src/ray/rpc/node_manager/node_manager_client.h
index 976990ea6..0373b5c6f 100644
--- a/src/ray/rpc/node_manager/node_manager_client.h
+++ b/src/ray/rpc/node_manager/node_manager_client.h
@@ -89,6 +89,12 @@ class NodeManagerWorkerClient
   /// Cancel a pending worker lease request.
   RPC_CLIENT_METHOD(NodeManagerService, CancelWorkerLease, grpc_client_, )
 
+  /// Request resource lease.
+  RPC_CLIENT_METHOD(NodeManagerService, RequestResourceReserve, grpc_client_, )
+
+  /// Return resource lease.
+  RPC_CLIENT_METHOD(NodeManagerService, CancelResourceReserve, grpc_client_, )
+
   /// Notify the raylet to pin the provided object IDs.
   RPC_CLIENT_METHOD(NodeManagerService, PinObjectIDs, grpc_client_, )
 
diff --git a/src/ray/rpc/node_manager/node_manager_server.h b/src/ray/rpc/node_manager/node_manager_server.h
index de80ae260..6daef365c 100644
--- a/src/ray/rpc/node_manager/node_manager_server.h
+++ b/src/ray/rpc/node_manager/node_manager_server.h
@@ -23,15 +23,17 @@ namespace ray {
 namespace rpc {
 
 /// NOTE: See src/ray/core_worker/core_worker.h on how to add a new grpc handler.
-#define RAY_NODE_MANAGER_RPC_HANDLERS                         \
-  RPC_SERVICE_HANDLER(NodeManagerService, RequestWorkerLease) \
-  RPC_SERVICE_HANDLER(NodeManagerService, ReturnWorker)       \
-  RPC_SERVICE_HANDLER(NodeManagerService, CancelWorkerLease)  \
-  RPC_SERVICE_HANDLER(NodeManagerService, ForwardTask)        \
-  RPC_SERVICE_HANDLER(NodeManagerService, PinObjectIDs)       \
-  RPC_SERVICE_HANDLER(NodeManagerService, GetNodeStats)       \
-  RPC_SERVICE_HANDLER(NodeManagerService, GlobalGC)           \
-  RPC_SERVICE_HANDLER(NodeManagerService, FormatGlobalMemoryInfo)
+#define RAY_NODE_MANAGER_RPC_HANDLERS                             \
+  RPC_SERVICE_HANDLER(NodeManagerService, RequestWorkerLease)     \
+  RPC_SERVICE_HANDLER(NodeManagerService, ReturnWorker)           \
+  RPC_SERVICE_HANDLER(NodeManagerService, CancelWorkerLease)      \
+  RPC_SERVICE_HANDLER(NodeManagerService, ForwardTask)            \
+  RPC_SERVICE_HANDLER(NodeManagerService, PinObjectIDs)           \
+  RPC_SERVICE_HANDLER(NodeManagerService, GetNodeStats)           \
+  RPC_SERVICE_HANDLER(NodeManagerService, GlobalGC)               \
+  RPC_SERVICE_HANDLER(NodeManagerService, FormatGlobalMemoryInfo) \
+  RPC_SERVICE_HANDLER(NodeManagerService, RequestResourceReserve) \
+  RPC_SERVICE_HANDLER(NodeManagerService, CancelResourceReserve)
 
 /// Interface of the `NodeManagerService`, see `src/ray/protobuf/node_manager.proto`.
 class NodeManagerServiceHandler {
@@ -59,6 +61,16 @@ class NodeManagerServiceHandler {
                                        rpc::CancelWorkerLeaseReply *reply,
                                        rpc::SendReplyCallback send_reply_callback) = 0;
 
+  virtual void HandleRequestResourceReserve(
+      const rpc::RequestResourceReserveRequest &request,
+      rpc::RequestResourceReserveReply *reply,
+      rpc::SendReplyCallback send_reply_callback) = 0;
+
+  virtual void HandleCancelResourceReserve(
+      const rpc::CancelResourceReserveRequest &request,
+      rpc::CancelResourceReserveReply *reply,
+      rpc::SendReplyCallback send_reply_callback) = 0;
+
   virtual void HandleForwardTask(const ForwardTaskRequest &request,
                                  ForwardTaskReply *reply,
                                  SendReplyCallback send_reply_callback) = 0;