diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
index 60c9afa1f..2ea7e17de 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/Loan.java
@@ -125,10 +125,12 @@ import org.apache.fineract.portfolio.loanaccount.exception.MultiDisbursementData
 import org.apache.fineract.portfolio.loanaccount.exception.UndoLastTrancheDisbursementException;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.data.LoanScheduleDTO;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.AprCalculator;
+import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.DefaultScheduledDateGenerator;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanApplicationTerms;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleGenerator;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleModel;
 import org.apache.fineract.portfolio.loanaccount.loanschedule.domain.LoanScheduleModelPeriod;
+import org.apache.fineract.portfolio.loanaccount.service.LoanUtilService;
 import org.apache.fineract.portfolio.loanproduct.domain.AmortizationMethod;
 import org.apache.fineract.portfolio.loanproduct.domain.InterestCalculationPeriodMethod;
 import org.apache.fineract.portfolio.loanproduct.domain.InterestMethod;
@@ -4524,12 +4526,61 @@ public class Loan extends AbstractPersistableCustom {
                                                    // startDate
     }
 
-    public void applyHolidayToRepaymentScheduleDates(final Holiday holiday) {
+    public void applyHolidayToRepaymentScheduleDates(final Holiday holiday, final LoanUtilService loanUtilService) {
+        final DefaultScheduledDateGenerator scheduledDateGenerator = new DefaultScheduledDateGenerator();
+        ScheduleGeneratorDTO scheduleGeneratorDTO = loanUtilService.buildScheduleGeneratorDTO(this, holiday.getFromDateLocalDate());
+        final LoanApplicationTerms loanApplicationTerms = this.constructLoanApplicationTerms(scheduleGeneratorDTO);
+
+        // LocalDate rescheduleFromDate = holiday.getFromDateLocalDate();
+        LocalDate adjustedRescheduleToDate = null;
+
+        if (holiday.getReScheduleType().isResheduleToNextRepaymentDate()) {
+            final LocalDate rescheduleToDate = holiday.getToDateLocalDate();
+            for (final LoanRepaymentScheduleInstallment loanRepaymentScheduleInstallment : this.getRepaymentScheduleInstallments()) {
+                if (rescheduleToDate.isEqual(loanRepaymentScheduleInstallment.getDueDate())) {
+                    adjustedRescheduleToDate = rescheduleToDate;
+                    break;
+                } else {
+                    // Account for a Bimonthly Loan Product
+                    // if (loanApplicationTerms.getRepaymentPeriodFrequencyType().isSemiMonthly()) {
+                    // if (rescheduleToDate.isAfter(loanRepaymentScheduleInstallment.getDueDate())
+                    // && rescheduleToDate.isBefore(loanRepaymentScheduleInstallment.getDueDate().plusDays(15))) {
+                    // adjustedRescheduleToDate = loanRepaymentScheduleInstallment.getDueDate();
+                    // break;
+                    // }
+                    // } else {
+                    // // Once Bimonthly product implemented, Replace the `Standard Monthly Loan Holiday check` below
+                    // HERE
+                    // if (rescheduleToDate.isAfter(loanRepaymentScheduleInstallment.getDueDate())
+                    // && rescheduleToDate.isBefore(loanRepaymentScheduleInstallment.getDueDate().plusDays(30))) {
+                    // adjustedRescheduleToDate = loanRepaymentScheduleInstallment.getDueDate();
+                    // break;
+                    // }
+                    // }
+
+                    // Standard Monthly Loan Holiday check
+                    if (rescheduleToDate.isAfter(loanRepaymentScheduleInstallment.getDueDate())
+                            && rescheduleToDate.isBefore(loanRepaymentScheduleInstallment.getDueDate().plusDays(30))) {
+                        adjustedRescheduleToDate = loanRepaymentScheduleInstallment.getDueDate();
+                        break;
+                    }
+                }
+            }
+        } else {
+            adjustedRescheduleToDate = holiday.getRepaymentsRescheduledToLocalDate();
+        }
+
         // first repayment's from date is same as disbursement date.
         LocalDate tmpFromDate = getDisbursementDate();
+
         // Loop through all loanRepayments
         List<LoanRepaymentScheduleInstallment> installments = getRepaymentScheduleInstallments();
         for (final LoanRepaymentScheduleInstallment loanRepaymentScheduleInstallment : installments) {
+
+            if (adjustedRescheduleToDate == null) {
+                break;
+            }
+
             final LocalDate oldDueDate = loanRepaymentScheduleInstallment.getDueDate();
 
             // update from date if it's not same as previous installament's due
@@ -4537,17 +4588,15 @@ public class Loan extends AbstractPersistableCustom {
             if (!loanRepaymentScheduleInstallment.getFromDate().isEqual(tmpFromDate)) {
                 loanRepaymentScheduleInstallment.updateFromDate(tmpFromDate);
             }
-            if (oldDueDate.isAfter(holiday.getToDateLocalDate())) {
-                break;
-            }
 
-            if (oldDueDate.equals(holiday.getFromDateLocalDate()) || oldDueDate.equals(holiday.getToDateLocalDate())
-                    || (oldDueDate.isAfter(holiday.getFromDateLocalDate()) && oldDueDate.isBefore(holiday.getToDateLocalDate()))) {
+            if (oldDueDate.equals(holiday.getFromDateLocalDate()) || oldDueDate.isAfter(holiday.getFromDateLocalDate())) {
                 // FIXME: AA do we need to apply non-working days.
                 // Assuming holiday's repayment reschedule to date cannot be
                 // created on a non-working day.
-                final LocalDate newRepaymentDate = holiday.getRepaymentsRescheduledToLocalDate();
-                loanRepaymentScheduleInstallment.updateDueDate(newRepaymentDate);
+
+                adjustedRescheduleToDate = scheduledDateGenerator.generateNextRepaymentDate(adjustedRescheduleToDate, loanApplicationTerms,
+                        false);
+                loanRepaymentScheduleInstallment.updateDueDate(adjustedRescheduleToDate);
             }
             tmpFromDate = loanRepaymentScheduleInstallment.getDueDate();
         }
diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
index d4bb52b90..448cce74d 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
@@ -2615,7 +2615,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
 
             for (final Loan loan : loans) {
                 // apply holiday
-                loan.applyHolidayToRepaymentScheduleDates(holiday);
+                loan.applyHolidayToRepaymentScheduleDates(holiday, this.loanUtilService);
             }
             this.loanRepositoryWrapper.save(loans);
             holiday.processed();