diff --git a/components/org.wso2.carbon.identity.api.server.authenticators/org.wso2.carbon.identity.api.server.authenticators.v1/src/main/java/org/wso2/carbon/identity/api/server/authenticators/v1/impl/AuthenticatorsApiServiceImpl.java b/components/org.wso2.carbon.identity.api.server.authenticators/org.wso2.carbon.identity.api.server.authenticators.v1/src/main/java/org/wso2/carbon/identity/api/server/authenticators/v1/impl/AuthenticatorsApiServiceImpl.java
index 100fc12286..f3dd6eb6f9 100644
--- a/components/org.wso2.carbon.identity.api.server.authenticators/org.wso2.carbon.identity.api.server.authenticators.v1/src/main/java/org/wso2/carbon/identity/api/server/authenticators/v1/impl/AuthenticatorsApiServiceImpl.java
+++ b/components/org.wso2.carbon.identity.api.server.authenticators/org.wso2.carbon.identity.api.server.authenticators.v1/src/main/java/org/wso2/carbon/identity/api/server/authenticators/v1/impl/AuthenticatorsApiServiceImpl.java
@@ -19,11 +19,16 @@
 import org.springframework.beans.factory.annotation.Autowired;
 import org.wso2.carbon.identity.api.server.authenticators.v1.AuthenticatorsApiService;
 import org.wso2.carbon.identity.api.server.authenticators.v1.core.ServerAuthenticatorManagementService;
+import org.wso2.carbon.identity.api.server.authenticators.v1.model.Authenticator;
 import org.wso2.carbon.identity.api.server.authenticators.v1.model.UserDefinedLocalAuthenticatorCreation;
 import org.wso2.carbon.identity.api.server.authenticators.v1.model.UserDefinedLocalAuthenticatorUpdate;
+import org.wso2.carbon.identity.api.server.common.ContextLoader;
 
+import java.net.URI;
 import javax.ws.rs.core.Response;
 
+import static org.wso2.carbon.identity.api.server.common.Constants.V1_API_PATH_COMPONENT;
+
 /**
  * Implementation of the Server Authenticators Rest API.
  */
@@ -48,8 +53,11 @@ public Response authenticatorsMetaTagsGet() {
     public Response addUserDefinedLocalAuthenticator(
             UserDefinedLocalAuthenticatorCreation userDefinedLocalAuthenticatorCreation) {
 
-        return Response.ok().entity(authenticatorManagementService
-                .addUserDefinedLocalAuthenticator(userDefinedLocalAuthenticatorCreation)).build();
+        Authenticator response = authenticatorManagementService
+                .addUserDefinedLocalAuthenticator(userDefinedLocalAuthenticatorCreation);
+        URI location = ContextLoader.buildURIForHeader(V1_API_PATH_COMPONENT +
+                "/authenticator/custom/" + response.getId());
+        return Response.created(location).entity(response).build();
     }
 
     @Override
diff --git a/components/org.wso2.carbon.identity.api.server.authenticators/org.wso2.carbon.identity.api.server.authenticators.v1/src/main/java/org/wso2/carbon/identity/api/server/authenticators/v1/impl/LocalAuthenticatorConfigBuilderFactory.java b/components/org.wso2.carbon.identity.api.server.authenticators/org.wso2.carbon.identity.api.server.authenticators.v1/src/main/java/org/wso2/carbon/identity/api/server/authenticators/v1/impl/LocalAuthenticatorConfigBuilderFactory.java
index ef732d1ccb..0e36abed91 100644
--- a/components/org.wso2.carbon.identity.api.server.authenticators/org.wso2.carbon.identity.api.server.authenticators.v1/src/main/java/org/wso2/carbon/identity/api/server/authenticators/v1/impl/LocalAuthenticatorConfigBuilderFactory.java
+++ b/components/org.wso2.carbon.identity.api.server.authenticators/org.wso2.carbon.identity.api.server.authenticators.v1/src/main/java/org/wso2/carbon/identity/api/server/authenticators/v1/impl/LocalAuthenticatorConfigBuilderFactory.java
@@ -56,15 +56,16 @@ public class LocalAuthenticatorConfigBuilderFactory {
     public static Authenticator build(UserDefinedLocalAuthenticatorConfig config) {
 
         Authenticator authenticator = new Authenticator();
+        String authenticatorId = base64URLEncode(config.getName());
         authenticator.setName(config.getName());
-        authenticator.setId(base64URLEncode(config.getName()));
+        authenticator.setId(authenticatorId);
         authenticator.setDisplayName(config.getDisplayName());
         authenticator.setIsEnabled(config.isEnabled());
         authenticator.setDefinedBy(Authenticator.DefinedByEnum.USER);
         authenticator.setType(Authenticator.TypeEnum.LOCAL);
         authenticator.setTags(Arrays.asList(config.getTags()));
         authenticator.setSelf(ContextLoader.buildURIForBody(String.format(V1_API_PATH_COMPONENT +
-                CONFIGS_AUTHENTICATOR_PATH_COMPONENT, config.getName())).toString());
+                CONFIGS_AUTHENTICATOR_PATH_COMPONENT, authenticatorId)).toString());
 
         return authenticator;
     }