diff --git a/app/models/auditors/grade_change.rb b/app/models/auditors/grade_change.rb
index 85e6eab6624..abc7be0df1d 100644
--- a/app/models/auditors/grade_change.rb
+++ b/app/models/auditors/grade_change.rb
@@ -372,6 +372,21 @@ class Auditors::GradeChange
     bulk_insert_records(event_records)
   end
 
+  def self.create_content_participations(plucked_submissions, assignment, unique_users)
+    root_account_id = assignment.root_account_id
+    content_participations = []
+    content_participation_counts = []
+    plucked_submissions.each do |user_id, submission_id, course_id|
+      context_type = course_id ? "Course" : assignment.context_type
+      context_id = course_id || assignment.context_id
+      content_participations << { content_type: "Submission", user_id:, content_id: submission_id, workflow_state: "unread", content_item: "grade", root_account_id:, }
+      content_participation_counts << { content_type: "Submission", context_type:, user_id:, root_account_id:, unread_count: 0, context_id:, }
+    end
+    content_participations.each_slice(1000) { |batch| ContentParticipation.insert_all(batch) }
+    content_participation_counts.each_slice(1000) { |batch| ContentParticipationCount.insert_all(batch) }
+    assignment.course.refresh_content_participation_counts_for_users(unique_users)
+  end
+
   def self.insert_record(event_record)
     Auditors::GradeChange::Stream.insert(event_record)
   end
diff --git a/lib/missing_policy_applicator.rb b/lib/missing_policy_applicator.rb
index 6b92e8983d0..e72ae568d22 100644
--- a/lib/missing_policy_applicator.rb
+++ b/lib/missing_policy_applicator.rb
@@ -55,6 +55,7 @@ class MissingPolicyApplicator
     now = Time.zone.now
 
     GuardRail.activate(:primary) do
+      plucked_submissions = submissions.pluck(:user_id, :id, :course_id)
       submissions = Submission.active.where(id: submissions)
 
       submissions.update_all(
@@ -77,8 +78,9 @@ class MissingPolicyApplicator
       if Account.site_admin.feature_enabled?(:fix_missing_policy_applicator_gradebook_history)
         Auditors::GradeChange.delay_if_production.bulk_record_submission_events(submissions.reload)
       end
-
-      assignment.course.recompute_student_scores(submissions.map(&:user_id).uniq)
+      unique_users = submissions.map(&:user_id).uniq
+      Auditors::GradeChange.delay_if_production(strand: "CreateParticipationsForMissingPolicy:#{assignment.root_account.global_id}").create_content_participations(plucked_submissions, assignment, unique_users)
+      assignment.course.recompute_student_scores(unique_users)
     end
   end
 end
diff --git a/spec/lib/missing_policy_applicator_spec.rb b/spec/lib/missing_policy_applicator_spec.rb
index 6139ef4e72c..9e698e71034 100644
--- a/spec/lib/missing_policy_applicator_spec.rb
+++ b/spec/lib/missing_policy_applicator_spec.rb
@@ -118,6 +118,21 @@ describe MissingPolicyApplicator do
       expect(submission.grade).to eql "F"
     end
 
+    describe "content participation" do
+      it "creates a content participation record after applying deductions" do
+        late_policy_missing_enabled
+        create_recent_assignment
+        submission = @course.submissions.first
+        submission.update_columns(score: nil, grade: nil, workflow_state: "unsubmitted")
+        applicator.apply_missing_deductions
+
+        expect(submission.content_participations.count).to eq 1
+        cpc = ContentParticipationCount.where(context_id: submission.course_id, user_id: submission.user_id, content_type: "Submission")
+        expect(cpc.count).to eq 1
+        expect(cpc.first.unread_count).to eq 1
+      end
+    end
+
     it 'sets the submission workflow state to "graded"' do
       late_policy_missing_enabled
       create_recent_assignment
@@ -435,19 +450,6 @@ describe MissingPolicyApplicator do
           applicator.apply_missing_deductions
         end
       end
-
-      context "when the fix_missing_policy_applicator_gradebook_history flag is not enabled" do
-        before do
-          Account.site_admin.disable_feature!(:fix_missing_policy_applicator_gradebook_history)
-        end
-
-        it "does not queue a delayed job when the applicator marks submissions as missing" do
-          assignment.submissions.update_all(score: nil, grade: nil)
-          expect(Auditors::GradeChange).not_to receive(:delay)
-
-          applicator.apply_missing_deductions
-        end
-      end
     end
   end
 end
diff --git a/spec/models/auditors/grade_change_spec.rb b/spec/models/auditors/grade_change_spec.rb
index 9c529058786..bbe6caf4afa 100644
--- a/spec/models/auditors/grade_change_spec.rb
+++ b/spec/models/auditors/grade_change_spec.rb
@@ -40,8 +40,8 @@ describe Auditors::GradeChange do
     @sub_account = Account.create!(parent_account: @account)
     @sub_sub_account = Account.create!(parent_account: @sub_account)
 
-    course_with_teacher(account: @sub_sub_account)
-    student_in_course
+    course_with_teacher(account: @sub_sub_account, active_all: true)
+    student_in_course(active_all: true)
 
     @assignment = @course.assignments.create!(title: "Assignment", points_possible: 10)
     @submission = @assignment.grade_student(@student, grade: 8, grader: @teacher).first
@@ -247,4 +247,38 @@ describe Auditors::GradeChange do
       expect(Auditors::ActiveRecord::GradeChangeRecord.last.score_after).to eq 3.0
     end
   end
+
+  describe "create_content_participations" do
+    it "does not create a content participation record if one already exists" do
+      plucked_submissions = [[@student.id, @submission.id, @course.id]]
+      expect(@submission.content_participations.count).to eq 1
+      cpc = ContentParticipationCount.where(context_id: @submission.course_id, user_id: @submission.user_id, content_type: "Submission")
+      expect(cpc.count).to eq 1
+      expect(cpc.first.unread_count).to eq 1
+      @assignment.grade_student(@student, grade: nil, grader: @teacher)
+      @submission.update_columns(score: nil, grade: nil, workflow_state: "unsubmitted")
+      Auditors::GradeChange.create_content_participations(plucked_submissions, @assignment, [@student.id])
+      expect(@submission.content_participations.count).to eq 1
+    end
+
+    it "does not create a duplicate content participation count record if one already exists for the course" do
+      ContentParticipation.mark_all_as_read_for_user(@student, @student.submissions, @course)
+      @submission.update_columns(score: nil, grade: nil, workflow_state: "unsubmitted")
+      plucked_submissions = [[@student.id, @submission.id, @course.id]]
+      Auditors::GradeChange.create_content_participations(plucked_submissions, @assignment, [@student.id])
+
+      cpc = ContentParticipationCount.where(context_id: @submission.course_id, user_id: @submission.user_id, content_type: "Submission")
+      expect(cpc.count).to eq 1
+
+      second_assignment = @course.assignments.create!(title: "Assignment 2", points_possible: 10)
+      second_submission = second_assignment.submissions.first
+      second_submission.update_columns(score: nil, grade: nil, workflow_state: "unsubmitted")
+      plucked_submissions = [[@student.id, second_assignment.submissions.first.id, @course.id]]
+      Auditors::GradeChange.create_content_participations(plucked_submissions, second_assignment, [@student.id])
+
+      expect(second_submission.content_participations.count).to eq 1
+      cpc = ContentParticipationCount.where(context_id: second_submission.course_id, user_id: second_submission.user_id, content_type: "Submission")
+      expect(cpc.count).to eq 1
+    end
+  end
 end