diff --git a/pkg/scheduler/scheduler.go b/pkg/scheduler/scheduler.go
index 3d11527bc..01d047109 100644
--- a/pkg/scheduler/scheduler.go
+++ b/pkg/scheduler/scheduler.go
@@ -2,11 +2,14 @@ package scheduler
 
 import (
 	"context"
+	"encoding/json"
 	"time"
 
 	v1 "k8s.io/api/core/v1"
+	"k8s.io/apimachinery/pkg/api/equality"
 	"k8s.io/apimachinery/pkg/api/errors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/apimachinery/pkg/labels"
 	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
 	"k8s.io/apimachinery/pkg/util/wait"
 	"k8s.io/client-go/dynamic"
@@ -23,6 +26,7 @@ import (
 	schedulercache "github.com/karmada-io/karmada/pkg/scheduler/cache"
 	"github.com/karmada-io/karmada/pkg/scheduler/core"
 	"github.com/karmada-io/karmada/pkg/scheduler/framework/plugins/clusteraffinity"
+	"github.com/karmada-io/karmada/pkg/util"
 )
 
 const (
@@ -82,6 +86,10 @@ func NewScheduler(dynamicClient dynamic.Interface, karmadaClient karmadaclientse
 		UpdateFunc: sched.onPropagationBindingUpdate,
 	})
 
+	policyInformer.AddEventHandler(cache.ResourceEventHandlerFuncs{
+		UpdateFunc: sched.onPropagationPolicyUpdate,
+	})
+
 	memclusterInformer := factory.Cluster().V1alpha1().Clusters().Informer()
 	memclusterInformer.AddEventHandler(
 		cache.ResourceEventHandlerFuncs{
@@ -127,6 +135,36 @@ func (s *Scheduler) onPropagationBindingUpdate(old, cur interface{}) {
 	s.onPropagationBindingAdd(cur)
 }
 
+func (s *Scheduler) onPropagationPolicyUpdate(old, cur interface{}) {
+	oldPropagationPolicy := old.(*v1alpha1.PropagationPolicy)
+	curPropagationPolicy := cur.(*v1alpha1.PropagationPolicy)
+	if equality.Semantic.DeepEqual(oldPropagationPolicy.Spec.Placement, curPropagationPolicy.Spec.Placement) {
+		klog.V(2).Infof("Ignore PropagationPolicy(%s/%s) which placement unchanged.", oldPropagationPolicy.Namespace, oldPropagationPolicy.Name)
+		return
+	}
+
+	selector := labels.SelectorFromSet(labels.Set{
+		util.PropagationPolicyNamespaceLabel: oldPropagationPolicy.Namespace,
+		util.PropagationPolicyNameLabel:      oldPropagationPolicy.Name,
+	})
+
+	referenceBindings, err := s.bindingLister.List(selector)
+	if err != nil {
+		klog.Errorf("Failed to list PropagationBindings by selector: %s, error: %v", selector.String(), err)
+		return
+	}
+
+	for _, binding := range referenceBindings {
+		key, err := cache.MetaNamespaceKeyFunc(binding)
+		if err != nil {
+			klog.Errorf("couldn't get key for object %#v: %v", binding, err)
+			return
+		}
+		klog.Infof("Requeue PropagationBinding(%s/%s) as placement changed.", binding.Namespace, binding.Name)
+		s.queue.Add(key)
+	}
+}
+
 func (s *Scheduler) worker() {
 	for s.scheduleNext() {
 	}
@@ -171,6 +209,25 @@ func (s *Scheduler) scheduleOne(key string) (err error) {
 		targetClusters[i] = v1alpha1.TargetCluster{Name: cluster}
 	}
 	binding.Spec.Clusters = targetClusters
+
+	policyNamespace := util.GetLabelValue(binding.Labels, util.PropagationPolicyNamespaceLabel)
+	policyName := util.GetLabelValue(binding.Labels, util.PropagationPolicyNameLabel)
+
+	policy, err := s.policyLister.PropagationPolicies(policyNamespace).Get(policyName)
+	if err != nil {
+		return err
+	}
+
+	placement, err := json.Marshal(policy.Spec.Placement)
+	if err != nil {
+		klog.Errorf("Failed to marshal placement of propagationPolicy %s/%s, error: %v", policyNamespace, policyName, err)
+	}
+
+	if binding.Annotations == nil {
+		binding.Annotations = make(map[string]string)
+	}
+	binding.Annotations[util.PolicyPlacementAnnotation] = string(placement)
+
 	_, err = s.KarmadaClient.PolicyV1alpha1().PropagationBindings(ns).Update(context.TODO(), binding, metav1.UpdateOptions{})
 	if err != nil {
 		return err