diff --git a/packager/media/ad_cue_generator/ad_cue_generator.cc b/packager/media/ad_cue_generator/ad_cue_generator.cc
index c46e7328d8..dbefaa9711 100644
--- a/packager/media/ad_cue_generator/ad_cue_generator.cc
+++ b/packager/media/ad_cue_generator/ad_cue_generator.cc
@@ -23,19 +23,42 @@ AdCueGenerator::AdCueGenerator(
 AdCueGenerator::~AdCueGenerator() {}
 
 Status AdCueGenerator::InitializeInternal() {
+  if (num_input_streams() != 1 || next_output_stream_index() != 1) {
+    return Status(error::INVALID_ARGUMENT,
+                  "Expects exactly one input and one output.");
+  }
   return Status::OK;
 }
 
 Status AdCueGenerator::Process(std::unique_ptr<StreamData> stream_data) {
   switch (stream_data->stream_data_type) {
-    case StreamDataType::kStreamInfo:
-      // TODO(kdevarakonda): dispatch scte35 events.
-      return DispatchStreamInfo(kStreamIndex,
-                                std::move(stream_data->stream_info));
+    case StreamDataType::kStreamInfo: {
+      const uint32_t time_scale = stream_data->stream_info->time_scale();
+      Status status = Dispatch(std::move(stream_data));
+      if (!status.ok()) {
+        return status;
+      }
+      return DispatchScte35Events(kStreamIndex, time_scale);
+    }
     default:
       return Dispatch(std::move(stream_data));
   }
 }
 
+Status AdCueGenerator::DispatchScte35Events(size_t stream_index,
+                                            uint32_t time_scale) {
+  Status status;
+  for (const auto& cue_point : ad_cue_generator_params_.cue_points) {
+    std::shared_ptr<Scte35Event> scte35_event = std::make_shared<Scte35Event>();
+    scte35_event->start_time = cue_point.start_time_in_seconds * time_scale;
+    scte35_event->duration = cue_point.duration_in_seconds * time_scale;
+    status.Update(DispatchScte35Event(stream_index, std::move(scte35_event)));
+    if (!status.ok()) {
+      return status;
+    }
+  }
+  return Status::OK;
+}
+
 }  // namespace media
 }  // namespace shaka
diff --git a/packager/media/ad_cue_generator/ad_cue_generator.h b/packager/media/ad_cue_generator/ad_cue_generator.h
index 59d05c2875..be43bd63db 100644
--- a/packager/media/ad_cue_generator/ad_cue_generator.h
+++ b/packager/media/ad_cue_generator/ad_cue_generator.h
@@ -26,6 +26,9 @@ class AdCueGenerator : public MediaHandler {
   Status InitializeInternal() override;
   Status Process(std::unique_ptr<StreamData> stream_data) override;
 
+  // Dispatches SCTE35 events that are built from AdCueGenerator params.
+  Status DispatchScte35Events(size_t stream_index, uint32_t time_scale);
+
   const AdCueGeneratorParams ad_cue_generator_params_;
 };
 
diff --git a/packager/packager.cc b/packager/packager.cc
index 8a26b0615e..665bddd3d4 100644
--- a/packager/packager.cc
+++ b/packager/packager.cc
@@ -496,8 +496,6 @@ Status CreateAudioVideoJobs(
 
   // Demuxers are shared among all streams with the same input.
   std::shared_ptr<Demuxer> demuxer;
-  // AdCueGenerator is shared among all streams.
-  std::shared_ptr<AdCueGenerator> ad_cue_generator;
   // Replicators are shared among all streams with the same input and stream
   // selector.
   std::shared_ptr<MediaHandler> replicator;
@@ -509,11 +507,6 @@ Status CreateAudioVideoJobs(
   // iteration.
   int stream_number = first_stream_number - 1;
 
-  if (!packaging_params.ad_cue_generator_params.cue_points.empty()) {
-    ad_cue_generator = std::make_shared<AdCueGenerator>(
-        packaging_params.ad_cue_generator_params);
-  }
-
   for (const StreamDescriptor& stream : streams) {
     stream_number += 1;
 
@@ -554,6 +547,12 @@ Status CreateAudioVideoJobs(
     }
 
     if (new_source) {
+      std::shared_ptr<MediaHandler> ad_cue_generator;
+      if (!packaging_params.ad_cue_generator_params.cue_points.empty()) {
+        ad_cue_generator = std::make_shared<AdCueGenerator>(
+            packaging_params.ad_cue_generator_params);
+      }
+
       replicator = std::make_shared<Replicator>();
 
       std::shared_ptr<MediaHandler> chunker =