diff --git a/documentation/source/log_msg.ipynb b/documentation/source/log_msg.ipynb
index 6922a816b..dc9949028 100644
--- a/documentation/source/log_msg.ipynb
+++ b/documentation/source/log_msg.ipynb
@@ -78,7 +78,7 @@
     "        super(MyMgr, self).__init__()\n",
     "        logger.info(\"Init MyMgr...\")\n",
     "    \n",
-    "    def after_step(self):\n",
+    "    def after_step(self, *args, **kwargs):\n",
     "        logger.info(\"Step {}...\".format(self.episode_step))\n",
     "        return dict()\n",
     "\n",
diff --git a/documentation/source/system_design.ipynb b/documentation/source/system_design.ipynb
index bb1569372..ba0d54fee 100644
--- a/documentation/source/system_design.ipynb
+++ b/documentation/source/system_design.ipynb
@@ -144,7 +144,7 @@
     "            self.generated_v.before_step([0.5, 0.4]) # set action\n",
     "        \n",
     "\n",
-    "    def after_step(self):\n",
+    "    def after_step(self, *args, **kwargs):\n",
     "        if self.episode_step == self.generate_ts:\n",
     "            self.generated_v = self.spawn_object(DefaultVehicle, \n",
     "                                  vehicle_config=dict(), \n",
@@ -494,7 +494,7 @@
     "                          heading=0)\n",
     "        self.add_policy(obj.id, IDMPolicy, obj, self.generate_seed())\n",
     "\n",
-    "    def after_step(self):\n",
+    "    def after_step(self, *args, **kwargs):\n",
     "        for obj in self.spawned_objects.values():\n",
     "            obj.after_step()\n",
     "        if self.episode_step == 180:\n",
@@ -572,7 +572,7 @@
     "            self.generated_v.before_step([0.5, 0.4]) # set action\n",
     "        \n",
     "\n",
-    "    def after_step(self):\n",
+    "    def after_step(self, *args, **kwargs):\n",
     "        if self.episode_step == self.generate_ts:\n",
     "            self.generated_v = self.spawn_object(DefaultVehicle, \n",
     "                                  vehicle_config=dict(), \n",
diff --git a/metadrive/envs/multigoal_intersection.py b/metadrive/envs/multigoal_intersection.py
index f94263e80..74254eb7d 100644
--- a/metadrive/envs/multigoal_intersection.py
+++ b/metadrive/envs/multigoal_intersection.py
@@ -236,7 +236,7 @@ def after_reset(self):
             navi.reset(self.agent, dest=self.goals[name])
             navi.update_localization(self.agent)
 
-    def after_step(self):
+    def after_step(self, *args, **kwargs):
         """Update all navigation modules."""
         # print("[DEBUG]: after_step in MultiGoalIntersectionNavigationManager")
         for name, navi in self.navigations.items():
diff --git a/metadrive/envs/scenario_env.py b/metadrive/envs/scenario_env.py
index 456ebd2fc..876524902 100644
--- a/metadrive/envs/scenario_env.py
+++ b/metadrive/envs/scenario_env.py
@@ -15,6 +15,7 @@
 from metadrive.manager.scenario_map_manager import ScenarioMapManager
 from metadrive.manager.scenario_traffic_manager import ScenarioTrafficManager
 from metadrive.policy.replay_policy import ReplayEgoCarPolicy
+from metadrive.policy.waypoint_policy import WaypointPolicy
 from metadrive.utils import get_np_random
 from metadrive.utils.math import wrap_to_pi
 
@@ -63,8 +64,8 @@
     ),
     # If set_static=True, then the agent will not "fall from the sky". This will be helpful if you want to
     # capture per-frame data for the agent (for example for collecting static sensor data).
-    # However, the physics engine will not update the position of the agent. So in the visualization, the image will be
-    # very chunky as the agent will not suddenly move to the next position for each step.
+    # However, the physics simulation of the agent will be disable too. So in the visualization, the image will be
+    # very chunky as the agent will suddenly move to the next position for each step.
     # Set to False for better visualization.
     set_static=False,
 
@@ -102,6 +103,16 @@
     use_bounding_box=False,  # Set True to use a cube in visualization to represent every dynamic objects.
 )
 
+SCENARIO_WAYPOINT_ENV_CONFIG = dict(
+    # How many waypoints will be used at each environmental step. Checkout ScenarioWaypointEnv for details.
+    waypoint_horizon=5,
+    agent_policy=WaypointPolicy,
+
+    # Must set this to True, otherwise the agent will drift away from the waypoint when doing
+    # "self.engine.step(self.config["decision_repeat"])" in "_step_simulator".
+    set_static=True,
+)
+
 
 class ScenarioEnv(BaseEnv):
     @classmethod
@@ -418,6 +429,40 @@ def set_scenario(self, scenario_data):
         self.engine.data_manager.set_scenario(scenario_data)
 
 
+class ScenarioWaypointEnv(ScenarioEnv):
+    """
+    This environment use WaypointPolicy. Even though the environment still runs in 10 HZ, we allow the external
+    waypoint generator generates up to 5 waypoints at each step (controlled by config "waypoint_horizon").
+    Say at step t, we receive 5 waypoints. Then we will set the agent states for t+1, t+2, t+3, t+4, t+5 if at
+    t+1 ~ t+4 no additional waypoints are received. Here is the full timeline:
+
+    step t=0: env.reset(), initial positions/obs are sent out. This corresponds to the t=0 or t=10 in WOMD dataset
+    (TODO: we should allow control on the meaning of the t=0)
+    step t=1: env.step(), agent receives 5 waypoints, we will record the waypoint sequences. Set agent state for t=1,
+        and send out the obs for t=1.
+    step t=2: env.step(), it's possible to get action=None, which means the agent will use the cached waypoint t=2,
+        and set the agent state for t=2. The obs for t=2 will be sent out. If new waypoints are received, we will \
+        instead set agent state to the first new waypoint.
+    step t=3: ... continues the loop and receives action=None or new waypoints.
+    step t=4: ...
+    step t=5: ...
+    step t=6: if we only receive action at t=1, and t=2~t=5 are all None, then this step will force to receive
+        new waypoints. We will set the agent state to the first new waypoint.
+
+    Most of the functions are implemented in WaypointPolicy.
+    """
+    @classmethod
+    def default_config(cls):
+        config = super(ScenarioWaypointEnv, cls).default_config()
+        config.update(SCENARIO_WAYPOINT_ENV_CONFIG)
+        return config
+
+    def _post_process_config(self, config):
+        ret = super(ScenarioWaypointEnv, self)._post_process_config(config)
+        assert config["set_static"], "Waypoint policy requires set_static=True"
+        return ret
+
+
 if __name__ == "__main__":
     env = ScenarioEnv(
         {
diff --git a/metadrive/examples/run_waypoint_policy.py b/metadrive/examples/run_waypoint_policy.py
new file mode 100644
index 000000000..32ec4c460
--- /dev/null
+++ b/metadrive/examples/run_waypoint_policy.py
@@ -0,0 +1,54 @@
+"""
+This script demonstrates how to use the Waypoint Policy, which feeds (5, 2), that is 5 waypoints, to the ego agent.
+The waypoint is in the local frame of the vehicle, where the x-axis is the forward direction of the vehicle and
+the y-axis is the left direction of the vehicle.
+"""
+import argparse
+
+import numpy as np
+
+from metadrive.engine.asset_loader import AssetLoader
+from metadrive.envs.scenario_env import ScenarioWaypointEnv
+
+if __name__ == "__main__":
+    parser = argparse.ArgumentParser()
+    parser.add_argument("--top_down", "--topdown", action="store_true")
+    parser.add_argument("--waymo", action="store_true")
+    args = parser.parse_args()
+    extra_args = dict(film_size=(2000, 2000)) if args.top_down else {}
+    asset_path = AssetLoader.asset_path
+    use_waymo = args.waymo
+
+    waypoint_horizon = 5
+
+    cfg = {
+        "map_region_size": 1024,  # use a large number if your map is toooooo big
+        "sequential_seed": True,
+        "use_render": False,
+        "data_directory": AssetLoader.file_path(asset_path, "waymo" if use_waymo else "nuscenes", unix_style=False),
+        "num_scenarios": 3 if use_waymo else 10,
+        "waypoint_horizon": waypoint_horizon,
+    }
+
+    try:
+        env = ScenarioWaypointEnv(cfg)
+        o, _ = env.reset()
+        i = 0
+        for _ in range(0, 100000):
+            if i % waypoint_horizon == 0:
+                # X-coordinate is the forward direction of the vehicle, Y-coordinate is the left of the vehicle
+                x_displacement = np.linspace(1, 6, waypoint_horizon)
+                y_displacement = np.linspace(0, 0.05, waypoint_horizon)  # pos y is left.
+                action = dict(position=np.stack([x_displacement, y_displacement], axis=1))
+
+            else:
+                action = None
+
+            o, r, tm, tc, info = env.step(actions=action)
+            env.render(mode="top_down")
+            i += 1
+            if tm or tc:
+                env.reset()
+                i = 0
+    finally:
+        env.close()
diff --git a/metadrive/policy/README.md b/metadrive/policy/README.md
index 996966cc7..31d2e6594 100644
--- a/metadrive/policy/README.md
+++ b/metadrive/policy/README.md
@@ -10,5 +10,7 @@ They are:
 
 * ReplayEgoCarPolicy(BasePolicy): Make the ego car replay the logged trajectory.
 
+* WaypointPolicy(BasePolicy): A policy that follows the waypoint.
+
 Change the `env_config["agent_policy"]` to `IDMPolicy|WaymoIDMPolicy|ReplayEgoCarPolicy` to let the ego car follow different policies.
 
diff --git a/metadrive/policy/replay_policy.py b/metadrive/policy/replay_policy.py
index f66b3097d..203e623d9 100644
--- a/metadrive/policy/replay_policy.py
+++ b/metadrive/policy/replay_policy.py
@@ -66,9 +66,8 @@ def act(self, *args, **kwargs):
 
         # If set_static, then the agent will not "fall from the sky".
         # However, the physics engine will not update the position of the agent.
-        # So in the visualization, the image will be very chunky as the agent will not suddenly move to the next
+        # So in the visualization, the image will be very chunky as the agent will suddenly move to the next
         # position for each step.
-
         if self.engine.global_config.get("set_static", False):
             self.control_object.set_static(True)
 
diff --git a/metadrive/policy/waypoint_policy.py b/metadrive/policy/waypoint_policy.py
new file mode 100644
index 000000000..1cb1bdd80
--- /dev/null
+++ b/metadrive/policy/waypoint_policy.py
@@ -0,0 +1,98 @@
+import gymnasium as gym
+import numpy as np
+
+from metadrive.policy.base_policy import BasePolicy
+from metadrive.utils import waypoint_utils
+
+
+class WaypointPolicy(BasePolicy):
+    """
+    This policy will have the trajectory data being overwritten on the fly.
+    """
+    def __init__(self, obj, seed):
+        super(WaypointPolicy, self).__init__(control_object=obj, random_seed=seed)
+        self.horizon = self.engine.global_config.get("waypoint_horizon", 10)
+        self.cache = None
+        self.cache_last_update = 0
+
+    @classmethod
+    def get_input_space(cls):
+        from metadrive.engine.engine_utils import get_global_config
+        horizon = get_global_config().get("waypoint_horizon", 10)
+        return gym.spaces.Dict(
+            dict(position=gym.spaces.Box(float("-inf"), float("inf"), shape=(horizon, 2), dtype=np.float32), )
+        )
+
+    def _convert_to_world_coordinates(self, waypoint_positions):
+        """
+        This function is used to convert the waypoint positions from the local frame to the world frame
+        """
+        obj_heading = np.array(self.control_object.heading_theta).reshape(1, ).repeat(waypoint_positions.shape[0])
+        obj_position = np.array(self.control_object.position).reshape(1, 2)
+        rotated = waypoint_utils.rotate(
+            waypoint_positions[:, 0],
+            waypoint_positions[:, 1],
+            obj_heading,
+        )
+        translated = rotated + obj_position
+        return translated
+
+    def reset(self):
+        """
+        Reset the policy
+        """
+        self.cache = None
+        self.cache_last_update = 0
+        super(WaypointPolicy, self).reset()
+
+    def act(self, agent_id):
+        assert self.engine.external_actions is not None
+        actions = self.engine.external_actions[agent_id]
+
+        if actions is not None:
+
+            waypoint_positions = actions["position"]
+            assert waypoint_positions.ndim == 2
+            assert waypoint_positions.shape[1] == 2
+
+            world_positions = self._convert_to_world_coordinates(waypoint_positions)
+            headings = np.array(waypoint_utils.reconstruct_heading(world_positions))
+
+            # dt should be 0.1s in default settings
+            dt = self.engine.global_config["physics_world_step_size"] * self.engine.global_config["decision_repeat"]
+
+            angular_velocities = np.array(waypoint_utils.reconstruct_angular_velocity(headings, dt))
+            velocities = np.array(waypoint_utils.reconstruct_velocity(world_positions, dt))
+
+            duration = len(waypoint_positions)
+            assert duration == self.horizon, "The length of the waypoint positions should be equal to the horizon: {} vs {}".format(
+                duration, self.horizon
+            )
+
+            self.cache = dict(
+                position=world_positions,
+                velocity=velocities,
+                heading=headings,
+                angular_velocity=angular_velocities,
+            )
+            self.cache_last_update = self.engine.episode_step
+
+        assert self.cache is not None
+
+        cache_index = self.engine.episode_step - self.cache_last_update
+        assert cache_index < self.horizon, "Cache index out of range: {} vs {}".format(cache_index, self.horizon)
+
+        self.control_object.set_position(self.cache["position"][cache_index])
+        self.control_object.set_velocity(self.cache["velocity"][cache_index])
+        self.control_object.set_heading_theta(self.cache["heading"][cache_index])
+        self.control_object.set_angular_velocity(self.cache["angular_velocity"][cache_index])
+
+        # A legacy code to set the static mode of the agent
+        # If set_static, then the agent will not "fall from the sky".
+        # However, the physics simulation will not apply too to the agent.
+        # So in the visualization, the image will be very chunky as the agent will suddenly move to the next
+        # position for each step.
+        if self.engine.global_config.get("set_static", False):
+            self.control_object.set_static(True)
+
+        return None  # Return None action so the base vehicle will not overwrite the steering & throttle
diff --git a/metadrive/tests/test_policy/test_waypoint_policy.py b/metadrive/tests/test_policy/test_waypoint_policy.py
new file mode 100644
index 000000000..706371789
--- /dev/null
+++ b/metadrive/tests/test_policy/test_waypoint_policy.py
@@ -0,0 +1,109 @@
+#!/usr/bin/env python
+
+import numpy as np
+
+from metadrive.constants import HELP_MESSAGE
+from metadrive.engine.asset_loader import AssetLoader
+from metadrive.envs.scenario_env import ScenarioWaypointEnv
+
+
+def test_waypoint_policy(render=False):
+    """
+    Test the waypoint policy by running a scenario in the ScenarioEnv.
+    """
+    asset_path = AssetLoader.asset_path
+    env = ScenarioWaypointEnv(
+        {
+            "sequential_seed": True,
+            "use_render": False,  # True if not args.top_down else False,
+            "data_directory": AssetLoader.file_path(asset_path, "nuscenes", unix_style=False),
+            "num_scenarios": 10,
+        }
+    )
+    o, _ = env.reset()
+    seen_seeds = set()
+    seen_seeds.add(env.engine.data_manager.current_scenario["id"])
+    # Load the information
+    scenario = env.engine.data_manager.current_scenario
+    ego_id = scenario["metadata"]["sdc_id"]
+    ego_track = scenario["tracks"][ego_id]
+    ego_traj = ego_track["state"]["position"][..., :2]
+    # ego_traj_ego = np.array([env.agent.convert_to_local_coordinates(point, env.agent.position) for point in ego_traj])
+
+    waypoint_horizon = env.engine.global_config["waypoint_horizon"]
+
+    ADEs, FDEs, flag = [], [], True
+
+    episode_step = 0
+    replay_traj = []
+    for _ in range(1, 100000):
+
+        if episode_step % waypoint_horizon == 0:
+            # prepare action:
+            # X-coordinate is the forward direction of the vehicle, Y-coordinate is the left of the vehicle
+            # Since we start with step 0, the first waypoint should be at step 1. Thus we start from step 1.
+            local_traj = np.array(
+                [
+                    env.agent.convert_to_local_coordinates(point, env.agent.position)
+                    for point in ego_traj[episode_step + 1:episode_step + waypoint_horizon + 1]
+                ]
+            )
+            action = dict(position=local_traj)
+        else:
+            action = None
+        replay_traj.append(env.agent.position)  # Store the pre-step position
+        o, r, tm, tc, info = env.step(actions=action)
+        episode_step += 1
+        if render:
+            env.render(mode="top_down")
+        if tm or tc:
+            if episode_step > 100:
+                replay_traj = np.array(replay_traj)
+
+                # Align their shape
+                if replay_traj.shape[0] > ego_traj.shape[0]:
+                    replay_traj = replay_traj[:ego_traj.shape[0]]
+                elif replay_traj.shape[0] < ego_traj.shape[0]:
+                    ego_traj = ego_traj[:replay_traj.shape[0]]
+
+                ade = np.mean(np.linalg.norm(replay_traj - ego_traj, axis=-1))
+                fde = np.linalg.norm(replay_traj[-1] - ego_traj[-1], axis=-1)
+                ADEs.append(ade)
+                FDEs.append(fde)
+                print(
+                    "For seed {}, horizon: {}, ADE: {}, FDE: {}".format(
+                        env.engine.data_manager.current_scenario["id"], episode_step, ade, fde
+                    )
+                )
+            else:
+                # An early terminated episode. Skip.
+                print(
+                    "Early terminated episode {}, horizon: {}".format(
+                        env.engine.data_manager.current_scenario["id"], episode_step
+                    )
+                )
+                pass
+
+            episode_step = 0
+            env.reset()
+            replay_traj = []
+            if env.engine.data_manager.current_scenario["id"] in seen_seeds:
+                break
+            else:
+                seen_seeds.add(env.engine.data_manager.current_scenario["id"])
+            scenario = env.engine.data_manager.current_scenario
+            ego_id = scenario["metadata"]["sdc_id"]
+            ego_track = scenario["tracks"][ego_id]
+            ego_traj = ego_track["state"]["position"][..., :2]
+
+    print(f"Mean ADE: {np.mean(ADEs)}, Mean FDE: {np.mean(FDEs)}")
+
+    mean_ade = np.mean(ADEs)
+    mean_fde = np.mean(FDEs)
+    assert mean_ade < 1e-4 and mean_fde < 1e-4
+
+    env.close()
+
+
+if __name__ == '__main__':
+    test_waypoint_policy(render=True)
diff --git a/metadrive/utils/waypoint_utils.py b/metadrive/utils/waypoint_utils.py
new file mode 100644
index 000000000..b8fee1621
--- /dev/null
+++ b/metadrive/utils/waypoint_utils.py
@@ -0,0 +1,53 @@
+import numpy as np
+
+
+def reconstruct_heading(waypoints):
+    """
+    Reconstructs the headings based on the waypoints.
+    return the yaw angle(in world coordinate), with positive value turning left and negative value turning right
+    """
+    # Calculate the headings based on the waypoints
+    headings = np.arctan2(np.diff(waypoints[:, 1]), np.diff(waypoints[:, 0]))
+    # Append the last heading to match the length of waypoints
+    headings = np.append(headings, headings[-1])
+    return headings
+
+
+def reconstruct_angular_velocity(headings, time_interval):
+    """
+    Reconstructs the angular velocities based on the headings and time interval.
+    return in rad/s(in world coordinate), with positive value turning left and negative value turning right
+    """
+    # Calculate the angular velocities
+    angular_velocities = np.diff(headings) / time_interval
+    # Append the last angular velocity to match the length of headings
+    angular_velocities = np.append(angular_velocities, angular_velocities[-1])
+    return angular_velocities
+
+
+def reconstruct_velocity(waypoints, dt):
+    """
+    Reconstructs the velocities based on the waypoints and time interval.
+    """
+    diff = np.diff(waypoints, axis=0)
+    velocitaies = diff / dt
+    # Append the last velocity to match the length of waypoints
+    velocitaies = np.append(velocitaies, velocitaies[-1].reshape(1, -1), axis=0)
+    return velocitaies
+
+
+def rotate(x, y, angle, z=None, assert_shape=True):
+    """
+    Rotate the coordinates (x, y) by the given angle in radians.
+    """
+    if assert_shape:
+        assert angle.shape == x.shape == y.shape, (angle.shape, x.shape, y.shape)
+        if z is not None:
+            assert x.shape == z.shape
+    other_x_trans = np.cos(angle) * x - np.sin(angle) * y
+    other_y_trans = np.cos(angle) * y + np.sin(angle) * x
+    if z is None:
+        output_coords = np.stack((other_x_trans, other_y_trans), axis=-1)
+    else:
+        output_coords = np.stack((other_x_trans, other_y_trans, z), axis=-1)
+    return output_coords