diff --git a/lms/services/course.py b/lms/services/course.py
index 8976ea1ff3..129a8135fb 100644
--- a/lms/services/course.py
+++ b/lms/services/course.py
@@ -69,8 +69,8 @@ def get_from_launch(self, product_family: Family, lti_params) -> Course:
             if product_family == Family.CANVAS:
                 extra = {
                     "canvas": {
-                        "custom_canvas_course_id": lti_params.get(
-                            "custom_canvas_course_id"
+                        "custom_canvas_course_id": self._get_api_id_from_launch(
+                            lti_params
                         )
                     }
                 }
@@ -315,6 +315,7 @@ def _upsert_lms_course(self, course: Course, lti_params: LTIParams) -> LMSCourse
         ).get("context_memberships_url")
 
         course_starts_at, course_ends_at = self._get_course_dates(lti_params)
+        lms_api_course_id = self._get_api_id_from_launch(lti_params)
 
         lms_course = bulk_upsert(
             self._db,
@@ -328,6 +329,7 @@ def _upsert_lms_course(self, course: Course, lti_params: LTIParams) -> LMSCourse
                     "lti_context_memberships_url": lti_context_membership_url,
                     "starts_at": course_starts_at,
                     "ends_at": course_ends_at,
+                    "lms_api_course_id": lms_api_course_id,
                 }
             ],
             index_elements=["h_authority_provided_id"],
@@ -337,6 +339,7 @@ def _upsert_lms_course(self, course: Course, lti_params: LTIParams) -> LMSCourse
                 "lti_context_memberships_url",
                 "starts_at",
                 "ends_at",
+                "lms_api_course_id",
             ],
         ).one()
         bulk_upsert(
@@ -444,6 +447,15 @@ def _get_course_dates(
 
         return course_starts_at, course_ends_at
 
+    def _get_api_id_from_launch(self, lti_params: LTIParams) -> str | None:
+        """Get the API ID from the launch params.
+
+        In this context API ID applies to the LMS specific propietary API ID as opposed to any LTI ID.
+
+        Canvas only for now.
+        """
+        return lti_params.get("custom_canvas_course_id")
+
 
 def course_service_factory(_context, request):
     return CourseService(
diff --git a/tests/unit/lms/services/course_test.py b/tests/unit/lms/services/course_test.py
index fab386687e..aec5afe527 100644
--- a/tests/unit/lms/services/course_test.py
+++ b/tests/unit/lms/services/course_test.py
@@ -169,6 +169,10 @@ def test_get_from_launch_when_new_and_historical_course_exists(
         "custom_course_ends, course_ends_at",
         [(None, None), ("2022-01-01T00:00:00Z", datetime(2022, 1, 1, tzinfo=UTC))],
     )
+    @pytest.mark.parametrize(
+        "custom_canvas_api_id",
+        [None, "API ID"],
+    )
     def test_upsert_course(
         self,
         svc,
@@ -180,9 +184,11 @@ def test_upsert_course(
         course_starts_at,
         custom_course_ends,
         course_ends_at,
+        custom_canvas_api_id,
     ):
         lti_params["custom_course_starts"] = custom_course_starts
         lti_params["custom_course_ends"] = custom_course_ends
+        lti_params["custom_canvas_course_id"] = custom_canvas_api_id
 
         course = svc.upsert_course(
             lti_params=lti_params,
@@ -218,6 +224,7 @@ def test_upsert_course(
                             "lti_context_memberships_url": None,
                             "starts_at": course_starts_at,
                             "ends_at": course_ends_at,
+                            "lms_api_course_id": custom_canvas_api_id,
                         }
                     ],
                     index_elements=["h_authority_provided_id"],
@@ -227,6 +234,7 @@ def test_upsert_course(
                         "lti_context_memberships_url",
                         "starts_at",
                         "ends_at",
+                        "lms_api_course_id",
                     ],
                 ),
                 call().one(),