diff --git a/contracts/prize-pool/PrizePool.sol b/contracts/prize-pool/PrizePool.sol
index ea4155e0..a585add0 100644
--- a/contracts/prize-pool/PrizePool.sol
+++ b/contracts/prize-pool/PrizePool.sol
@@ -24,6 +24,7 @@ abstract contract PrizePool is OwnableUpgradeSafe, BaseRelayRecipient, Reentranc
   }
 
   event CapturedAward(uint256 amount);
+  event TimelockDeposited(address indexed operator, address indexed to, address indexed token, uint256 amount);
   event Deposited(address indexed operator, address indexed to, address indexed token, uint256 amount);
   event Awarded(address indexed winner, address indexed token, uint256 amount);
   event AwardedExternal(address indexed winner, address indexed token, uint256 amount);
@@ -123,6 +124,29 @@ abstract contract PrizePool is OwnableUpgradeSafe, BaseRelayRecipient, Reentranc
     return _canAwardExternal(_externalToken);
   }
 
+  function timelockDepositTo(
+    address to,
+    uint256 amount,
+    address controlledToken
+  )
+    external
+    onlyControlledToken(controlledToken)
+    nonReentrant
+  {
+    require(_hasPrizeStrategy(), "PrizePool/prize-strategy-detached");
+    _updateAwardBalance();
+
+    address operator = _msgSender();
+
+    ControlledToken(controlledToken).controllerMint(to, amount);
+    timelockBalances[operator] = timelockBalances[operator].sub(amount);
+    timelockTotalSupply = timelockTotalSupply.sub(amount);
+
+    prizeStrategy.afterTimelockDepositTo(operator, to, amount, controlledToken);
+
+    emit TimelockDeposited(operator, to, controlledToken, amount);
+  }
+
   /// @notice Deposit assets into the Prize Pool to Purchase Tickets
   /// @param to The address receiving the Tickets
   /// @param amount The amount of assets to deposit to purchase tickets
diff --git a/contracts/prize-pool/PrizeStrategyInterface.sol b/contracts/prize-pool/PrizeStrategyInterface.sol
index 03b5b95c..e1fa5141 100644
--- a/contracts/prize-pool/PrizeStrategyInterface.sol
+++ b/contracts/prize-pool/PrizeStrategyInterface.sol
@@ -13,11 +13,19 @@ interface PrizeStrategyInterface {
   function beforeTokenTransfer(address from, address to, uint256 amount, address controlledToken) external;
 
   /// @dev Inheriting contract must handle deposits into the Prize Pool and account for balance changes
-  /// @param to The address of the account who performed the deposit
+  /// @param to The address of the account who is receiving the deposit
   /// @param amount The amount of the deposit to account for
   /// @param controlledToken The address of the token that was deposited
   function afterDepositTo(address to, uint256 amount, address controlledToken) external;
 
+  /// @notice Called by the Prize Pool after a user converts their timelocked tokens into a deposit
+  /// @dev Inheriting contract must handle deposits into the Prize Pool and account for balance changes
+  /// @param operator The user whose timelock was re-deposited
+  /// @param to The address of the account who is receiving the deposit
+  /// @param amount The amount of the deposit to account for
+  /// @param controlledToken The address of the token that was deposited
+  function afterTimelockDepositTo(address operator, address to, uint256 amount, address controlledToken) external;
+
   /// @dev Inheriting contract must provide a view into the unlock timestamp for a timelocked withdrawal
   /// @param from The address of the account to withdraw from
   /// @param amount The amount of the withdrawal to account for
diff --git a/contracts/prize-strategy/PrizeStrategy.sol b/contracts/prize-strategy/PrizeStrategy.sol
index 19c44ddd..a829fd35 100644
--- a/contracts/prize-strategy/PrizeStrategy.sol
+++ b/contracts/prize-strategy/PrizeStrategy.sol
@@ -536,6 +536,32 @@ contract PrizeStrategy is PrizeStrategyStorage,
   /// @param amount The amount of collateral they deposited
   /// @param controlledToken The type of collateral they deposited
   function afterDepositTo(address to, uint256 amount, address controlledToken) external override onlyPrizePool requireNotLocked {
+    _afterDepositTo(to, amount, controlledToken);
+  }
+
+  /// @notice Called by the prize pool after a deposit has been made.
+  /// @param to The user who deposited collateral
+  /// @param amount The amount of collateral they deposited
+  /// @param controlledToken The type of collateral they deposited
+  function afterTimelockDepositTo(
+    address,
+    address to,
+    uint256 amount,
+    address controlledToken
+  )
+    external
+    override
+    onlyPrizePool
+    requireNotLocked
+  {
+    _afterDepositTo(to, amount, controlledToken);
+  }
+
+  /// @notice Called by the prize pool after a deposit has been made.
+  /// @param to The user who deposited collateral
+  /// @param amount The amount of collateral they deposited
+  /// @param controlledToken The type of collateral they deposited
+  function _afterDepositTo(address to, uint256 amount, address controlledToken) internal {
     if (controlledToken == address(ticket)) {
       uint256 toBalance = ticket.balanceOf(to);
       _accrueCredit(to, toBalance.sub(amount));
diff --git a/test/features/support/PoolEnv.js b/test/features/support/PoolEnv.js
index cde78d35..1bf52c95 100644
--- a/test/features/support/PoolEnv.js
+++ b/test/features/support/PoolEnv.js
@@ -66,6 +66,12 @@ function PoolEnv() {
     return await buidler.ethers.getContractAt('ControlledToken', ticketAddress, wallet)
   }
 
+  this.sponsorship = async function (wallet) {
+    let prizePool = await this.prizeStrategy(wallet)
+    let sponsorshipAddress = await prizePool.sponsorship()
+    return await buidler.ethers.getContractAt('ControlledToken', sponsorshipAddress, wallet)
+  }
+
   this.wallet = async function (id) {
     let wallet = this.wallets[id]
     return wallet
@@ -101,6 +107,38 @@ function PoolEnv() {
     debug(`Bought tickets`)
   }
 
+  this.timelockBuyTickets = async function ({ user, tickets }) {
+    debug(`Buying tickets with timelocked tokens...`)
+    let wallet = await this.wallet(user)
+
+    debug('wallet is ', wallet._address)
+
+    let ticket = await this.ticket(wallet)
+    let prizePool = await this.prizePool(wallet)
+
+    let amount = toWei('' + tickets)
+
+    await prizePool.timelockDepositTo(wallet._address, amount, ticket.address, this.overrides)
+
+    debug(`Bought tickets with timelocked tokens`)
+  }
+
+  this.timelockBuySponsorship = async function ({ user, sponsorship }) {
+    debug(`Buying sponsorship with timelocked tokens...`)
+    let wallet = await this.wallet(user)
+
+    debug('wallet is ', wallet._address)
+
+    let sponsorshipContract = await this.sponsorship(wallet)
+    let prizePool = await this.prizePool(wallet)
+
+    let amount = toWei('' + sponsorship)
+
+    await prizePool.timelockDepositTo(wallet._address, amount, sponsorshipContract.address, this.overrides)
+
+    debug(`Bought sponsorship with timelocked tokens`)
+  }
+
   this.buyTicketsAtTime = async function ({ user, tickets, elapsed }) {
     await this.atTime(elapsed, async () => {
       await this.buyTickets({ user, tickets })
@@ -135,6 +173,13 @@ function PoolEnv() {
     expect(await token.balanceOf(wallet._address)).to.equalish(amount, 300)
   }
 
+  this.expectUserToHaveSponsorship = async function ({ user, sponsorship }) {
+    let wallet = await this.wallet(user)
+    let sponsorshipContract = await this.sponsorship(wallet)
+    let amount = toWei(sponsorship)
+    expect(await sponsorshipContract.balanceOf(wallet._address)).to.equalish(amount, 300)
+  }
+
   this.poolAccrues = async function ({ tickets }) {
     debug(`poolAccrues(${tickets.toString()})...`)
     await this.env.cToken.accrueCustom(toWei(tickets))
diff --git a/test/features/timelockDeposit.test.js b/test/features/timelockDeposit.test.js
new file mode 100644
index 00000000..766acbe0
--- /dev/null
+++ b/test/features/timelockDeposit.test.js
@@ -0,0 +1,48 @@
+const { PoolEnv } = require('./support/PoolEnv')
+
+describe('Re-deposit Timelocked Tokens', () => {
+
+  let env
+
+  beforeEach(() => {
+    env = new PoolEnv()
+  })
+
+  describe('convert timelock to tickets', () => {
+    it('should allow the user to re-deposit timelock as tickets', async () => {
+      await env.createPool({ prizePeriodSeconds: 10, exitFee: '0.1', creditRate: '0.01' })
+      // buy at time zero so that it is considered a 'full' ticket
+      await env.buyTicketsAtTime({ user: 1, tickets: 100, elapsed: 0 })
+      await env.withdrawWithTimelockAtTime({ user: 1, tickets: 100, elapsed: 0 })
+
+      // tickets are converted to timelock
+      await env.expectUserToHaveTimelock({ user: 1, timelock: 100 })
+      await env.expectUserTimelockAvailableAt({ user: 1, elapsed: 10 })
+
+      await env.timelockBuyTickets({ user: 1, tickets: 100 })
+
+      // expect balance
+      await env.expectUserToHaveTickets({ user: 1, tickets: 100 })
+      await env.expectUserToHaveTimelock({ user: 1, timelock: 0 })
+    })
+  })
+
+  describe('convert timelock to sponsorship', () => {
+    it('should allow the user to re-deposit timelock as tickets', async () => {
+      await env.createPool({ prizePeriodSeconds: 10, exitFee: '0.1', creditRate: '0.01' })
+      // buy at time zero so that it is considered a 'full' ticket
+      await env.buyTicketsAtTime({ user: 1, tickets: 100, elapsed: 0 })
+      await env.withdrawWithTimelockAtTime({ user: 1, tickets: 100, elapsed: 0 })
+
+      // tickets are converted to timelock
+      await env.expectUserToHaveTimelock({ user: 1, timelock: 100 })
+      await env.expectUserTimelockAvailableAt({ user: 1, elapsed: 10 })
+
+      await env.timelockBuySponsorship({ user: 1, sponsorship: 100 })
+
+      // expect balance
+      await env.expectUserToHaveSponsorship({ user: 1, sponsorship: 100 })
+      await env.expectUserToHaveTimelock({ user: 1, timelock: 0 })
+    })
+  })
+})