diff --git a/common/djangoapps/static_replace/__init__.py b/common/djangoapps/static_replace/__init__.py
index e2a8fe5069..a4a63430f5 100644
--- a/common/djangoapps/static_replace/__init__.py
+++ b/common/djangoapps/static_replace/__init__.py
@@ -114,7 +114,11 @@ def process_static_urls(text, replacement_function, data_dir=None):
         # Don't rewrite XBlock resource links.  Probably wasn't a good idea that /static
         # works for actual static assets and for magical course asset URLs....
         full_url = prefix + rest
-        if full_url.startswith(XBLOCK_STATIC_RESOURCE_PREFIX):
+
+        starts_with_static_url = full_url.startswith(unicode(settings.STATIC_URL))
+        starts_with_prefix = full_url.startswith(XBLOCK_STATIC_RESOURCE_PREFIX)
+        contains_prefix = XBLOCK_STATIC_RESOURCE_PREFIX in full_url
+        if starts_with_prefix or (starts_with_static_url and contains_prefix):
             return original
 
         return replacement_function(original, prefix, quote, rest)
diff --git a/common/djangoapps/static_replace/test/test_static_replace.py b/common/djangoapps/static_replace/test/test_static_replace.py
index 906ee28c78..1b90e5da1f 100644
--- a/common/djangoapps/static_replace/test/test_static_replace.py
+++ b/common/djangoapps/static_replace/test/test_static_replace.py
@@ -4,6 +4,7 @@
 import ddt
 import re
 
+from django.test import override_settings
 from django.utils.http import urlquote, urlencode
 from urlparse import urlparse, urlunparse, parse_qsl
 from PIL import Image
@@ -211,6 +212,22 @@ def test_static_url_with_xblock_resource(mock_modulestore, mock_storage):
     assert_equals(post_text, replace_static_urls(pre_text, DATA_DIRECTORY, COURSE_KEY))
 
 
+@patch('static_replace.staticfiles_storage', autospec=True)
+@patch('static_replace.modulestore', autospec=True)
+@override_settings(STATIC_URL='https://example.com/static/')
+def test_static_url_with_xblock_resource_on_cdn(mock_modulestore, mock_storage):
+    """
+    Make sure that for URLs with XBlock resource URL, which start with /static/,
+    we don't rewrite them, even if these are served from an absolute URL like a CDN.
+    """
+    mock_storage.exists.return_value = False
+    mock_modulestore.return_value = Mock(MongoModuleStore)
+
+    pre_text = 'EMBED src ="https://example.com/static/xblock/resources/tehehe.xblock/public/images/woo.png"'
+    post_text = pre_text
+    assert_equals(post_text, replace_static_urls(pre_text, DATA_DIRECTORY, COURSE_KEY))
+
+
 @ddt.ddt
 class CanonicalContentTest(SharedModuleStoreTestCase):
     """