diff --git a/common/djangoapps/static_replace/__init__.py b/common/djangoapps/static_replace/__init__.py
index 6bd8125580..bf27f5b38d 100644
--- a/common/djangoapps/static_replace/__init__.py
+++ b/common/djangoapps/static_replace/__init__.py
@@ -77,18 +77,19 @@ def replace_static_urls(text, data_directory, course_namespace=None):
         # course_namespace is not None, then use studio style urls
         if course_namespace is not None and not isinstance(modulestore(), XMLModuleStore):
             url = StaticContent.convert_legacy_static_url(rest, course_namespace)
-        # If we're in debug mode, and the file as requested exists, then don't change the links
-        elif (settings.DEBUG and finders.find(rest, True)):
-            return original
-        # Otherwise, look the file up in staticfiles_storage without the data directory
+        # Otherwise, look the file up in staticfiles_storage, and append the data directory if needed
         else:
+            course_path = "/".join((data_directory, rest))
             try:
-                url = staticfiles_storage.url(rest)
+                if staticfiles_storage.exists(rest):
+                    url = staticfiles_storage.url(rest)
+                else:
+                    url = staticfiles_storage.url(course_path)
             # And if that fails, assume that it's course content, and add manually data directory
             except Exception as err:
                 log.warning("staticfiles_storage couldn't find path {0}: {1}".format(
                     rest, str(err)))
-                url = "".join([prefix, data_directory, '/', rest])
+                url = "".join([prefix, course_path])
 
         return "".join([quote, url, quote])
 
diff --git a/common/djangoapps/static_replace/test/test_static_replace.py b/common/djangoapps/static_replace/test/test_static_replace.py
index 50c0fbd246..98c29ca2f9 100644
--- a/common/djangoapps/static_replace/test/test_static_replace.py
+++ b/common/djangoapps/static_replace/test/test_static_replace.py
@@ -24,15 +24,24 @@ def test_multi_replace():
     )
 
 
-@patch('static_replace.finders')
-@patch('static_replace.settings')
-def test_debug_no_modify(mock_settings, mock_finders):
-    mock_settings.DEBUG = True
-    mock_finders.find.return_value = True
+@patch('static_replace.staticfiles_storage')
+def test_storage_url_exists(mock_storage):
+    mock_storage.exists.return_value = True
+    mock_storage.url.return_value = '/static/file.png'
 
-    assert_equals(STATIC_SOURCE, replace_static_urls(STATIC_SOURCE, DATA_DIRECTORY))
+    assert_equals('"/static/file.png"', replace_static_urls(STATIC_SOURCE, DATA_DIRECTORY))
+    mock_storage.exists.called_once_with('file.png')
+    mock_storage.url.called_once_with('data_dir/file.png')
 
-    mock_finders.find.assert_called_once_with('file.png', True)
+
+@patch('static_replace.staticfiles_storage')
+def test_storage_url_not_exists(mock_storage):
+    mock_storage.exists.return_value = False
+    mock_storage.url.return_value = '/static/data_dir/file.png'
+
+    assert_equals('"/static/data_dir/file.png"', replace_static_urls(STATIC_SOURCE, DATA_DIRECTORY))
+    mock_storage.exists.called_once_with('file.png')
+    mock_storage.url.called_once_with('file.png')
 
 
 @patch('static_replace.StaticContent')
@@ -59,7 +68,10 @@ def test_mongo_filestore(mock_modulestore, mock_static_content):
 @patch('static_replace.staticfiles_storage')
 def test_data_dir_fallback(mock_storage, mock_modulestore, mock_settings):
     mock_modulestore.return_value = Mock(XMLModuleStore)
-    mock_settings.DEBUG = False
     mock_storage.url.side_effect = Exception
 
+    mock_storage.exists.return_value = True
+    assert_equals('"/static/data_dir/file.png"', replace_static_urls(STATIC_SOURCE, DATA_DIRECTORY))
+
+    mock_storage.exists.return_value = False
     assert_equals('"/static/data_dir/file.png"', replace_static_urls(STATIC_SOURCE, DATA_DIRECTORY))