diff --git a/modules/@angular/compiler-cli/src/ng_host.ts b/modules/@angular/compiler-cli/src/ng_host.ts
index e1d975033e..50c437bb04 100644
--- a/modules/@angular/compiler-cli/src/ng_host.ts
+++ b/modules/@angular/compiler-cli/src/ng_host.ts
@@ -6,7 +6,7 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-import {AotCompilerHost, StaticSymbol} from '@angular/compiler';
+import {AotCompilerHost, AssetUrl, StaticSymbol} from '@angular/compiler';
 import {AngularCompilerOptions, MetadataCollector, ModuleMetadata} from '@angular/tsc-wrapped';
 import * as fs from 'fs';
 import * as path from 'path';
@@ -60,6 +60,20 @@ export class NgHost implements AotCompilerHost {
     return resolved ? resolved.resolvedFileName : null;
   };
 
+  protected normalizeAssetUrl(url: string): string {
+    const assetUrl = AssetUrl.parse(url);
+    const path = assetUrl ? `${assetUrl.packageName}/${assetUrl.modulePath}` : null;
+    return this.getCanonicalFileName(path);
+  }
+
+  protected resolveAssetUrl(url: string, containingFile: string): string {
+    const assetUrl = this.normalizeAssetUrl(url);
+    if (assetUrl) {
+      return this.getCanonicalFileName(this.resolveImportToFile(assetUrl, containingFile));
+    }
+    return url;
+  }
+
   /**
    * We want a moduleId that will appear in import statements in the generated code.
    * These need to be in a form that system.js can load, so absolute file paths don't work.
@@ -76,6 +90,9 @@ export class NgHost implements AotCompilerHost {
    * NOTE: (*) the relative path is computed depending on `isGenDirChildOfRootDir`.
    */
   getImportPath(containingFile: string, importedFile: string): string {
+    importedFile = this.resolveAssetUrl(importedFile, containingFile);
+    containingFile = this.resolveAssetUrl(containingFile, '');
+
     // If a file does not yet exist (because we compile it later), we still need to
     // assume it exists it so that the `resolve` method works!
     if (!this.compilerHost.fileExists(importedFile)) {
diff --git a/modules/@angular/compiler-cli/src/path_mapped_ng_host.ts b/modules/@angular/compiler-cli/src/path_mapped_ng_host.ts
index d37ec855ea..863952cf7d 100644
--- a/modules/@angular/compiler-cli/src/path_mapped_ng_host.ts
+++ b/modules/@angular/compiler-cli/src/path_mapped_ng_host.ts
@@ -70,6 +70,9 @@ export class PathMappedNgHost extends NgHost {
    * they are resolvable by the moduleResolution strategy from the CompilerHost.
    */
   getImportPath(containingFile: string, importedFile: string): string {
+    importedFile = this.resolveAssetUrl(importedFile, containingFile);
+    containingFile = this.resolveAssetUrl(containingFile, '');
+
     if (this.options.traceResolution) {
       console.log(
           'getImportPath from containingFile', containingFile, 'to importedFile', importedFile);
diff --git a/modules/@angular/compiler/src/aot/static_reflector.ts b/modules/@angular/compiler/src/aot/static_reflector.ts
index a026b8a710..2efca94244 100644
--- a/modules/@angular/compiler/src/aot/static_reflector.ts
+++ b/modules/@angular/compiler/src/aot/static_reflector.ts
@@ -7,6 +7,7 @@
  */
 
 import {Attribute, Component, ContentChild, ContentChildren, Directive, Host, HostBinding, HostListener, Inject, Injectable, Input, NgModule, Optional, Output, Pipe, Self, SkipSelf, ViewChild, ViewChildren, animate, group, keyframes, sequence, state, style, transition, trigger} from '@angular/core';
+import {AssetUrl} from '../output/path_util';
 import {ReflectorReader} from '../private_import_core';
 import {AotCompilerHost} from './compiler_host';
 import {StaticSymbol} from './static_symbol';
@@ -212,6 +213,11 @@ export class StaticReflector implements ReflectorReader {
     return result;
   }
 
+  private normalizeAssetUrl(url: string): string {
+    const assetUrl = AssetUrl.parse(url);
+    return assetUrl ? `${assetUrl.packageName}@${assetUrl.modulePath}` : null;
+  }
+
   private resolveExportedSymbol(filePath: string, symbolName: string): StaticSymbol {
     const resolveModule = (moduleName: string): string => {
       const resolvedModulePath = this.host.resolveImportToFile(moduleName, filePath);
@@ -269,6 +275,10 @@ export class StaticReflector implements ReflectorReader {
       return symbol;
     }
     try {
+      const assetUrl = this.normalizeAssetUrl(module);
+      if (assetUrl) {
+        module = assetUrl;
+      }
       const filePath = this.host.resolveImportToFile(module, containingFile);
 
       if (!filePath) {
diff --git a/modules/@angular/compiler/src/identifiers.ts b/modules/@angular/compiler/src/identifiers.ts
index 0f6c664758..ab9fd5889a 100644
--- a/modules/@angular/compiler/src/identifiers.ts
+++ b/modules/@angular/compiler/src/identifiers.ts
@@ -8,7 +8,6 @@
 
 import {ANALYZE_FOR_ENTRY_COMPONENTS, AnimationTransitionEvent, ChangeDetectionStrategy, ChangeDetectorRef, ComponentFactory, ComponentFactoryResolver, ComponentRef, ElementRef, Injector, LOCALE_ID, NgModuleFactory, QueryList, RenderComponentType, Renderer, SecurityContext, SimpleChange, TRANSLATIONS_FORMAT, TemplateRef, ViewContainerRef, ViewEncapsulation} from '@angular/core';
 
-import {StaticSymbol, isStaticSymbol} from './aot/static_symbol';
 import {CompileIdentifierMetadata, CompileTokenMetadata} from './compile_metadata';
 import {AnimationGroupPlayer, AnimationKeyframe, AnimationSequencePlayer, AnimationStyles, AnimationTransition, AppView, ChangeDetectorStatus, CodegenComponentFactoryResolver, ComponentRef_, DebugAppView, DebugContext, NgModuleInjector, NoOpAnimationPlayer, StaticNodeDebugInfo, TemplateRef_, UNINITIALIZED, ValueUnwrapper, ViewContainer, ViewType, balanceAnimationKeyframes, clearStyles, collectAndResolveStyles, devModeEqual, prepareFinalAnimationStyles, reflector, registerModuleFactory, renderStyles, view_utils} from './private_import_core';
 
@@ -340,21 +339,19 @@ export class Identifiers {
 
 export function assetUrl(pkg: string, path: string = null, type: string = 'src'): string {
   if (path == null) {
-    return `@angular/${pkg}/index`;
+    return `asset:@angular/lib/${pkg}/index`;
   } else {
-    return `@angular/${pkg}/${type}/${path}`;
+    return `asset:@angular/lib/${pkg}/src/${path}`;
   }
 }
 
 export function resolveIdentifier(identifier: IdentifierSpec) {
-  let moduleUrl = identifier.moduleUrl;
-  const reference =
-      reflector.resolveIdentifier(identifier.name, identifier.moduleUrl, identifier.runtime);
-  if (isStaticSymbol(reference)) {
-    moduleUrl = reference.filePath;
-  }
-  return new CompileIdentifierMetadata(
-      {name: identifier.name, moduleUrl: moduleUrl, reference: reference});
+  return new CompileIdentifierMetadata({
+    name: identifier.name,
+    moduleUrl: identifier.moduleUrl,
+    reference:
+        reflector.resolveIdentifier(identifier.name, identifier.moduleUrl, identifier.runtime)
+  });
 }
 
 export function identifierToken(identifier: CompileIdentifierMetadata): CompileTokenMetadata {
diff --git a/modules/@angular/compiler/src/output/path_util.ts b/modules/@angular/compiler/src/output/path_util.ts
index e8dfb24391..9f1c30efd3 100644
--- a/modules/@angular/compiler/src/output/path_util.ts
+++ b/modules/@angular/compiler/src/output/path_util.ts
@@ -6,9 +6,30 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
+// asset:<package-name>/<realm>/<path-to-module>
+const _ASSET_URL_RE = /asset:([^\/]+)\/([^\/]+)\/(.+)/;
+
 /**
  * Interface that defines how import statements should be generated.
  */
 export abstract class ImportGenerator {
+  static parseAssetUrl(url: string): AssetUrl { return AssetUrl.parse(url); }
+
   abstract getImportPath(moduleUrlStr: string, importedUrlStr: string): string;
 }
+
+export class AssetUrl {
+  static parse(url: string, allowNonMatching: boolean = true): AssetUrl {
+    const match = url.match(_ASSET_URL_RE);
+    if (match !== null) {
+      return new AssetUrl(match[1], match[2], match[3]);
+    }
+    if (allowNonMatching) {
+      return null;
+    }
+    throw new Error(`Url ${url} is not a valid asset: url`);
+  }
+
+  constructor(public packageName: string, public firstLevelDir: string, public modulePath: string) {
+  }
+}
diff --git a/modules/@angular/compiler/src/output/ts_emitter.ts b/modules/@angular/compiler/src/output/ts_emitter.ts
index e0628cd3f3..30ab03e794 100644
--- a/modules/@angular/compiler/src/output/ts_emitter.ts
+++ b/modules/@angular/compiler/src/output/ts_emitter.ts
@@ -14,7 +14,7 @@ import {AbstractEmitterVisitor, CATCH_ERROR_VAR, CATCH_STACK_VAR, EmitterVisitor
 import * as o from './output_ast';
 import {ImportGenerator} from './path_util';
 
-const _debugModuleUrl = '/debug/lib';
+const _debugModuleUrl = 'asset://debug/lib';
 
 export function debugOutputAstAsTypeScript(ast: o.Statement | o.Expression | o.Type | any[]):
     string {
diff --git a/modules/@angular/compiler/src/url_resolver.ts b/modules/@angular/compiler/src/url_resolver.ts
index 8d9c031c08..84058063be 100644
--- a/modules/@angular/compiler/src/url_resolver.ts
+++ b/modules/@angular/compiler/src/url_resolver.ts
@@ -10,6 +10,9 @@ import {Inject, Injectable, PACKAGE_ROOT_URL} from '@angular/core';
 
 import {isBlank, isPresent} from './facade/lang';
 
+
+const _ASSET_SCHEME = 'asset:';
+
 /**
  * Create a {@link UrlResolver} with no package prefix.
  */
@@ -18,7 +21,7 @@ export function createUrlResolverWithoutPackagePrefix(): UrlResolver {
 }
 
 export function createOfflineCompileUrlResolver(): UrlResolver {
-  return new UrlResolver('.');
+  return new UrlResolver(_ASSET_SCHEME);
 }
 
 /**
@@ -67,9 +70,14 @@ export class UrlResolver {
     if (isPresent(prefix) && isPresent(resolvedParts) &&
         resolvedParts[_ComponentIndex.Scheme] == 'package') {
       let path = resolvedParts[_ComponentIndex.Path];
-      prefix = prefix.replace(/\/+$/, '');
-      path = path.replace(/^\/+/, '');
-      return `${prefix}/${path}`;
+      if (this._packagePrefix === _ASSET_SCHEME) {
+        const pathSegements = path.split(/\//);
+        resolvedUrl = `asset:${pathSegements[0]}/lib/${pathSegements.slice(1).join('/')}`;
+      } else {
+        prefix = prefix.replace(/\/+$/, '');
+        path = path.replace(/^\/+/, '');
+        return `${prefix}/${path}`;
+      }
     }
     return resolvedUrl;
   }
diff --git a/modules/@angular/compiler/test/output/js_emitter_spec.ts b/modules/@angular/compiler/test/output/js_emitter_spec.ts
index f85c21d0d0..8ec1565000 100644
--- a/modules/@angular/compiler/test/output/js_emitter_spec.ts
+++ b/modules/@angular/compiler/test/output/js_emitter_spec.ts
@@ -13,8 +13,8 @@ import {beforeEach, describe, expect, it} from '@angular/core/testing/testing_in
 
 import {SimpleJsImportGenerator} from './output_emitter_util';
 
-const someModuleUrl = 'somePackage/somePath';
-const anotherModuleUrl = 'somePackage/someOtherPath';
+const someModuleUrl = 'asset:somePackage/lib/somePath';
+const anotherModuleUrl = 'asset:somePackage/lib/someOtherPath';
 
 const sameModuleIdentifier =
     new CompileIdentifierMetadata({name: 'someLocalId', moduleUrl: someModuleUrl});
diff --git a/modules/@angular/compiler/test/output/output_emitter_util.ts b/modules/@angular/compiler/test/output/output_emitter_util.ts
index c510b794cf..83b445a94a 100644
--- a/modules/@angular/compiler/test/output/output_emitter_util.ts
+++ b/modules/@angular/compiler/test/output/output_emitter_util.ts
@@ -22,7 +22,7 @@ export class ExternalClass {
 
 const testDataIdentifier = new CompileIdentifierMetadata({
   name: 'ExternalClass',
-  moduleUrl: `@angular/compiler/test/output/output_emitter_util`,
+  moduleUrl: `asset:@angular/lib/compiler/test/output/output_emitter_util`,
   reference: ExternalClass
 });
 
@@ -253,5 +253,12 @@ function createOperatorFn(op: o.BinaryOperator) {
 }
 
 export class SimpleJsImportGenerator implements ImportGenerator {
-  getImportPath(moduleUrlStr: string, importedUrlStr: string): string { return importedUrlStr; }
+  getImportPath(moduleUrlStr: string, importedUrlStr: string): string {
+    const importedAssetUrl = ImportGenerator.parseAssetUrl(importedUrlStr);
+    if (importedAssetUrl) {
+      return `${importedAssetUrl.packageName}/${importedAssetUrl.modulePath}`;
+    } else {
+      return importedUrlStr;
+    }
+  }
 }
diff --git a/modules/@angular/compiler/test/output/ts_emitter_spec.ts b/modules/@angular/compiler/test/output/ts_emitter_spec.ts
index 5f221eb927..86d65d53e4 100644
--- a/modules/@angular/compiler/test/output/ts_emitter_spec.ts
+++ b/modules/@angular/compiler/test/output/ts_emitter_spec.ts
@@ -13,8 +13,8 @@ import {beforeEach, describe, expect, it} from '@angular/core/testing/testing_in
 
 import {SimpleJsImportGenerator} from './output_emitter_util';
 
-const someModuleUrl = 'somePackage/somePath';
-const anotherModuleUrl = 'somePackage/someOtherPath';
+const someModuleUrl = 'asset:somePackage/lib/somePath';
+const anotherModuleUrl = 'asset:somePackage/lib/someOtherPath';
 
 const sameModuleIdentifier =
     new CompileIdentifierMetadata({name: 'someLocalId', moduleUrl: someModuleUrl});
diff --git a/modules/@angular/compiler/test/style_url_resolver_spec.ts b/modules/@angular/compiler/test/style_url_resolver_spec.ts
index 700a8631ae..8f954bb946 100644
--- a/modules/@angular/compiler/test/style_url_resolver_spec.ts
+++ b/modules/@angular/compiler/test/style_url_resolver_spec.ts
@@ -91,6 +91,9 @@ export function main() {
     it('should resolve package: urls',
        () => { expect(isStyleUrlResolvable('package:someUrl.css')).toBe(true); });
 
+    it('should resolve asset: urls',
+       () => { expect(isStyleUrlResolvable('asset:someUrl.css')).toBe(true); });
+
     it('should not resolve empty urls', () => {
       expect(isStyleUrlResolvable(null)).toBe(false);
       expect(isStyleUrlResolvable('')).toBe(false);
diff --git a/modules/@angular/compiler/test/url_resolver_spec.ts b/modules/@angular/compiler/test/url_resolver_spec.ts
index b6a538d04b..67f90bcd3a 100644
--- a/modules/@angular/compiler/test/url_resolver_spec.ts
+++ b/modules/@angular/compiler/test/url_resolver_spec.ts
@@ -106,6 +106,16 @@ export function main() {
       });
     });
 
+    describe('asset urls', () => {
+      let resolver: UrlResolver;
+      beforeEach(() => { resolver = createOfflineCompileUrlResolver(); });
+
+      it('should resolve package: urls into asset: urls', () => {
+        expect(resolver.resolve(null, 'package:somePkg/somePath'))
+            .toEqual('asset:somePkg/lib/somePath');
+      });
+    });
+
     describe('corner and error cases', () => {
       it('should encode URLs before resolving',
          () => {