diff --git a/src/blenderbim/blenderbim/core/drawing.py b/src/blenderbim/blenderbim/core/drawing.py
index 12bfcf0950..6cc977c67c 100644
--- a/src/blenderbim/blenderbim/core/drawing.py
+++ b/src/blenderbim/blenderbim/core/drawing.py
@@ -328,8 +328,9 @@ def update_drawing_name(ifc, drawing_tool, drawing=None, name=None):
     if old_location != new_location:
         ifc.run("document.edit_reference", reference=reference, attributes={"Location": new_location})
         resolved_old_location = ifc.resolve_uri(old_location)
+        resolved_new_location = ifc.resolve_uri(new_location)
         if drawing_tool.does_file_exist(resolved_old_location):
-            drawing_tool.move_file(resolved_old_location, ifc.resolve_uri(new_location))
+            drawing_tool.move_file(resolved_old_location, resolved_new_location)
 
         for reference in drawing_tool.get_references_with_location(old_location):
             ifc.run("document.edit_reference", reference=reference, attributes={"Location": new_location})
@@ -337,7 +338,7 @@ def update_drawing_name(ifc, drawing_tool, drawing=None, name=None):
             if sheet:
                 uri = ifc.resolve_uri(drawing_tool.get_document_uri(sheet, "LAYOUT"))
                 if drawing_tool.does_file_exist(uri):
-                    drawing_tool.update_embedded_svg_location(uri, old_location, new_location)
+                    drawing_tool.update_embedded_svg_location(uri, reference, resolved_new_location)
 
         if drawing_tool.is_editing_sheets():
             drawing_tool.import_sheets()
diff --git a/src/blenderbim/blenderbim/tool/drawing.py b/src/blenderbim/blenderbim/tool/drawing.py
index f38dd0a424..4059dab70f 100644
--- a/src/blenderbim/blenderbim/tool/drawing.py
+++ b/src/blenderbim/blenderbim/tool/drawing.py
@@ -40,6 +40,7 @@ import blenderbim.bim.module.drawing.annotation as annotation
 import blenderbim.bim.module.drawing.helper as helper
 from blenderbim.bim.module.drawing.data import FONT_SIZES, DecoratorData
 from blenderbim.bim.module.drawing.prop import get_diagram_scales, BOX_ALIGNMENT_POSITIONS, ANNOTATION_TYPES_DATA
+from lxml import etree
 from mathutils import Vector
 from fractions import Fraction
 import collections
@@ -1381,12 +1382,17 @@ class Drawing(blenderbim.core.tool.Drawing):
         return [r for r in tool.Ifc.get().by_type("IfcDocumentReference") if r.Location == location]
 
     @classmethod
-    def update_embedded_svg_location(cls, uri, old_location, new_location):
-        with open(uri, "r") as f:
-            svg = f.read()
-        svg = svg.replace(os.path.basename(old_location), os.path.basename(new_location))
-        with open(uri, "w") as f:
-            f.write(svg)
+    def update_embedded_svg_location(cls, uri, reference, new_location):
+        tree = etree.parse(uri)
+        root = tree.getroot()
+        rel_location = os.path.relpath(new_location, os.path.dirname(uri))
+
+        for g in root.findall('.//{http://www.w3.org/2000/svg}g[@data-type="drawing"][@data-id="' + str(reference.id()) + '"]'):
+            for foreground in g.findall('.//{http://www.w3.org/2000/svg}image[@data-type="foreground"]'):
+                foreground.attrib['{http://www.w3.org/1999/xlink}href'] = rel_location
+            for background in g.findall('.//{http://www.w3.org/2000/svg}image[@data-type="background"]'):
+                background.attrib['{http://www.w3.org/1999/xlink}href'] = rel_location[0:-4] + "-underlay.png"
+        tree.write(uri, pretty_print=True, xml_declaration=True, encoding="utf-8")
 
     @classmethod
     def get_reference_description(cls, reference):