diff --git a/paparazzi-gradle-plugin/src/main/java/app/cash/paparazzi/gradle/PaparazziPlugin.kt b/paparazzi-gradle-plugin/src/main/java/app/cash/paparazzi/gradle/PaparazziPlugin.kt
index a32cffe3de..a975737f23 100644
--- a/paparazzi-gradle-plugin/src/main/java/app/cash/paparazzi/gradle/PaparazziPlugin.kt
+++ b/paparazzi-gradle-plugin/src/main/java/app/cash/paparazzi/gradle/PaparazziPlugin.kt
@@ -139,6 +139,19 @@ class PaparazziPlugin : Plugin<Project> {
         .artifactsFor(ArtifactType.ANDROID_RES.type) { it !is ProjectComponentIdentifier }
         .artifactFiles
 
+      val localAssetDirs = project
+        .files(variant.sourceSets.flatMap { it.assetsDirectories })
+
+      // https://android.googlesource.com/platform/tools/base/+/96015063acd3455a76cdf1cc71b23b0828c0907f/build-system/gradle-core/src/main/java/com/android/build/gradle/tasks/MergeResources.kt#875
+
+      val moduleAssetDirs = variant.runtimeConfiguration
+        .artifactsFor(ArtifactType.ASSETS.type) { it is ProjectComponentIdentifier }
+        .artifactFiles
+
+      val aarAssetDirs = variant.runtimeConfiguration
+        .artifactsFor(ArtifactType.ASSETS.type) { it !is ProjectComponentIdentifier }
+        .artifactFiles
+
       val packageAwareArtifactFiles = variant.runtimeConfiguration
         .artifactsFor(ArtifactType.SYMBOL_LIST_WITH_PACKAGE_NAME.type)
         .artifactFiles
@@ -161,6 +174,8 @@ class PaparazziPlugin : Plugin<Project> {
         task.projectResourceDirs.from(localResourceDirs)
         task.moduleResourceDirs.from(moduleResourceDirs)
         task.aarExplodedDirs.from(aarExplodedDirs)
+        task.projectAssetDirs.from(localAssetDirs.plus(moduleAssetDirs))
+        task.aarAssetDirs.from(aarAssetDirs)
         task.paparazziResources.set(buildDirectory.file("intermediates/paparazzi/${variant.name}/resources.txt"))
       }
 
diff --git a/paparazzi-gradle-plugin/src/main/java/app/cash/paparazzi/gradle/PrepareResourcesTask.kt b/paparazzi-gradle-plugin/src/main/java/app/cash/paparazzi/gradle/PrepareResourcesTask.kt
index 05e6d990d3..54ee0ec275 100644
--- a/paparazzi-gradle-plugin/src/main/java/app/cash/paparazzi/gradle/PrepareResourcesTask.kt
+++ b/paparazzi-gradle-plugin/src/main/java/app/cash/paparazzi/gradle/PrepareResourcesTask.kt
@@ -54,6 +54,14 @@ abstract class PrepareResourcesTask : DefaultTask() {
   @get:PathSensitive(PathSensitivity.NONE)
   abstract val aarExplodedDirs: ConfigurableFileCollection
 
+  @get:InputFiles
+  @get:PathSensitive(PathSensitivity.NONE)
+  abstract val projectAssetDirs: ConfigurableFileCollection
+
+  @get:InputFiles
+  @get:PathSensitive(PathSensitivity.NONE)
+  abstract val aarAssetDirs: ConfigurableFileCollection
+
   @get:Input
   abstract val mergeAssetsOutputDir: Property<String>
 
@@ -111,6 +119,10 @@ abstract class PrepareResourcesTask : DefaultTask() {
         it.newLine()
         it.write(aarExplodedDirs.joinFiles(gradleUserHomeDirectory))
         it.newLine()
+        it.write(projectAssetDirs.joinFiles(projectDirectory))
+        it.newLine()
+        it.write(aarAssetDirs.joinFiles(gradleUserHomeDirectory))
+        it.newLine()
       }
   }
 }
diff --git a/paparazzi-gradle-plugin/src/test/java/app/cash/paparazzi/gradle/PaparazziPluginTest.kt b/paparazzi-gradle-plugin/src/test/java/app/cash/paparazzi/gradle/PaparazziPluginTest.kt
index d2c23f0638..f1010c6161 100644
--- a/paparazzi-gradle-plugin/src/test/java/app/cash/paparazzi/gradle/PaparazziPluginTest.kt
+++ b/paparazzi-gradle-plugin/src/test/java/app/cash/paparazzi/gradle/PaparazziPluginTest.kt
@@ -874,17 +874,17 @@ class PaparazziPluginTest {
   }
 
   @Test
-  fun verifyOpenAssets() {
-    val fixtureRoot = File("src/test/projects/open-assets")
+  fun verifyOpenAssetsLegacyAssetLoadingIsOff() {
+    val fixtureRoot = File("src/test/projects/open-assets-legacy-asset-loading-off")
 
     gradleRunner
-      .withArguments("testDebug", "--stacktrace")
+      .withArguments("consumer:testDebug", "--stacktrace")
       .runFixture(fixtureRoot) { build() }
   }
 
   @Test
-  fun openTransitiveAssets() {
-    val fixtureRoot = File("src/test/projects/open-transitive-assets")
+  fun verifyOpenAssetsLegacyAssetLoadingIsOn() {
+    val fixtureRoot = File("src/test/projects/open-assets-legacy-asset-loading-on")
 
     gradleRunner
       .withArguments("consumer:testDebug", "--stacktrace")
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/consumer/build.gradle b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/build.gradle
similarity index 72%
rename from paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/consumer/build.gradle
rename to paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/build.gradle
index c44d287f4f..59020f2c18 100644
--- a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/consumer/build.gradle
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/build.gradle
@@ -5,7 +5,7 @@ plugins {
 }
 
 android {
-  namespace 'app.cash.paparazzi.plugin.test'
+  namespace 'app.cash.paparazzi.plugin.test.consumer'
   compileSdk libs.versions.compileSdk.get() as int
   defaultConfig {
     minSdk libs.versions.minSdk.get() as int
@@ -20,6 +20,8 @@ android {
 }
 
 dependencies {
-  implementation project(':producer')
+  implementation files('libs/external.aar')
+  implementation project(':producer1')
+  implementation project(':producer2')
   testImplementation libs.truth
 }
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/libs/external.aar b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/libs/external.aar
new file mode 100644
index 0000000000..c2354a94fd
Binary files /dev/null and b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/libs/external.aar differ
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/src/main/assets/consumer/secret.txt b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/src/main/assets/consumer/secret.txt
new file mode 100644
index 0000000000..24a7421a2e
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/src/main/assets/consumer/secret.txt
@@ -0,0 +1 @@
+consumer
\ No newline at end of file
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt
new file mode 100644
index 0000000000..e99d982086
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt
@@ -0,0 +1,27 @@
+package app.cash.paparazzi.plugin.test
+
+import app.cash.paparazzi.Paparazzi
+import com.google.common.truth.Truth.assertThat
+import org.junit.Rule
+import org.junit.Test
+
+class AssetAccessTest {
+  @get:Rule
+  val paparazzi = Paparazzi()
+
+  @Test
+  fun testViews() {
+    val pairs = mapOf(
+      "consumer/secret.txt" to "consumer",
+      "producer1/secret.txt" to "producer1",
+      "producer2/secret.txt" to "producer2",
+      "external/secret.txt" to "external"
+    )
+
+    pairs.forEach { (key, value) ->
+      val contents =
+        paparazzi.context.assets.open(key).bufferedReader().use { it.readText() }
+      assertThat(contents).isEqualTo(value)
+    }
+  }
+}
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/producer/build.gradle b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer1/build.gradle
similarity index 87%
rename from paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/producer/build.gradle
rename to paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer1/build.gradle
index 85274009b5..a701fe70aa 100644
--- a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/producer/build.gradle
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer1/build.gradle
@@ -4,7 +4,7 @@ plugins {
 }
 
 android {
-  namespace 'app.cash.paparazzi.plugin.test.module'
+  namespace 'app.cash.paparazzi.plugin.test.producer1'
   compileSdk libs.versions.compileSdk.get() as int
   defaultConfig {
     minSdk libs.versions.minSdk.get() as int
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer1/src/main/assets/producer1/secret.txt b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer1/src/main/assets/producer1/secret.txt
new file mode 100644
index 0000000000..602a305e1e
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer1/src/main/assets/producer1/secret.txt
@@ -0,0 +1 @@
+producer1
\ No newline at end of file
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets/build.gradle b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer2/build.gradle
similarity index 67%
rename from paparazzi-gradle-plugin/src/test/projects/open-assets/build.gradle
rename to paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer2/build.gradle
index b85b5a58e9..35ca4059a2 100644
--- a/paparazzi-gradle-plugin/src/test/projects/open-assets/build.gradle
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer2/build.gradle
@@ -1,10 +1,10 @@
 plugins {
   id 'com.android.library'
-  id 'app.cash.paparazzi'
+  id 'kotlin-android'
 }
 
 android {
-  namespace 'app.cash.paparazzi.plugin.test'
+  namespace 'app.cash.paparazzi.plugin.test.producer2'
   compileSdk libs.versions.compileSdk.get() as int
   defaultConfig {
     minSdk libs.versions.minSdk.get() as int
@@ -13,4 +13,7 @@ android {
     sourceCompatibility = libs.versions.javaTarget.get()
     targetCompatibility = libs.versions.javaTarget.get()
   }
+  kotlinOptions {
+    jvmTarget = libs.versions.javaTarget.get()
+  }
 }
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer2/src/main/assets/producer2/secret.txt b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer2/src/main/assets/producer2/secret.txt
new file mode 100644
index 0000000000..e5c372f0e2
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/producer2/src/main/assets/producer2/secret.txt
@@ -0,0 +1 @@
+producer2
\ No newline at end of file
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/settings.gradle b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/settings.gradle
similarity index 58%
rename from paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/settings.gradle
rename to paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/settings.gradle
index 15d88b84b8..41f133f67c 100644
--- a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/settings.gradle
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-off/settings.gradle
@@ -1,4 +1,5 @@
 apply from: '../test.settings.gradle'
 
 include ':consumer'
-include ':producer'
+include ':producer1'
+include ':producer2'
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/build.gradle b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/build.gradle
new file mode 100644
index 0000000000..59020f2c18
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/build.gradle
@@ -0,0 +1,27 @@
+plugins {
+  id 'com.android.library'
+  id 'kotlin-android'
+  id 'app.cash.paparazzi'
+}
+
+android {
+  namespace 'app.cash.paparazzi.plugin.test.consumer'
+  compileSdk libs.versions.compileSdk.get() as int
+  defaultConfig {
+    minSdk libs.versions.minSdk.get() as int
+  }
+  compileOptions {
+    sourceCompatibility = libs.versions.javaTarget.get()
+    targetCompatibility = libs.versions.javaTarget.get()
+  }
+  kotlinOptions {
+    jvmTarget = libs.versions.javaTarget.get()
+  }
+}
+
+dependencies {
+  implementation files('libs/external.aar')
+  implementation project(':producer1')
+  implementation project(':producer2')
+  testImplementation libs.truth
+}
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/libs/external.aar b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/libs/external.aar
new file mode 100644
index 0000000000..c2354a94fd
Binary files /dev/null and b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/libs/external.aar differ
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/src/main/assets/consumer/secret.txt b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/src/main/assets/consumer/secret.txt
new file mode 100644
index 0000000000..24a7421a2e
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/src/main/assets/consumer/secret.txt
@@ -0,0 +1 @@
+consumer
\ No newline at end of file
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt
new file mode 100644
index 0000000000..e99d982086
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt
@@ -0,0 +1,27 @@
+package app.cash.paparazzi.plugin.test
+
+import app.cash.paparazzi.Paparazzi
+import com.google.common.truth.Truth.assertThat
+import org.junit.Rule
+import org.junit.Test
+
+class AssetAccessTest {
+  @get:Rule
+  val paparazzi = Paparazzi()
+
+  @Test
+  fun testViews() {
+    val pairs = mapOf(
+      "consumer/secret.txt" to "consumer",
+      "producer1/secret.txt" to "producer1",
+      "producer2/secret.txt" to "producer2",
+      "external/secret.txt" to "external"
+    )
+
+    pairs.forEach { (key, value) ->
+      val contents =
+        paparazzi.context.assets.open(key).bufferedReader().use { it.readText() }
+      assertThat(contents).isEqualTo(value)
+    }
+  }
+}
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/gradle.properties b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/gradle.properties
new file mode 100644
index 0000000000..a2dfe3aa9b
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/gradle.properties
@@ -0,0 +1,2 @@
+android.useAndroidX=true
+app.cash.paparazzi.legacy.asset.loading=true
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer1/build.gradle b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer1/build.gradle
new file mode 100644
index 0000000000..a701fe70aa
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer1/build.gradle
@@ -0,0 +1,19 @@
+plugins {
+  id 'com.android.library'
+  id 'kotlin-android'
+}
+
+android {
+  namespace 'app.cash.paparazzi.plugin.test.producer1'
+  compileSdk libs.versions.compileSdk.get() as int
+  defaultConfig {
+    minSdk libs.versions.minSdk.get() as int
+  }
+  compileOptions {
+    sourceCompatibility = libs.versions.javaTarget.get()
+    targetCompatibility = libs.versions.javaTarget.get()
+  }
+  kotlinOptions {
+    jvmTarget = libs.versions.javaTarget.get()
+  }
+}
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer1/src/main/assets/producer1/secret.txt b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer1/src/main/assets/producer1/secret.txt
new file mode 100644
index 0000000000..602a305e1e
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer1/src/main/assets/producer1/secret.txt
@@ -0,0 +1 @@
+producer1
\ No newline at end of file
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer2/build.gradle b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer2/build.gradle
new file mode 100644
index 0000000000..35ca4059a2
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer2/build.gradle
@@ -0,0 +1,19 @@
+plugins {
+  id 'com.android.library'
+  id 'kotlin-android'
+}
+
+android {
+  namespace 'app.cash.paparazzi.plugin.test.producer2'
+  compileSdk libs.versions.compileSdk.get() as int
+  defaultConfig {
+    minSdk libs.versions.minSdk.get() as int
+  }
+  compileOptions {
+    sourceCompatibility = libs.versions.javaTarget.get()
+    targetCompatibility = libs.versions.javaTarget.get()
+  }
+  kotlinOptions {
+    jvmTarget = libs.versions.javaTarget.get()
+  }
+}
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer2/src/main/assets/producer2/secret.txt b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer2/src/main/assets/producer2/secret.txt
new file mode 100644
index 0000000000..e5c372f0e2
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/producer2/src/main/assets/producer2/secret.txt
@@ -0,0 +1 @@
+producer2
\ No newline at end of file
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/settings.gradle b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/settings.gradle
new file mode 100644
index 0000000000..41f133f67c
--- /dev/null
+++ b/paparazzi-gradle-plugin/src/test/projects/open-assets-legacy-asset-loading-on/settings.gradle
@@ -0,0 +1,5 @@
+apply from: '../test.settings.gradle'
+
+include ':consumer'
+include ':producer1'
+include ':producer2'
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets/src/main/assets/secret.txt b/paparazzi-gradle-plugin/src/test/projects/open-assets/src/main/assets/secret.txt
deleted file mode 100644
index 0b90e2b856..0000000000
--- a/paparazzi-gradle-plugin/src/test/projects/open-assets/src/main/assets/secret.txt
+++ /dev/null
@@ -1 +0,0 @@
-sup
\ No newline at end of file
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-assets/src/test/java/app/cash/paparazzi/sample/AssetAccessTest.kt b/paparazzi-gradle-plugin/src/test/projects/open-assets/src/test/java/app/cash/paparazzi/sample/AssetAccessTest.kt
deleted file mode 100644
index b87dd39f21..0000000000
--- a/paparazzi-gradle-plugin/src/test/projects/open-assets/src/test/java/app/cash/paparazzi/sample/AssetAccessTest.kt
+++ /dev/null
@@ -1,18 +0,0 @@
-package app.cash.paparazzi.sample
-
-import app.cash.paparazzi.Paparazzi
-import com.google.common.truth.Truth.assertThat
-import org.junit.Rule
-import org.junit.Test
-
-class AssetAccessTest {
-  @get:Rule
-  val paparazzi = Paparazzi()
-
-  @Test
-  fun testViews() {
-    val contents =
-      paparazzi.context.assets.open("secret.txt").bufferedReader().use { it.readText() }
-    assertThat(contents).isEqualTo("sup")
-  }
-}
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt b/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt
deleted file mode 100644
index 42941dc88e..0000000000
--- a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/consumer/src/test/java/app/cash/paparazzi/plugin/test/AssetAccessTest.kt
+++ /dev/null
@@ -1,18 +0,0 @@
-package app.cash.paparazzi.plugin.test
-
-import app.cash.paparazzi.Paparazzi
-import com.google.common.truth.Truth.assertThat
-import org.junit.Rule
-import org.junit.Test
-
-class AssetAccessTest {
-  @get:Rule
-  val paparazzi = Paparazzi()
-
-  @Test
-  fun testViews() {
-    val contents =
-      paparazzi.context.assets.open("secret.txt").bufferedReader().use { it.readText() }
-    assertThat(contents).isEqualTo("sup")
-  }
-}
diff --git a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/producer/src/main/assets/secret.txt b/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/producer/src/main/assets/secret.txt
deleted file mode 100644
index 0b90e2b856..0000000000
--- a/paparazzi-gradle-plugin/src/test/projects/open-transitive-assets/producer/src/main/assets/secret.txt
+++ /dev/null
@@ -1 +0,0 @@
-sup
\ No newline at end of file
diff --git a/paparazzi/build.gradle b/paparazzi/build.gradle
index e6e9eaa17b..31a6939da6 100644
--- a/paparazzi/build.gradle
+++ b/paparazzi/build.gradle
@@ -110,6 +110,8 @@ def generateTestConfig = tasks.register("generateTestConfig") {
       writer.writeLine("")
       writer.writeLine("")
       writer.writeLine("")
+      writer.writeLine("")
+      writer.writeLine("")
     }
   }
 }
diff --git a/paparazzi/src/main/java/app/cash/paparazzi/Environment.kt b/paparazzi/src/main/java/app/cash/paparazzi/Environment.kt
index 442d7ba6cb..86a5555600 100644
--- a/paparazzi/src/main/java/app/cash/paparazzi/Environment.kt
+++ b/paparazzi/src/main/java/app/cash/paparazzi/Environment.kt
@@ -32,7 +32,9 @@ data class Environment(
   val resourcePackageNames: List<String>,
   val localResourceDirs: List<String>,
   val moduleResourceDirs: List<String>,
-  val libraryResourceDirs: List<String>
+  val libraryResourceDirs: List<String>,
+  val allModuleAssetDirs: List<String>,
+  val libraryAssetDirs: List<String>
 ) {
   init {
     val platformDirPath = Path.of(platformDir)
@@ -70,7 +72,9 @@ fun detectEnvironment(): Environment {
     resourcePackageNames = configLines[5].split(),
     localResourceDirs = configLines[6].split().map { projectDir.resolve(it).toString() },
     moduleResourceDirs = configLines[7].split().map { projectDir.resolve(it).toString() },
-    libraryResourceDirs = configLines[8].split().map { artifactsCacheDir.resolve(it).toString() }
+    libraryResourceDirs = configLines[8].split().map { artifactsCacheDir.resolve(it).toString() },
+    allModuleAssetDirs = configLines[9].split().map { projectDir.resolve(it).toString() },
+    libraryAssetDirs = configLines[10].split().map { artifactsCacheDir.resolve(it).toString() }
   )
 }
 
diff --git a/paparazzi/src/main/java/app/cash/paparazzi/Flags.kt b/paparazzi/src/main/java/app/cash/paparazzi/Flags.kt
index 6e628b4068..85bad341f3 100644
--- a/paparazzi/src/main/java/app/cash/paparazzi/Flags.kt
+++ b/paparazzi/src/main/java/app/cash/paparazzi/Flags.kt
@@ -3,4 +3,5 @@ package app.cash.paparazzi
 object Flags {
   const val DEBUG_LINKED_OBJECTS = "app.cash.paparazzi.debug.linked.objects"
   const val LEGACY_RESOURCE_LOADING = "app.cash.paparazzi.legacy.resource.loading"
+  const val LEGACY_ASSET_LOADING = "app.cash.paparazzi.legacy.asset.loading"
 }
diff --git a/paparazzi/src/main/java/app/cash/paparazzi/internal/PaparazziAssetRepository.kt b/paparazzi/src/main/java/app/cash/paparazzi/internal/PaparazziAssetRepository.kt
index 72bcf85e32..d6a57d2170 100644
--- a/paparazzi/src/main/java/app/cash/paparazzi/internal/PaparazziAssetRepository.kt
+++ b/paparazzi/src/main/java/app/cash/paparazzi/internal/PaparazziAssetRepository.kt
@@ -23,7 +23,10 @@ import java.io.FileNotFoundException
 import java.io.IOException
 import java.io.InputStream
 
-internal class PaparazziAssetRepository(private val assetPath: String) : AssetRepository() {
+internal class PaparazziAssetRepository(
+  private val assetPath: String,
+  private val assetDirs: List<String> = emptyList()
+) : AssetRepository() {
   @Throws(FileNotFoundException::class)
   private fun open(path: String): InputStream? {
     val asset = File(path)
@@ -39,7 +42,19 @@ internal class PaparazziAssetRepository(private val assetPath: String) : AssetRe
   override fun openAsset(
     path: String,
     mode: Int
-  ): InputStream? = open("$assetPath/$path")
+  ): InputStream? {
+    if (assetDirs.isEmpty()) {
+      return open("$assetPath/$path")
+    } else {
+      for (assetDir in assetDirs) {
+        val assetFile = open("$assetDir/$path")
+        if (assetFile != null) {
+          return assetFile
+        }
+      }
+      return null
+    }
+  }
 
   @Throws(IOException::class)
   override fun openNonAsset(
diff --git a/paparazzi/src/main/java/app/cash/paparazzi/internal/Renderer.kt b/paparazzi/src/main/java/app/cash/paparazzi/internal/Renderer.kt
index d6a14284c8..554c0a9e89 100644
--- a/paparazzi/src/main/java/app/cash/paparazzi/internal/Renderer.kt
+++ b/paparazzi/src/main/java/app/cash/paparazzi/internal/Renderer.kt
@@ -91,12 +91,20 @@ internal class Renderer(
           )
       }
 
+    val useLegacyAssetLoading = System.getProperty(Flags.LEGACY_ASSET_LOADING).toBoolean()
     sessionParamsBuilder = SessionParamsBuilder(
       layoutlibCallback = layoutlibCallback,
       logger = logger,
       frameworkResources = frameworkResources,
       projectResources = projectResources,
-      assetRepository = PaparazziAssetRepository(environment.assetsDir)
+      assetRepository = PaparazziAssetRepository(
+        assetPath = environment.assetsDir,
+        assetDirs = if (useLegacyAssetLoading) {
+          emptyList()
+        } else {
+          environment.allModuleAssetDirs + environment.libraryAssetDirs
+        }
+      )
     )
       .plusFlag(RenderParamsFlags.FLAG_DO_NOT_RENDER_ON_CREATE, true)
       .withTheme("AppTheme", true)