diff --git a/lib/propshaft/compiler/js_asset_urls.rb b/lib/propshaft/compiler/js_asset_urls.rb
new file mode 100644
index 0000000..a091fb8
--- /dev/null
+++ b/lib/propshaft/compiler/js_asset_urls.rb
@@ -0,0 +1,46 @@
+# frozen_string_literal: true
+
+require "propshaft/compiler"
+
+class Propshaft::Compiler::JsAssetUrls < Propshaft::Compiler
+  ASSET_URL_PATTERN = %r{rails_asset_url\(\s*["']?(?!(?:\#|%23|data|http|//))([^"'\s?#)]+)([#?][^"')]+)?\s*["']?\)}
+
+  def compile(asset, input)
+    input.gsub(ASSET_URL_PATTERN) { asset_url(resolve_path(asset.logical_path.dirname, ::Regexp.last_match(1)), asset.logical_path, ::Regexp.last_match(2), ::Regexp.last_match(1)) }
+  end
+
+  def referenced_by(asset, references: Set.new)
+    asset.content.scan(ASSET_URL_PATTERN).each do |referenced_asset_url, _|
+      referenced_asset = load_path.find(resolve_path(asset.logical_path.dirname, referenced_asset_url))
+
+      if referenced_asset && references.exclude?(referenced_asset)
+        references << referenced_asset
+        references.merge referenced_by(referenced_asset, references: references)
+      end
+    end
+
+    references
+  end
+
+  private
+
+  def resolve_path(directory, filename)
+    if filename.start_with?("../")
+      Pathname.new(directory + filename).relative_path_from("").to_s
+    elsif filename.start_with?("/")
+      filename.delete_prefix("/").to_s
+    else
+      (directory + filename.delete_prefix("./")).to_s
+    end
+  end
+
+  def asset_url(resolved_path, logical_path, fingerprint, pattern)
+    asset = load_path.find(resolved_path)
+    if asset
+      %["#{url_prefix}/#{asset.digested_path}#{fingerprint}"]
+    else
+      Propshaft.logger.warn("Unable to resolve '#{pattern}' for missing asset '#{resolved_path}' in #{logical_path}")
+      %["#{pattern}"]
+    end
+  end
+end
diff --git a/test/propshaft/compiler/js_asset_urls_test.rb b/test/propshaft/compiler/js_asset_urls_test.rb
new file mode 100644
index 0000000..c6c5074
--- /dev/null
+++ b/test/propshaft/compiler/js_asset_urls_test.rb
@@ -0,0 +1,65 @@
+# frozen_string_literal: true
+
+require "test_helper"
+require "minitest/mock"
+require "propshaft/asset"
+require "propshaft/assembly"
+require "propshaft/compilers"
+
+module Propshaft
+  class Compiler
+    class JsAssetUrlsTest < ActiveSupport::TestCase
+      setup do
+        @options = ActiveSupport::OrderedOptions.new.tap do |config|
+          config.paths = [Pathname.new("#{__dir__}/../../fixtures/assets/vendor")]
+          config.output_path = Pathname.new("#{__dir__}/../../fixtures/output")
+          config.prefix = "/assets"
+        end
+      end
+
+      test "the asset exists" do
+        js_content = <<~JS
+          export default class extends Controller {
+            init() {
+              this.img = rails_asset_url("/foobar/source/file.svg");
+            }
+          }
+        JS
+
+        compiled = compile_asset_with_content(js_content)
+
+        assert_match(%r{this\.img = "/assets/foobar/source/file-[a-z0-9]{8}.svg"\;}, compiled)
+      end
+
+      test "the asset does not exist" do
+        js_content = <<~JS
+          export default class extends Controller {
+            init() {
+              this.img = rails_asset_url("missing.svg");
+            }
+          }
+        JS
+
+        compiled = compile_asset_with_content(js_content)
+
+        assert_match(/this\.img = "missing.svg"\;/, compiled)
+      end
+
+      private
+
+      def compile_asset_with_content(content)
+        # This has one more set of .. than it would in the propshaft repo
+        root_path    = Pathname.new("#{__dir__}/../../fixtures/assets/vendor")
+        logical_path = "foobar/source/test.js"
+
+        assembly = Propshaft::Assembly.new(@options)
+        assembly.compilers.register("text/javascript", Propshaft::Compiler::JsAssetUrls)
+
+        asset = Propshaft::Asset.new(root_path.join(logical_path), logical_path: logical_path, load_path: assembly.load_path)
+        asset.stub(:content, content) do
+          assembly.compilers.compile(asset)
+        end
+      end
+    end
+  end
+end