diff --git a/pavelib/assets.py b/pavelib/assets.py
index 19bb98ea071e..991fb7f914b1 100644
--- a/pavelib/assets.py
+++ b/pavelib/assets.py
@@ -172,7 +172,6 @@ def get_theme_sass_dirs(system, theme_dir):
     certs_css_dir = theme_dir / system / "static" / "certificates" / "css"
     xmodule_sass_folder = "modules" if system == 'lms' else "descriptors"
     xmodule_sass_dir = path("common") / "static" / "xmodule" / xmodule_sass_folder / "scss"
-    xmodule_lookup_dir = path("xmodule") / "css"
 
     dependencies = SASS_LOOKUP_DEPENDENCIES.get(system, [])
     if sass_dir.isdir():
@@ -203,9 +202,7 @@ def get_theme_sass_dirs(system, theme_dir):
         dirs.append({
             "sass_source_dir": xmodule_sass_dir,
             "css_destination_dir": path("common") / "static" / "css" / "xmodule",
-            "lookup_paths": [
-                xmodule_lookup_dir,
-                *dependencies,
+            "lookup_paths": dependencies + [
                 sass_dir / "partials",
                 system_sass_dir / "partials",
                 system_sass_dir,
@@ -240,7 +237,6 @@ def get_system_sass_dirs(system):
     css_dir = path(system) / "static" / "css"
     xmodule_sass_folder = "modules" if system == 'lms' else "descriptors"
     xmodule_sass_dir = path("common") / "static" / "xmodule" / xmodule_sass_folder / "scss"
-    xmodule_lookup_dir = path("xmodule") / "css"
 
     dependencies = SASS_LOOKUP_DEPENDENCIES.get(system, [])
     dirs.append({
@@ -255,9 +251,7 @@ def get_system_sass_dirs(system):
     dirs.append({
         "sass_source_dir": xmodule_sass_dir,
         "css_destination_dir": path("common") / "static" / "css" / "xmodule",
-        "lookup_paths": [
-            xmodule_lookup_dir,
-            *dependencies,
+        "lookup_paths": dependencies + [
             sass_dir / "partials",
             sass_dir,
         ],
diff --git a/xmodule/static_content.py b/xmodule/static_content.py
index 6730dcb7a0ea..a89ab1bf3b31 100755
--- a/xmodule/static_content.py
+++ b/xmodule/static_content.py
@@ -126,20 +126,29 @@ def _write_styles(selector, output_root, classes, css_attribute, suffix):
     into `output_root` as individual files
     """
     contents = {}
-    xmodule_scss_path = resource_filename(__name__, "") + "/css/"
 
     for class_ in classes:
         class_css = getattr(class_, css_attribute)()
-        rel_fragment_paths = []
-        for fragment_path in class_css.get('scss', []):
-            rel_fragment_path = fragment_path.split(xmodule_scss_path)[1]
-            rel_fragment_paths.append(rel_fragment_path)
+        fragment_paths = class_css.get('scss', [])
+        if not fragment_paths:
+            continue
+        fragment_names = []
+        for fragment_path in fragment_paths:
+            with open(fragment_path, 'rb') as fragment_file:
+                fragment = fragment_file.read()
+            fragment_name = "{hash}.{type}".format(
+                hash=hashlib.md5(fragment).hexdigest(),
+                type='scss')
+            # Prepend _ so that sass just includes the files into a single file
+            filename = '_' + fragment_name
+            contents[filename] = fragment
+            fragment_names.append(fragment_name)
 
         module_styles_lines = []
         module_styles_lines.append("""{selector}.xmodule_{class_.__name__} {{""".format(
             class_=class_, selector=selector
         ))
-        module_styles_lines.extend(f'  @import "{path}";' for path in rel_fragment_paths)
+        module_styles_lines.extend(f'  @import "{name}";' for name in fragment_names)
         module_styles_lines.append('}')
 
         contents[f"{class_.__name__}{suffix}.scss"] = '\n'.join(module_styles_lines)