diff --git a/CHANGELOG.md b/CHANGELOG.md
index bd79d1a06..8a47f7d6b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,7 +2,9 @@
 ## xx/xx/2016
 
 1. [](#improved)
-    * moved to new `data-*@` format in blueprints
+    * Moved to new `data-*@` format in blueprints
+1. [](#bugfix)
+    * Fixed issue with link rewrites and local assets pipeline with `absolute_urls: true`
 
 # v1.1.0-beta.1
 ## 04/20/2016
diff --git a/system/src/Grav/Common/Assets.php b/system/src/Grav/Common/Assets.php
index ebdce1b7b..55b19e63c 100644
--- a/system/src/Grav/Common/Assets.php
+++ b/system/src/Grav/Common/Assets.php
@@ -1004,6 +1004,13 @@ class Assets
      */
     protected function isRemoteLink($link)
     {
+        $base = Grav::instance()['uri']->rootUrl(true);
+        
+        // sanity check for local URLs with absolute URL's enabled
+        if (Utils::startsWith($link, $base)) {
+            return false;
+        }
+
         return ('http://' === substr($link, 0, 7) || 'https://' === substr($link, 0, 8) || '//' === substr($link, 0,
                 2));
     }