diff --git a/src/command_modules/azure-cli-profile/HISTORY.rst b/src/command_modules/azure-cli-profile/HISTORY.rst
index 74629443968..3bc53b5383e 100644
--- a/src/command_modules/azure-cli-profile/HISTORY.rst
+++ b/src/command_modules/azure-cli-profile/HISTORY.rst
@@ -4,6 +4,7 @@ Release History
 ===============
 2.0.24
 ++++++
+* `disk create`: fix a bug that source detection is not accurate
 * BREAKING CHANGE: remove --msi-port/--identity-port as they are no longer used
 
 2.0.23
diff --git a/src/command_modules/azure-cli-vm/azure/cli/command_modules/vm/_validators.py b/src/command_modules/azure-cli-vm/azure/cli/command_modules/vm/_validators.py
index d3fe6f35739..a3b179b98d1 100644
--- a/src/command_modules/azure-cli-vm/azure/cli/command_modules/vm/_validators.py
+++ b/src/command_modules/azure-cli-vm/azure/cli/command_modules/vm/_validators.py
@@ -1145,10 +1145,15 @@ def process_image_create_namespace(cmd, namespace):
 
 def _figure_out_storage_source(cli_ctx, resource_group_name, source):
     from msrestazure.azure_exceptions import CloudError
+    try:
+        from urllib.parse import urlparse
+    except ImportError:
+        from urlparse import urlparse  # pylint: disable=import-error
+
     source_blob_uri = None
     source_disk = None
     source_snapshot = None
-    if source.lower().endswith('.vhd'):
+    if urlparse(source).scheme:  # an exiting scheme means a blob uri, as ':' isn't allowed in a disk name
         source_blob_uri = source
     elif '/disks/' in source.lower():
         source_disk = source
diff --git a/src/command_modules/azure-cli-vm/azure/cli/command_modules/vm/tests/latest/test_vm_actions.py b/src/command_modules/azure-cli-vm/azure/cli/command_modules/vm/tests/latest/test_vm_actions.py
index a7da479cf28..3a5230f9e83 100644
--- a/src/command_modules/azure-cli-vm/azure/cli/command_modules/vm/tests/latest/test_vm_actions.py
+++ b/src/command_modules/azure-cli-vm/azure/cli/command_modules/vm/tests/latest/test_vm_actions.py
@@ -75,6 +75,12 @@ def test_figure_out_storage_source(self):
         self.assertFalse(src_snapshot)
         self.assertEqual(src_blob_uri, test_data)
 
+        test_data = '/subscriptions/0b1f6471-1bf0-4dda-aec3-cb9272f09590/resourceGroups/JAVACSMRG6017/providers/Microsoft.Compute/disks/ex.vhd'
+        src_blob_uri, src_disk, src_snapshot = _figure_out_storage_source(TestCli(), 'tg1', test_data)
+        self.assertEqual(src_disk, test_data)
+        self.assertFalse(src_snapshot)
+        self.assertFalse(src_blob_uri)
+
     def test_source_storage_account_err_case(self):
         np = mock.MagicMock()
         cmd = mock.MagicMock()