diff --git a/packages/angular/build/src/builders/application/tests/behavior/stylesheet-url-resolution_spec.ts b/packages/angular/build/src/builders/application/tests/behavior/stylesheet-url-resolution_spec.ts
index ebe3a8f2762f..a95017c0bd42 100644
--- a/packages/angular/build/src/builders/application/tests/behavior/stylesheet-url-resolution_spec.ts
+++ b/packages/angular/build/src/builders/application/tests/behavior/stylesheet-url-resolution_spec.ts
@@ -295,6 +295,36 @@ describeBuilder(buildApplication, APPLICATION_BUILDER_INFO, (harness) => {
       harness.expectFile('dist/browser/media/logo.svg').toExist();
     });
 
+    it('should rebase a URL with interpolation using concatenation referencing a local resource', async () => {
+      await harness.writeFiles({
+        'src/styles.scss': `@use 'theme/a';`,
+        'src/theme/a.scss': `
+                            @import './b';
+                            $extra-var: "2";
+                            $postfix-var: "xyz";
+                            .a {
+                              background-image: url("#{$my-var}logo#{$extra-var+ "-" + $postfix-var}.svg")
+                            }
+        `,
+        'src/theme/b.scss': `$my-var: "./images/";`,
+        'src/theme/images/logo2-xyz.svg': `<svg></svg>`,
+      });
+
+      harness.useTarget('build', {
+        ...BASE_OPTIONS,
+        outputHashing: OutputHashing.None,
+        styles: ['src/styles.scss'],
+      });
+
+      const { result } = await harness.executeOnce();
+      expect(result?.success).toBeTrue();
+
+      harness
+        .expectFile('dist/browser/styles.css')
+        .content.toContain(`url("./media/logo2-xyz.svg")`);
+      harness.expectFile('dist/browser/media/logo2-xyz.svg').toExist();
+    });
+
     it('should rebase a URL with an non-leading interpolation referencing a local resource', async () => {
       await harness.writeFiles({
         'src/styles.scss': `@use 'theme/a';`,
diff --git a/packages/angular/build/src/tools/sass/rebasing-importer.ts b/packages/angular/build/src/tools/sass/rebasing-importer.ts
index 533cefd0bdb8..68a69ae8dbb3 100644
--- a/packages/angular/build/src/tools/sass/rebasing-importer.ts
+++ b/packages/angular/build/src/tools/sass/rebasing-importer.ts
@@ -24,28 +24,6 @@ export interface DirectoryEntry {
   directories: Set<string>;
 }
 
-/**
- * Ensures that a bare specifier URL path that is intended to be treated as
- * a relative path has a leading `./` or `../` prefix.
- *
- * @param url A bare specifier URL path that should be considered relative.
- * @returns
- */
-function ensureRelative(url: string): string {
-  // Empty
-  if (!url) {
-    return url;
-  }
-
-  // Already relative
-  if (url[0] === '.' && (url[1] === '/' || (url[1] === '.' && url[2] === '/'))) {
-    return url;
-  }
-
-  // Needs prefix
-  return './' + url;
-}
-
 /**
  * A Sass Importer base class that provides the load logic to rebase all `url()` functions
  * within a stylesheet. The rebasing will ensure that the URLs in the output of the Sass compiler
@@ -100,18 +78,15 @@ abstract class UrlRebasingImporter implements Importer<'sync'> {
 
       // Sass variable usage either starts with a `$` or contains a namespace and a `.$`
       const valueNormalized = value[0] === '$' || /^\w+\.\$/.test(value) ? `#{${value}}` : value;
-      const rebasedPath =
-        relative(this.entryDirectory, stylesheetDirectory) + '||file:' + valueNormalized;
+      const rebasedPath = relative(this.entryDirectory, stylesheetDirectory);
 
       // Normalize path separators and escape characters
       // https://developer.mozilla.org/en-US/docs/Web/CSS/url#syntax
-      const rebasedUrl = ensureRelative(
-        rebasedPath.replace(/\\/g, '/').replace(/[()\s'"]/g, '\\$&'),
-      );
+      const rebasedUrl = rebasedPath.replace(/\\/g, '/').replace(/[()\s'"]/g, '\\$&');
 
       updatedContents ??= new MagicString(contents);
       // Always quote the URL to avoid potential downstream parsing problems
-      updatedContents.update(start, end, `"${rebasedUrl}"`);
+      updatedContents.update(start, end, `"${rebasedUrl}||file:${valueNormalized}"`);
     }
 
     if (updatedContents) {