diff --git a/exist-core/src/main/java/org/exist/repo/ExistRepository.java b/exist-core/src/main/java/org/exist/repo/ExistRepository.java
index 9e97699c00a..2ff24b8f4a3 100644
--- a/exist-core/src/main/java/org/exist/repo/ExistRepository.java
+++ b/exist-core/src/main/java/org/exist/repo/ExistRepository.java
@@ -23,12 +23,17 @@
 
 import org.apache.logging.log4j.LogManager;
 import org.apache.logging.log4j.Logger;
+import org.exist.dom.persistent.BinaryDocument;
+import org.exist.security.PermissionDeniedException;
+import org.exist.source.DBSource;
 import org.exist.storage.BrokerPool;
 import org.exist.storage.BrokerPoolService;
 import org.exist.storage.BrokerPoolServiceException;
+import org.exist.storage.DBBroker;
 import org.exist.storage.NativeBroker;
 import org.exist.util.Configuration;
 import org.exist.util.FileUtils;
+import org.exist.xmldb.XmldbURI;
 import org.exist.xquery.ErrorCodes;
 import org.exist.xquery.Expression;
 import org.exist.xquery.Module;
@@ -41,7 +46,9 @@
 import org.expath.pkg.repo.PackageException;
 import org.expath.pkg.repo.Repository;
 import org.expath.pkg.repo.URISpace;
+import org.w3c.dom.Document;
 
+import javax.annotation.Nullable;
 import javax.xml.transform.Source;
 import javax.xml.transform.stream.StreamSource;
 import java.io.IOException;
@@ -273,6 +280,38 @@ public Path resolveXQueryModule(final String namespace) throws XPathException {
         return null;
     }
 
+    /**
+     * Attempt to lookup an XQuery from the filesystem in the database.
+     *
+     * @param broker the database broker
+     * @param xqueryPath the path to the xquery within the EXPath filesystem repo.
+     *
+     * @return the database source for the xquery, or null.
+     */
+    public @Nullable org.exist.source.Source resolveStoredXQueryModuleFromDb(final DBBroker broker, final Path xqueryPath) throws PermissionDeniedException {
+        if (!xqueryPath.startsWith(expathDir)) {
+            return null;
+        }
+
+        final String relXQueryPath = expathDir.relativize(xqueryPath).toString();
+
+        // 1. attempt to locate it within a library
+        XmldbURI xqueryDbPath = XmldbURI.create("xmldb:exist:///db/system/repo/" + relXQueryPath);
+        @Nullable Document doc = broker.getXMLResource(xqueryDbPath);
+        if (doc != null && doc instanceof BinaryDocument) {
+            return new DBSource(broker, (BinaryDocument) doc, false);
+        }
+
+        // 2. attempt to locate it within an app
+        xqueryDbPath = XmldbURI.create("xmldb:exist:///db/apps/" + relXQueryPath);
+        doc = broker.getXMLResource(xqueryDbPath);
+        if (doc != null && doc instanceof BinaryDocument) {
+            return new DBSource(broker, (BinaryDocument) doc, false);
+        }
+
+        return null;
+    }
+
     public Source resolveXSLTModule(final String namespace) throws PackageException {
         for (final Packages pp : myParent.listPackages()) {
             final Package pkg = pp.latest();
diff --git a/exist-core/src/main/java/org/exist/xquery/XQueryContext.java b/exist-core/src/main/java/org/exist/xquery/XQueryContext.java
index 4d95aa38ea3..649ce3fe374 100644
--- a/exist-core/src/main/java/org/exist/xquery/XQueryContext.java
+++ b/exist-core/src/main/java/org/exist/xquery/XQueryContext.java
@@ -30,6 +30,7 @@
 import java.net.URISyntaxException;
 import java.nio.charset.Charset;
 import java.nio.file.Path;
+import java.nio.file.Paths;
 import java.util.*;
 import java.util.concurrent.CopyOnWriteArrayList;
 import java.util.concurrent.atomic.AtomicReference;
@@ -588,9 +589,28 @@ public Optional<ExistRepository> getRepository() {
 
             // use the resolved file or return null
             if (resolved != null) {
-                // build a module object from the file
-                final Source src = new FileSource(resolved, false);
-                return compileOrBorrowModule(prefix, namespace, "", src);
+
+                String location = "";
+
+                try {
+
+                    // see if the src exists in the database and if so, use that instead
+                    Source src = repo.get().resolveStoredXQueryModuleFromDb(getBroker(), resolved);
+                    if (src != null) {
+                        // NOTE(AR) set the location of the module to import relative to this module's load path - so that transient imports of the imported module will resolve correctly!
+                        location = Paths.get(XmldbURI.create(moduleLoadPath).getCollectionPath()).relativize(Paths.get(((DBSource)src).getDocumentPath().getCollectionPath())).toString();
+                    } else {
+                        // else, fallback to the one from the filesystem
+                        src = new FileSource(resolved, false);
+                    }
+
+                    // build a module object from the source
+                    final ExternalModule module = compileOrBorrowModule(prefix, namespace, location, src);
+                    return module;
+
+                } catch (final PermissionDeniedException e) {
+                    throw new XPathException(e.getMessage(), e);
+                }
             }
         }
 
diff --git a/exist-parent/pom.xml b/exist-parent/pom.xml
index fd13efce70f..9548945440b 100644
--- a/exist-parent/pom.xml
+++ b/exist-parent/pom.xml
@@ -394,7 +394,7 @@
             <dependency>
                 <groupId>org.expath.packaging</groupId>
                 <artifactId>pkg-java</artifactId>
-                <version>2.0.0</version>
+                <version>2.0.1</version>
             </dependency>
 
             <dependency>