diff --git a/rootfs/docker-entrypoint-init.d/02-configure-moodle.sh b/rootfs/docker-entrypoint-init.d/02-configure-moodle.sh
index b2a4730..78c4384 100755
--- a/rootfs/docker-entrypoint-init.d/02-configure-moodle.sh
+++ b/rootfs/docker-entrypoint-init.d/02-configure-moodle.sh
@@ -93,6 +93,12 @@ if [ ! -f "${WEB_PATH}"/config.php ]; then
     fi
     #'readonly' => [ 'instance' => ['dbhost' => 'slave.dbhost', 'dbport' => '', 'dbuser' => '', 'dbpass' => '']]
 
+    # Offload the file serving from PHP process
+    # shellcheck disable=SC2016
+    sed -i '/require_once/i $CFG->xsendfile = '\''X-Accel-Redirect'\'';' "${WEB_PATH}"/config.php
+    # shellcheck disable=SC2016
+    sed -i '/require_once/i $CFG->xsendfilealiases = array('\''\/dataroot\/'\'' => $CFG->dataroot);' "${WEB_PATH}"/config.php
+
     if [ "$SSLPROXY" = 'true' ]; then
         # shellcheck disable=SC2016
         sed -i '/require_once/i $CFG->sslproxy = true;' "${WEB_PATH}"/config.php
diff --git a/rootfs/etc/nginx/conf.d/default/server/moodle.conf b/rootfs/etc/nginx/conf.d/default/server/moodle.conf
index df3151e..4b85765 100644
--- a/rootfs/etc/nginx/conf.d/default/server/moodle.conf
+++ b/rootfs/etc/nginx/conf.d/default/server/moodle.conf
@@ -13,3 +13,10 @@
         deny all;
         return 404;
     }
+    
+    # Offload the file serving from PHP process as per https://docs.moodle.org/404/en/Nginx#XSendfile_aka_X-Accel-Redirect
+    # Adjust based on https://moodle.org/mod/forum/discuss.php?d=413492#p1715955 to fix broken images
+    location ~ ^/dataroot/(.*)$ {
+        internal;
+        alias /var/www/moodledata/$1;
+    }