diff --git a/src/utils/embed-handler.js b/src/utils/embed-handler.js
index bd30a72ed..a8926597d 100644
--- a/src/utils/embed-handler.js
+++ b/src/utils/embed-handler.js
@@ -13,11 +13,14 @@
  * Handles `embed` MDAST nodes by converting them into `<esi:include>` tags
  * @param {string} EMBED_SERVICE the URL of an embedding service compatible with https://github.com/adobe/helix-embed that returns HTML
  */
+const URI = require('uri-js');
+
 function embed({ EMBED_SERVICE }) {
   return function handler(h, node) {
     const { url } = node;
     const props = {
-      src: EMBED_SERVICE + url,
+      // prepend the embed service for absolute URLs
+      src: (URI.parse(url).reference === 'absolute' ? EMBED_SERVICE : '') + url,
     };
     const retval = h(node, 'esi:include', props);
     return retval;
diff --git a/test/testEmbedHandler.js b/test/testEmbedHandler.js
index b1a87195c..60293c6c4 100644
--- a/test/testEmbedHandler.js
+++ b/test/testEmbedHandler.js
@@ -122,6 +122,36 @@ https://www.youtube.com/watch?v=KOxbO0EI4MA
     assert.equal(result.response.body, `<p>Hello World
 Here comes an embed.</p>
 <esi:include src="https://example-embed-service.com/https://www.youtube.com/watch?v=KOxbO0EI4MA"></esi:include>
+<p><img src="easy.png" alt="Easy!" srcset="easy.png?width=480&amp;auto=webp 480w,easy.png?width=1384&amp;auto=webp 1384w,easy.png?width=2288&amp;auto=webp 2288w,easy.png?width=3192&amp;auto=webp 3192w,easy.png?width=4096&amp;auto=webp 4096w" sizes="100vw"></p>`);
+  });
+
+  it('html.pipe processes internal embeds', async () => {
+    const result = await pipe(
+      ({ content }) => ({ response: { status: 201, body: content.document.body.innerHTML } }),
+      {
+        request: crequest,
+        content: {
+          body: `Hello World
+Here comes an embed.
+
+./foo.md
+
+![Easy!](easy.png)
+`,
+        },
+      },
+      {
+        request: { params },
+        secrets,
+        logger,
+      },
+    );
+
+    assert.equal(result.response.status, 201);
+    assert.equal(result.response.headers['Content-Type'], 'text/html');
+    assert.equal(result.response.body, `<p>Hello World
+Here comes an embed.</p>
+<esi:include src="/test/foo.embed.html"></esi:include>
 <p><img src="easy.png" alt="Easy!" srcset="easy.png?width=480&amp;auto=webp 480w,easy.png?width=1384&amp;auto=webp 1384w,easy.png?width=2288&amp;auto=webp 2288w,easy.png?width=3192&amp;auto=webp 3192w,easy.png?width=4096&amp;auto=webp 4096w" sizes="100vw"></p>`);
   });
 });