diff --git a/app/helpers/groups_helper.rb b/app/helpers/groups_helper.rb
index 091d98a2c9472b5cfe8a766bc6435bf893544961..60ac4c63e624e249ab6955dd3afa438b9215c263 100644
--- a/app/helpers/groups_helper.rb
+++ b/app/helpers/groups_helper.rb
@@ -1,4 +1,8 @@
+require 'uri'
+
 module GroupsHelper
+  include Gitlab::CurrentSettings
+
   def can_change_group_visibility_level?(group)
     can?(current_user, :change_visibility_level, group)
   end
@@ -7,12 +11,28 @@ module GroupsHelper
     can?(current_user, :change_share_with_group_lock, group)
   end
 
-  def group_icon(group)
+  # = project_icon(@project, alt: @project.name, class: 'avatar s40 avatar-tile')
+  # = image_tag group_icon(@group), alt: '', class: 'avatar group-avatar s160'
+  def group_icon(group, options = {})
+    img_path = group_icon_url(group, options)
+    image_tag img_path, options
+  end
+
+  def group_icon_url(group, options = {})
     if group.is_a?(String)
       group = Group.find_by_full_path(group)
     end
 
-    group.try(:avatar_url, use_asset_path: false) || ActionController::Base.helpers.image_path('no_group_avatar.png')
+    if group.avatar_url
+      if group.private?
+        options[:use_original_source] = true
+        group.avatar_url(use_asset_path: false)
+      else
+        group.avatar_url
+      end
+    else # No Avatar Icon
+      ActionController::Base.helpers.image_path('no_group_avatar.png')
+    end
   end
 
   def group_title(group, name = nil, url = nil)
@@ -90,10 +110,9 @@ module GroupsHelper
       output =
         if (group.try(:avatar_url) || show_avatar) && !Rails.env.test?
           if group.private?
-            puts "GROUP IS PRIVATE : " + group_icon(group)
-            image_tag(group_icon(group), class: "avatar-tile", width: 15, height: 15, use_original_source: true)
+            group_icon(group, class: "avatar-tile", width: 15, height: 15, use_original_source: true)
           else
-            image_tag(group_icon(group), class: "avatar-tile", width: 15, height: 15)
+            group_icon(group, class: "avatar-tile", width: 15, height: 15)
           end
         else
           ""
diff --git a/app/models/concerns/avatarable.rb b/app/models/concerns/avatarable.rb
index f8c0327e1905f8943610bd0c2a1e8f57b3b4d642..ddaa15e6a0d85ca1488a24bc55518401cf5551fc 100644
--- a/app/models/concerns/avatarable.rb
+++ b/app/models/concerns/avatarable.rb
@@ -16,7 +16,7 @@ module Avatarable
 
       [host, avatar.url].join
     else
-      avatar.url
+      [host, avatar.url].join
     end
   end
 end
diff --git a/app/serializers/group_entity.rb b/app/serializers/group_entity.rb
index 7c872a3e9863de1018b42f780660bf5b9c47138f..6d8466da902d6c6c834693b80fa4cb7502830060 100644
--- a/app/serializers/group_entity.rb
+++ b/app/serializers/group_entity.rb
@@ -45,6 +45,6 @@ class GroupEntity < Grape::Entity
   end
 
   expose :avatar_url do |group|
-    group_icon(group)
+    group_icon_url(group)
   end
 end
diff --git a/app/views/admin/groups/_group.html.haml b/app/views/admin/groups/_group.html.haml
index e3a77dfdf10ecf8fca92a42c447f9b9ad6e61968..47cc2d4d27e078e4c880a399e56a745759fe1468 100644
--- a/app/views/admin/groups/_group.html.haml
+++ b/app/views/admin/groups/_group.html.haml
@@ -20,7 +20,7 @@
       = visibility_level_icon(group.visibility_level, fw: false)
 
   .avatar-container.s40
-    = image_tag group_icon(group), class: "avatar s40 hidden-xs"
+    = group_icon(group, class: "avatar s40 hidden-xs")
   .title
     = link_to [:admin, group], class: 'group-name' do
       = group.full_name
diff --git a/app/views/admin/groups/show.html.haml b/app/views/admin/groups/show.html.haml
index 3e02f7b1e16fb1f43f1376e29707f62f81a4854f..2545cecc7218f74416e1100f59a0b91880f45419 100644
--- a/app/views/admin/groups/show.html.haml
+++ b/app/views/admin/groups/show.html.haml
@@ -16,7 +16,7 @@
       %ul.well-list
         %li
           .avatar-container.s60
-            = image_tag group_icon(@group), class: "avatar s60"
+            = group_icon(@group, class: "avatar s60")
         %li
           %span.light Name:
           %strong= @group.name
diff --git a/app/views/groups/_home_panel.html.haml b/app/views/groups/_home_panel.html.haml
index 181c7bee702657bbaa97eeb5a43f05cfa1aa87d8..a0760c2073b4e5641b7ba04d3c9efac22f7c4d37 100644
--- a/app/views/groups/_home_panel.html.haml
+++ b/app/views/groups/_home_panel.html.haml
@@ -1,7 +1,7 @@
 .group-home-panel.text-center
   %div{ class: container_class }
     .avatar-container.s70.group-avatar
-      = image_tag group_icon(@group), class: "avatar s70 avatar-tile"
+      = group_icon(@group, class: "avatar s70 avatar-tile")
     %h1.group-title
       = @group.name
       %span.visibility-icon.has-tooltip{ data: { container: 'body' }, title: visibility_icon_description(@group) }
diff --git a/app/views/groups/edit.html.haml b/app/views/groups/edit.html.haml
index 15606dd30fd733998f77f047b04bf90870e654d3..16038ef2f7938d998091030401c0a636805d5dee 100644
--- a/app/views/groups/edit.html.haml
+++ b/app/views/groups/edit.html.haml
@@ -10,7 +10,7 @@
       .form-group
         .col-sm-offset-2.col-sm-10
           .avatar-container.s160
-            = image_tag group_icon(@group), alt: '', class: 'avatar group-avatar s160'
+            = group_icon(@group, alt: '', class: 'avatar group-avatar s160')
           %p.light
             - if @group.avatar?
               You can change your group avatar here
diff --git a/app/views/layouts/nav/sidebar/_group.html.haml b/app/views/layouts/nav/sidebar/_group.html.haml
index 8cba495f7e4cf9691861c1f0aed858bde3e2ff09..0bf318b0b66ca66d92685af8c56162fbd9a5ab79 100644
--- a/app/views/layouts/nav/sidebar/_group.html.haml
+++ b/app/views/layouts/nav/sidebar/_group.html.haml
@@ -6,7 +6,7 @@
     .context-header
       = link_to group_path(@group), title: @group.name do
         .avatar-container.s40.group-avatar
-          = image_tag group_icon(@group), class: "avatar s40 avatar-tile"
+          = group_icon(@group, class: "avatar s40 avatar-tile")
         .sidebar-context-title
           = @group.name
     %ul.sidebar-top-level-items
diff --git a/app/views/shared/groups/_group.html.haml b/app/views/shared/groups/_group.html.haml
index b361ec86cedd20f4d5d2e43e57a36eeb18683d6b..63f62eb476e5fe2da8e5cc75bd2b5e6637f0ea80 100644
--- a/app/views/shared/groups/_group.html.haml
+++ b/app/views/shared/groups/_group.html.haml
@@ -28,7 +28,7 @@
 
   .avatar-container.s40
     = link_to group do
-      = image_tag group_icon(group), class: "avatar s40 hidden-xs"
+      = group_icon(group, class: "avatar s40 hidden-xs")
   .title
     = link_to group_name, group, class: 'group-name'
 
diff --git a/app/views/shared/members/_group.html.haml b/app/views/shared/members/_group.html.haml
index bcdad3c153a622629d1db465b3f1b76a2be2e45b..5868c52566d09f2c8ab302ca2f68a168fbe4f9c7 100644
--- a/app/views/shared/members/_group.html.haml
+++ b/app/views/shared/members/_group.html.haml
@@ -4,7 +4,7 @@
 - dom_id = "group_member_#{group_link.id}"
 %li.member.group_member{ id: dom_id }
   %span.list-item-name
-    = image_tag group_icon(group), class: "avatar s40", alt: ''
+    = group_icon(group, class: "avatar s40", alt: '')
     %strong
       = link_to group.full_name, group_path(group)
     .cgray
diff --git a/app/views/users/_groups.html.haml b/app/views/users/_groups.html.haml
index eff6c80d1442b93c3bab6dc628f3309d81902ec4..55799e10a46374788a61deed87f6c03069e014ac 100644
--- a/app/views/users/_groups.html.haml
+++ b/app/views/users/_groups.html.haml
@@ -2,4 +2,4 @@
   - groups.each do |group|
     = link_to group, class: 'profile-groups-avatars inline', title: group.name do
       .avatar-container.s40
-        = image_tag group_icon(group), class: 'avatar group-avatar s40'
+        = group_icon(group, class: 'avatar group-avatar s40')
diff --git a/spec/helpers/groups_helper_spec.rb b/spec/helpers/groups_helper_spec.rb
index 76e5964ccf75b24f42466a43a0f6b61d08df89b6..40c26b6e1d5f26f39d96ca7218307b04a868c2d2 100644
--- a/spec/helpers/groups_helper_spec.rb
+++ b/spec/helpers/groups_helper_spec.rb
@@ -3,6 +3,7 @@ require 'spec_helper'
 describe GroupsHelper do
   include ApplicationHelper
 
+
   describe 'group_icon' do
     avatar_file_path = File.join(Rails.root, 'spec', 'fixtures', 'banana_sample.gif')
 
@@ -10,14 +11,56 @@ describe GroupsHelper do
       group = create(:group)
       group.avatar = fixture_file_upload(avatar_file_path)
       group.save!
-      expect(group_icon(group.path).to_s)
+
+      avatar_url = "/uploads/-/system/group/avatar/#{group.id}/banana_sample.gif"
+
+      expect(group_icon(group).to_s)
+        .to eq "<img data-src=\"#{avatar_url}\" class=\" lazy\" src=\"#{LazyImageTagHelper.placeholder_image}\" />"
+
+      allow(ActionController::Base).to receive(:asset_host).and_return(gitlab_host)
+      avatar_url = "#{gitlab_host}/uploads/-/system/group/avatar/#{group.id}/banana_sample.gif"
+
+      expect(group_icon(group).to_s)
+        .to eq "<img data-src=\"#{avatar_url}\" class=\" lazy\" src=\"#{LazyImageTagHelper.placeholder_image}\" />"
+    end
+  end
+
+
+
+  describe 'group_icon_url' do
+    avatar_file_path = File.join(Rails.root, 'spec', 'fixtures', 'banana_sample.gif')
+
+    it 'returns an url for the avatar' do
+      group = create(:group)
+      group.avatar = fixture_file_upload(avatar_file_path)
+      group.save!
+      expect(group_icon_url(group.path).to_s)
+        .to match("/uploads/-/system/group/avatar/#{group.id}/banana_sample.gif")
+    end
+
+    it 'returns an CDN url for the avatar' do
+      allow(ActionController::Base).to receive(:asset_host).and_return(gitlab_host)
+      group = create(:group)
+      group.avatar = fixture_file_upload(avatar_file_path)
+      group.save!
+      expect(group_icon_url(group.path).to_s)
+        .to match("#{gitlab_host}/uploads/-/system/group/avatar/#{group.id}/banana_sample.gif")
+    end
+
+    it 'returns an based url for the avatar if private' do
+      allow(ActionController::Base).to receive(:asset_host).and_return(gitlab_host)
+      group = create(:group)
+      group.avatar = fixture_file_upload(avatar_file_path)
+      group.private = true
+      group.save!
+      expect(group_icon_url(group.path).to_s)
         .to match("/uploads/-/system/group/avatar/#{group.id}/banana_sample.gif")
     end
 
     it 'gives default avatar_icon when no avatar is present' do
       group = create(:group)
       group.save!
-      expect(group_icon(group.path)).to match_asset_path('group_avatar.png')
+      expect(group_icon_url(group.path)).to match_asset_path('group_avatar.png')
     end
   end