diff --git a/packages/filesystem/src/node/download/file-download-endpoint.ts b/packages/filesystem/src/node/download/file-download-endpoint.ts
index 6b66620847687..6066d28a0b47e 100644
--- a/packages/filesystem/src/node/download/file-download-endpoint.ts
+++ b/packages/filesystem/src/node/download/file-download-endpoint.ts
@@ -16,11 +16,13 @@
 
 // tslint:disable:no-any
 
+import * as url from 'url';
 import { injectable, inject, named } from 'inversify';
 import { json } from 'body-parser';
 // tslint:disable-next-line:no-implicit-dependencies
 import { Application, Router } from 'express';
 import { BackendApplicationContribution } from '@theia/core/lib/node/backend-application';
+import { FileUri } from '@theia/core/lib/node/file-uri';
 import { FileDownloadHandler } from './file-download-handler';
 
 @injectable()
@@ -48,6 +50,15 @@ export class FileDownloadEndpoint implements BackendApplicationContribution {
         // Content-Type: application/json
         app.use(json());
         app.use(FileDownloadEndpoint.PATH, router);
+        app.get('/file', (request, response) => {
+            const uri = url.parse(request.url).query;
+            if (!uri) {
+                response.status(400).send('invalid uri');
+                return;
+            }
+            const fsPath = FileUri.fsPath(decodeURIComponent(uri));
+            response.sendFile(fsPath);
+        });
     }
 
 }
diff --git a/packages/plugin-ext/src/main/browser/text-editors-main.ts b/packages/plugin-ext/src/main/browser/text-editors-main.ts
index 11d49b15156cb..507332de9f264 100644
--- a/packages/plugin-ext/src/main/browser/text-editors-main.ts
+++ b/packages/plugin-ext/src/main/browser/text-editors-main.ts
@@ -14,6 +14,7 @@
  * SPDX-License-Identifier: EPL-2.0 OR GPL-2.0 WITH Classpath-exception-2.0
  ********************************************************************************/
 
+import URI from 'vscode-uri';
 import {
     TextEditorsMain,
     MAIN_RPC_CONTEXT,
@@ -25,6 +26,7 @@ import {
     ApplyEditsOptions,
     UndoStopOptions,
     DecorationRenderOptions,
+    ThemeDecorationInstanceRenderOptions,
     DecorationOptions,
     WorkspaceEditDto
 } from '../../common/plugin-api-rpc';
@@ -37,18 +39,21 @@ import { disposed } from '../../common/errors';
 import { toMonacoWorkspaceEdit } from './languages-main';
 import { MonacoBulkEditService } from '@theia/monaco/lib/browser/monaco-bulk-edit-service';
 import { MonacoEditorService } from '@theia/monaco/lib/browser/monaco-editor-service';
+import { theiaUritoUriComponents, UriComponents } from '../../common/uri-components';
+import { Endpoint } from '@theia/core/lib/browser/endpoint';
 
 export class TextEditorsMainImpl implements TextEditorsMain, Disposable {
 
     private readonly proxy: TextEditorsExt;
     private readonly toDispose = new DisposableCollection();
     private readonly editorsToDispose = new Map<string, DisposableCollection>();
+    private readonly fileEndpoint = new Endpoint({ path: 'file' }).getRestUrl();
 
     constructor(
         private readonly editorsAndDocuments: EditorsAndDocumentsMain,
         rpc: RPCProtocol,
         private readonly bulkEditService: MonacoBulkEditService,
-        private readonly monacoEditorService: MonacoEditorService
+        private readonly monacoEditorService: MonacoEditorService,
     ) {
         this.proxy = rpc.getProxy(MAIN_RPC_CONTEXT.TEXT_EDITORS_EXT);
         this.toDispose.push(editorsAndDocuments);
@@ -127,10 +132,36 @@ export class TextEditorsMainImpl implements TextEditorsMain, Disposable {
     }
 
     $registerTextEditorDecorationType(key: string, options: DecorationRenderOptions): void {
+        this.injectRemoteUris(options);
         this.monacoEditorService.registerDecorationType(key, options);
         this.toDispose.push(Disposable.create(() => this.$removeTextEditorDecorationType(key)));
     }
 
+    protected injectRemoteUris(options: DecorationRenderOptions | ThemeDecorationInstanceRenderOptions): void {
+        if (options.before) {
+            options.before.contentIconPath = this.toRemoteUri(options.before.contentIconPath);
+        }
+        if (options.after) {
+            options.after.contentIconPath = this.toRemoteUri(options.after.contentIconPath);
+        }
+        if ('gutterIconPath' in options) {
+            options.gutterIconPath = this.toRemoteUri(options.gutterIconPath);
+        }
+        if ('dark' in options && options.dark) {
+            this.injectRemoteUris(options.dark);
+        }
+        if ('light' in options && options.light) {
+            this.injectRemoteUris(options.light);
+        }
+    }
+
+    protected toRemoteUri(uri?: UriComponents): UriComponents | undefined {
+        if (uri && uri.scheme === 'file') {
+            return theiaUritoUriComponents(this.fileEndpoint.withQuery(URI.revive(uri).toString()));
+        }
+        return uri;
+    }
+
     $removeTextEditorDecorationType(key: string): void {
         this.monacoEditorService.removeDecorationType(key);
     }