diff --git a/theme/afterburner/db/upgrade.php b/theme/afterburner/db/upgrade.php
new file mode 100644
index 00000000000..350feec4d02
--- /dev/null
+++ b/theme/afterburner/db/upgrade.php
@@ -0,0 +1,66 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+/**
+ * Afterburner upgrades.
+ *
+ * @package    theme
+ * @subpackage afterburner
+ * @copyright  2013 Petr Skoda {@link http://skodak.org}
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ */
+
+function xmldb_theme_afterburner_upgrade($oldversion) {
+    global $CFG, $DB, $OUTPUT;
+
+    $dbman = $DB->get_manager();
+
+    if ($oldversion < 2013041200) {
+        // Migrate logo URL.
+        $logo = get_config('theme_afterburner', 'logo');
+        if ($logo === '') {
+            // No logo means nothing to do.
+
+        } else if ($logo = clean_param($logo, PARAM_URL)) {
+            require_once("$CFG->libdir/filelib.php");
+            if ($content = download_file_content($logo)) {
+                $filename = preg_replace('/^.*\//', '', $logo);
+                if (!$filename = clean_param($filename, PARAM_FILE)) {
+                    // Some name is better than no name...
+                    $filename = 'logo.jpg';
+                }
+                $fs = get_file_storage();
+                $record = array(
+                    'contextid' => context_system::instance()->id, 'component' => 'theme_afterburner',
+                    'filearea' => 'logo', 'itemid'=>0, 'filepath'=>'/', 'filename'=>$filename);
+                $fs->create_file_from_string($record, $content);
+                set_config('logo', '/'.$filename, 'theme_afterburner');
+                unset($content);
+
+            } else {
+                unset_config('theme_afterburner', 'logo');
+            }
+        } else {
+            // Prompt for new logo, the old setting was invalid.
+            unset_config('theme_afterburner', 'logo');
+        }
+
+        upgrade_plugin_savepoint(true, 2013041200, 'theme', 'afterburner');
+    }
+
+
+    return true;
+}
diff --git a/theme/afterburner/lang/en/theme_afterburner.php b/theme/afterburner/lang/en/theme_afterburner.php
index fb5736e89f0..1f140a32277 100644
--- a/theme/afterburner/lang/en/theme_afterburner.php
+++ b/theme/afterburner/lang/en/theme_afterburner.php
@@ -27,7 +27,7 @@ $string['pluginname'] = 'Afterburner';
 $string['region-side-post'] = 'Right';
 $string['region-side-pre'] = 'Left';
 $string['logo'] = 'Logo';
-$string['logodesc'] = 'Please add the URL to your new logo only if you want to replace the default logo for this theme.<br />For your information, the default logo is a JPG image 320px (wide) by 75px (high)';
+$string['logodesc'] = 'Please add your custom logo if you want to replace the default logo for this theme.<br />For your information, the default logo is a JPG image 320px (wide) by 75px (high)';
 $string['footnote'] = 'Footnote';
 $string['footnotedesc'] = 'Whatever you add to this textarea will be displayed in the footer of every page.';
 $string['customcss'] = 'Custom CSS';
diff --git a/theme/afterburner/lib.php b/theme/afterburner/lib.php
index 11a4ec45755..ba1f38d7182 100644
--- a/theme/afterburner/lib.php
+++ b/theme/afterburner/lib.php
@@ -3,11 +3,7 @@
 function afterburner_process_css($css, $theme) {
 
     // Set the background image for the logo
-    if (!empty($theme->settings->logo)) {
-        $logo = $theme->settings->logo;
-    } else {
-        $logo = null;
-    }
+    $logo = $theme->setting_file_url('logo', 'logo');
     $css = afterburner_set_logo($css, $logo);
 
     // Set custom CSS
@@ -44,4 +40,13 @@ function afterburner_set_customcss($css, $customcss) {
     $css = str_replace($tag, $replacement, $css);
 
     return $css;
-}
\ No newline at end of file
+}
+
+function theme_afterburner_pluginfile($course, $cm, $context, $filearea, $args, $forcedownload, array $options = array()) {
+    if ($context->contextlevel == CONTEXT_SYSTEM and $filearea === 'logo') {
+        $theme = theme_config::load('afterburner');
+        return $theme->setting_file_serve('logo', $args, $forcedownload, $options);
+    } else {
+        send_file_not_found();
+    }
+}
diff --git a/theme/afterburner/settings.php b/theme/afterburner/settings.php
index c68a59985be..21722d7151c 100644
--- a/theme/afterburner/settings.php
+++ b/theme/afterburner/settings.php
@@ -8,8 +8,8 @@ if ($ADMIN->fulltree) {
     $name = 'theme_afterburner/logo';
     $title = get_string('logo','theme_afterburner');
     $description = get_string('logodesc', 'theme_afterburner');
-    $default = '';
-    $setting = new admin_setting_configtext($name, $title, $description, $default, PARAM_URL);
+    $setting = new admin_setting_configstoredfile($name, $title, $description, 'logo');
+    $setting->set_updatedcallback('theme_reset_all_caches');
     $settings->add($setting);
 
     // Foot note setting
diff --git a/theme/afterburner/version.php b/theme/afterburner/version.php
index 741e6d2f950..4ec225c138f 100644
--- a/theme/afterburner/version.php
+++ b/theme/afterburner/version.php
@@ -25,6 +25,6 @@
 
 defined('MOODLE_INTERNAL') || die;
 
-$plugin->version   = 2012112900; // The current module version (Date: YYYYMMDDXX)
-$plugin->requires  = 2012112900; // Requires this Moodle version
+$plugin->version   = 2013041200; // The current module version (Date: YYYYMMDDXX)
+$plugin->requires  = 2013041100; // Requires this Moodle version
 $plugin->component = 'theme_afterburner'; // Full name of the plugin (used for diagnostics)