diff --git a/.gitignore b/.gitignore
index efcb4365403..73ada7f4c7d 100644
--- a/.gitignore
+++ b/.gitignore
@@ -7,6 +7,7 @@
 .generators
 *.pyc
 *.rbc
+*.sassc
 **.orig
 .bundle
 .byebug_history
diff --git a/Gemfile b/Gemfile
index a4e3b0438af..9cbb44f0a69 100644
--- a/Gemfile
+++ b/Gemfile
@@ -44,7 +44,6 @@ gem 'pg'
 gem 'phonelib'
 gem 'premailer-rails', '>= 1.12.0'
 gem 'profanity_filter'
-gem 'propshaft'
 gem 'rack', '>= 2.2.3.1'
 gem 'rack-attack', '>= 6.2.1'
 gem 'rack-cors', '>= 1.0.5', require: 'rack/cors'
@@ -62,6 +61,7 @@ gem 'safe_target_blank', '>= 1.0.2'
 gem 'saml_idp', github: '18F/saml_idp', tag: '0.18.2-18f'
 gem 'scrypt'
 gem 'simple_form', '>= 5.0.2'
+gem 'sprockets-rails'
 gem 'stringex', require: false
 gem 'strong_migrations', '>= 0.4.2'
 gem 'subprocess', require: false
@@ -85,7 +85,6 @@ group :development do
   gem 'guard-rspec', require: false
   gem 'irb'
   gem 'letter_opener', '~> 1.8'
-  gem 'listen'
   gem 'octokit', '>= 4.25.0'
   gem 'rack-mini-profiler', '>= 1.1.3', require: false
   gem 'rails-erd', '>= 1.6.0'
diff --git a/Gemfile.lock b/Gemfile.lock
index 36f61680e8d..ca2dafb71fd 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -451,11 +451,6 @@ GEM
       net-smtp
       premailer (~> 1.7, >= 1.7.9)
     profanity_filter (0.1.1)
-    propshaft (0.7.0)
-      actionpack (>= 7.0.0)
-      activesupport (>= 7.0.0)
-      rack
-      railties (>= 7.0.0)
     pry (0.14.1)
       coderay (~> 1.1)
       method_source (~> 1.0)
@@ -640,6 +635,13 @@ GEM
     simpleidn (0.2.1)
       unf (~> 0.1.4)
     smart_properties (1.17.0)
+    sprockets (4.0.2)
+      concurrent-ruby (~> 1.0)
+      rack (> 1, < 3)
+    sprockets-rails (3.4.2)
+      actionpack (>= 5.2)
+      activesupport (>= 5.2)
+      sprockets (>= 3.0.0)
     stringex (2.8.5)
     strong_migrations (0.8.0)
       activerecord (>= 5.2)
@@ -764,7 +766,6 @@ DEPENDENCIES
   jwt
   knapsack
   letter_opener (~> 1.8)
-  listen
   lograge (>= 0.11.2)
   lookbook (~> 1.5.3)
   lru_redux
@@ -780,7 +781,6 @@ DEPENDENCIES
   phonelib
   premailer-rails (>= 1.12.0)
   profanity_filter
-  propshaft
   pry-byebug
   pry-doc
   pry-rails
@@ -819,6 +819,7 @@ DEPENDENCIES
   simplecov (~> 0.21.0)
   simplecov-cobertura
   simplecov_json_formatter
+  sprockets-rails
   stringex
   strong_migrations (>= 0.4.2)
   subprocess
diff --git a/app/assets/config/manifest.js b/app/assets/config/manifest.js
new file mode 100644
index 00000000000..6b147d7d533
--- /dev/null
+++ b/app/assets/config/manifest.js
@@ -0,0 +1,10 @@
+//= link_tree ../images
+//= link_tree ../fonts
+
+//= link intl-tel-input/build/css/intlTelInput.css
+//= link intl-tel-input/build/img/flags.png
+//= link intl-tel-input/build/img/flags@2x.png
+
+//= link_tree ../../../node_modules/@18f/identity-design-system/dist/assets/img
+//= link_tree ../../../node_modules/@18f/identity-design-system/dist/assets/fonts
+//= link_tree ../builds
diff --git a/app/assets/stylesheets/_required.scss b/app/assets/stylesheets/_required.scss
index 3862fa94264..248473430ec 100644
--- a/app/assets/stylesheets/_required.scss
+++ b/app/assets/stylesheets/_required.scss
@@ -1,7 +1,7 @@
 @use 'uswds-core' with (
   $theme-body-font-size: 'sm',
-  $theme-font-path: '',
-  $theme-image-path: '',
+  $theme-font-path: '.',
+  $theme-image-path: '@18f/identity-design-system/dist/assets/img',
   $theme-global-border-box-sizing: true,
   $theme-global-link-styles: true,
   $theme-grid-container-max-width: 'tablet-lg',
diff --git a/app/assets/stylesheets/components/_alert.scss b/app/assets/stylesheets/components/_alert.scss
index fc35acaffb5..506cafceb76 100644
--- a/app/assets/stylesheets/components/_alert.scss
+++ b/app/assets/stylesheets/components/_alert.scss
@@ -6,7 +6,7 @@
   font-weight: bold;
 
   &::before {
-    background-image: url('/alert/info-white.svg');
+    background-image: url('alert/info-white.svg');
   }
 }
 
diff --git a/app/assets/stylesheets/components/_icon.scss b/app/assets/stylesheets/components/_icon.scss
index 708d8447270..05b22f6a71d 100644
--- a/app/assets/stylesheets/components/_icon.scss
+++ b/app/assets/stylesheets/components/_icon.scss
@@ -28,7 +28,7 @@ $icon-min-padding: 2px;
 
   &-success {
     &::before {
-      background-image: url('/alert/success.svg');
+      background-image: url('alert/success.svg');
       content: '';
       display: block;
       height: $h4;
diff --git a/app/assets/stylesheets/components/_language-picker.scss b/app/assets/stylesheets/components/_language-picker.scss
index 5910f030e92..e6d14f6823b 100644
--- a/app/assets/stylesheets/components/_language-picker.scss
+++ b/app/assets/stylesheets/components/_language-picker.scss
@@ -66,10 +66,10 @@
     }
 
     &::after {
-      background-image: url('/angle-arrow-up.svg');
+      background-image: url(@18f/identity-design-system/dist/assets/img/angle-arrow-up.svg);
 
       @include at-media('tablet') {
-        background-image: url('/angle-arrow-up-white.svg');
+        background-image: url(@18f/identity-design-system/dist/assets/img/angle-arrow-up-white.svg);
       }
     }
   }
@@ -79,7 +79,7 @@
     color: color('white');
 
     &::after {
-      background-image: url('/angle-arrow-down-white.svg');
+      background-image: url(@18f/identity-design-system/dist/assets/img/angle-arrow-down-white.svg);
     }
   }
 }
diff --git a/app/assets/stylesheets/components/_list.scss b/app/assets/stylesheets/components/_list.scss
index 389920d1e7b..5be58d778d2 100644
--- a/app/assets/stylesheets/components/_list.scss
+++ b/app/assets/stylesheets/components/_list.scss
@@ -3,7 +3,7 @@
     padding: 1rem 1rem 1rem 0;
 
     &::before {
-      background-image: url('/alert/success.svg');
+      background-image: url('alert/success.svg');
       background-repeat: no-repeat;
       content: '';
       display: inline-block;
diff --git a/app/assets/stylesheets/components/_personal-key.scss b/app/assets/stylesheets/components/_personal-key.scss
index c475e8c922f..27d55bc560e 100644
--- a/app/assets/stylesheets/components/_personal-key.scss
+++ b/app/assets/stylesheets/components/_personal-key.scss
@@ -2,7 +2,7 @@
 
 .personal-key-block {
   @include u-padding-y(2);
-  background-image: url('/personal-key/pkey-block.svg');
+  background-image: url('personal-key/pkey-block.svg');
   background-position: center;
   background-repeat: no-repeat;
 
@@ -28,7 +28,7 @@
 
 .bg-personal-key {
   height: 145px;
-  background-image: url('/personal-key/shield.svg');
+  background-image: url('personal-key/shield.svg');
   background-position: center;
   background-repeat: no-repeat;
   background-size: 145px 145px;
diff --git a/app/assets/stylesheets/components/_phone-input.scss b/app/assets/stylesheets/components/_phone-input.scss
index b9a1deec9fd..07f0e973b95 100644
--- a/app/assets/stylesheets/components/_phone-input.scss
+++ b/app/assets/stylesheets/components/_phone-input.scss
@@ -8,11 +8,11 @@ lg-phone-input {
   }
 
   .iti__flag {
-    background-image: url('/flags.png');
+    background-image: url('intl-tel-input/build/img/flags.png');
 
     /* stylelint-disable-next-line media-feature-name-no-vendor-prefix */
     @media (-webkit-min-device-pixel-ratio: 2), (min-resolution: 192dpi) {
-      background-image: url('/flags@2x.png');
+      background-image: url('intl-tel-input/build/img/flags@2x.png');
     }
   }
 
diff --git a/app/assets/stylesheets/components/_step-indicator.scss b/app/assets/stylesheets/components/_step-indicator.scss
index b10b9cb5212..95a3835e984 100644
--- a/app/assets/stylesheets/components/_step-indicator.scss
+++ b/app/assets/stylesheets/components/_step-indicator.scss
@@ -109,7 +109,7 @@ lg-step-indicator {
 
 .step-indicator__step--complete::before {
   background-color: color('white');
-  background-image: url('/alert/success.svg');
+  background-image: url('alert/success.svg');
 }
 
 .step-indicator__step:not(:last-child)::after {
diff --git a/app/components/icon_component.rb b/app/components/icon_component.rb
index f0c679a5955..7976d647003 100644
--- a/app/components/icon_component.rb
+++ b/app/components/icon_component.rb
@@ -1,4 +1,6 @@
 class IconComponent < BaseComponent
+  include AssetHelper
+
   # See: https://github.com/uswds/uswds/tree/develop/src/img/usa-icons
   ICONS = %i[
     accessibility_new
@@ -254,7 +256,7 @@ def initialize(icon:, **tag_options)
   end
 
   def icon_path
-    asset_path([asset_path('sprite.svg'), '#', icon].join, host: asset_host)
+    asset_path([design_system_asset_path('img/sprite.svg'), '#', icon].join, host: asset_host)
   end
 
   private
diff --git a/app/components/phone_input_component.html.erb b/app/components/phone_input_component.html.erb
index a6d5ce7ecf9..24a495525de 100644
--- a/app/components/phone_input_component.html.erb
+++ b/app/components/phone_input_component.html.erb
@@ -53,4 +53,4 @@
         },
       ) %>
 <% end %>
-<%= stylesheet_link_tag 'intlTelInput' %>
+<%= stylesheet_link_tag 'intl-tel-input/build/css/intlTelInput' %>
diff --git a/app/decorators/service_provider_session_decorator.rb b/app/decorators/service_provider_session_decorator.rb
index d6aeca42be5..83ad7cce508 100644
--- a/app/decorators/service_provider_session_decorator.rb
+++ b/app/decorators/service_provider_session_decorator.rb
@@ -42,8 +42,6 @@ def s3_logo_url(service_provider)
   def legacy_logo_url
     logo = sp_logo
     ActionController::Base.helpers.image_path("sp-logos/#{logo}")
-  rescue Propshaft::MissingAssetError
-    ''
   end
 
   def new_session_heading
diff --git a/app/helpers/asset_helper.rb b/app/helpers/asset_helper.rb
new file mode 100644
index 00000000000..4a4d013ca9c
--- /dev/null
+++ b/app/helpers/asset_helper.rb
@@ -0,0 +1,7 @@
+module AssetHelper
+  DESIGN_SYSTEM_ASSET_ROOT = '@18f/identity-design-system/dist/assets'.freeze
+
+  def design_system_asset_path(path)
+    File.join(DESIGN_SYSTEM_ASSET_ROOT, path)
+  end
+end
diff --git a/app/helpers/script_helper.rb b/app/helpers/script_helper.rb
index b2da5680250..1f7ba137b16 100644
--- a/app/helpers/script_helper.rb
+++ b/app/helpers/script_helper.rb
@@ -39,7 +39,7 @@ def render_javascript_pack_once_tags(*names)
   private
 
   SAME_ORIGIN_ASSETS = %w[
-    sprite.svg
+    @18f/identity-design-system/dist/assets/img/sprite.svg
   ].to_set.freeze
 
   def local_crossorigin_sources?
diff --git a/app/javascript/packages/components/icon.tsx b/app/javascript/packages/components/icon.tsx
index a0b57b7e74e..5bd6d85083c 100644
--- a/app/javascript/packages/components/icon.tsx
+++ b/app/javascript/packages/components/icon.tsx
@@ -1,6 +1,6 @@
 import { getAssetPath } from '@18f/identity-assets';
 
-const SPRITE_URL = getAssetPath('sprite.svg');
+const SPRITE_URL = getAssetPath('@18f/identity-design-system/dist/assets/img/sprite.svg');
 
 export type DesignSystemIcon =
   | 'accessibility_new'
diff --git a/app/views/accounts/_unphishable_badge.html.erb b/app/views/accounts/_unphishable_badge.html.erb
index d93bdfe0130..ff2873288ba 100644
--- a/app/views/accounts/_unphishable_badge.html.erb
+++ b/app/views/accounts/_unphishable_badge.html.erb
@@ -1,6 +1,6 @@
 <div class="lg-verification-badge">
   <%= image_tag(
-        asset_path('alerts/unphishable.svg'),
+        design_system_asset_path('img/alerts/unphishable.svg'),
         size: 16,
         class: 'text-middle',
         alt: '',
diff --git a/app/views/accounts/_verified_account_badge.html.erb b/app/views/accounts/_verified_account_badge.html.erb
index 7a4df1b1628..f43f4f70768 100644
--- a/app/views/accounts/_verified_account_badge.html.erb
+++ b/app/views/accounts/_verified_account_badge.html.erb
@@ -1,6 +1,6 @@
 <div class="lg-verification-badge">
   <%= image_tag(
-        asset_path('alerts/success.svg'),
+        design_system_asset_path('img/alerts/success.svg'),
         size: 16,
         class: 'text-middle',
         alt: '',
diff --git a/app/views/layouts/base.html.erb b/app/views/layouts/base.html.erb
index 302e2562f11..ca6388bd659 100644
--- a/app/views/layouts/base.html.erb
+++ b/app/views/layouts/base.html.erb
@@ -29,25 +29,25 @@
   <%= csrf_meta_tags %>
 
   <%= favicon_link_tag(
-        asset_path('favicons/apple-touch-icon.png'),
+        design_system_asset_path('img/favicons/apple-touch-icon.png'),
         rel: 'apple-touch-icon',
         sizes: '180x180',
         type: 'image/png',
       ) %>
   <%= favicon_link_tag(
-        asset_path('favicons/favicon-40.png'),
+        design_system_asset_path('img/favicons/favicon-40.png'),
         rel: 'icon',
         sizes: '40x40',
         type: 'image/png',
       ) %>
   <%= favicon_link_tag(
-        asset_path('favicons/favicon-16.png'),
+        design_system_asset_path('img/favicons/favicon-16.png'),
         rel: 'icon',
         sizes: '16x16',
         type: 'image/png',
       ) %>
   <%= favicon_link_tag(
-        asset_path('favicons/safari-pinned-tab.svg'),
+        design_system_asset_path('img/favicons/safari-pinned-tab.svg'),
         rel: 'mask-icon',
         color: '#e21c3d',
         type: nil,
diff --git a/app/views/shared/_banner-lock-icon.html.erb b/app/views/shared/_banner-lock-icon.html.erb
index e4da7888a37..feef6e8ee5a 100644
--- a/app/views/shared/_banner-lock-icon.html.erb
+++ b/app/views/shared/_banner-lock-icon.html.erb
@@ -1,5 +1,5 @@
 <%= image_tag(
-      asset_path('lock.svg'),
+      design_system_asset_path('img/lock.svg'),
       width: 9,
       height: 12,
       class: 'usa-banner__lock-image',
diff --git a/config/application.rb b/config/application.rb
index c788559fec9..cb186ffee26 100644
--- a/config/application.rb
+++ b/config/application.rb
@@ -5,6 +5,7 @@
 require 'action_view/railtie'
 require 'action_mailer/railtie'
 require 'rails/test_unit/railtie'
+require 'sprockets/railtie'
 require 'identity/logging/railtie'
 
 require_relative '../lib/asset_sources'
@@ -55,6 +56,8 @@ class Application < Rails::Application
     config.load_defaults '7.0'
     config.active_record.belongs_to_required_by_default = false
     config.active_record.legacy_connection_handling = false
+    config.assets.unknown_asset_fallback = true
+    config.assets.resolve_assets_in_css_urls = true
     config.active_job.queue_adapter = :good_job
 
     FileUtils.mkdir_p(Rails.root.join('log'))
diff --git a/config/environments/development.rb b/config/environments/development.rb
index 928cceb38fc..1306d3da830 100644
--- a/config/environments/development.rb
+++ b/config/environments/development.rb
@@ -4,7 +4,10 @@
   config.consider_all_requests_local = true
   config.active_support.deprecation = :log
   config.active_record.migration_error = :page_load
-  config.file_watcher = ActiveSupport::EventedFileUpdateChecker
+  config.assets.debug = true
+  config.assets.digest = true
+  config.assets.gzip = false
+  config.assets.raise_runtime_errors = true
   config.i18n.raise_on_missing_translations = true
 
   # Raise exceptions for disallowed deprecations.
diff --git a/config/environments/production.rb b/config/environments/production.rb
index 4935e502264..330ac83cb27 100644
--- a/config/environments/production.rb
+++ b/config/environments/production.rb
@@ -6,7 +6,14 @@
   config.action_controller.perform_caching = true
   config.force_ssl = true
 
-  config.asset_host = IdentityConfig.store.asset_host.presence || IdentityConfig.store.domain_name
+  config.asset_host = proc do |_source, request|
+    # we want precompiled assets to have domain-agnostic URLs
+    # and request is nil during asset precompilation
+    (IdentityConfig.store.asset_host.presence || IdentityConfig.store.domain_name) if request
+  end
+  config.assets.compile = false
+  config.assets.digest = true
+  config.assets.gzip = false
   config.i18n.fallbacks = true
   config.active_support.deprecation = :notify
   config.active_record.dump_schema_after_migration = false
diff --git a/config/environments/test.rb b/config/environments/test.rb
index cc6088fca3c..7a3bb2b6afa 100644
--- a/config/environments/test.rb
+++ b/config/environments/test.rb
@@ -12,12 +12,15 @@
   config.action_controller.allow_forgery_protection = false
   config.active_support.test_order = :random
   config.active_support.deprecation = :stderr
+  config.assets.gzip = false
   config.i18n.raise_on_missing_translations = true
 
   config.action_mailer.delivery_method = :test
   config.action_mailer.default_url_options = { host: IdentityConfig.store.domain_name }
   config.action_mailer.asset_host = IdentityConfig.store.mailer_domain_name
 
+  config.assets.debug = false
+
   # Raise exceptions for disallowed deprecations.
   config.active_support.disallowed_deprecation = :raise
 
@@ -29,6 +32,8 @@
 
   config.action_controller.asset_host = ENV['RAILS_ASSET_HOST'] if ENV.key?('RAILS_ASSET_HOST')
 
+  config.assets.digest = ENV.key?('RAILS_DISABLE_ASSET_DIGEST') ? false : true
+
   config.middleware.use RackSessionAccess::Middleware
 
   config.after_initialize do
diff --git a/config/initializers/assets.rb b/config/initializers/assets.rb
index 9d43c2aae76..cc0cc161230 100644
--- a/config/initializers/assets.rb
+++ b/config/initializers/assets.rb
@@ -5,8 +5,13 @@
 
 # Add additional assets to the asset load path
 Rails.application.config.assets.paths.push(
-  'node_modules/intl-tel-input/build/img',
-  'node_modules/intl-tel-input/build/css',
-  'node_modules/@18f/identity-design-system/dist/assets/img',
+  'node_modules',
   'node_modules/@18f/identity-design-system/dist/assets/fonts',
 )
+
+# Fix sassc sometimes segfaulting
+Rails.application.config.assets.configure do |env|
+  env.export_concurrent = false
+end
+
+Sprockets.export_concurrent = Rails.env.test?
diff --git a/docs/troubleshooting.md b/docs/troubleshooting.md
index 0867ca17ede..b40fcaab89f 100644
--- a/docs/troubleshooting.md
+++ b/docs/troubleshooting.md
@@ -85,6 +85,14 @@ Use Control+X to save the file.
 
 Restart your Mac to cause the .plist to take effect. Check the limits again and you should see both `ulimit -n` and `launchctl limit maxfiles` return a limit of 524288.
 
+### Errors related to _sassc_
+
+If you are getting the error:
+```
+LoadError: cannot load such file -- sassc
+```
+Try `make run` for a short time, then use Ctrl+C to kill it
+
 ### Errors relating to OpenSSL versions
 
 If you get this error during test runs:
diff --git a/scripts/artifact-upload b/scripts/artifact-upload
index 99eae75e51a..10b4c467914 100755
--- a/scripts/artifact-upload
+++ b/scripts/artifact-upload
@@ -33,7 +33,7 @@ branch_environments.map do |upload_environment|
   raise 'artifact copy failed' unless status.success?
 
   assets_sync_command = <<-CMD
-    aws s3 sync --size-only --cache-control max-age=31536000 --exclude ".manifest.json" public/assets s3://#{static_bucket}/assets
+    aws s3 sync --size-only --cache-control max-age=31536000 --exclude .sprockets-manifest-*.json public/assets s3://#{static_bucket}/assets
   CMD
   _output, status = Open3.capture2(assets_sync_command)
   raise 'assets sync failed' unless status.success?
diff --git a/spec/helpers/asset_helper_spec.rb b/spec/helpers/asset_helper_spec.rb
new file mode 100644
index 00000000000..3952a2b34f2
--- /dev/null
+++ b/spec/helpers/asset_helper_spec.rb
@@ -0,0 +1,23 @@
+require 'rails_helper'
+
+RSpec.describe AssetHelper do
+  include AssetHelper
+
+  describe 'design_system_asset_path' do
+    let(:path) { 'img/example.png' }
+
+    subject(:asset_path) { design_system_asset_path(path) }
+
+    it 'produces an asset path' do
+      expect(asset_path).to eq('@18f/identity-design-system/dist/assets/img/example.png')
+    end
+
+    context 'with leading slash' do
+      let(:path) { '/img/example.png' }
+
+      it 'produces an asset path' do
+        expect(asset_path).to eq('@18f/identity-design-system/dist/assets/img/example.png')
+      end
+    end
+  end
+end
diff --git a/spec/helpers/script_helper_spec.rb b/spec/helpers/script_helper_spec.rb
index 5e82355dd38..f0abd0d6489 100644
--- a/spec/helpers/script_helper_spec.rb
+++ b/spec/helpers/script_helper_spec.rb
@@ -32,7 +32,7 @@
         allow(AssetSources).to receive(:get_sources).with('application', 'document-capture').
           and_return(['/application.js', '/document-capture.js'])
         allow(AssetSources).to receive(:get_assets).with('application', 'document-capture').
-          and_return(['clock.svg', 'sprite.svg'])
+          and_return(['clock.svg', '@18f/identity-design-system/dist/assets/img/sprite.svg'])
       end
 
       it 'prints asset paths sources' do
@@ -43,7 +43,8 @@
           visible: :all,
           text: {
             'clock.svg' => 'http://test.host/clock.svg',
-            'sprite.svg' => 'http://test.host/sprite.svg',
+            '@18f/identity-design-system/dist/assets/img/sprite.svg' =>
+              'http://test.host/@18f/identity-design-system/dist/assets/img/sprite.svg',
           }.to_json,
         )
       end
@@ -65,7 +66,8 @@
             visible: :all,
             text: {
               'clock.svg' => 'http://assets.example.com/clock.svg',
-              'sprite.svg' => 'http://example.com/sprite.svg',
+              '@18f/identity-design-system/dist/assets/img/sprite.svg' =>
+                'http://example.com/@18f/identity-design-system/dist/assets/img/sprite.svg',
             }.to_json,
           )
         end