issue 1229 source_style.scss is actually source/style.scss Directory structure: $ ls -R .: config.rb source static ./source: sprite style.scss ./source/sprite: comments.png ./static: Console: $ compass compile create static/sprite-s5794f1a3f8.png File not found or cannot be read: /home/user/issue_1229/source/sprite-s5794f1a3f8.png

config.rb

# Set this to the root of your project when deployed:
http_path = "/"
css_dir = "static"
sass_dir = "source"
images_dir = "source"
generated_images_dir = "static"

# To enable relative paths to assets via compass helper functions. Uncomment:
relative_assets = true

sass_options = { :debug_info => true }

source_style.scss

$sprite-inline: true;

@import "sprite/*.png";

icon {
    @include sprite-sprite("comments");
}