diff --git a/rpcs3/Emu/RSX/Overlays/overlay_message_dialog.cpp b/rpcs3/Emu/RSX/Overlays/overlay_message_dialog.cpp
index 5215080247..19f64893d0 100644
--- a/rpcs3/Emu/RSX/Overlays/overlay_message_dialog.cpp
+++ b/rpcs3/Emu/RSX/Overlays/overlay_message_dialog.cpp
@@ -49,16 +49,12 @@ namespace rsx
 
 			if (use_custom_background)
 			{
-				auto icon_path = Emu.GetSfoDir() + "/PIC1.PNG";
-				if (!fs::exists(icon_path))
-				{
-					// Fallback path
-					icon_path = Emu.GetSfoDir() + "/ICON0.PNG";
-				}
+				const auto picture_path = Emu.GetBackgroundPicturePath();
 
-				if (fs::exists(icon_path))
+				if (fs::exists(picture_path))
 				{
-					background_image = std::make_unique<image_info>(icon_path.c_str());
+					background_image = std::make_unique<image_info>(picture_path.c_str());
+
 					if (background_image->data)
 					{
 						f32 color                    = (100 - g_cfg.video.shader_preloading_dialog.darkening_strength) / 100.f;
diff --git a/rpcs3/Emu/System.cpp b/rpcs3/Emu/System.cpp
index dd5298105d..b110651cf5 100644
--- a/rpcs3/Emu/System.cpp
+++ b/rpcs3/Emu/System.cpp
@@ -492,6 +492,41 @@ const bool Emulator::SetUsr(const std::string& user)
 	return true;
 }
 
+const std::string Emulator::GetBackgroundPicturePath() const
+{
+	std::string path = m_sfo_dir + "/PIC1.PNG";
+
+	if (!fs::exists(path))
+	{
+		const std::string disc_dir = vfs::get("/dev_bdvd/PS3_GAME");
+
+		if (disc_dir.empty())
+		{
+			// Fallback to ICON0.PNG
+			path = m_sfo_dir + "/ICON0.PNG";
+		}
+		else
+		{
+			// Fallback to PIC1.PNG in disc dir
+			path = disc_dir + "/PIC1.PNG";
+
+			if (!fs::exists(path))
+			{
+				// Fallback to ICON0.PNG in update dir
+				path = m_sfo_dir + "/ICON0.PNG";
+
+				if (!fs::exists(path))
+				{
+					// Fallback to ICON0.PNG in disc dir
+					path = disc_dir + "/ICON0.PNG";
+				}
+			}
+		}
+	}
+
+	return path;
+}
+
 std::string Emulator::PPUCache() const
 {
 	const auto _main = fxm::check_unlocked<ppu_module>();
diff --git a/rpcs3/Emu/System.h b/rpcs3/Emu/System.h
index 4487306eb1..05baca33ad 100644
--- a/rpcs3/Emu/System.h
+++ b/rpcs3/Emu/System.h
@@ -328,6 +328,8 @@ public:
 
 	const bool SetUsr(const std::string& user);
 
+	const std::string GetBackgroundPicturePath() const;
+
 	u64 GetPauseTime()
 	{
 		return m_pause_amend_time;