diff --git a/gns3server/modules/iou/iou_vm.py b/gns3server/modules/iou/iou_vm.py
index 1bfa2e6d..90378855 100644
--- a/gns3server/modules/iou/iou_vm.py
+++ b/gns3server/modules/iou/iou_vm.py
@@ -146,6 +146,16 @@ class IOUVM(BaseVM):
             path = relative_path
 
         self._path = path
+
+        # In 1.2 users uploaded images to the images roots
+        # after the migration their images are inside images/IOU
+        # but old topologies use old path
+        if "IOU" not in self._path:
+            location, filename = os.path.split(self._path)
+            fix_path = os.path.join(location, "IOU", filename)
+            if os.path.isfile(fix_path):
+                self._path = fix_path
+
         if not os.path.isfile(self._path) or not os.path.exists(self._path):
             if os.path.islink(self._path):
                 raise IOUError("IOU image '{}' linked to '{}' is not accessible".format(self._path, os.path.realpath(self._path)))
diff --git a/tests/modules/iou/test_iou_vm.py b/tests/modules/iou/test_iou_vm.py
index 7885fd6c..8ee3a21f 100644
--- a/tests/modules/iou/test_iou_vm.py
+++ b/tests/modules/iou/test_iou_vm.py
@@ -202,6 +202,15 @@ def test_path(vm, fake_iou_bin):
     assert vm.path == fake_iou_bin
 
 
+def test_path_12_location(vm, fake_iou_bin):
+
+    # In 1.2 users uploaded images to the images roots
+    # after the migration their images are inside images/IOU
+    # but old topologies use old path
+    vm.path = fake_iou_bin.replace("/IOU", "")
+    assert vm.path == fake_iou_bin
+
+
 def test_path_relative(vm, fake_iou_bin, tmpdir):
 
     config = Config.instance()