diff --git a/CHANGELOG.md b/CHANGELOG.md
index f0427550a..48e9ded1e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,9 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 
 ## [Unreleased]
+### Fixed
+- Fix regression from `v26.2.0` that caused channel logo watermarks to be ignored when the logo is a url
+  - This affected external logo urls and generated channel logos
 
 ## [26.7.0] - 2026-07-27
 ### Added
diff --git a/ErsatzTV.Core.Tests/FFmpeg/WatermarkSelectorChannelLogoTests.cs b/ErsatzTV.Core.Tests/FFmpeg/WatermarkSelectorChannelLogoTests.cs
new file mode 100644
index 000000000..0804fa081
--- /dev/null
+++ b/ErsatzTV.Core.Tests/FFmpeg/WatermarkSelectorChannelLogoTests.cs
@@ -0,0 +1,130 @@
+using ErsatzTV.Core.Domain;
+using ErsatzTV.Core.FFmpeg;
+using ErsatzTV.Core.Interfaces.Images;
+using ErsatzTV.Core.Scheduling;
+using Microsoft.Extensions.Logging.Abstractions;
+using NSubstitute;
+using NUnit.Framework;
+using Shouldly;
+using Testably.Abstractions.Testing;
+
+namespace ErsatzTV.Core.Tests.FFmpeg;
+
+[TestFixture]
+public class WatermarkSelectorChannelLogoTests
+{
+    private const string CachedLogoPath = "/tmp/logo";
+
+    private static WatermarkSelector Selector()
+    {
+        var mockFileSystem = new MockFileSystem();
+        mockFileSystem.Initialize().WithFile(CachedLogoPath);
+
+        var fakeImageCache = Substitute.For<IImageCache>();
+        fakeImageCache.GetPathForImage(Arg.Any<string>(), Arg.Is(ArtworkKind.Logo), Arg.Any<Option<int>>())
+            .Returns(_ => CachedLogoPath);
+
+        return new WatermarkSelector(
+            mockFileSystem,
+            fakeImageCache,
+            new DecoSelector(),
+            NullLogger<WatermarkSelector>.Instance);
+    }
+
+    private static Channel ChannelWithLogo(params Artwork[] artwork) =>
+        new(Guid.Empty)
+        {
+            Id = 0,
+            Name = "Test Channel",
+            StreamingMode = StreamingMode.TransportStream,
+            Artwork = [..artwork],
+            Watermark = new ChannelWatermark
+            {
+                Id = 1,
+                Name = "Channel",
+                ImageSource = ChannelWatermarkImageSource.ChannelLogo
+            }
+        };
+
+    [Test]
+    public void Should_Use_External_Url_Channel_Logo()
+    {
+        const string ExternalUrl = "https://example.com/images/logo.png";
+
+        Channel channel = ChannelWithLogo(new Artwork { ArtworkKind = ArtworkKind.Logo, Path = ExternalUrl });
+
+        Option<WatermarkOptions> result = Selector().GetWatermarkOptions(
+            channel,
+            Option<ChannelWatermark>.None,
+            Option<ChannelWatermark>.None,
+            true);
+
+        result.IsSome.ShouldBeTrue();
+        foreach (WatermarkOptions options in result)
+        {
+            options.ImagePath.ShouldBe(ExternalUrl);
+        }
+    }
+
+    [Test]
+    public void Should_Use_Generated_Channel_Logo_Url_When_No_Logo_Artwork()
+    {
+        Channel channel = ChannelWithLogo();
+
+        Option<WatermarkOptions> result = Selector().GetWatermarkOptions(
+            channel,
+            Option<ChannelWatermark>.None,
+            Option<ChannelWatermark>.None,
+            true);
+
+        result.IsSome.ShouldBeTrue();
+        foreach (WatermarkOptions options in result)
+        {
+            options.ImagePath.ShouldContain("/iptv/logos/gen");
+        }
+    }
+
+    [Test]
+    public void Should_Use_Cached_Channel_Logo()
+    {
+        Channel channel = ChannelWithLogo(new Artwork { ArtworkKind = ArtworkKind.Logo, Path = "logo.png" });
+
+        Option<WatermarkOptions> result = Selector().GetWatermarkOptions(
+            channel,
+            Option<ChannelWatermark>.None,
+            Option<ChannelWatermark>.None,
+            true);
+
+        result.IsSome.ShouldBeTrue();
+        foreach (WatermarkOptions options in result)
+        {
+            options.ImagePath.ShouldBe(CachedLogoPath);
+        }
+    }
+
+    [Test]
+    public void Should_Ignore_Missing_Cached_Channel_Logo()
+    {
+        var mockFileSystem = new MockFileSystem();
+
+        var fakeImageCache = Substitute.For<IImageCache>();
+        fakeImageCache.GetPathForImage(Arg.Any<string>(), Arg.Is(ArtworkKind.Logo), Arg.Any<Option<int>>())
+            .Returns(_ => "/tmp/missing-logo");
+
+        var selector = new WatermarkSelector(
+            mockFileSystem,
+            fakeImageCache,
+            new DecoSelector(),
+            NullLogger<WatermarkSelector>.Instance);
+
+        Channel channel = ChannelWithLogo(new Artwork { ArtworkKind = ArtworkKind.Logo, Path = "logo.png" });
+
+        Option<WatermarkOptions> result = selector.GetWatermarkOptions(
+            channel,
+            Option<ChannelWatermark>.None,
+            Option<ChannelWatermark>.None,
+            true);
+
+        result.IsNone.ShouldBeTrue();
+    }
+}
diff --git a/ErsatzTV.Core/FFmpeg/WatermarkSelector.cs b/ErsatzTV.Core/FFmpeg/WatermarkSelector.cs
index c777cf325..09eb19c21 100644
--- a/ErsatzTV.Core/FFmpeg/WatermarkSelector.cs
+++ b/ErsatzTV.Core/FFmpeg/WatermarkSelector.cs
@@ -238,7 +238,8 @@ public class WatermarkSelector(
                             : imageCache.GetPathForImage(logoArtwork.Path, ArtworkKind.Logo, Option<int>.None);
                     }
 
-                    if (fileSystem.File.Exists(channelPath))
+                    // urls (external logos, generated channel logos) can't be checked on the file system
+                    if (Artwork.IsExternalUrl(channelPath) || fileSystem.File.Exists(channelPath))
                     {
                         return new WatermarkOptions(watermark, channelPath, None);
                     }
@@ -287,7 +288,8 @@ public class WatermarkSelector(
                             : imageCache.GetPathForImage(logoArtwork.Path, ArtworkKind.Logo, Option<int>.None);
                     }
 
-                    if (fileSystem.File.Exists(channelPath))
+                    // urls (external logos, generated channel logos) can't be checked on the file system
+                    if (Artwork.IsExternalUrl(channelPath) || fileSystem.File.Exists(channelPath))
                     {
                         return new WatermarkOptions(channel.Watermark, channelPath, None);
                     }
@@ -336,7 +338,8 @@ public class WatermarkSelector(
                             : imageCache.GetPathForImage(logoArtwork.Path, ArtworkKind.Logo, Option<int>.None);
                     }
 
-                    if (fileSystem.File.Exists(channelPath))
+                    // urls (external logos, generated channel logos) can't be checked on the file system
+                    if (Artwork.IsExternalUrl(channelPath) || fileSystem.File.Exists(channelPath))
                     {
                         return new WatermarkOptions(watermark, channelPath, None);
                     }