diff --git a/packages/optimizely-cms-sdk/src/react/__test__/assetsUtils.test.tsx b/packages/optimizely-cms-sdk/src/react/__test__/assetsUtils.test.tsx
index 4a07d2aa..af5120b3 100644
--- a/packages/optimizely-cms-sdk/src/react/__test__/assetsUtils.test.tsx
+++ b/packages/optimizely-cms-sdk/src/react/__test__/assetsUtils.test.tsx
@@ -65,14 +65,16 @@ describe('getPreviewUtils', () => {
   };
 
   describe('src()', () => {
-    it('should return empty string when not in preview mode', () => {
+    it('should return item.Url when not in preview mode', () => {
       const utils = getPreviewUtils({ __typename: 'TestPage' });
       const result = utils.src(mockImageAsset);
 
-      expect(result).toBe('');
+      expect(result).toBe(
+        'https://assets.local-cms.com/0a2f4b27-4f15-4bb9-ba14-d69b49ae5b85/cmp_73d48db0-2abe-4a33-91f5-94d0ac5e85e5.jpg'
+      );
     });
 
-    it('should append preview token to item URL', () => {
+    it('should append preview token to item.Url in preview mode', () => {
       const utils = getPreviewUtils({
         __typename: 'TestPage',
         __context: { edit: true, preview_token: 'test-token-123' },
@@ -85,7 +87,75 @@ describe('getPreviewUtils', () => {
       );
     });
 
-    it('should append preview token to string URL', () => {
+    it('should use url.default when item.Url is null', () => {
+      const assetWithDefaultUrl: InferredContentReference = {
+        url: {
+          type: null,
+          default: 'https://example.com/default-image.jpg',
+          hierarchical: null,
+          internal: null,
+          graph: null,
+          base: null,
+        },
+        item: {
+          __typename: 'cmp_PublicImageAsset' as const,
+          Url: null,
+          Title: 'Test Image',
+          AltText: 'Test alt text',
+          Description: 'Test description',
+          Renditions: [],
+          FocalPoint: null,
+          Tags: [],
+        },
+      };
+
+      const utils = getPreviewUtils({ __typename: 'TestPage' });
+      const result = utils.src(assetWithDefaultUrl);
+
+      expect(result).toBe('https://example.com/default-image.jpg');
+    });
+
+    it('should append preview token to url.default in preview mode', () => {
+      const assetWithDefaultUrl: InferredContentReference = {
+        url: {
+          type: null,
+          default: 'https://example.com/default-image.jpg',
+          hierarchical: null,
+          internal: null,
+          graph: null,
+          base: null,
+        },
+        item: {
+          __typename: 'cmp_PublicImageAsset' as const,
+          Url: null,
+          Title: 'Test Image',
+          AltText: 'Test alt text',
+          Description: 'Test description',
+          Renditions: [],
+          FocalPoint: null,
+          Tags: [],
+        },
+      };
+
+      const utils = getPreviewUtils({
+        __typename: 'TestPage',
+        __context: { edit: true, preview_token: 'test-token-456' },
+      });
+      const result = utils.src(assetWithDefaultUrl);
+
+      expect(result).toBe(
+        'https://example.com/default-image.jpg?preview_token=test-token-456'
+      );
+    });
+
+    it('should handle string URL input', () => {
+      const utils = getPreviewUtils({ __typename: 'TestPage' });
+      const result = utils.src('https://example.com/image.jpg');
+
+      expect(result).toBe('https://example.com/image.jpg');
+    });
+
+    it('should append preview token to string URL in preview mode', () => {
       const utils = getPreviewUtils({
         __typename: 'TestPage',
         __context: { edit: true, preview_token: 'test-token-123' },
@@ -97,12 +167,87 @@ describe('getPreviewUtils', () => {
       );
     });
 
-    it('should return empty string for string URL when not in preview mode', () => {
+    it('should return empty string for null input', () => {
       const utils = getPreviewUtils({ __typename: 'TestPage' });
-      const result = utils.src('https://example.com/image.jpg');
+      const result = utils.src(null);
 
       expect(result).toBe('');
     });
+
+    it('should return empty string for undefined input', () => {
+      const utils = getPreviewUtils({ __typename: 'TestPage' });
+      const result = utils.src(undefined);
+
+      expect(result).toBe('');
+    });
+
+    it('should return empty string when asset has no URL', () => {
+      const assetWithoutUrl: InferredContentReference = {
+        url: {
+          type: null,
+          default: null,
+          hierarchical: null,
+          internal: null,
+          graph: null,
+          base: null,
+        },
+        item: {
+          __typename: 'cmp_PublicImageAsset' as const,
+          Url: null,
+          Title: 'Test Image',
+          AltText: 'Test alt text',
+          Description: 'Test description',
+          Renditions: [],
+          FocalPoint: null,
+          Tags: [],
+        },
+      };
+
+      const utils = getPreviewUtils({ __typename: 'TestPage' });
+      const result = utils.src(assetWithoutUrl);
+
+      expect(result).toBe('');
+    });
+
+    it('should handle URLs with existing query parameters', () => {
+      const utils = getPreviewUtils({
+        __typename: 'TestPage',
+        __context: { edit: true, preview_token: 'test-token-123' },
+      });
+      const result = utils.src('https://example.com/image.jpg?width=500');
+
+      expect(result).toBe(
+        'https://example.com/image.jpg?width=500&preview_token=test-token-123'
+      );
+    });
+
+    it('should prefer url.default over item.Url when both exist', () => {
+      const assetWithBothUrls: InferredContentReference = {
+        url: {
+          type: null,
+          default: 'https://example.com/default-url.jpg',
+          hierarchical: null,
+          internal: null,
+          graph: null,
+          base: null,
+        },
+        item: {
+          __typename: 'cmp_PublicImageAsset' as const,
+          Url: 'https://example.com/item-url.jpg',
+          Title: 'Test Image',
+          AltText: 'Test alt text',
+          Description: 'Test description',
+          Renditions: [],
+          FocalPoint: null,
+          Tags: [],
+        },
+      };
+
+      const utils = getPreviewUtils({ __typename: 'TestPage' });
+      const result = utils.src(assetWithBothUrls);
+
+      expect(result).toBe('https://example.com/default-url.jpg');
+    });
   });
 
   describe('getSrcset()', () => {
diff --git a/packages/optimizely-cms-sdk/src/react/server.tsx b/packages/optimizely-cms-sdk/src/react/server.tsx
index bb64a54e..251be4d2 100644
--- a/packages/optimizely-cms-sdk/src/react/server.tsx
+++ b/packages/optimizely-cms-sdk/src/react/server.tsx
@@ -343,13 +343,17 @@ export function getPreviewUtils(opti: OptimizelyComponentProps['opti']) {
     src(input: InferredContentReference | string | null | undefined): string {
       const previewToken = opti.__context?.preview_token;
 
-      // if input is a ContentReference
-      if (typeof input === 'object' && previewToken && input?.item?.Url) {
-        return appendToken(input?.item?.Url, previewToken);
+      // if input is an object with a URL
+      if (typeof input === 'object' && input) {
+        // if dam asset is selected the default URL is in input.url.default will be null
+        const url = input.url?.default ?? input.item?.Url;
+        if (url) {
+          return appendToken(url, previewToken);
+        }
       }
 
       // if input is a string URL
-      if (typeof input === 'string' && previewToken) {
+      if (typeof input === 'string') {
         return appendToken(input, previewToken);
       }
 
diff --git a/packages/optimizely-cms-sdk/src/util/preview.ts b/packages/optimizely-cms-sdk/src/util/preview.ts
index 6d0e9566..ebdd0340 100644
--- a/packages/optimizely-cms-sdk/src/util/preview.ts
+++ b/packages/optimizely-cms-sdk/src/util/preview.ts
@@ -7,7 +7,7 @@
  * @returns The URL with the preview token appended as a query parameter.
  */
 export const appendToken = (url: string, previewToken?: string): string => {
-  if (!previewToken) return url;
+  if (!previewToken || previewToken.trim() === '') return url;
   const separator = url.includes('?') ? '&' : '?';
   return `${url}${separator}preview_token=${previewToken}`;
 };
diff --git a/samples/nextjs-template/src/app/globals.css b/samples/nextjs-template/src/app/globals.css
index 049fa29b..e2eb7456 100644
--- a/samples/nextjs-template/src/app/globals.css
+++ b/samples/nextjs-template/src/app/globals.css
@@ -414,7 +414,6 @@ a:hover span.animate {
 .about-us .about-us-image {
   position: relative;
   width: 100%;
-  padding-top: 56.25%;
 }
 
 .about-us .about-us-image img {